The world around us is constantly changing and evolving. 30 years ago, the idea that the majority of us would regularly shop online and expect things to arrive in a matter of days would have seemed alien. Yet that’s the reality in 2024 – most consumers expect to be able to get hold of the items or services they want via a computer, with physical stores simply acting as a second option. Businesses have to change and adapt to this new normal if they want to succeed in the digital economy – and one of the key parts of doing so is having the right data.
With so much information available to modern entrepreneurs, it can be hard to move forward with clarity. A data product is a tool that brings together information so that it can be understood and used to inform decision making. In this post, we delve deeper into what data products are, what they can do, and factors entrepreneurs need to consider when using them.
Understanding data products
A data product is a pre-packaged solution, where individuals or companies can simply input their information and receive tailored insights based on a specific goal. Examples of data products include data APIs, real-time dashboards, personal finance algorithms, predictive analytics tools or tools that provide personalized recommendations. In a small business, this may look like a company dashboard to track progress against goals, for example.
A good data product will make it easier for the user to understand the complexities of their business and make data-driven decisions. It should be interoperable, working seamlessly no matter where the data is coming from. It should also be clean, accurate and reliable in order to reduce the risk of any problematic data slipping into the dataset and skewing results.
In comparison, ‘data as a product’ refers to selling the data itself as a product. Since these similar terms are often used in the same space, there can be confusion, but it’s important to note that they don’t have the same meaning.
The value of data products for entrepreneurs
Using data to inform your decisions is a key skill for any entrepreneur. However, collecting and interpreting enough data to make a difference or provide the kind of information you need can be extremely time consuming and difficult. As a result, your overheads increase, as not only do you have to hire someone to gather the information you need, you then have to employ a specialist to draw out the insights.
Having a data product that can do the job for you means that anyone can gather the insights you need, no matter their job role. Making data-driven decisions is no longer dependent on one specialist, and as a result, you can benefit from greater collaboration and opportunities across the business. It also means that you can stay on top of the latest information, and get insights whenever you need them. In the fast-paced business world, being able to adapt to changes around you can make all the difference.
Finally, data-driven businesses are often those that best serve their customers. In turn, this may lead to increased revenue and customer satisfaction.
Advice for creating a data product
Before you dive in and create your own data product, or work with a professional to do so, you’ll need to understand the problem that you’re trying to solve. Perhaps you want to gain specific insights from your website, or you want to be able to track how you’re performing on a day-to-day basis against your financial goals. Sit down and establish what you want your data product to do, who the audience is, and where you’re going to get your data from.
Additionally, you’ll need to decide how you want your data to be visualized. Ideally, your product will be as easy as possible for both technical and non-technical users alike to access and interpret. Once you have a clear understanding of what you want, you can move to the next stage. Otherwise, you risk trying to do everything in one product, which is unlikely to be successful.
Conclusion
Data is at the core of every modern business – but gathering the insights you need doesn’t need to be daunting. Utilizing new technologies can help you move forward with confidence and react to changes in the market with agility.
