Article: Harnessing the power of data network effects
Title: Harnessing the power of data network effects
This article is different than any other I have ever read. It is easy to be mystified by the power of tech giants and magic of tech start ups, forgetting to deconstruct their models to better understand their methods of success: “from fledgling tech startups pioneering new and emerging technologies to the age-old industry stalwarts on the path to digital transformation, everyone is after the same superpower: data network effects.”
However, having possession of data alone is not enough; an understanding of its network an now it relates to the segments within itself as well as external factors is key. A system must be developed such that this data and its corresponding network effects can be utilized to improve products. Furthermore, one of the most interesting parts of this article was the notion of using data to drive improved user experience; this is especially intriguing because it means that quantitative data networks effects can be leveraged to improve the typically subjective concept of experience on a large scale. More specifically, “Similar to the traditional concept of network effects, data network effects take the phenomenon and apply it to data. That is, the more data added to – or consumed – by a product or service, the better it gets.
Take Google Maps, for instance: as more people use it to navigate, the more data Google has available to refine key features like route suggestions and estimated arrival times. The improved features then attract more users, which in turn drives more data into the system, creating a virtuous cycle that continues to accelerate over time.” This is necessary for creating useful products to span diverse, large scale user groups.
URL: https://www.itproportal.com/features/harnessing-the-power-of-data-network-effects/