In the world of data products, it's essential to adopt a true product-thinking mindset. For anyone looking to develop data products, consider these crucial insights:

Centering the Customer in Data Product Development

The core idea is that a data product is an end-to-end software solution, necessitating a design orientation from day one. This approach involves putting the "customer" of the data product at the heart of the development process. By focusing on the needs and experiences of the end-user, data products can deliver meaningful and impactful solutions.

Delivering Critical Business Impact

Each data product developed should deliver some form of critical impact to the organization. This could be a financial impact, such as generating additional revenue, or a strategic impact that aligns with and drives the company's overall strategy. For instance, at Regions Bank, their data products have been instrumental in generating tens of millions of dollars in additional revenue.

To ensure that each data product is worthwhile, it is essential to build a solid business case for each project. This involves defining clear objectives, expected outcomes, and how the data product will contribute to the business's goals.

Measuring Success: P&L for Data Products

An innovative approach to managing data products is to treat each one as its own profit and loss (P&L) center. This means evaluating the costs involved in creating the data product team and measuring the value delivered by the product. By doing so, organizations can transparently show the return on investment for each data product and ensure they are contributing positively to the company's bottom line.

Defining Data Products as End-to-End Solutions

A data product is defined as an end-to-end software solution to a business problem. It heavily leverages data and advanced analytics to deliver that solution. This holistic approach ensures that data products are not just isolated tools but integrated solutions that address specific business needs.

Conclusion

Adopting a product-thinking mindset for data products involves:

• Centering the customer in the development process.
• Ensuring each data product delivers a critical business impact.
• Measuring the success of data products as individual P&L centers.
• Defining data products as end-to-end software solutions.

By following these principles, businesses can create data products that are not only innovative but also impactful and aligned with their strategic goals. If you're involved in developing data products, make sure to incorporate these essential practices to drive real value and success.