KPI-driven product data strategy: maximizing success with product data along the product data value chain
Patrick Michael and Robin Wilken
In today's digital economy, effectively managing and optimizing product data is critical to a company's success. Implementing a KPI-driven product data strategy that spans the Product Data Value Chain (PDVC) has proven essential to achieving customer engagement, efficiency, and revenue growth. This approach enables companies to optimize their product data at every stage, from ingestion to distribution, using clear key performance indicators (KPIs) to measure progress.
The PDVC is divided into four main phases, each with its own contribution to enhancing the customer experience and business efficiency. These phases are made possible by hmmh's close collaboration with strong partners.
Onboarding: data acquisition and initialization
The first phase, onboarding, focuses on capturing product data into the desired target system, such as a Product Information Management (PIM) system. Here, the basic information about a product is captured to create a solid basis for the further phases.
Enrichment: data enrichment for comprehensive knowledge
The enrichment phase focuses on extending the product data with additional attributes such as assets, assembly instructions and other relevant information. This enrichment significantly improves the customer experience because the more information shown to the customer, the more likely they are to make informed decisions about purchasing the product.
Management: data organization and structuring
The management phase aims to organize and structure the product data to create a central and reliable data source. This "single point of truth" makes the data easily accessible internally, creates transparency and optimizes business processes.
Distribution: targeted dissemination of the data
In the distribution phase, the product data is distributed to different channels, both digital and analog. The main goal is to adapt the product data to the requirements and specifics of each channel to ensure consistent and appealing customer communication.
To ensure that this strategy is implemented effectively, a KPI-driven approach is essential. Companies rely on the proven approach of hmmh: "consult, create, care", which ensures a deep understanding of customer needs and business objectives. Teams of experts specializing in each phase of the value chain provide an interdisciplinary view of data, processes and structures. Challenges and potentials are analyzed in order to derive well-founded recommendations for action.
Strategy development takes place through a holistic approach that includes a 360-degree analysis. In joint scoping workshops, the challenges and potentials are contrasted with the business objectives and aligned. This enables prioritization, target definition and the definition of KPIs to measure progress.
An important step is the strategy workshop, in which suitable partners and expert teams are selected to specifically counteract the challenges and give the appropriate space to the potentials. Finally, the operational implementation takes place, including implementation, configuration and adaptation in accordance with the strategy.
In addition to the main phases mentioned above, there is a wide range of subtasks, such as internationalization or setting up data governance, which contribute to the entire value chain. This diversity enables companies to develop a comprehensive product data strategy that enables seamless integration, higher efficiency and ultimately better customer retention.
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