Commerce and PIM have become inseparable, what are your product management choices?

Business challenges managing product information are evolving rapidly.

Enterprises nowadays need to manage an unbelievable amount of data on their products, to help customers find the right product at the right time. However, managing this vast amount of data can be quite a daunting task if not streamlined and efficient. Add new data requirements related to sustainability, traceability, evolving product transparency regulations, and the process becomes even more complex which makes automation essential. Therefore, many businesses are evaluating the benefits of a product information management (PIM) solution to manage their entire product journey effectively.?

Whether you are migrating from an older legacy version that no longer keeps up with functions required of a modern-day PIM, evolving from spreadsheets, or just starting to centralize your product information, evaluating and deciding on the right platform will determine your speed to market with new products utilizing new selling channels, cost of ownership and the ability to scale rapidly for the future as data requirements evolve.

This article will discuss the major differences, both positive and negative advantages, of all three platform choices.?

PIM software solutions come in three forms:

1. Legacy on-premises

2. On premise “like” but simply put - your unique instance hosted in the cloud

3. True multi-tenant software-as-a-service (SaaS).?

Each platform has its own set of advantages and disadvantages. But assuming the PIM system you are evaluating meets modern day standards and can:

? Ingest external product data from multiple sources like spreadsheets, ERP, PLM, MDM into a highly flexible data model that allows you to sell and service products the way you intend unconstrained by the software. Also, more important now than ever, the ability capture product data attributes related to sustainability, traceability, and regulatory requirements.

? Automate the enrichment of product information which includes native Digital Asset Management Capabilities

? Syndicate product data to multiple selling and service channels including marketplaces, each having unique format requirements, without the added complexity of additional ISV partnerships.

? Validate and evaluate your product data if portrayed as intended on third party channels where brands have less control. The ultimate step of syndication.

? Meet security requirements like SOC2 compliance.

What remains is to determine. which platform will meet your business objectives, the speed at which you take products to market, scalability as the product journey evolves, and given today’s economic climate - total cost of ownership.?

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On-premises PIM Solutions?

These fall more in the legacy category, are installed, and run locally on a company's server, and are accessible within the organization's network. Companies that opt for an on-premises PIM solution own the servers and software, which they must maintain, update, and configure from time to time utilizing their own IT resources. Assuming these resources are readily available and can react rapidly to the needs of the business with modern day functionality, these platforms have served enterprises well.

Historically, an on-premises PIM dedicated server offered better storage, performance, and scalability. The use of this platform helped companies have full control over their data, who sees it, and how it's used. Furthermore, because the data is stored locally, the PIM solution could work faster, with little to no latency issues.

However, owning a dedicated server also means significant upfront costs. An organization must invest in not just the server infrastructure but also the staff resources to monitor, maintain, and update the software continually. This is a considerable burden, especially for organizations that are trying to manage their expenses and may not have the required domain expertise.

Hosted in the Cloud

This means the hosting of a unique instance in the cloud which does not require the infrastructure of an on-premises solution. One of the biggest positives is the flexibility it offers. Cloud hosting enables organizations to scale their applications up or down as needed, without the need for extensive infrastructure changes. This can be incredibly cost-effective, especially for smaller businesses or startups, who can save time and money on maintaining their servers. This option was particularly useful for businesses with complex needs that did not deploy modern day PIM features. Additionally, cloud hosted solutions tend to offer greater control and better integration with existing systems which may have lacked updated Application Programming Interfaces (APIs).

However, this flexibility came with a price- cloud hosted PIM solutions can be more expensive and require an IT team to manage. Updates and patches are not automatic and are controlled by the enterprise. Much more challenging to manage than a SaaS solution since it requires more setup, ongoing maintenance, customizations, and integrations. Another one of the most significant negatives is the security risks of customized unique instances that come with hosting data offsite.

True Multi-Tenant Software as a Service (SaaS)

This approach offers a cloud-based approach to PIM solutions. SaaS solutions are delivered via the internet and are hosted on the vendor's servers. These solutions require little to no IT resources besides managing your web browser. Assuming they are built by solutions providers with the domain expertise necessary to deliver modern-day PIM solutions, these have now evolved to handle any size enterprise.

Using a multi-tenant SaaS PIM solution, the vendor could spread the cost across its customer base and offer a much more affordable pay-as-you-go model. There is no need for the organization to purchase new hardware, install software updates or provide critical infrastructure. With a SaaS PIM solution, service providers can deliver a shared program to many customers, with each customer given a view of their data and settings. Additionally, with a true multi-tenant SaaS solution, you are getting access to the newest technology and updates, without having to manage any updates or upgrades yourself. SaaS solutions offer other advantages that on-premises or cloud hosted solutions cannot match. They allow for more seamless integration with other cloud-based applications, require no on-site support, and offer automatic updates and up-to-date security patches to ensure that the software always works correctly.

Solution:

So, which solution is better suited to your organization? While there may not be a one-size-fits-all answer, some guidance could help you make an informed decision.

If you have in-house IT staff, a dedicated infrastructure, necessary security protocols for full control of your data, business domain expertise and functionality that can rapidly evolve with market demands, then an on-premises, or cloud hosted PIM solution may be the way to go. You will be able to customize the PIM to your exact requirements if after careful evaluation you don’t find them available in the marketplace.

However, if your IT staff is already strained and cannot keep up with the business or don't want the extra demands of managing a PIM infrastructure, go for a true multi-tenant SaaS-based solution. SaaS is more affordable, requires no technical expertise, secure, offers more modern use cases, runs in the cloud, and is immediately scalable as your business evolves its product journey.

Conclusion:

In summary, both on-premises PIM solutions and multi-tenant SaaS offerings have their unique advantages and disadvantages. However, with the advent of cloud computing, innovations in software delivery models, and security enhancements, a cloud-based approach is an affordable and scalable solution for most businesses. This of course can address the needs of the business, streamline operations, offer products to markets faster.

As technology advances, it's becoming increasingly vital for businesses to become more agile and nimble in managing product information. Therefore, a SaaS solution, with its ability to enable organizations to access information effortlessly and scale up or down as fast as needed, is becoming the most preferred solution for many PIM problems.

Now is not the time to rely on outdated, cumbersome product information management practices. The PIM industry has evolved, and it's time to stay ahead of the curve and leverage innovative solutions. So, choose wisely, and enjoy the benefits a modernized PIM system can offer.