What Is the Difference Between Product Data Management and PIM?

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by Lumavate | Last Updated: Mar 24, 2024

What Is Product MDM?

MDM meaning a Master Data Management (MDM) solution, is designed to centralize all of an organization's information in one place. It provides a company with a single source of truth for all information across the organization, whether that's product data or data of another kind.

An MDM solution is typically an enterprise-wide deployment that is extensive to implement, which is why many businesses look into other options, first. However, having an MDM solution can be helpful in staying organized.

Another option is to use product master data management, which refers to the centralized management of all product master data. It's possible to use an MDM solution to handle product master data management, but most companies find that a Product Information Management (PIM) solution is a better option they can use to centralize the management of product master data attributes and related product digital assets. Even more beneficially, a PIM solution is substantially easier to implement and more useful for the marketing and sales team compared to an enterprise-wide MDM solution.

What Is the Difference Between Product Data Management and PIM?

The goal of a Product Information Management (PIM) solution is to help organizations centralize the management of product information including product data and digital assets. When items are centralized in this way, anyone can access it from any location, and updated content is held in one easy-to-find location. Remember that product information is used across a wide variety of online and print product experiences, such as:

As well as many others. With a Master Data Management (MDM) solution, it's possible to centralize all of this data and have a single source of truth for the information. However, the cost of doing this can be high, and it can be time-intensive to implement.

An alternative is a product information management solution. For marketing and sales teams, PIM is not only easier to implement but also more useful, as they will often need to access product information to do their jobs.

What Does PIM Mean in Product Management?

Product Information Management has a straightforward definition. It is the process of managing all types of product information required to market, sell, and service products a company has to offer.

Product Information Management (PIM), like MDM, does involve the centralization of a company's assets. All product information has to be stored centrally, making it easy to access and manage no matter which department needs to use it. With this centralization, multiple people in the organization can reach the data from wherever they are, making it much less difficult to share updated documents or data across the company.

Many companies place the responsibility of product data management on product managers when the company hasn't hired a specific product information manager. As a result, using a PIM solution can be an excellent way to make the job easier and to stay organized. Remember, a key responsibility of product management is providing the marketing and sales team with detailed product information. With that data, they can effectively market and sell a product.

What Is a PIM Tool?

A PIM tool is one that helps users store and manage all types of product data in a centralized location. This product data can include:

Product information can also include related digital assets such as:

One additional thing to note is that if a PIM solution has built-in Digital Asset Management (DAM) functionality, it can be used for multiple purposes. A PIM solution typically allows multiple users to log in to the software and update product data in real-time, preventing the lag that could occur with other kinds of software. It serves as a single source of truth for all product information, reducing the likelihood of errors or mistakes caused by outdated materials and data.

Today, there are several PIM software solutions on the market. They include:

All of these PIM software examples offer the ability to centralize the management of product data. However, some solutions offer additional functionality. For example, out of all these product information management tools, Lumavate is the preferred solution thanks to its robust functionality as a PIM, Digital Asset Management (DAM) solution, and Digital Experience Platform (DXP).

At Lumavate, we know that managing your data the right way can make a difference in your day-to-day tasks and overall ROI. With Lumavate, you can build product catalogs, product sheets, and campaigns, connect in-person events to digital product experiences, and so much more. Ready to take a product tourSchedule a demo with our team today.

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