PIM or MDM system – what are the differences, and what should you choose?

When you start organizing data in your company, you will eventually be faced with a choice of solution. The dilemma often concerns two systems: PIM and MDM. What to choose? And why?

What is the difference between a PIM system and an MDM system?

The PIM (Product Information Management) system and the MDM (Master Data Management) system are dedicated solutions for data management. However, although similar on many levels, they differ in the scope of functionality and the areas on which they focus. We have summarized the most important differences below.

PIM and MDM: scope of functionality

PIM (Product Information Management) mainly focuses on managing product data such as descriptions, photos, prices, technical attributes, etc. PIM aims to provide consistent, accurate, and up-to-date product information across all sales channels.

MDM (Master Data Management) covers a wide range of master data, such as customer data, suppliers, locations, products, and financial and operational data. It focuses on harmonizing and centralizing all of this data, ensuring consistency and integrity across the organization.

MDM vs PIM: application

• PIM is often used in e-commerce, retail, manufacturing, and distribution industries, where many products and information about them must be managed.
• MDM is used in sectors and industries where various types of master data are needed, including product data, customers, suppliers, locations, etc.

PIM vs MDM: goals

• The main goal of PIM is to improve product data management processes, reduce manual tasks, and shorten time to market. Regarding benefits, better online product presentation, increased conversions, and customer satisfaction are worth mentioning.
• MDM’s main goal is to ensure data consistency, accuracy, and integrity across the company. This can help achieve higher risk management, regulatory compliance, and smooth business processes.

PIM or MDM. What and how do you choose?

Choosing between a PIM and MDM system depends mainly on your company’s specifics and needs. PIM is a sufficient and optimal solution if the main challenge is managing product data and presenting products online. However, if an organization needs to manage different types of master data across the company, MDM may be a more appropriate option. In some cases, organizations can also use both systems to manage various data types.

PIM (such as Akeneo PIM) is usually faster and easier to implement, and from the company’s point of view, it requires less commitment and less expense. PIM implementations typically focus on managing product data, so it is narrower in scope compared to MDM, which involves managing various types of master data across the organization. The narrower scope of PIM simplifies the implementation process, reducing its complexity.

Although IT plays a supporting role in PIM implementations, the primary responsibility lies with the business units, which allows for more flexible decision-making.

MDM or PIM? Let’s summarize

As you can see, while both PIM and MDM are valuable solutions for many companies, PIM provides a more accessible and practical solution for companies that want to focus on the specific challenges of managing product data in a focused and cost-effective manner.

Remember: PIM is ideal for managing product data and running online stores, while MDM is better for organizing many different types of master data within a company.