MDM Vs PIM Explained To Multi-Channel Retail Companies
The key to multi-channel retailing success lies in PIM in a consistent manner. With poor data quality, retail businesses cannot thrive for long. For better results, multi-channel retailers want a comprehensive PIM solution. In PIM or product information management system, product information is stored and mixed with robust functionalities by integrating data and governance.
Discussion about PIM will be incomplete if we do not take MDM or master data management into consideration. It is also a fundamental service for multichannel retailers. Master data management (MDM) is a system that works together to ensure the security, uniformity, accuracy, consistency, and accountability of the enterprise’s master data assets. Master data is the set of identifiers and attributes that include customers, prospects, suppliers, sites, and accounts.
A significant number of companies opt for the PIM and MDM solution as they can offer a better, faster option when it comes to storing, securing, and pushing out product descriptions across multiple channels.
Let’s go onto some of the differences between MDM and PIM system for your business.
MDM vs PIM
System Requirements - Internal Vs. External
Master Data Management (MDM) is a system that gives businesses a single and trusted source for back-end data of the enterprise. MDM works as an internal solution that organizes and cleanses the digital assets of a company. Whereas, the PIM solution is designed for external requirements and to enrich product information.
A Product Information Management (PIM) solution centrally manages all the product information for enterprises. It also allows retailers to follow an omnichannel marketing strategy with quality content. A PIM is a marketing solution that helps businesses integrate across multi retail channels, collect data, and better reach consumers with their content.
Data Streamlining - Product Enrichment Vs. Workflows
The main focus of MDM is not the product data. And, a PIM system helps you to improve how your product data is processed and mainly focuses on improving product enrichment. With a PIM system, data workflows can be improved at the different stages of product enrichment. The main benefit of setting up a workflow is that you allow your team members to receive notifications for the product enrichment journey.
If your company wants to keep track of all crucial business data, then Master Data management is your best bet. But if your company intends towards data management, then a PIM system allows helping you to improve the data metrics that also determine the quality of your products. So there is no point going with an overall MDM system or PIM system for your organization’s needs.
Revenue - Low Budget Vs. High Budget
Needless to say, MDM is not designed for your marketing needs. It pulls together all of the business elements that allow your retail business to run. If you have a tight budget for data management, then a product Information management or PIM system is the best option. It empowers your marketing team by maintaining your product data by using optimal workflows and turn your product management into a seamless business process.
It is better if you invest in PIM first for brand awareness, marketing, and customer engagement before choosing the full-stretched Master Data Management system. So, to ensure cost-effective data management for your multi-channel retail business, PIM should be your first choice.
Business Process - Complexity Vs. Simplicity
For large enterprise companies, the MDM system typically helps them refine all their internal data processes. But, MDM implementation needs a lot of resources and can turn the process into a complex one. This complexity in data processing is mainly related to data that often being stored in disparate systems. For example, customer address might be store in the ordering system and customer name in the marketing system.
On the other hand, a PIM system gives you more accurate information on product data attributes. The PIM systems are quicker to deploy and easy to implement because they are only concerned with product enrichment. No doubt, the product information management system is the best investment you can make for your multi-channel retail business.
In the End
Hope these points will help you understand the difference between MDM and PIM in a deep way. This will also help you determine whether MDM or PIM is ideal for your retail business at this time. Taking your specific business goals into consideration will help you determine which solution is right for your business.