Productive Innovation

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Productive Innovation

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Publication Date:
March 01, 2020

In today’s digital world, more and more companies are turning to experiments to discover ways to create or improve online experiences, and they’re running thousands of tests a year, not dozens. In this issue HBR looks at what it takes to develop the capacity to do large-scale testing and use it to lift firm performance. In “Building a Culture of Experimentation,” Stefan Thomke explains that the biggest obstacle companies face is not technology but behavior and attitudes. To succeed, firms have to create an environment where curiosity is nurtured, data trumps opinions, any employee can launch tests, all experiments are ethical, and a more-democratic model of leadership prevails. Ultimately, executives need to be willing to confront the possibility that they’re wrong daily and to give their people greater autonomy. In “Avoid the Pitfalls of A/B Testing,” Iavor Bojinov, Guillaume Saint-Jacques, and Martin Tingley point out that many companies fail to reap the value of experimentation because they take the wrong approach to it: focusing on the average, instead of looking at how a change impacts different customer segments; forgetting that customers are connected and that their interactions can affect test outcomes; and running tests for too short a time frame. Firms can avoid these pitfalls, however, by applying techniques that have worked at LinkedIn and Netflix. In “The Power of These Techniques Is Only Getting Stronger,” HBR interviews Jeremy King, who has spent three decades using experimentation and data to improve decision making at firms such as eBay, Walmart, and his current employer, Pinterest. King shares what he’s learned about the need to balance precision with serendipity, how to promote “data democracy,” and the importance of investing in the right training for employees.

Copyright © 2020 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Productive Innovation

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