In today's fast-paced digital marketplace, where every click counts and every customer interaction is a potential sale, having the right tools in place is essential. That's where Product Information Management (PIM) systems step in — the backbone of seamless online experiences.
With 23% of retail purchases expected to take place online, the pressure to deliver exceptional digital experiences has never been greater. As consumers increasingly turn to online channels for their shopping needs, the demand for accurate and comprehensive product information has skyrocketed. According to The Forrester Wave™: Product Information Management, Q4 2023, “Product information as an enterprise’s single source of truth has pivoted from singular B2B or B2C e-commerce experiences to syndication of holistic product records and thousands of online distribution channels and retailers.”
The staggering growth of the global PIM market, valued at over USD 12621.65 in 2021 and projected to reach USD 25045.58 million by 2027, screams one thing loud and clear: innovation is non-negotiable. Yet, many businesses find themselves shackled by legacy PIM systems, hindering progress and stifling growth. Replatforming becomes a vital turning point, offering a fresh start toward modernization and industry leadership. But navigating the replatforming process requires careful planning and assessment. From evaluating current systems to defining clear objectives, each step is crucial to ensure a smooth transition.
Replatforming refers to the process of transitioning software applications or systems from one platform to another. The main goal of replatforming is to modernize the application architecture and optimize its performance. According to research, 44% of retail executives identify strengthening digital commerce offerings as a crucial growth opportunity in 2024. This highlights a growing sense of urgency to migrate to modern ecommerce platforms — a market that’s expected to reach $7.4 billion by 2023.
One area where replatforming holds particular importance is in Product Information Management (PIM) solutions. Migrating to a more robust PIM platform presents an opportunity for businesses to enhance data management capabilities, streamline processes, and improve efficiency. Whether driven by the need for advanced features, better integration capabilities, or scalability concerns, transitioning to a new PIM system aligns with the broader objective of adapting to market changes and meeting customer expectations.
While both rehosting and replatforming involve migrating your PIM system, they differ significantly in scope and approach.
Rehosting entails migrating your PIM system to a new hosting environment, such as transitioning from on-premises servers to cloud-based platforms. The focus of rehosting is primarily on the infrastructure aspect of the system, aiming to leverage the benefits of cloud computing, such as scalability, reliability, and potentially lower operational costs. During rehosting, minimal changes are made to the core architecture or functionality of the PIM system.
Replatforming, on the other hand, involves more extensive modifications to the PIM system during migration. This could include upgrading to a newer version of the PIM software, switching to a different PIM vendor, or even redesigning the architecture and technology stack to address limitations or take advantage of new features and capabilities. It’s often driven by the need to modernize the PIM solution or align it more closely with evolving business requirements and industry standards.
In today's digital-driven market, where 78% of consumers spend more time researching products online than in-store, the need for robust PIM solutions is undeniable. As Forrester Principal Analyst Chuck Gahun emphasizes in our joint webinar, “PIM solutions are standardizing on a modern set of expected functionality now,” indicating a pivotal moment for businesses to leverage cutting-edge PIM technology to stay competitive.
Navigating the complexities of PIM replatforming requires a clear understanding of the current trends shaping the industry. Let's explore three key areas of focus that are driving PIM evolution today:
Integrating AI solutions marks the natural evolution of PIM systems — optimizing operations, enriching customer interactions, and fostering loyalty. According to Gahun, “emerging features, such as generative AI and other capabilities are going to continue to help the PIM solution landscape grow.”Integrated with PIM systems, content automation platforms like textengine.io and language models like ChatGPT enable automated text generation, quickly generating targeted product descriptions and SEO-friendly content.By embracing the latest trendsin PIM and AI, companies can position themselves as leaders in innovation and adaptability.
A prevailing trend in the current state of PIM adoption is the relentless focus on putting customers first. In fact, according to Forrester, customer obsession is an increasing success factor for organizations. By leveraging PIM solutions to deliver personalized product information tailored to individual needs, companies can not only enhance customer satisfaction and loyalty but also drive revenue growth. This customer-centric approach isn't just a strategic imperative; it's a fundamental differentiator in today's fiercely competitive landscape.
Seamless integration and interoperability with other systems and technologies are essential for maximizing the effectiveness of PIM replatforming efforts. Globally, integrations are the third most important factor for buyers. By ensuring that PIM systems can communicate effectively with other platforms such as CRM, ecommerce, and ERP systems, businesses can streamline processes, eliminate silos, and achieve a unified view of product data across the organization.