Digital asset management (DAM): What it is, how it works and why it is essential for businesses

1.    What is digital asset management?

Digital asset management (DAM) refers to the management, maintenance, and provision of digital content such as images, videos, documents, graphics, and 3D and audio files. A DAM system ensures that all digital assets stored in a company, such as images, PDFs, and drawings, are stored centrally and made available to the appropriate data recipients. Data recipients can be business partners such as a food retailer or even the company’s own web store.

The amount of data has grown significantly in recent years – this is true for companies of all types and industries. In order to maintain an overview of all this data, the implementation of a digital asset management solution has become indispensable for companies. It is important to choose the right system, so there are a few things to consider to help you avoid making fundamental mistakes when selecting the right DAM software.

The reasons for data growth are complex – on the one hand, the number of output channels continues to increase, making it essential to provide content that meets requirements. Content for TikTok must meet different requirements than content for an advertising poster campaign in city centers. On the other hand, more and more digital assets and file types are being made available – for example, fashion and beauty companies rely on extensive image and video material to stand out from their competitors in global digital commerce, and many products such as machines and light bulbs are now sold with their own software. This means that the complexity of content management and distribution is constantly increasing, which can have a significant impact on resource consumption and content quality. Another reason for the increasing amounts of data is the ability to create additional content quickly and cost-effectively at the touch of a button using generative AI, which increases the quantity enormously.

For companies, this means that they need a suitable software solution that helps them optimize their creation, maintenance, and distribution processes in the best possible way – and this is exactly where digital asset management (DAM) comes into play.

2.    The most important points summarized

• Digital asset management (DAM) is a basic technology. Product communication is an issue that affects companies in all industries. With the increasing number of communication channels, the need for an effective management solution for digital content is also growing.
• Every company has individual requirements for a digital asset management (DAM) system. From structuring content and the content creation process to syndicating product content across various channels, every company has its own specific workflows and processes for creating, maintaining, and distributing product content. The chosen DAM solution must be optimally tailored to users’ needs in order to create the greatest possible added value.
• Future-proof solutions for greater scalability and flexibility. Modern DAM systems represent the next evolutionary stage of simple image databases. Through cloud-native technologies and an API-first approach, they enable deep integration of systems, processes, and content, acting as true data hubs and enabling enormous increases in quality, productivity, and efficiency.

Tip: By centralizing and harmonizing digital content, companies can achieve significant efficiency gains with the help of modern DAM systems. The results of the independent Total Economic Impact™ (TEI) study by Forrester Consulting speak for themselves: companies that use Sharedien achieved a return on investment (ROI) of 168%.

3.    How digital asset management (DAM) works

A digital asset management solution stores digital content and makes it available to downstream systems or data recipients such as online shops or trading partners in the form they need. Examples of digital content include photos, videos, graphics such as logos or charts, 3D images, CAD files, and documents like user manuals, certificates, and operating instructions. Fonts, audio files, comparison tables, and company presentations are also included. In principle, DAM solutions manage all types of files in a single central location within the company.

Growing amounts of data make DAM solutions essential

In many companies without suitable DAM technology, digital assets are usually stored locally in a wide variety of folders and often exist in numerous different versions. This makes it almost impossible to maintain a transparent overview of digital content and ensure its quality. The search for images can take hours and then those images are ultimately reproduced at great expense. DAM systems solve this problem by managing content centrally and efficiently. The need for such a solution is particularly high given the large amounts of media and digital content required today to meet the demands of all output channels and data recipients. For example, your online shop may require a square product image in PNG format, while your trading partner may require the same image in 3:4 format as a JPEG. A modern DAM solution not only stores the original image but is also able to create appropriate derivatives in line with requirements and, ideally, even distribute them to the relevant channels automatically. And with a DAM system, everyone has access to these images – with just one click.

Why a system configuration that meets your requirements is so important

Modern DAM solutions can do much more than just manage content these days. The Sharedien DAM system supports content creation processes and ensures security even when collaborating with external users such as agencies and designers, thanks to clear role and rights assignments. In addition, Sharedien offers a monitoring function for image and video licenses, which can prevent costly infringements from the outset. Sharedien also supports content distribution through numerous integrations with online platforms such as Amazon, popular shop systems, and global data pools. Not all of these technical options are equally relevant for every company, which is why it is essential to document your own requirements in detail in order to select the right system and configure it appropriately.

How metadata brings order to unstructured data

Traditional DAM systems are based on folders – the same structuring elements used in classic image databases or file systems. The problem with this management design is that digital content often cannot be assigned to just one folder but to several at the same time, which results in redundant data storage. Such hierarchical data management is unsuitable for modern product communication requirements, which demand increasing content networking. Generic data models that organize and link the various elements via metadata and relationships provide a flexible and scalable foundation for asset management. However, clear metadata management with unambiguous governance is important here, and modern DAM systems support this with appropriate taxonomies, rules, and validation processes.

DAM as a central component of a holistic value chain

To offer the greatest possible added value, not only must DAM solutions be integrated into the creative processes and serve all relevant output channels with modern headless architecture – smooth networking with PIM, PXM, MDM, and CMS is also important in order to make operational processes as efficient as possible and get the most out of data processes. This seamless integration is one of the strengths of Sharedien DAM: speed, reliability, and quality are particularly important in product communication – and not just in highly competitive industries. A short time-to-market is essential for profitability and securing your market position. The basis for this is created by genuine end-to-end data processes, from onboarding or the creation of product content to its maintenance and enrichment, right through to distribution. And that’s not all: feedback from the online shop and digital shelf analytics results must be seamlessly fed back into this digital value chain in order to continuously optimize product messages. When selecting a DAM system, it is therefore important to look for an API-first approach, native interfaces, and partnerships with relevant complementary technology providers.

4.    Centralized content management: the advantages of DAM

Global digital commerce is constantly changing – competition, customer expectations, and regulations are constantly evolving. Companies must create the conditions to accommodate these changes with flexible, adaptable product communication processes. Modern DAM systems act as a central data hub, providing the necessary agility and scalability.

Centralization

Larger companies with different locations, business areas, and country organizations in particular face the challenge of reliably controlling and managing their own communications. A centralized DAM solution such as Sharedien enables all areas of the organization to access a single source of truth, thereby preventing risks in product and corporate communications.

Brand consistency

This centralization and DAM features such as the provision of brand portals result in another important advantage for communication: consistency. Consistent product and brand messages are the most important ingredients for successful brand building and ensure greater trust among the target group. Not only is this important for long-term brand strategy, it also has a positive short-term effect on conversion thanks to optimized customer experiences.

Increased efficiency

The content creation process can quickly become very complex. Review and approval processes, different roles and responsibilities, and external users such as agencies, photographers, and designers must be optimally managed to reduce effort. Modern DAM systems such as Sharedien have powerful workflow engines that ensure efficient content processes, clear responsibilities, and optimal data quality. Collaboration tools such as Sharedien Workspaces even offer a central point of contact for creative projects, making collaboration particularly intuitive and efficient.

Flexibility

Another important advantage of a modern DAM solution is its flexibility in terms of changes in the surrounding technology architecture. Corporate infrastructure is becoming more dynamic – new applications are being introduced and tested, cloud-native software is replacing legacy systems, and new solutions are being added to the digital value chain. With increasing networking of system architecture, the agile adaptation of DAM processes and interfaces is vital. This makes it all the more important to invest early on in a modern and flexible DAM solution that can reliably keep pace with every change and implement new requirements seamlessly.

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5.    Best practices for effective digital asset management (DAM)

Due to the central importance of DAM, there are many starting points for achieving added value through effective digital asset management. We summarize the most important points for you below and include valuable tips for selecting the right system and configuring it to meet your requirements:

1. Modern DAM solution with cloud-native tech stack. Choose a future-proof and scalable solution that grows with your requirements. Cloud-native software promises performance even during high peak loads and remains economical and reliable even with dynamic workloads thanks to its high scalability.
2. Effective metadata management. Careful design of the metadata strategy sets the course for effective networking of digital content with data from the PIM, supports searching and filtering in the online shop, and helps to enforce strong data governance.
3. AI potential analysis. Automation and AI are the next stage in process efficiency. This makes it all the more important to lay the foundations today by identifying workflows and processes whose automation will have a significant impact on operational costs, as well as seamless process design and optimal data quality in preparation for AI implementation.
4. Integration and workflows. Careful integration of data, processes, and systems is important for the design and implementation of efficient cross-system workflows. Avoid manual workarounds and rely on a central data hub from the outset that integrates perfectly into your existing system landscape.
5. Compliance. Managing and controlling image and video licenses as well as complex user rights is time-consuming but necessary to ensure legal compliance and data security. Modern DAM systems provide optimal support for those responsible for these tasks thanks to sophisticated role and rights management and comprehensive digital rights management.

Sharedien: Digital asset management for every challenge

Whether your DAM challenges lie in centralizing data, processes, and tasks, in creative workflows, or in syndicating channel-ready product content, Sharedien provides the perfect foundation for all your content management needs. Developed with state-of-the-art cloud technology, our DAM solution is not only future-proof but also uncompromisingly flexible and scalable – no matter what you have in mind. Packed with innovative features and AI tools, Sharedien supports you in numerous tasks and processes as needed – for digital asset management exactly as you require it.

Tip: Browse our customer stories and find out how Sharedien supports companies such as Beiersdorf, Kärcher, OTTO, and wedi in their digital asset management.

6.    How Sharedien supports companies in content management

The following practical examples show exactly how DAM works in everyday business and how it supports teams in content management.

The challenge: chaos in content storage

Whether brand manufacturers or retailers, most companies have many digital assets such as images, videos, and PDFs that they use for their product communication. Without suitable digital asset management, however, the administration, maintenance, and efficient use of this content quickly becomes a challenge. In practice, these digital assets are scattered throughout the organization, exist in different versions, and are often created multiple times. Long search times, unclear license rights and access permissions, and inconsistent data quality regularly cause problems for those responsible.

The solution: integrative software solution with intelligent features

Modern digital asset management solutions such as Sharedien ensure centralized management of all digital content and bring greater efficiency to maintenance processes thanks to automation and AI functions. At the same time, Sharedien’s integration capabilities enable seamless end-to-end data processes that optimally support the entire product content lifecycle, helping companies achieve shorter time-to-market and consistent brand communication across all channels.

The result: professional communication processes with impact

The number of communication channels and the volume of digital content continue to grow. This makes efficient digital asset management all the more important. Modern DAM solutions such as Sharedien act as a central content hub, ensuring effective data processes, increased quality, and greater cost efficiency, as assets that have been created once can be better utilized and reused in the long term. In addition, modern DAM systems such as Sharedien provide greater legal certainty when handling image data and effectively solve communication and efficiency problems in collaboration between internal and external teams.

7.    Conclusion and recommendations for action

Digital asset management (DAM) is an important and central technology for companies of all industries, market orientations, and sizes. Modern and scalable solutions provide both manufacturers and retailers with optimal support for their growth strategy and ensure channel-appropriate and efficient delivery of high-quality and consistent product content.

Curious?

Our DAM experts will be happy to answer all your questions – get in touch with them now!

8.    FAQs: Frequently asked questions about digital asset management

Below, we answer frequently asked questions about digital asset management.

Question 1: What is the difference between DAM, PIM, and MAM?

DAM (digital asset management) handles the centralized management, maintenance, and provision of digital content such as images, videos, PDFs, audio files, 3D images, CAD files, and more. In doing so, DAM particularly supports companies’ product communication, meaning that brand-relevant data such as fonts, graphics, and logos are also managed.

PIM (product information management), on the other hand, manages structured product data – i.e., information such as size, weight, color, ingredients, etc. Product descriptions and marketing texts are also stored here. Together with DAM, PIM forms the core of product content management and ensures the effective provision of relevant content for all output channels such as shops, apps, marketplaces, and social media.

MAM (media asset management) is often used synonymously with DAM, but it is becoming less common in the current DAM market. The reason for this is increasing clarity in the definition of both disciplines. While DAM, as a central data hub, is a key element in the digital value chain of companies that distribute products, MAM processes are more concerned with the management of media products such as film productions or art objects. Here, completely different use cases are relevant, which are covered functionally by MAM software.

Question 2: How much does a DAM system like Sharedien cost?

A DAM system typically does not have fixed prices – rather, they are calculated based on data volumes, throughput, the number of users or according to the SaaS modules booked. Modern DAM systems such as Sharedien are scalable due to their cloud-native technology – this means that performance and thus also the cost model adapt to actual digital asset management usage. The advantage of such a pricing model is that companies only pay for what they actually use.

Question 3: How long does it take to implement Sharedien?

The implementation time depends largely on the complexity and scope of the DAM project and can range from a few weeks to several months. Thanks to its cloud-native tech stack and high integration capability, Sharedien can be implemented with minimal technical effort. The duration of the project depends much more on the data modeling requirements, the complexity of the organizational and process structure, and the objectives of the various stakeholders. Our network of integration partners has a wealth of experience, best practices, and proven frameworks in this regard, which they use to implement Sharedien projects very effectively.

Question 4: For which industries is DAM particularly relevant?

A DAM such as Sharedien is relevant for companies in all industries – whether retail, manufacturing, consumer goods, e-commerce, or healthcare. Wherever there is cross-channel communication and a requirement for large quantities of digital assets, DAM provides significant added value.

Question 5: Does Sharedien provide support for licensing and compliance issues?

Yes, Sharedien has special functions in the area of digital rights management (DRM) that provide optimal support for licensing issues and thus significantly reduce the risk of costly license violations. Sharedien also offers very granular rights management, which offers a high level of security even when working with external parties such as agencies, freelancers, or graphic designers.

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