In view of the video, experimentation is good for business. It enables the management in the organization to shift their protective mindset into an innovative one. According to the video, some of the world known businesses such as Amazon has relied on experimentation to reach where they are today (Growth Tribe, 2017). Jeff Bezos, the CEO of Amazon admitted that the success in the company is because of the many experiments they have done per year, per month, per week, per day. In short, the success at Amazon has been through the success and speed of experiments the company has conducted over the years. At the same time, experimentations are good for business because they demonstrate the need for patience while developing a product that will last in the market for long. A big win in business will only happen after several experiments have failed. In that case, the business and the stakeholders should be careful not to lose patience, once the first experiments fail.
How Experimentation Is Used To Build Models?
Experimentation is useful in creating a business model and the best example is found in Amazon. In order to serve their customers appropriately through their retail websites, Amazon relied on rapid experimentation to determine the selection, convenience, and price. They resolved to design the website to enable millions of unique products to be sold by the company and by third parties across different categories of products (Jorgensen & Pedersen, 2018). Rapid experimentation enabled Amazon customers to access the website through their mobile apps and websites. In fact, experimentation is applied daily in reaching out to customers. For instance, the company strives to offer customers with the best prices by offering low everyday product shipping and pricing offers. In return, Amazon’s operating efficiency has improved and clients continue to enjoy lower prices. Timely customer service has become a reality, thanks to the rapid experimentation.
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References
Jorgensen, S. & Pedersen, L. J. (2018). RESTART Sustainable Business Model Innovation. Palgrave Studies in Sustainable Business in Association with Future Earth. New York, NY: Springer
Growth Tribe (2017). Why your Company Needs Rapid Experimentation (Quality and Quantity). Retrieved from <https://www.youtube.com/watch?v=XBqM17MKz6U&feature=youtu.be>
