Master Data Management & Product Information Management | MDM Solutions & PIM Software | Codifyd
How is a PIM System Different From an MDM System?
In contemporary times, if your business is not adapting to the fast current of the online world, you will be left behind. That being the case, coordination of the organization and management of the company’s product data is essential to evolve and meet the industry standards seamlessly. Even though Product Information Management (PIM) was once considered a luxury for Fortune 500 companies, PIM systems are now getting the attention of business leaders all over the world.
Spreadsheets are not the most dependable or productive resource when it comes to documenting up-to-date product information. Nonetheless, the common dilemma faced by most businesses is choosing between PIM and MDM that will serve their interest efficiently.
So, what are these systems, and what makes them different from each other?
What is Master Data Management (MDM)?
MDM or Master Data Management refers to the set of processes and tools that offer synchronized data to ensure seamless business operations amidst a wide range of applications and systems. It allows enterprises to assort, match, clean, distribute, and aggregate consistent and correct master data to analytical and operational systems.
The purpose of master data management tools is to manage data amidst a wide range of data domains like the customer, employee, financial, location, and vendor information. Consequently, MDM projects are generally broad in scope and need different resources to maintain and implement.
What is a PIM (Product Information Management)?
It’s a product-oriented software solution that enables businesses to centralize and enrich their product information and to provide correct product descriptions and images in a universally scalable multi-channel marketing space.
One of the major reasons why PIM has high demands is its ability to take away the tediousness of tasks when utilizing spreadsheets to manage product information.
Main differences between PIM and MDM
Products vs. Enterprise
One of the main differences between MDM and PIM is that MDM is responsible for managing company data while PIM focuses on managing product data. However, MDM does not possess product information management functions in any of these areas.
When it comes to updating, structuring, and shipping a product catalog through master data management, it would be an intricate and time-taking process. PIM tools specialize in collecting, enriching, publishing, and linking product content. It is also the main instrument in an omnichannel strategy as it ensures a smooth shopping experience for the customer.
MDM Software is based on standardizing information about the production, sales, and catalogs like customers, points of sale, warehouse, wholesalers, distributors, and so on. However, its fundamental objective is to increase the competence of the organization, not to augment the quality of product catalogs.
External vs. internal data management
In general terms, one can say PIM handles data for external users, which is the product information received by the end customer and published in various channels. On the other hand, MDM specializes in managing private and internal data.
PIM also supports internal data management, making a positive impact on the business communication, evaluation of product impact, and customer behavior. Hence, it is a good tool for internal organizations.
To cut a long story short, both PIM and MDM are complementary to each other, and they are not opposing systems. That is why companies like Codifyd have come up to help businesses grow with master data management and product information management implementation, ensuring data-driven decision making a new normal in the current times.
