Summary #1128

The Data Matrix and the Data Decay Dilemma
  • The Data Network Effect happens when, by using an app and adding data to it, you make the app better for everyone.
  • One such app is Waze, where drivers add alerts about road conditions en masse, making the app better for everyone.
  • The crucial keys to Data Network Effects are that the app has to own the data, and the users need to actively, regularly improve the data.
  • Data Network Effects can be diminished when apps rely on historical data, and the best solution to it is building an app around real-time data.
  • Overall, as an app creator, to benefit from Data Network effects you should build a geographically limited app, because history shows that if you go global you'll need an early exit plan.


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