Data products provide data-driven enterprises with new and innovative ways to apply their data investments to create new revenue opportunities. By analyzing large volumes of customer, operational, and other relevant data, these data products help in extracting insights to help consumers make more informed decisions, and stakeholders address unique use-cases.
Walmart, Amazon, and a host of other global brands turned data into their primary competitive weapon. They saw the critical benefits of amassing user and consumer information to feed into their homegrown data products, but it was another well-known company which is credited with taking the first step towards big data. As early as 1995, consumer retail brand Tesco introduced a customer loyalty program called the Tesco Clubcard.
Every time somebody made a purchase in a Tesco grocery store or through their website, they could present this card and earn redeemable points. In exchange, Tesco collected basic information which helped them understand how far consumer’s were ready to travel, as well as seasonal preferences. Through systematic nudge campaigns, Clubcard members ended up spending 4% more than non-Clubcard individuals. Tesco earned $61 billion in revenue in 2022, as the 4% increase in spending likely resulted in hundreds of millions in additional revenue.
Hence, it’s easy to understand that in today's fast-paced and competitive business environment, data products have become more important than ever.
Data Products: More Than Just a New Interface
Data products allow businesses to gain insights into their customers and operations, which would have otherwise been impossible to obtain.
Here are the different ways businesses and enterprises use data products today:
- They play a critical role in decision-making. By analyzing data, organizations can identify areas where the different parts of the business – marketing, sales, supply chain, and operations are just a few – are performing well and areas where they can improve. A manufacturing company can use data products to analyze production data to identify bottlenecks and optimize its manufacturing processes, leading to increased efficiency and cost savings.
- Data products also help organizations identify and mitigate risks. By running vast data sets on complex risk analytics models, businesses can identify potential operational and financial risks and take the necessary steps to mitigate them before they become a problem. Financial service providers employ data products like these to predict NPAs (Non-Performing Assets), and forecast market performance.
- Another key advantage of data products is that they can be used to automate diverse business processes. Manufacturing industries use them to optimize factory operations, manage inventory, and eliminate bottlenecks. This gets products built and shipped faster and with fewer disruptions. Similarly, an IT company relies on data products to harness insights surrounding employee performance, customer satisfaction (CSAT) metrics, and even marketing.
- Data products form the backbone of an enterprise’s competitive advantage. With accurate data on customer behavior, businesses can now market products and services to their users more efficiently and with greater precision. Real-time nudges, point-of-sale discounts, aggressive pricing dynamics, and tailored marketing campaigns are helping businesses around the world stay ahead of their competition.
- Compliance with industry and government regulations and mandates is critical for businesses operating in regulated markets or industries. Healthcare providers need to ensure that patient data is kept private when worked upon to remain compliant with HIPAA (Health Insurance Portability and Accountability Act). And for enterprises operating within the EU, the systematic management of customer data is governed by the GDPR law, which creates a strict mandate to protect customer data. Data products ensure critical data in these situations are constantly monitored and flagged when threatened.
Why Data Products Are Critical For the Enterprise
Data products are essential for any organization that wants to make informed business-critical decisions. They provide a way to easily access and analyze data, which streamlines decision making, increases process efficiency, and ultimately, helps them gain a competitive advantage. Whether it's a simple dashboard or a more complex machine learning model, data products can help organizations of all sizes and industries to stay ahead of the curve. Investing in data products is a necessary step for any organization looking to stay competitive and make the most of their data.
Acceldata’s multi-layered data observability solution enables enterprises to gain comprehensive insights into their data stack to improve data and pipeline reliability. This helps business teams to build and operate great products by monitoring compute performance, spend efficiency, and delivering reliable data efficiently.
Visit our official website to learn more about how we can help you do the same for your business.