What are PIM, DAM, PLM, MDM and ERP? What are the differences?
Introduction : Which software should you use to manage different types of data?
Definitions and comparison table
Today, companies must manage growing volumes of information while ensuring their data consistency and accelerating product development and time-to-market. Product data management has become a major challenge because low quality data can impact revenues, growth and the trust of customers and partners.
Indeed, according to a 2024 study published in Forrester-— Data Culture And Literacy Survey, data and analytics teams estimate that they lose an average of $5 million per year due to poor data quality. Relying on efficient tools for information management and structuring is now crucial.
Between product data, digital media, design processes and resource management, numerous software solutions now exist: PIM, PLM, DAM, MDM, ERP, etc.
It can be difficult to navigate all these acronyms and their sometimes complementary uses. What are their functions? What problems do they address? How do they differ? Can a PIM and a DAM be used together?
In this article, we will help you to understand their respective roles so you can identify which solution best meets your company’s needs. You will soon be fully equipped to understand the difference between PIM, DAM, PLM, MDM, and ERP!
Definition of the main software tools
Each software has its own specificities and functionalities. Below you can find a glossary summarising their definition and role within an organisation.
PIM : Product Information Management.
DAM : Digital Asset Management.
PLM : Product Lifecycle Management.
ERP : Enterprise Resource Planning.
MDM : Master Data Management.
What is a PIM (Product Information Management) ?
A PIM is used to centralise, organise and efficiently manage marketing-related product data in order to distribute it across multiple sales and communication channels (print catalogues, online catalogues, websites, etc.).
This data can be technical features (weight, dimensions, composition…), marketing information (product descriptions, storytelling…), digital assets (photos, icons, videos…), commercial data (barcode, EAN, unit price, retail price, etc.). You can assign user roles, editing rights and validation permissions to ensure data quality and security.
According to a 2020 study from McKinsey, poor-quality data can lead to a ~20% drop in productivity and ~30% cost increase in some contexts. A PIM product database helps save time, reduce errors, and speed up product information updates across all sales channels (e-commerce sites, catalogs, mobile apps…) to keep all product content consistent and up to date.
And if you are not fully convinced, we encourage you to read our white paper “20 reasons to adopt a PIM and 3 reasons not to” !
At Interactiv’ Technologies, Interactiv’ Database PIM adapts to your company’s needs and offers a fully bespoke configuration. Thus, pricing is tailored to each customer, depending on their data and the modules they require.
What is a DAM (Digital Asset Management) ?
A DAM system is used to store and manage a company’s digital assets (videos, images, PDFs, audio files…). It can be compared to an internal online media library. A DAM is often used alongside a PIM.
According to a 2021 article by Vernon & Riger in the Journal of Management and Stragey, marketing and web departments lose 3.25 hours per month searching for files. This is a valuable time that could be otherwise spent on strategic activities. According to McKinsey estimates (MGI publications), it is possible to recover up to 35% of search time by implementing better internal platforms.
At Interactiv’ Technologies, our DAM enables to automatically convert images into multiple formats (PNG, JPG) and generate predefined sizes (custom dimensions, web formats, etc.). It is an independent module. With Interactiv’ DataBase solution, you can choose PIM only, DAM only or the combine PIM + DAM suite.
What is a PLM (Product Lifecycle Management) ?
PLM refers to managing a product’s entire lifecycle—from its design to its end of life (manufacturing, inventory management, logistics, sales, and possibly recycling).It centralises all product-related data and streamlines production processes.
Unlike a PIM, a PLM does not necessarily centralise product data intended for marketing or customer-facing use (commercial data, technical specs, marketing content).
What is a MDM (Master Data Management) ?
MDM software structures a company’s data in order to standardise product and internal resource information so that every department shares the same reference data, avoiding duplicates and errors.
Acting as an internal nomenclature or reference system, an MDM helps to protect, secure and validate data. Managed data includes invoicing, HR, finance, commercial data, technical data, marketing information, etc.
Because of its scale, an MDM is generally used by large enterprises and requires substantial implementation time.
What is an ERP (Enterprise Resource Planning) ?
An ERP software centralises and manages an organisation’s overall data across multiple departments (invoicing, payroll, inventory, sales management, HR…).
It forms the core system connecting all departments and automating processes such as order management, payroll, billing, supplier management, sales workflow and inventory.
Because of its scope and cost, an ERP is typically used by medium and large companies.
Comparison table : key features of each software tool
Each solution is useful and often complementary. An MDM and an ERP are large-scale systems managing internal data across nearly all departments. They generally require more time and a more higher budget to implement than other tools (PIM, DAM, PLM).
Unlike, PIM, DAM and PLM are easier to deploy because they focus on specific types of data or specific teams:
- PIM: focus on product data for efficient distribution,
- DAM: used to centralise media files (images, PDFs, videos…),
- PLM: allows easy management of the full product lifecycle management.
In addition, here is a comparison table of the different software tools for managing data:
| PIM | DAM | PLM | MDM | ERP | |
|---|---|---|---|---|---|
| Types of centralized data | Marketing product data (technical, marketing, or commercial data) | Media assets (PDFs, images, photos, videos, icons, audio files, etc.) | Data related to a product’s lifecycle | Almost all types of data (billing, payroll, logistics, product data, etc.) | All internal company data (billing, payroll, logistics, product data, etc.) |
| Main goal | Centralize product data to efficiently distribute it across sales and marketing channels | Centralize media assets for efficient management and distribution | Streamline end-to-end product management (from design to post-sales support) | Standardize data through value reference frameworks, ensuring better security and data protection | Manage all internal company data and optimize processes through automation |
| Which department is it for? | Mainly Marketing, Sales, Logistics | Mainly Marketing and Sales | Mainly R&D, Logistics, Production | All departments | All departments |
| Cost | €€ | € | €€€ | €€€ | €€€€ |
| Implementation time | ++ | + | +++ | ++ | ++++ |
FAQ : common questions
PIM vs DAM : what is the difference?
A PIM centralises product information (descriptions, technical attributes, commercial data…) to support omnichannel publishing.
A DAM centralises digital assets (photos, videos, PDFs…) and manages versions and formats.
In summary, PIM and DAM are complementary and often used together in the same software in order to streamline product content enrichment (the product image is directly accessible in the DAM to complete the product information in the PIM).
When does a DAM become essential?
A DAM becomes particularly important when a company manages a large volume of media assets (catalogues, product visuals, marketing videos) and needs approval workflows and automatic export of formats.
PIM vs ERP : which tool is better for product data management?
It is more complicated to manage your product data in an ERP. Indeed, this tool manages operational processes (accounting, payroll, stock…) including some product-related processes.
A PIM focuses exclusively on centralising product information intended for sales and marketing, offering advanced enrichment and omnichannel publishing features.
Does an MDM replace a PIM?
No, an MDM system can’t replace a PIM system.
Indeed, an MDM harmonises enterprise-wide reference data, whereas a PIM manages market-facing product data for websites, marketplaces, apps, catalogues, etc.
That’s why they are often used together : MDM ensures data consistency and PIM ensures data enrichment and distribution.
Why use a PLM ?
A PLM centralises all product-related data to improve collaboration between R&D, production and logistics. The final result ? Reduced time-to-market and significantly lower costs associated with prototypes and rework.
Which tool should you choose to manage your data ?
It depends on your data types, objectives and budget :
- PIM : centralises product data for omnichannel distribution,
- DAM : organizes and secures digital assets (images, videos, PDFs),
- PLM : manages product lifecycle management (from production to end of life),
- MDM : harmonizes master data across all departments,
- ERP : centralises and automates internal business processes.
Companies often combine several tools.
But if you have limited budget, a combined solution like Interactiv’ Database (PIM + DAM) may be more cost-effective.
We encourage you to think about the tools that seem most relevant to you: do you manage a large number of product references across many channels? Then a PIM becomes essential. Are your products subject to frequent changes, and do you have many different ranges? In that case, a PLM could save you a significant amount of time…
Need More Information?
You want more information about PIM, DAM, PLM, MDM or ERP?
Feel free to contact us at: contact[at]interactiv.tech or +33 9 70 24 89 90.
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Written by Interactiv’ Technologies Team