Many chief Information Officers (CIOs) struggle to translate data investments into tangible business outcomes, despite significant spending on data platforms and governance. Barb Wixom, principal research scientist at MIT Sloan’s Center for information Systems Research (CISR) and co-author of Data Is Everybody’s Business, suggests the solution isn’t more technology or personnel, but a fundamental shift in perspective: viewing data as a product, similar to how information-centric companies operate.

Wixom’s research, detailed in a recent brief, stems from observations made over two decades while teaching in the University of Virginia’s MS program in the Management of IT. According to Wixom, leaders from data-driven organizations sought practical models to emulate.She advised them to “Study organizations whose entire business runs on data. Watch what they do, and you’ll see the future.” This prompted extensive research into the strategies employed by information businesses to effectively manage data.

The Case for Managing Data Like a Product

In information businesses, such as comScore or LexisNexis, data is not merely an input but the core offering. These companies thrive by developing reusable and scalable data assets, creating solutions around them, and monetizing both. Wixom notes, “[In information businesses] you’ve always had owners for both the data asset and the solution. They’re core strategic resources; these companies treat them as such.”

“Study organizations whose entire business runs on data. watch what they do,and you’ll see the future.”

Frequently Asked Questions

What is a data product?

A data product is a reusable, scalable data asset designed to address specific business needs or create new revenue streams.

Why is a data product mindset vital?

It enables organizations to unlock the full potential of their data, improve decision-making, and gain a competitive advantage.

How can organizations adopt a data product mindset?

By focusing on data governance, data quality management, and the development of data-driven solutions that align with business objectives.