An estimation based on your requirements
There a quite a lot of factors determining the right PIM for your organization. Besides the functional requirements, you also need to account for the costs associated with designing and implementing the PIM in your organization and training your staff to work with the new workflows.
Want to get a quick estimation of your expected PIM Costs? Use our PIM Cost Calculator:
How do we determine the cost(-range)?
There are 4 aspects driving the cost for a PIM solution: analysis, design, implementation and of course the licensing fees. We use a range to estimate the costs associated with each aspect, since every company is unique and every PIM solution has its own pro’s & cons.
For example, as a fashion retailer, you might be able to use an existing template specific for your sector that the PIM solution of your choice does not have available for a food wholesaler.Being able to use existing templates greatly reduces design and implementation costs that you would otherwise have to invest to adapt the solution to your workflows.
The PIM Cost Factors
We use the following factors to determine the complexity of your PIM solution:
What is your business model?
What types of products do you want to manage?
How many products do you want to manage?
How many categories do you want to manage?
What kind of information will you need to manage with your PIM solution?
Do you require (complex) product relations?
How many languages do you need to support?
Who will be working with the solution in your organization?
Which output channels will the solution support?
How and where is product management currently managed in your organization?
The design and implementation of a PIM solution will have different demands based on the requirements you have. Based on our experience, we weighted the impact of each factor on the total complexity of your situation, which in the end determines the cost range for a potential PIM solution. We then present this cost range split up over the 4 different Cost Aspects that each PIM implementation will have.
The 4 PIM Cost Aspects
Every PIM implementation has 4 Cost Aspects that generally drive the total cost for an implementation. Even if you implementation does not formally define these four aspects or does not explicitly define them, you will always encounter them in one way or the other. For example, you might do the implementation yourself, but the man-hours invested are still PIM implementation related costs.
Costs that are associated with analysis are related to the orientation phase. They include exploring the current PIM market, visiting conferences and participating in workshops. More explicit costs would be hiring a PIM Selection consultant that guides your selection process and might even manage the implementation phase as independent expert.
Analysis should also happen inside the company: who are the key stakeholders, what are the requirements, what are go/no-go criteria? Even if you are not getting outside help it might be wise to formalize and structure your analysis phase. Regardless, time and resources invested in this phase are crucial for a successful PIM implementation. Too often, we see clients with 500+ requirements questions without clearly defining go/no-go criteria. Or inviting 'The Magic Quadrant' to hold generic product demo's instead of researching industry specific PIMs that might cover all their needs for a fraction of the price.
During the selection process you will already start designing: how will your IT architecture and product information processes look with a new solution? Who and what should change? What cannot be changed? This is all done during the design phase.
Though you might touch this lightly during the selection process, after choosing a PIM solution the Design phase starts in earnest: how should your product hierarchy be implemented? How and what will the ERP and PIM communicate? What system is in the lead when it comes to product data? Which output channels should be connected and how are the workflows of different teams reflected in the PIM solution?
With all the designs in hand, the Implementation can start. Costs from this phase are related to the development of connections to your other systems, of custom workflow solutions or specific output connectors not yet covered by the PIM solution itself. They also cover workshops to train your team in using the new PIM solution and slowly migrating current processes to the new platform.
The bulk of implementation related costs will be during the first 12 to 18 months, but you will probably keep customization related costs during all years you will be maintaining the PIM solution. Processes change, output channels need to be added, new systems need to be connected, etc.
The most obvious cost aspect, but not always the largest. Yes, licensing costs are important when choosing a (new) PIM Solution. But we often see teams making the mistake that tools that seem cheap on the short term actually turn out to be (very) costly on the long term.
Either because of implementation and customization costs that are necessary to fit the tool to the company's processes and existing tools, because different teams do not adopt (all) parts of the new PIM solution, or both. Licensing costs might be the most tangible, but they are certainly not the most important on the longer term.
Calculate Your PIM Cost
The costs associated with a PIM Selection and Implementation are often the first and most important hurdle and it's good to get a grip of your expected costs.
Want to get a quick estimation of your expected PIM Costs? Use our PIM Cost Calculator to get a validated cost range in less than 5 minutes:
Want to learn more?
If you have any questions regarding Product Information Management, from PIM Selection to Implementation or how a PIM would fit in your IT landscape? Feel free to browse our data base of articles on everything PIM related. If you want to know which PIM would be the best fit for you (and get a free 1-hour consultation with a PIM Selection consultant with relevant industry expertise): do our Quickscan. In just 30 minutes you will be able to create a profile that we can match to the right PIM system.
Any PIM question that was not covered by our articles or do you have a specific question? You can always reach us through firstname.lastname@example.org!