Article: The Surprising Power of Online Experiments: Getting the Most Out of A/B and Other Controlled Tests (Kohavi & Thomke, 2017 - Book chapter Innovate by rapid experimentation

9 important questions on Article: The Surprising Power of Online Experiments: Getting the Most Out of A/B and Other Controlled Tests (Kohavi & Thomke, 2017 - Book chapter Innovate by rapid experimentation


Innovation = any change to a business product, service or process that adds value.


- This change can range from an incremental improvement to
the creation of something totally new and unprecedented.
- For example, For Google, an innovation may be launching a
completely new product such as Gmail, Google Maps, or its
Chromebook laptop line.
- But innovation at Google also includes the continuous process
of refining, adding and subtracting features, and evolving the
user interface and experience.


Seven principles of experimentation
To create the most value for your innovation efforts, a few principles are critical. These seven principles apply for any business experiment, whether convergent or divergent:

  1. Learn early
  2. Be fast and iterate
  3. fall in love with the problem, not the solution
  4. Get credible feedback
  5. Measure what matters now
  6. Test your assumptions
  7. Fail smart

Seven principles of experimentation
2. Be fast and iterate


- The second key principle of experimentation is speed
- The primary goals as a leader is to get his teams to learn faster—in iterative cycles of days rather than weeks or months – as this can become a competitive advantage.
- Increasing the speed of experimentation may require infrastructure, too
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Seven principles of experimentation
3. Fall in love with the problem, not the solution


- This keeps you focused on the customer and their needs => Customer value
- Focusing on the problem you to consider more than one possible solution.
- If your goal is the solution itself, you stop generating new ideas.
- You become attached emotionally to a creative solution. If you think you only have one idea, you are unwilling to let it go. Thus, you continue driving up the costs of that one idea, trying to make it work. Therefore, don’t focus on the solution, but on the problem.

Seven principles of experimentation
4. Get credible feedback


Credibility starts with the people you speak to: they need to be real (potential) customers, not colleagues who give feedback.

Seven principles of experimentation
5. Measure what matters now


- As interactions become more digitized, the number of things that can be measured is growing, and it is easy to get distracted by all the numbers you could be tracking.
- Solution: try to identify the most important single metric for the success of your innovation (= “the one metric that matters”)

Seven principles of experimenting
6. Test your assumptions


- It is essential to test assumptions to eliminate risk, especially for innovations that take your business into unknown territory.
- If your idea is based on assumptions about customers, their interests, and their willingness to pay for such an innovation, test your assumptions in a series of experiments!

Seven principles of experimenting
7. Fail smart


- Failure is inevitable. We can define failure as trying
something that doesn’t work
- If you try to avoid any failures, you will retreat into whatever
seems most sage and you will never innovate.
- But when you fail, you should fail smart. We can think of
smart failure as one that passes these four tests:
1. Did you learn from the failed test?
2. Did you apply that learning to change your strategy?
3. Did you fail as early and cheap as possible?
4. Did you share your learning (so that others in your organization won’t
make the same mistake)?

Tool: the convergent experimental method
7 steps


This experimental method is particularly useful for innovating on existing products, services, and processes; for optimizing and continually improving them; and for comparing versions in the later stages of an innovation process

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