Product data management is crucial because it ensures that all product-related data is accurately and consistently stored in a single system. This makes it easy to access and track product information, which can help make production, marketing, and sales decisions. Additionally, good product data management can help improve communication among different departments within a company and between companies and their suppliers and customers. Product data management can help businesses run more efficiently and make better decisions based on real-world data by providing accurate and up-to-date information about products.