Product Information Management Made Easy Focus on Customer and Business Needs to Improve Bottom-Line Results
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1 Product Information Management Made Easy Focus on Customer and Business Needs to Improve Bottom-Line Results Research Perspective Sponsored by
2 2 Ventana Research 2015 Table of Contents PIM Is a Business Process 3 The Right Technology Helps 4 How to Choose PIM 5 About Ventana Research 7
3 3 Ventana Research 2015 PIM Is a Business Process Product information management is a common thread that runs through marketing, sales and commerce as well as the supply and service chain. Effective management of product information should be a top priority for any company, as it can reduce the time and cost of generating, storing, managing and publishing information. It also can reduce the risk of errors that can alienate customers, damage a company s reputation and impact sales. Product information also aligns to the generation of revenue from products and services. In our view, the most direct path to effective management of products is product information management. PIM, as it commonly is referred to, is a simple concept: It is the processes, information and technology used to manage all of an organization s product information to established formats and standards. The goal of PIM is to have product information that is consistent and readily available to any person or for any process at any time. Product information can include various types of data: item number, reference, catalog and SKU data; descriptive content, documents and text; translations and other localizations; and images and videos. PIM provides standard product information for universal use, by everyone from internal business operations through customers. It provides a centralized platform where all product attributes and details are stored so they are accessible as needed, including by publishing to systems that are used to support interactions with customers and distributors, the operations of the supply chain and the manufacturing of the products and services the information describes. PIM not only defines product consistently but also enables the associa-
4 4 Ventana Research 2015 tion of related information assets and manages the use of all product information, including providing analytics to track their use and audit changes. Despite its value and appeal, however, our benchmark research shows that PIM is in many organizations still immature for the moment. More than half (57%) of research participants plan to change the way they manage product information in the next 12 to 18 months. In light of the importance role of PIM in supporting a range of business processes, the majority of organizations are making substantive PIMrelated changes to their processes, supporting applications and technology. The Right Technology Helps All product-related processes, from development to delivery and marketing to sales, as well as those associated with customer interactions and support, require information. Dedicated applications can help businesses manage the information component of these processes effectively. Our research shows that organizations differ substantially in how successfully they manage PIM-related software. Almost half (47%) of those using dedicated PIM applications said it eliminates errors and mistakes. It also improves potential for further sales, according to 44 percent. In contrast, 94 percent of organizations use spreadsheets to support product information in various complementary ways or as the center of how they manage product information. More than half (56%) of them frequently find errors, and only 6 percent rarely or never find them. Manual effort is the most common way to create a single complete, consistent and reliable product record. It is used by 45 percent of
5 5 Ventana Research 2015 organizations, but one in three of them are dissatisfied with their process. By contrast, only 27 percent use a dedicated PIM application to create such a product record, but those organizations reported a range of benefits, both operational (eliminating errors and mistakes, 47%) and business-related (improving cross-sell and up-sell potential, 44%, and the customer experience, 41%). We recommend looking for dedicated PIM applications that support the range of roles in the organization, from business users to analysts to IT. PIM applications for analysts require a variety of capabilities, including discovering and associating products, searching for and finding products, communicating issues, designing layouts, generating documentation and publishing product information. Technology designed for PIM should also support data-related tasks and processes including data discovery, data governance, data integration, data enrichment, data matching, data modeling and data quality. Using the right technology for managing product information is important not only to increase productivity, but also to ensure that the organization derives the best possible value To avoid confusion about technology options for PIM, we advise focusing on business needs and evaluating products on how well they can satisfy them. from its product information and to ensure the best possible experience for customers, partners, suppliers and even employees who interact with it. How to Choose PIM To avoid confusion about technology options for PIM, we advise focusing on customer and business needs and evaluating products on how well they can satisfy them. Many organizations turn exclusively to an IT-centric data management approach that is centered on database technology or on what is called master data management (MDM). However, choosing PIM that is not designed to work with business-side processes or to be used by business-side users is a mistake. Instead, look for PIM applications designed to promote efficiency and ease of use by business professionals operating across the front office functions of marketing, sales, commerce and customer
6 6 Ventana Research 2015 service and operations areas including manufacturing, distribution, retail, sourcing and the supply or service chain. Begin by assessing current product information management activities to determine where improvements are needed. Identify the needs of those in roles responsible for products, including marketing, customer service, product management, manufacturing, distribution and commerce. Then start evaluating PIM. Our research shows that the most common barrier to improving PIM is lack of resources (37%), so ensure applications are designed for business as they are more likely to engage the interest of all the professionals involved. Make the business case by showing that effective management and governance of the processes and information can increase the business value of products. Look for instances where technology can make it easier to augment and improve context of products. For example, it can enable product managers to update images of their products or marketing professionals to post videos showing customers how a product is used. More than half (53%) of research participants said the most important element of the business case for PIM is to increase customer satisfaction. Keeping an eye on business is primary, but also make sure that PIM being evaluated can work with related IT systems and applications and that it will not compromise the security to those systems. Also make sure that digital asset managers will function as necessary; in this way you can provide complete support of PIM processes. Usability of any application being considered is essential and should be a top priority for organizations, as should be the consumer experience it provides via the web and mobile devices. Dedicated approaches payoff: Companies that use a single system as their source of product information have eliminated errors and mistakes in product information (90%) and gained a competitive
7 7 Ventana Research 2015 advantage through faster time-to-market (87%). Product information is a fundamental part of any business; success in sales, growth and profitability often depends on how effectively it is used. Simplifying product information management thus is in reality a process of deploying technology and processes to ensure the customer-serving, financial and operational effectiveness of every organization. About Ventana Research Ventana Research is the most authoritative and respected benchmark business technology research and advisory services firm. We provide insight and expert guidance on mainstream and disruptive technologies through a unique set of research-based offerings including benchmark research and technology evaluation assessments, education workshops and our research and advisory services, Ventana On-Demand. Our unparalleled understanding of the role of technology in optimizing business processes and performance and our best practices guidance are rooted in our rigorous research-based benchmarking of people, processes, information and technology across business and IT functions in every industry. This benchmark research plus our market coverage and in-depth knowledge of hundreds of technology providers means we can deliver education and expertise to our clients to increase the value they derive from technology investments while reducing time, cost and risk. Ventana Research provides the most comprehensive analyst and research coverage in the industry; business and IT professionals worldwide are members of our community and benefit from Ventana Research s insights, as do highly regarded media and association partners around the globe. Our views and analyses are distributed daily through blogs and social media channels including Twitter, Facebook and LinkedIn. To learn how Ventana Research advances the maturity of organizations use of information and technology through benchmark research, education and advisory services, visit Stibo WP
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