What is the ONE thing that drives a Data Product Mentality?

There are many things you can do to drive a data product mentality, everyone has talked about the regular things: Data Literacy, Data curation, Data Governance etc etc.? However after having done this many times while there are a lot of levers there is just ONE that really moves the needle on uptake.? That one is Incentivization.? When you use this the organization practically manifests what it needs to get done.? As an addition you need to measure that incentivization as follows (Yes an actual practical framework you can use to get change started – you will need leadership buyin and stakeholder support but if you have been reading my stuff you know how to get that or just DM me I will share)

KPIs and Incentives to Promote a Data Product Mentality

1.?Revenue and Profitability KPIs

A.?Revenue Growth from Data Products:

• KPI:?Measure the incremental revenue generated from data products.
• Incentive:?Offer performance bonuses or profit-sharing for teams that achieve or exceed revenue targets from data products.
• Make sure you agree on the measures beforehand and how to measure them. Clarity not ambiguity.

B.?Cost Savings and Efficiency Improvements:

• KPI:?Track the reduction in operational costs and efficiency gains from data products. This is harder than it seems since there is so much buried in the costs. Plus time to gain efficiency is another factor, you will not see it overnight. While this is the fastest way to implement data products its more bottom line (net income) than top line (gross income).
• Incentive:?Provide cost-saving bonuses to departments or teams that successfully implement data products leading to significant savings.
• Make sure the reduction in cost etc is from data products but again clarity in how it is measured is key. Certainty is necessary for this to pay off

2.?User Engagement and Adoption KPIs

A.?User Adoption Rates:

• KPI:?Monitor the number of active users and the growth rate of data product users.
• Incentive:?Recognize and reward teams that achieve high adoption rates through bonuses, promotions, or public recognition within the company.

B.?Usage Frequency and Engagement:

• KPI:?Measure the frequency and duration of data product usage.
• Incentive:?Implement a rewards program for employees who consistently engage with and utilize data products effectively in their workflows.

3.?Data Quality and Governance KPIs

A.?Data Accuracy and Completeness:

• KPI:?Ensure high data quality by tracking error rates and data completeness.
• Incentive:?Provide quality improvement bonuses for teams that maintain high standards of data accuracy and completeness.

B.?Data Governance Compliance:

• KPI:?Track compliance with data governance policies and regulatory standards.
• Incentive:?Recognize compliance achievements with awards, certifications, and additional resources for maintaining high governance standards.

4.?Innovation and Improvement KPIs

A.?Innovation Rate:

• KPI:?Measure the frequency of new feature releases and updates to data products.
• Incentive:?Offer innovation bonuses and funding for research and development initiatives that lead to successful new data product features.

B.?User Feedback and Improvement Implementation:

• KPI:?Track the number of user feedback suggestions implemented.
• Incentive:?Provide incentives for teams that actively incorporate user feedback and continuously improve the data product.

5.?Customer Satisfaction and Value KPIs

A.?Customer Satisfaction Scores:

• KPI:?Monitor customer satisfaction and Net Promoter Scores (NPS) related to data products.
• Incentive:?Offer customer-focused bonuses for teams that achieve high satisfaction scores, reflecting the value delivered by data products.

B.?Customer Retention and Growth:

• KPI:?Track customer retention rates and growth in the customer base due to data product offerings.
• Incentive:?Provide retention and growth bonuses for teams that drive significant customer retention and acquisition through data products.

6.?Performance and Scalability KPIs

A.?System Performance and Reliability:

• KPI:?Measure system uptime, response times, and overall performance of data products.
• Incentive:?Offer performance-based bonuses for maintaining high system reliability and performance standards.

B.?Scalability Metrics:

• KPI:?Evaluate the scalability of data products in handling increasing data volumes and user loads.
• Incentive:?Provide scalability improvement bonuses for teams that successfully enhance the scalability of data products.

By aligning KPIs with meaningful incentives, you can foster a data product mentality, driving the adoption and effective use of data products across the organization. #Dataproducts #AI #ML #Datamonetization

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