ERP, PIM, CRM, CPQ – Overview for Product Managers

Today, product managers are confronted with a multitude of systems, all of which represent part of the product world: ERP, PIM, CPQ, shop, CRM. Each of these systems has a clear purpose - at least from the perspective of the respective department.

In practice, however, a different picture often emerges:
Product managers should structure products, make variants manageable, and at the same time ensure that sales, marketing, production, and the dealer network are working with the same information. 

It is often unclear which system is actually responsible for what - and which is not. This article aims to help classify the roles of the most important systems and create a sound basis for decision-making.

Why the system landscape is becoming increasingly confusing for product managers

Many systems have evolved over time. ERP systems were introduced first, followed by shops, then PIM systems, and finally configurators or CPQ solutions.

With each additional system, the functional overlap grows:

• Unclear responsibilities: Multiple systems manage the same product aspects. It is often unclear which system is responsible for what.
• Duplicate and conflicting data: Product information, prices, or variants are maintained in parallel - inconsistencies are inevitable.
• Different product views: ERP, PIM, CRM, and CPQ view the same product from completely different perspectives that are difficult to reconcile.
• Complex products are difficult to map: Variants, dependencies, and rules rarely fit neatly into classic ERP or PIM structures.
• High coordination effort between teams: Product management, sales, marketing, and IT work with different systems – decisions require a lot of coordination.

For product managers, this means they are responsible for issues that span multiple systems - often without clear responsibilities. The consequences are slow processes, inaccurate information, and a loss of trust, both internally and externally.

Let's take a closer look at the systems:

1. ERP (Enterprise Resource Planning) – the operational backbone

An ERP system maps the operational reality of a company. It manages item numbers, parts lists, prices, inventory levels, delivery times, orders, and invoices. ERP is particularly important for product managers because it contains economically relevant data. At the same time, ERP is usually highly process-oriented and designed for stability.

Challenges:

• Limited flexibility: ERPs are designed for stable processes, not for rapidly changing product logic or variants.
• Complex products are difficult to map: Variants, dependencies, or configurable products can often only be represented with workarounds.
• Product thinking vs. process thinking: Product managers think in terms of offer logic, while ERP thinks in terms of bills of materials, orders, and bookings.
• Changes are expensive: Adjustments in ERP are usually IT-driven, time-consuming, and risky.

The ERP system ensures stability in day-to-day business, but is not designed for highly varied product combinations.
 

2. PIM (Product Information Management) – Structure for product information

A PIM system is used for the central management of product information: attributes, texts, images, translations, and classifications. Systems such as PIMCORE specialize in providing product data consistently across different channels.

A PIM is particularly valuable for product managers when:

• many products exist
• multiple distribution channels are served
• content is regularly adapted or localized

A PIM creates order and transparency. It keeps product data clean and up to date.
However, it does not say what can be done with this data—for example, which parts can be combined with each other.

3. CRM (Customer Relationship Management) – Customer perspective without product depth

A CRM system manages customers, leads, contacts, and sales activities. It shows who is buying, how they are buying, and the context of a customer relationship.

For product managers, CRM is primarily relevant as a source of feedback: it provides insights into customer segments, purchase histories, and recurring queries from sales and service.

However, products themselves are only represented in CRM in simplified form - as quote items or selection fields. The underlying product, variant, or pricing logic always comes from other systems.

4. E-commerce/shop systems – sales channel instead of product logic

An e-commerce system is the digital sales channel. It displays products, allows selection, price display, shopping cart, checkout, and payment processing. For customers, it is the visible interface of the product offering.

E-commerce is important for product managers because it is where product range decisions have an immediate impact: Which products are visible? Which variants are available to choose from? How clearly and consistently are prices, options, and content presented?

At the same time, shop systems are not designed to define complex product logic. Variants, dependencies, or rules can usually only be mapped to a limited extent or quickly lead to confusing product pages. 

The shop answers the question:
What can the customer buy - and how?
Not: What is technically, economically, or logically configured correctly?

The more complex products become, the more a shop system relies on upstream systems such as PIM, CPQ, or ERP.

The missing link: product logic
There is a gap between ERP, PIM, CRM, and the shop. This gap concerns product logic:

• Which options can be combined with each other?
• Which features are dependent on others?
• Which specifications are technically or economically impossible?
• How does a configuration change in terms of price, feasibility, or delivery time?

In many companies, this logic is not explicitly modeled. It exists in documents, Excel lists, or in the empirical knowledge of individual employees. This makes it difficult to scale and prone to errors.

CPQ (Configure, Price, Quote) – structured product logic

CPQ software picks up where other systems reach their limits: with the actual product logic. It makes explicit what product knowledge exists within the company and transfers this knowledge directly into the quotation process.

CPQ draws on product data from PIM and ERP and supplements it with rules, dependencies, and decision logic. In this way, the system ensures that:

• only valid configurations are created
• prices are applied consistently
• quotes are correct regardless of individual experts

For product managers, CPQ is the central location where product knowledge is formalized. Variants can be controlled there in a controlled manner, instead of being implicitly stored in Excel spreadsheets, the minds of individual experts, or ERP workarounds. At the same time, CPQ overcomes the limitations of individual systems because it does not tie product logic to processes or channels.

Important to note: CPQ does not replace ERP or PIM - nor does it replace CRM or shops.
The ERP remains responsible for operational facts and processing, while the PIM is responsible for structured product information.
The CRM stores customer, contact, and sales information and maps the relationship context. The shop is the sales channel through which products are found, configured, and ordered. CPQ connects these systems and correlates their data. It ensures that product logic, prices, and options are applied correctly in the respective context—regardless of whether an offer is created in sales, in CRM, or directly in the shop.

A good CPQ system integrates seamlessly into existing system landscapes and combines relevant information without being completely dependent on all connected systems. Product logic that is not mapped in the ERP, for example, can be added directly in the CPQ. Discount scales or pricing logic can also be maintained in the CPQ, even if no CRM is in use.
This is precisely where a CPQ (Configure, Price, Quote) system comes in. It is designed to explicitly map product logic, make it usable, and transfer it to the quotation process.

Only with CPQ does it become clear which options are relevant for a customer, which combinations are permissible, and which prices apply in each configuration. Without CPQ, product data may be correct, but it often requires interpretation. With CPQ, it becomes actionable.

The specific effects of this division of roles only become apparent in practical use. The following examples illustrate how companies use CPQ in a targeted manner to overcome typical system limitations and make product logic manageable.

3 Practical examples

Practical example 1: CPQ introduced before ERP

• Problem: A B2B manufacturer sells highly configurable machines. Quotes are generated from Excel lists and empirical knowledge; rules are not clearly defined. Pricing and configuration errors are common.
• Decision: Instead of forcing product logic into the ERP system, CPQ is introduced early on and linked to CRM in order to define rules centrally.
• Effect: Configuration rules are clearly defined, prices are consistent, and quotes can be created faster and in a reproducible manner.

Practical example 2: CPQ prevents costly ERP adjustments

• Problem: Each new product option requires adjustments in the ERP.
• Decision: Product logic is maintained in CPQ, while the ERP remains limited to standard processes without product-specific special cases.
• Effect: Product changes can be implemented more quickly, while the ERP remains stable and maintainable.
   

Practical example 3: CPQ ensures quotation reliability before orders are placed

• Problem: Orders are sent to the ERP even though configurations are technically or economically unacceptable; errors are only detected at a late stage.
• Decision: CPQ checks the configuration and price before an order is generated, even before it is transferred to the ERP.
• Effect: Less rework, fewer cancellations, higher data quality in the ERP.
   

Conclusion: Orientation instead of debates about the system

Product managers don't need more systems - they need clarity.
ERP, PIM, and Shop each fulfill an important task. But only with a CPQ system can a consistent product logic be created that meaningfully connects these systems with one another.

CPQ is not a replacement, but a connecting link. It makes product data consistently usable—for sales, e-commerce, and internal processes. For product managers, this means one thing above all else: control over their own product logic.

We are happy to assist you in choosing the right system.

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