Competitive pressure, economic uncertainty, new legal frameworks – companies today operate under extremely dynamic conditions, which means that they must constantly adapt to changing circumstances. However, achieving this level of agility is anything but easy. The majority of companies have neither the structures nor the processes to do so.
What does ‘data-driven’ mean?
For this reason, the concept of the data-driven company has developed in recent years. While many people equate the term ‘data-driven’ with the ability to make data-based decisions in particular, we believe this falls far short of the mark. Instead, a data-driven company has effectively networked data processes whose planning, monitoring, control and optimisation go beyond the focus on individual software disciplines.
This is a completely new concept for most companies: until now, those responsible for ERP, PIM or marketing have only taken care of the data, processes and rules in their own area. Now it is suddenly necessary to look at the entire data processes – from their creation during onboarding or data creation, through their transformation and enrichment, to their transfer to catalogues, other systems or communication channels.
In product content management in particular, this approach can be used to draw a clear map of information flows – we call this the data supply chain, based on our consulting methodology.
What role does PIM play for data-driven companies?
Product information management (PIM) is sooner or later the linchpin of this data supply chain for all companies that offer products – in today’s digital commerce environment, sooner rather than later. PIM forms the foundation for all product communication, both for product advertising in print products such as flyers or catalogues and for digital channels such as mobile apps, social media, websites, online shops or online marketplaces.
It becomes particularly exciting in the retail context – manufacturers not only have to provide product content for their own channels, but also supply their retail network with perfect content. Only a PIM system can map and optimally support this complexity. For example, channel-specific product descriptions and information can be stored in PIM systems and rules can be defined as to when which product content should be delivered to which channels.
As a central hub for product data, the PIM is therefore already an important part of the digital value chain. Modern systems that can map any complexity in the communication processes and flexibly adapt their data model to new rules and platforms are therefore a basic prerequisite for the development of companies into data-driven organisations. However, a few things need to be considered when selecting the right system and implementing the PIM project.
The 5 most important PIM characteristics of data-driven organisations
In order to exploit the full potential of PIM for the development of a data-driven organisation, the following prerequisites must be met:
- The right PIM system
PIM solutions are now a dime a dozen and there are suitable solution concepts for every company profile. It is essential for the success of a project to find a system that fulfils the company’s specific requirements as perfectly as possible. This is why the PIM evaluation plays such an important role. We have summarised how to find the right PIM system for you in our document series The Latest Think! - Carefully defined data processes
Before a PIM system can even be implemented, the processes and workflows in which product data plays a role must be properly documented. This also includes aspects such as data quality, responsibilities and approvals. Only when this documentation is complete can statements be made about optimisations and the mapping of these data processes in the future PIM system. - Successful PIM project
The implementation of PIM projects harbours a number of challenges that can only be overcome with the right approach. This concerns aspects such as project organisation, communication and documentation – you can find out more in our document series The Latest Think! - A genuine data culture
In addition to the successful implementation of the right system, cultural foundations must also be laid within the company. Everyone involved must be aware of the potential and value of data, and everyone must be able to interpret and effectively utilise product data for their own work processes. This is a long-term task that needs to be anchored in management and which – if implemented correctly – makes an essential contribution to the development of a data-driven organisation. - Data governance takes centre stage
Data culture also includes common behaviour and rules – written down and continuously maintained and updated in a comprehensive data governance system. In a data-driven company, such data governance is seen as a valuable reference work for greater transparency and clarity for everyone rather than an externally determined doctrine.
Each of these points is important in order to develop as a data-driven company. However, implementation is often very difficult and can hardly be achieved with in-house resources and expertise alone.
We at Meyle+Müller Advisory have therefore specialised in precisely these points and offer your company valuable assistance in establishing a genuine data organisation – with optimum product content management as the hub of your central data flows.
