Riversand Technologies, Inc. Powering Accurate Product Information PIM VS MDM VS PLM A Riversand Technologies Whitepaper
Table of Contents 1. PIM VS PLM... 3 2. Key Attributes of a PIM System... 5 3. General Benefits of PIM... 6 4. PIM VS MDM... 7 5. Quantifying the Benefits of PIM... 8 Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 2 of 9
1. PIM VS PLM Today, there is tremendous pressure on companies to more effectively manage global operations either by entering new markets, consolidating operations, collaborating across organizations or searching out vendors in new areas of the world. This means global systems, organizations and sales channels need accurate, up to date and rich business data including up to date, accurate and localized product information. This data needs to meet corporate standards yet be customized enough to meet the unique requirements of local markets. Riversand has extensive experience deploying global implementations of Product Information Management (PIM), Data Quality and Business Process Management Solutions throughout the world. As noted by Forrester Research, product data management tools and processes have evolved over time to create a software market segment known as product information management (PIM). PIM software supports these functional business processes that rely most heavily on stable, operational product data including supply chain optimization, spend management, inventory management, new product introduction, relationship management, trading community support, e Commerce, and product catalog management. 1 Riversand has consolidated the various functional aspects of a true PIM Solution in the following diagram: 1 It s Time To Revisit Product Information Management (PIM) by Rob Korel, Forrester Research, July 21, 2009 pg 3 Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 3 of 9
According to Forrester Research, PIM is playing a critical role in effectively managing product information as a company goes to market globally across various industries, markets and channels. PIM systems strengths lie in supporting and extending traditional PLM and ERP systems and processes (among others) during the later product lifecycle stages. Forrester depicts the delineation between PIM and PLM in the following manner 2 : As the same Forrester report states, a PIM system must deliver this single version of truth while also supporting the end to end data requirements embedded within the business processes across the sourcing, manufacturing, sales, and support stages of the product life cycle. 3 2 Ibid, pg 9 3 Ibid, pg.5 Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 4 of 9
2. Key Attributes of a PIM System A PIM system/solution needs to satisfy different constraints than a PLM, ERP or CMS system. PLM systems manage the product data from an engineering perspective. ERP systems manage the product data from a supply chain, financial or transaction perspective. The CMS systems manage the product data from a pure web commerce perspective. PIM systems are typically downstream to the PLM system and manage the unique golden record for the product across the enterprise. Some of the key attributes of a PIM system are: Publish Subscribe: A PIM system can aggregate product data from multiple sources, both internal and external, and can identify duplicate records through sophisticated matching algorithms and merge those duplicate records to create the unique golden record. A typical PIM system would provide different matching algorithms as well as rules based merge algorithms Flexible and Extensible Data Modeling Environment: Every enterprise is different and in today s fast changing corporate landscape (mergers, re organizations, acquisitions), the PIM needs to quickly adapt and reflect the data model organization of an enterprise. Some key features that a PIM system supports are: Organization Hierarchy Management, Multiple Hierarchies, Cross Channel marketing (print, web, store etc) model, product variants, kits, bundles etc. Data Governance and Quality Management: The ability to create accurate, consistent and standardized product information is a very important requirement of a PIM system. This also includes the ability to create detailed audit trails for reactive data governance and rules based validations for proactive data governance Workflow collaboration and business rules management: The product information workflow typically involves multiple knowledge workers, approvers and stewards. A PIM system should provide a collaborative workflow platform that simplifies and expedites the day to day work effort for users across various roles. A powerful business rules engine allows for the creation of enterprise/vertical specific business rules. SOA and intelligent reporting: PIM would provide a very key foundation for SOA and BI functions within an enterprise. PIM/MDM systems would centralize the master data services component of SOA services. BI and Data Warehousing efforts become simpler with a PIM system powering accurate, rich and up todate product information. Future MDM initiatives: PIM systems with MDM framework provide an incredible opportunity for an enterprise to solve multi domain MDM needs such as Customer and Vendor master. User Productivity Modules: Modules such as Print Publishing, Digital Asset Management, Quote Management provide simple to use end user functionality to expedite key business processes Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 5 of 9
3. General Benefits of PIM According to a study by Gartner, Organizations struggle to gain a consistent, complete and accurate single view of the products they manufacture or handle for operational and analytical purposes. This reduces the effectiveness of individual departments that need such data, and the IT organization is less able to provide the business support for agile process orchestration and process orientated performance management. [Product Information Management] is a set of related disciplines, technologies and solutions used to create and maintain a consistent interpretation of product data, helping to create and enrich vocabularies so that enterprises can share a common language, even with trading partners. PIM emerged as a key technology to help enterprises support their [Product Data Management] efforts. 4 Riversand has worked with many clients to study the benefits of PIM to their organization. These benefits have included: Data Management 1. Increased accuracy and quality of data 2. Elimination of multiple data sources and associated redundant work 3. Elimination of duplicate work in the production of local marketing materials 4. Direct and easy access to data by all parties and systems 5. Improved product data richness 6. Product Catalog Management 7. Publication / Subscription (Pub/Sub) Data Syncronization Operational Efficiency, Agility and Business Process Management (BPM) 1. Greater business agility for reorganization, role changes and process change 2. Increased productivity and reduced operational costs 3. Defined, standardized, measured and benchmarked business processes 4. Facilitation of new product data on boarding related to Mergers & Acquisitions 5. Facilitator for associated functions such as E commerce Compliance and Regulations 1. Reduce regulatory compliance risks 2. Sarbanes Oxley 3. Local Materials Regulations Sales & Marketing 1. Reduced time to market 2. Reduction in Catalog preparation time 3. Facilitation of Multi channel Sales & Marketing 4. Identify optimum pricing / discounting opportunities 4 Magic Quadrant for Product Information Management, Andrew White, 2007, pg 3 Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 6 of 9
5. Enable cross selling / up selling (increase sales) 6. Improved Product Relationships Kits, Bundles, Accessories, etc. 7. Develop new markets / new businesses 8. Maintaining and promoting a unified brand identity 9. Protection and sharing of marketing/media assets 10. Reduction in Pricing Errors 11. Improvement in Product Fulfillment 12. Data Globalization 13. Facilitate launch into new (geographic) markets 14. Improvement in Proposal Generation Product Management & Engineering 1. Reduce time to market 2. Vendor data on boarding 3. Procurement rationalization 4. Parts Management Business Intelligence/Reporting 1. Improved reporting accuracy 2. Improved timeliness of product line reports 3. Improved forecasting accuracy Post Sales Support 1. Improve customer satisfaction / increase retention 2. Improvement in Service and Replacement Parts Management 4. PIM VS MDM PIM is today considered a subset of MDM by various analyst groups such as The Gartner Group. Gartner defines MDM as the management of master data across the enterprise and defines the various provinces of Master Data. The Thing province includes entities such as Products, Assets etc. The Party province includes Customers, Vendors and Employees etc. Gartner refers to PIM as MDM for Product data while CDI is MDM for Customer Data. Riversand today provides its PIM solution on a robust MDM platform. The Riversand solution supports the management of various entity domains such as Product, Vendor and Customer etc. Customers can implement the various domains using the same software package. Riversand brands the Product domain solution as Riversand PIM. Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 7 of 9
5. Quantifying the Benefits of PIM In today s economic climate, Riversand realizes that companies are looking to preserve their working capital and make smart investments in technology that can have an immediate positive impact on business. The ability for PIM Solutions to improve the quality of operations and reporting; improve productivity and reduce operational costs; provide greater business agility; reduce time to market; improve reporting forecasting accuracy; improve sales efficiencies; develop new markets / new businesses; and provide a platform for M&A. Riversand will be a strategic partner to help our customers realize the benefits of PIM. We have conducted a number of ROI studies which have proven the value of PIM to our customers. Our ROI assessment program is called Riversand Valuestream. As part of a Valuestream engagement, Riversand can work with our customers on a pre or post implementation basis to estimate the total ROI associated with PIM relative to alternative approaches. We believe that the value and benefits of PIM will far surpass those of more limited systems. Below are some examples of Riversand s PIM ROI models from prior Valuestream engagements: Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 8 of 9
COPYRIGHTS Copyright 2001-2013 Riversand Technologies, Inc. All rights reserved. Any technical documentation that is made available by Riversand Technologies, Inc is the copyright work of Riversand Technologies, Inc and is owned by Riversand Technologies, Inc. TRADEMARKS Riversand, the Riversand logo, and Riversand MDMCenter are U.S. trademarks or registered trademarks of Riversand Technologies, Inc. Other brands and product names mentioned in this guide are trademarks or registered trademarks of their respective owners and hereby acknowledged. COMPANY INFORMATION For more information on Riversand Technologies, Inc., visit www.riversand.com. Copyright 2001 2013 Riversand Technologies, Inc. All rights reserved. Page 9 of 9