Annals of Business Administrative Science (Dec 2023)

Adjusting the ratio between idea-driven development and data-driven development in product updates

  • Wei Huang

DOI
https://doi.org/10.7880/abas.0231016a
Journal volume & issue
Vol. 22, no. 6
pp. 121 – 132

Abstract

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Data usage has a major impact on the corporate innovation process by providing more multifaceted and clarified customer insights than those that have been available before. However, data-driven development relies on objective data, and as a result of the constant pursuit of rationality, we are confronted with the opposite constraint of user trends. Project L, as discussed in this paper, adopted data-driven development after its official release; however, as product updates were led by user data, the product tended to be updated conservatively and for the existing users, which resulted in a slowdown in the active user growth rate. Fortunately, the development team size was not reduced even after the product was released; hence, Project L was able to change into a development policy in which the ratio of idea-driven development and data-driven development could be adjusted based on user trends. The result revealed that they were equally successful in capturing new users and retaining existing ones.

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