Connect with us

Hi, what are you looking for?


Pros and cons of data-driven product development

Electronic data

Products require regular updating to incorporate new features, and product teams are also tasked with coming up with new products.

The job is not an exact science because people do not often know what they need until they see it.

However, it is essential to go with data-based product development to mitigate specific risks and take an approach that aligns with the customers’ needs and wants. While gut feelings and emotions play a role in business decision making, emotions are sometimes blinding, so it is better to use facts and insights from data collection and analysis.

Before taking this road, you should understand its pros and cons and consider using a data visualization company to maximize the benefits of data-driven product development.

The benefits of data-driven product development

Better productivity

Product development relies on the seamless working of all the involved departments, and when all the involved parties have access to valuable data, a better understanding is realized. Useful insights open doors for innovation, growth, and learning, and that ultimately leads to better production. Through data collection and processing, companies also obtain key performance indicators, which refer to the measurement values that indicate how well a business is attaining its goals.

Key performance indicators help product teams know what needs to be done. They also help gauge whether the company is on the right path towards achieving its strategic objectives and develop an accountability culture.

Enhanced collaboration

Many companies gain valuable insight from data, and future business operations will involve broad access to useful data and critical insights. A data-driven culture enhances communication and collaboration in a company, leading to better decision-making and boosting confidence in the manufactured products. Data sharing within the company leads to employee engagement, better communication, and more productivity.

A culture of trust and transparency is fostered through proper communication, which is aided by data sharing throughout the organization. Doing so sends a clear message to the stakeholders of your commitment to information sharing and a culture of openness that helps eliminate customers’ suspicions towards your products.

Better decision making

Product development involves carrying out various processes that generate data, including competitor market intelligence, market research, gathering internal and customer feedback, and digital analytics. These processes help businesses come up with data-based decisions and successful products. For companies to fully leverage the power of data-driven decision making, they must cultivate a culture and environment that supports it.

Making decisions based on your gut feeling may lead to many errors and biases that negatively affect the product. Therefore, it is worth taking advantage of big-data and technological advancements. Insights generated from data analysis allow companies to minimize risks and make better financial and strategic decisions.

Potential downsides

Data Misinterpretation

Data is not always accurate, and without further investigation of the source and careful examination, you may make the wrong decisions based on inaccurate data or personal assumptions. Blindly trusting numbers may lead you to the wrong path and fall into a trap that may significantly affect your product and the whole company.

Data Overload

Considering how massive big data is to today’s business, it is easy for companies to get caught up in collecting all sorts of data and end up gathering more than they need or can comfortably analyze. Additionally, you may miss out on more crucial data as you focus on less beneficial insights.

Data overloads lead to wasting limited company resources. Furthermore, according to the General Data Protection Regulation (GDPR), you cannot reuse consumer data for a different cause once you collect data for a particular purpose.

Poor Quality Data

Data often falls second to the day-to-day duties of many companies. However, while handling daily operations is crucial, ensuring that you collect high-quality data should also be a priority because proper decision making depends on it. Low-quality data can lead to poor decision making, mistrust, business inefficiencies, lost revenue, and missed opportunities.

Low-quality data can result from many reasons like formatting and software errors, and human error. To prevent bad-quality data, adhere to accuracy, completeness, consistency, and timeliness when handling data. Excellent data is crucial for product management, performance assessment, efficient service delivery, and fraud prevention.

Final word

Utilizing data for decision making is a significant step, but that is only part of it. Successful companies develop a culture based on data, using it to achieve a competitive advantage.

Read more:
Pros and cons of data-driven product development

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Games Wednesday (Filoil EcoOil Centre) 12 p.m. — AU vs San Beda (M) 2 p.m. — UPHSD vs LPU (W) LYCEUM of the Philippines...


THERE is enough talent for Philippine weightlifting to last for another generation. It produced two more yesterday in Prince Keil Delos Santos and Eron...


SHEIKH Jassim Bin Hamad Al Thani, the son of Qatar’s former prime minister, has submitted an improved bid to buy Premier League club Manchester...


KEVIN Huerter poured in a team-high 27 points, Harrison Barnes led a third-quarter surge and the Sacramento Kings moved within one win of clinching...


There was a time when the middle of March saw few meaningful matches in the National Basketball Association. With the regular season coming to...


THE PHILIPPINES is seeking a $400-million loan from the World Bank (WB) to support digital transformation initiatives. “The proposed operation in the amount of...

You May Also Like


Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.