An article published by Dion Hinchcliffe for Enterprise Web 2.0 delved into what’s top of mind for CIOs in 2017. The insightful list of pressing CIO priorities revolves around the push for digital transformation while still avoiding glitches in operational excellence. Interestingly, although Product Information Management (PIM) wasn’t explicitly listed, nearly all of the issues described actually require a PIM/MDM implementation.
As companies consider how they can work a PIM implementation into their roadmap, they also need to consider the cost of failing to implement such a system.
The Rising Cost of Poor Product Information Management
The impact of ineffective information management is glaringly clear for retailers, manufacturers, and distributors.
In fact, according to statistics from A.T. Kearney, nearly 30 percent of the item data in catalogs used by retailers and manufacturers is incorrect. And correcting those errors costs between $60 and $80 each.
What’s more, companies spend an average of 25 minutes per SKU each year manually cleansing out-of-sync item information. That may not seem like a major resource waster—until you start doing the math. For example, a company with 10,000 SKUs would spend over 4,000 manual hours every year just cleaning out bad product data!
Finally, companies cannot afford to lag behind in product introductions. However, for those without a PIM system, product introductions and rollouts take an average of four weeks due to inefficient and error-prone approaches to exchanging and updating new item attributes.
These statistics are just the tip of the iceberg when it comes to the mounting cost of poor product information management. Considering the following “ROI Killers,” the stakes are even higher.
ROI Killers in the Absence of Product Information Management
Difficulty of locating product information: Many people in your enterprise “touch products” depending on their particular role. The loss of time spent looking for product information quickly multiples.
Lack of confidence in the accuracy and completeness of your product information: This hurts your ROI internally as well as externally. Customer dissatisfaction grows, and product returns increase.
Lack of consistency across channels: Confusion puts you at a disadvantage and leads to lost sales.
Difficulty growing product assortments: Lack of collaboration around a trusted, centralized source of product information makes expansion slow and costly.
Missed product launch deadlines: Whether you introduce new products infrequently or daily, optimizing product content like images, attributes, and pricing can be slow and complicated without PIM.
Delayed ecommerce growth and missed digital opportunities: Data issues translate to poor SEO results and missed opportunities for digital growth.
Here’s the Good News
Ready for some good news? Businesses small and large can quickly deploy a PIM solution. For some solution providers, “quickly” might mean a year or more. But for EnterWorks, it means as fast as thirty days.
Partnering with the right product content experts and selecting a flexible yet advanced platform can help you achieve your goals.