Reference no: EM133946428

Innovate by Rapid Experimentation

This chapter covers innovation shifts from intuition to learning via experimentation. It explains convergent (for optimization) and divergent (for exploration) experiments, seven principles, and scaling paths.

Tools: Convergent Experimental Method and Divergent Experimental Method

Convergent Experimental Method: 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. Get online assignment help – 100% Original & AI-Free Content.

Step 1: Define the question you are seeking to answer (causal, specific).

Step 2: Select who will conduct the experiment.

Step 3: Randomize Your Test and Control (population, assign groups).

Step 4: Validate Your Sample (statistically valid size).

Step 5: Test and Analyze (run test, measure differences).

Step 6: Decide (based on findings).

Step 7: Share Learning.

Divergent Experimental Method: This method is particularly useful for innovations that are less defined from the outset, such as new products, services, and business processes for your organization.
Step 1: Define the problem (rooted in customer need, quantified goal, limits).

Step 2: Set Limits (time, money, scope).

Step 3: Pick Your People (small team, diversity).

Step 4: Observe (deepen understanding, broaden ideas).

Step 5: Generate More than One Solution.

Step 6: Build an MVP (minimum viable prototype).

Step 7: Field Test (validate assumptions).

Step 8: Decide (proceed, pivot, prepare to launch, pull plug).

Step 9: Scale Up (translate to full release).

Step 10: Share Learning.

Mini Case: FoodApp - Testing New Features
FoodApp delivers meals but wants to innovate with a subscription model. They need to experiment to validate ideas.
Solution Using Tools:
Convergent Experimental Method:

Step 1: Question - Does a discounted subscription increase orders by 20%?

Step 2: Conduct by marketing team.

Step 3: Randomize 1,000 users into test (subscription offer) and control group
.
Step 4: Sample size valid (n=500 each).

Step 5: Test; analyze order increases.

Step 6: If positive, launch.

Step 7: Share results internally.

Divergent Experimental Method:
Step 1: Problem - Improve meal customization for health-focused users.
Step 2: Limits - 3 months, $50K.
Step 3: Small diverse team.
Step 4: Observe user feedback.
Step 5: Generate ideas (e.g., nutrition tracking).
Step 6: Build MVP app feature.
Step 7: Field test with 100 users.
Step 8: Proceed if validated.
Step 9: Scale to full app.
Step 10: Share learnings.