Thursday, January 21, 2016

PLM and PIM – what’s the difference?

Product Information Management (PIM) and Product Lifecycle Management (PLM) must surely be something similar. Yes and no. There are similarities, overlaps and they can complement each other. At the same time there are clear distinctions and you will probably need both.

Similarities and differences

From Wikipedia:

“PIM refers to processes and technologies focused on centrally managing information about products, with a focus on the data required to market and sell the products through one or more distribution channels”

“PLM is the process of managing the entire lifecycle of a product from inception, through engineering design and manufacture, to service and disposal of manufactured products”

Interestingly they say similar things. At least the product information is in focus. It can also seem from this definition that PIM covers a hole in the PLM processes. PLM jumps from Manufacture to Service. PIM covers what is in between – Sales and Marketing. This should be a perfect match as has been discussed by Tech-Clarity.

ERP is also highly relevant in this context. In some industries also CRM. The picture below explains some of the differences between PLM, ERP and PIM.


Positioning of PIM

When we look at the purpose of PIM we understand the difference better. PIM is focused on providing accurate and good quality sales and marketing information to various sales and marketing channels. Today this is often done manually or semi-automatic for each different channel. The objective is to gather all relevant sales and marketing material in one place and publish it in a controlled and efficient manner.


PLM/ERP feeds PIM

The best approach is to take product information that is controlled and released somewhere else (PLM or ERP typically) and enrich the products with additional information (such as images, video etc) and publish to different channels and markets. Which channels to publish to is controlled in PIM. Which markets to publish to might come from PLM or ERP or can be defined in PIM. The best flow is when PIM can trust that the products and their information is valid at the point it enters PIM and PIM can focus on enrichment and publishing. One reason for this is that PIM is typically poor on revisioning and approval control.


Change and status control in PIM is typically done by using catalogues to show status and control what you can do with the data. An example is shown above. Someone or something pushes the data over to another catalogue. In that catalogue it is defined what you can and cannot do on a general level. The access is not product by product, but more often market by market. PIM works typically on the latest released product information.

Can PIM replace PLM or vice versa?

I have heard PLM people saying that as PLM has most of the product information already; why not extend the data model and processes to also cover PIM? PLM is quite flexible and can be integrated for example to a web portal for product catalogues. Why not?

PLM and PIM are both focused on product information. At the same time they have very different strengths and capabilities. It is better to utilize those differences than trying to build missing functionality in PLM or PIM.

PLM is not good at the marketing side of product information. Like creating print material or publishing to various sales and marketing channels. PLM is focused on detailed control needed by engineers.

PIM on the other hand has ready-made mechanisms for print materials and publishing to different markets and channels. And it has sufficient change control from a sales and marketing point of view. On the other hand PIM is no good at detailed change control, revisioning and management of design data.

Focus from a PLM perspective

Look at the product information from start to end. Where is it born and where is it used? What you have to focus on is ensuring that the product information is structured in such a way that you CAN use it for other purposes than just a design point of view. E.g. if you need grouping of products in PIM; perhaps use the same grouping in PLM. Ensure that you have sufficient information. You might want to add more information early on to be able to streamline processes and information flow. E.g. In which countries can you sell a product?

The success of PIM will be greatly enhanced if you tie the whole information flow together. From design to procurement and manufacturing to marketing and sales and to service. You will be able to re-use information from PLM and give it additional value.

Summary

PIM plugs a hole in the product lifecycle that PLM should not. From a true lifecycle perspective it makes perfect sense to integrate PLM and PIM. They complement each other well and you get even more value out from your structured data in PLM.

Do not try to extend a PLM system to also cover PIM functionality. PLM systems are complex enough as they are.

Tore Brathaug
www.infuseit.com

No comments:

Post a Comment