In a world where data is more abundant than coffee at a tech conference, making sense of it all can feel like navigating a maze in the dark. Even with the vast potential of AI& data, creating measurable business value remains an art of its own. Organizations invest in it more and more, with 2023 alone seeing an estimated $154 billion poured into AI. Unfortunately, the majority of these investments don’t yield significant returns, with an astounding $123.2 billion lost due to failed projects.
Effectively managing this AI & data is the key to unlocking unprecedented value across industries. With the exponential growth of AI & data generation and consumption, organizations are increasingly recognizing the value of leveraging it not just for insights but also as a strategic asset to drive product innovation and enhance customer experiences. Let me introduce Data Product Management – your golden ticket to innovation and success.
Where the worlds of data and product meet
Data Product Management is about turning data into products that deliver measurable value. It’s a discipline that enables organizations to deliver business and customer value by introducing a product-oriented operating model. It applies best practices from product management to the data world, measuring, and maximizing the value of AI & data products throughout their lifecycle.
Data product management orchestrates the company's data portfolio, ensuring robust governance and strategic collaboration with business functions to drive measurable, impactful results from data.
Don’t you think applying product thinking to data just makes sense?
This framework emphasizes robust governance, strategic collaboration, and aligns data operations with overall business objectives. By effectively combining the principles of product management with existing data capabilities (Data Science, Business Intelligence or AI), organizations can create innovative products that deliver value to their business and to their customers – whether it's a killer app, a game-changing AI model, or a mind-blowing analytics platform. It also means that all organizational units work towards a common strategic goal, effectively breaking down silos.
Unlike traditional product management, data product management focuses on products where data is the primary driver of value creation.
What are data products?
So, what exactly is a data product? Ask 20 people what data products are and you’ll get 20 different answers. At Mindfuel, we’ve defined a data product as “a reusable artifact that leverages data to provide valuable insights, solutions, or services, resulting intangible business impact and benefits for customers”. They’re effectively designed, maintained, and improved by applying data product management practices to existing data artifacts. We’ve categorized them into four types:
- Smart Products - Customer-facing solutions containing a user interface, like personal finance managers.
- Analytics Products - Tools that generate insights, such as business intelligence and machine learning applications.
- Data Assets - Valuable, reusable sets of data, resulting from treating data as a product, like payment histories.
- Tech Products - Infrastructure and tools necessary for creating and managing data and analytics products, such as data lakes.
But, why do we differentiate the different data product types? Understanding the characteristics and objectives of each product type is essential for effective data product management.
Creating value from data through data product management
In order to deliver visible impact from data, successful data organizations will tell you it’s not just about the technology. It’s a holistic approach that combines technology with strategy, processes, people, and capabilities.
Here are the four key pillars essential to harnessing the full transformative potential of data product management:
- Purpose & Direction: Think of this as the GPS for your data organization. It ensures everyone speaks the same language and heads towards the same goals, making sure your data efforts create real value for the business.
- Processes: This is the engine that keeps everything running smoothly. Our “Data Product Management Loop” is a continuous loop between Value Discovery and Value Delivery, ensuring ideas are put into action and actually used to create value.
- People: Here we define the dream team – the roles, the collaboration, and the governance needed to keep the wheels turning. It's also about fostering a data-savvy culture where everyone is on board and ready to leverage data like pros.
- Capabilities & Tech: This pillar is all about having the right tools in your toolbox. It makes sure you have the necessary technology and technical resources to create, manage, and scale your data products efficiently.
By mastering these four pillars, your organization can turn data into the fuel driving innovation, enhancing customer experiences, and maximizing resources.
The role of a Data Product Manager
At the wheel of driving data-driven initiatives is the Data Product Manager. A versatile professional with a unique blend of technical expertise, business acumen, and strategic vision, a.k.a. the Swiss Army Knives of the data world. They are responsible for overseeing the entire lifecycle of data products, from discovery to delivery. This includes collecting and prioritizing customer Opportunities, translating them into actionable insights, and managing the delivery process. They also promote the adoption and usage of data products, track their value over time, and ensure they are continuously improved and optimized. By the data products strategy and coordinating cross-functional teams (a.k.a. herding cats), they play a crucial role in keeping data-driven efforts aligned and effective.
The future of data product management
Like everything related to data, it’s endlessly evolving, driven by rapid advancements in technology, and shifting market demands. As organizations continue to invest in new AI & data-driven technologies and capabilities, data product management is expected to become even more critical. From IoT-enabled solutions to AI-powered analytics platforms, the possibilities are endless! Data product management isa vital discipline for organizations aiming to harness the full potential of their AI & data initiatives.
Do you want to finally achieve the long-elusive goal of deriving substantial, measurable value from your AI & data investments?
We’ve created Delight to help you fully leverage AI and data and unlock its value. We also have experts to guide you on your journey. Interested in taking a look? Try Delight or or reach out to us directly.
