What are Data Products?

A lot of people think of a data product as a physical product like Amazon Alexa that uses data, but that’s not true at all. A data product is an output produced from statistical analysis that adds value to an organization’s decision making. It can be said that Data products are those applications that automate the process of a data-driven system. In this article, I’ll walk you through what data products are and why they’re used.

What are Data Products?

A data product is an application that automates the entire process of a business for making decisions based on the data generated by them. These applications are used to perform various types of statistical analysis such as predictive analysis, descriptive analysis, data mining, risk analysis, etc.

A data product adds so much value to an organization to make decisions based on the data generated by it. The use of such applications is primarily to analyze the quality of services and products using data collected from customers, website visitors and many types of surveys conducted by a business.

Examples of Data Products

Data products are therefore those applications that facilitate an end goal using data. All the software and web applications you use today use your data with the ultimate goal of providing a better user experience. If an app gives you something based on your data, it’s not a data product, it’s just an app that uses your data for the ultimate purpose of recommending results to you based on your interests.

For example, Instagram and Facebook, which use your data to show you accounts that you may be interested in and advertisements based on your interest and searches. It’s something that every app does today. But these applications are not data products.

Now let’s take another example of Google Analytics which is used by businesses to analyze website traffic and visitor behaviour from different parts of the world. This app, therefore, uses the data collected by it to show you statistical analysis to improve your engagement with your visitors, which adds value to your business. Applications like Google Analytics and Tableau are therefore data products.

Also, Read – 200+ Machine Learning Projects Solved and Explained.


A Data Product is something that adds value to an organization by using the data. These applications are designed to give an output that is based on the data collected by a business. In an organization, these applications are used by a Data Analyst, Data Scientist, Business Analyst, and Data Engineer. I hope you liked this article on what are data products and why they are used. Feel free to ask your valuable questions in the comments section below.

Aman Kharwal
Aman Kharwal

I'm a writer and data scientist on a mission to educate others about the incredible power of data📈.

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