Business Proposition. Product Content Management. Media Intelligent

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1 Business Proposition Product Content Management

2 Executive Summary º º The Customer Experience Imperative Business leaders in all kinds of enterprises now recognize that delivering outstanding customer experiences is paramount to competitive success see page 1 º º Product Content Management Challenges Over the past two decades, product content management has become increasingly complex and challenging, first because the available content has significantly increased, and second because product content cycle times have become shorter and shorter - see page 3 º º Keys to Effective Product Content Management At ADAM Software we believe that effective product content management requires a comprehensive and holistic view or product content and a robust technology enabled product content management system - see page 7 º º Conclusion Traditional sources of competitive advantage are quickly disappearing for many enterprises. In this environment, delivering outstanding customer experiences has become the most durable source of competitive differentiation. - see page 13

3 The Customer Experience Imperative Business leaders in all kinds of enterprises now recognize that delivering outstanding customer experiences is paramount to competitive success. Sir Richard Broadbent, the Chairman of Tesco, stated the case succinctly when he recently said, Recent research has documented the economic value of providing good customer experiences The company that provides the best relationship with the customer will win not through product, but through the best experience. and the economic costs of delivering bad experiences. For example, Accenture has estimated that up to $5.9 trillion in revenue was at play globally in 2013 as consumers opted to switch their product and service providers due largely to unsatisfactory customer experiences. For marketers, delivering outstanding customer experiences is primarily about providing content that is useful, informative, or entertaining. More specifically, the key requirement is to provide information the customer (or potential customer) wants or needs, when he or she wants or needs it, via the touchpoint or channel he or she prefers to use for each interaction. Paradoxically, this objective is now more achievable and more demanding than ever before. Delivering great customer experiences is more complex and demanding in part because brands must be prepared to provide content via a significantly larger number of customer touchpoints. Today, customers and prospects are accessing commercial information via conventional websites, social networking sites, content sharing sites, such as YouTube, Instagram, and Pinterest, mobile websites, and mobile shopping applications. 1

4 Today s customers and prospects have four specific expectations that enterprise marketers must be prepared to meet. For marketers, delivering outstanding customer experiences is primarily about providing content that is useful, informative, or entertaining º º Rich and detailed content They expect to have access to rich and detailed information about a company s products or services, as well as more general educational and/or entertaining content. º º Omnichannel availability They expect to be able to access rich and detailed content via the touchpoints and interaction channels of their choice. º º Omnichannel consistency They expect information and content that is current, accurate, and consistent across all touchpoints or interaction channels. In the Accenture research discussed earlier, 58% of survey respondents said they are frustrated with inconsistent experiences from channel to channel. º º Localization and personalization They expect information and content to be presented in their primary language and to reflect their cultural preferences and sensibilities. Increasingly, they also expect to be provided information and content that reflect their individual interests, needs, and preferences. Most of the recent discussions about customer experience have focused on B2C companies such as consumer products companies and retailers. It s now clear, however, that delivering great customer experiences is just as vital for B2B companies. 2

5 The Challenge for engaging Product Content Management Product content management used to be a simple task, at least by today s standards. In the pre-internet world, the amount of product content made available to customers and prospects was relatively limited. For example, a printed catalog typically included a single image and a short description of each product. In addition, customer expectations were lower, which meant that most enterprises could determine when and how to provide product content based on their internal operational needs and capabilities. Over the past two decades, product content management has become increasingly complex and challenging first because the volume of product content that enterprises make available to customers and prospects has significantly increased, and second because product management strategies have been changed Significantly increased volume of product content The volume of product content has grown because customers are demanding richer and more detailed product information and because new digital communications channels and new media formats have greatly expanded the types of content that enterprises can provide. As we noted earlier, product information in the pre-internet era typically consisted of a single product image and a brief description. Today, many enterprises provide some or all of the following types of product content: 3

6 º º Multiple images (including 3D images) that provide, for example, 360 degree product views, close-up views, and views of available color options º º Product-related videos º º Detailed product descriptions (dimensions, weight, ingredients/components, etc.) º º User-generated content (product reviews, etc.) º º Product recommendations (accessories, related or alternative products, etc.) º º Educational content (relating to the use of the product, etc.) º º Localized content for specific markets Changing product management strategies The volume of product content has also increased because of changes in the product management strategies that many enterprises employ. º º The number of products is increasing The never-ending quest for revenue growth is causing many enterprises to increase the number of unique products Over the past two decades, product content management has become increasingly complex and challenging, º º they offer in order to appeal to more granular niche markets. Product proliferation is particularly evident in the retail sector, as the shift to online selling channels and direct shipments from manufacturers have enabled retailers to greatly expand the range of products they offer. º º Product lifecycles are shrinking To satisfy customer needs, wants, and preferences that are changing rapidly, and to meet competitive offerings, enterprises are updating and improving their products frequently. º º Many enterprises used to be able to schedule the development and flow of product content based on their internal operating needs and capabilities. Today, customers expect product content to be current and accurate, and they expect the current content to be immediately available on the interaction channels of their choice. Content cycles times are therefore measured in hours or days rather than weeks and this places additional demands on the processes and systems used to develop, manage, and publish product content. 4

7 These product management decisions and actions are increasing both the overall volume of product content that enterprises must develop and manage, and the frequency with which product content must be revised and updated. Several weaknesses to manage product content The proliferation of marketing touch points, the heightened expectations of prospects and customers, and the growing operational challenges relating to product content have combined to expose several weaknesses in the workflows and processes used in many enterprises to manage product content. 1. Content Fragmentation In most enterprises, product content is required for several business functions and processes. As a result, most organizations have product content spread across numerous information systems and personal applications. For example, marketing-generated content (product videos, images, collateral documents, etc.) is typically managed and stored in a digital asset management system. Other product information like SKU numbers, model numbers, dimensions, weight, and available colors is often managed and stored in ERP systems. Content cycles times are therefore measured in hours or days rather than weeks, It s also common to find product-related content in web content management systems and e-commerce systems, as well as in spreadsheets and personal database applications. 5

8 MarCom Product Development ERP WCM PLM DAM Product Marketing Sales CRM personal hard disk Supplier Typical between 4-10 separated IT systems Recent research suggests that 57% of manufacturing companies and 38% of retailers use 4-10 separate IT systems to manage and store product content. 2. Content Accuracy The balkanization of product content creates duplicative work processes, generates excessive costs, and most importantly, it leads to a lack of confidence in the accuracy of product content. In a survey by Ventana Research, only 15% of respondents said they are very confident in the quality of their product data. 3. Multiple Content Formats In most organizations, product content typically exists in multiple file/data formats. For example, product content usually includes both structured and unstructured data, and this alone can be challenging to manage within one IT system. The existence of multiple data and file formats can also make it difficult to aggregate individual elements of product content to create a single and comprehensive product content structure. 6

9 Keys to Effective Product Content Management The need to deliver outstanding customer experiences, the increasing complexity of product management and product marketing, and the limitations of existing approaches and tools for managing product-related content have created a pressing need in many enterprises for a more robust product content management system. As we ve already observed, product content is essential to providing exceptional customer experiences. In addition, however, product content also provides essential support for many specific business-critical marketing processes, including new product launches and ongoing marketing activities and programs such as marketing collateral development, catalog development and publishing, and e-commerce. While product content is used across the enterprise, the center of gravity for product content is now squarely within the marketing department. Product managers, product marketers, brand managers, marcom managers, and creative personnel all require access to complete and accurate product content to perform their functions effectively. Product content management also plays a critical role in improving the productivity of marketing operations. A robust PCM system improves marketing effectiveness by enabling enterprises to deliver the right content via the right channel at the right time in the customer journey. A capable PCM system increases marketing efficiency by reducing costs and cycle times and by improving both brand control and marketing agility. At ADAM Software, we believe that effective product content management requires a comprehensive and holistic view of product content and a robust, technology-enabled product content management system. 7

10 In an era when customers and prospects expect easy and instant access to rich and detailed product information, managing product content in functional and technological silos is no longer an adequate approach. Developing an effective product content management system requires a combination of content (brand content assets and product information), well-designed business processes, and a capable technology platform. The final goal of any PCM system is to deliver structured and consistent content to all possible customer touchpoints to create an engaging customer journey. fragmented info Product info (ERP/PLM) Supply info (ERP/PLM) Rich Media (DAM) Customer data (CRM) º Product bundles º Associated products º Local markets º Regional variants º Channel specific º People PCM Structured Content Brochures Broadcast Mobile Web Packaging E-commerce Social - Blogs Magazines Catalogs Tablets DISCOVER CUSTOMER JOURNEY SUPPORT ENGAGE Processes Annotation Inheritance Collaboration A PCM system that supports the delivery of outstanding customer experiences and the achievement of these important marketing operations goals will exhibit four core characteristics. 8

11 Products 1. A Single Source of Truth A robust PCM system will be based on a centralized source of comprehensive product information and content. By using a central source of product content, enterprises can avoid the problems and inefficiencies that inevitably arise when product content is scattered across multiple business functions and information systems. s all customer relevant information cope ct bundles of Products One single source of truth lized view on all customer relevant information ucts Broadcast iew on all customer relevant information Structured content Brochures iated single products Broadcast centralized view on all customer relevant information markets Product bundles Packaging Brochures E-commerce nal variants Associated products Broadcast Social - Blogs Mobile nel specific Product bundles Local markets Magazines Web duct Associated info PCM Regional products variants Catalogs RP/PLM) Local markets Channel specific Product Tablets bundles Packaging heritance ply info Regional Collaboration. variants.. Associated PCM E-commerce products P/PLM) Social - Blogs rocesses Channel specific Local markets Magazines... Annotation inheritance PCM Collaboration -media Regional ERPvariants Catalogs DAM)... Processes Channel specific Tablets omer nnotation data inheritance Collaboration... PCM (CRM) Processes Fragmented info Structured content Mobile Web Structured content Brochures Mobile Web Tablets 1 Packaging E-commerce Social - Blogs Magazines Catalogs PLM 1 Central Library Structured content DAM Brochures Broadcast Catalogs To create a single source of product information and content, the underlying PCM technology Tablets solution must be capable of extracting individual 1 elements of product content from other enterprise Annotation inheritance Collaboration information... systems Processes and aggregating those individual content elements to create a single product 1 information structure. The PCM technology solution must also enable enterprise marketers to link products to the rich content assets (images, videos, etc.) related to each product. Mobile Web Packaging E-commerce Social - Blogs 1 Magazines 1 CRM Manuals Point of Sales Advertising Print Web E-Commerce 9

12 ADAM Software Business Proposition: Product Content Management 2. Product Relationship Management Marketing Material 12:00 12:00 PM PM 12:00 PM Name Brand Description Spare parts 12:00 PM Manuals User Manual User Manual 12:00 PM Accesoires 12:00 PM Related Products Bundles 12:00 PM To deliver outstanding customer experiences, enterprises frequently need to provide information about groups of products as well as individual products. For example: ººWhen a prospect or customer is learning about a specific product, he or she is also likely to be interested in available product accessories. ººWhen a prospect or customer is viewing a specific product, he or she would probably welcome information about other products that perform a similar function but offer different feature sets. ººWhen a prospect or customer is viewing a particular product, he or she would probably be receptive to seeing information about special promotions on similar products or special product bundles. Marketers must be able to create and manage relationships among individual products To deliver this kind of information, marketers must be able to create and manage relationships among individual products, and a robust PCM solution will provide this capability. The examples given above primarily relate to online shopping experiences, but the ability to create and manage groups of related products also supports offline marketing activities. For example, this capability enables marketers to easily create seasonal product catalogs and catalogs that are targeted for specific customer segments of geographic markets. 10

13 Finally, most product groupings that are created for marketing purposes are likely to be temporary in character. Therefore, a capable PCM solution will enable enterprises to implement a base product classification framework or taxonomy, while simultaneously enabling marketers to easily create, modify, and retire marketing-related product groups. 3. Omnichannel Content Distribution The third core requirement for an effective product content management system is that it must support omnichannel content distribution. A robust PCM technology solution will act as a master content platform and enable enterprises to manage all product information from one centralized tool that can integrate with and support all customer interaction channels. 4. An Enterprise-Class Technology Platform From what we ve already said, it should be clear that effective product content management requires a robust PCM technology platform. Given the proliferation of products and product variations, the proliferation of marketing channels, and the need to provide rich product content that is always up-to-date, it has become practically impossible to manage product content adequately without the right technology toolset. Product content management is now a business-critical function that requires an enterprise-class technology solution For the reasons we ve already discussed, product content management is now a business-critical function that requires an enterprise-class technology solution. Earlier in this white paper, we 11

14 described some of the specific functionality that a capable PCM technology solution will provide. In addition, an enterprise-class PCM technology platform will: º º Provide scalability, so that the platform can support an enterprise s product content management needs as they expand and change º º Provide a flexible security model that enables access to product content to be managed at a granular level º º Be designed and built using an open architecture that makes it easy to integrate the PCM technology solution with other enterprise information systems, such as ERP, web content management, and e-commerce systems. For global enterprises, a PCM technology platform must also support the management of product content in multiple languages and provide a multilingual user interface that enables enterprise employees to interact with the platform in their primary language. A global PCM system also needs to be able to manage all relevant product information centrally and inherit part of this information to localized products. Taking into account that it has to be possible to override certain information with local content when necessary and that the possibility needs to exist to add local products where needed. 12

15 Conclusion Traditional sources of competitive advantage are quickly disappearing for many enterprises. Efficient manufacturing and distribution systems no longer produce the competitive advantage they did only a few years ago. In this environment, delivering outstanding customer experiences has become the most durable source of competitive differentiation. Buyers now have more power than ever, and they expect easy access to detailed and rich product content via multiple interaction channels. Given heightened customer expectations, enterprises must develop and implement effective product content management processes that are supported by robust PCM technology platforms. 13

16 For More Information Contact ADAM Software ADAM Software Kortrijksesteenweg 1108a BE-9051 Gent Belgium Phone: Fax: ADAM Software US Inc 1515 Broadway New York, NY United States Phone: info@adamsoftware.net Web: About ADAM Software ADAM Software is a global provider of media workflow and marketing technology software. We offer enterprises the ability to manage, structure and deliver media between people, processes and systems. Working with our partners enables us to implement our software globally while providing workflow solutions to all types of enterprises. What drives us is a passion to organize media intelligently, making it easier and more accessible to everyone. 14

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