Why and How You Should Do Business Experiments

Business experiments are like scientific trials—they provide evidence, guide decisions, and propel growth and below is how.

1. Informed Decision-Making: Experiments allow businesses to test hypotheses and gather data. This information informs strategic decisions, helping companies allocate resources effectively.
2. Risk Reduction: Businesses can assess potential risks before implementing large-scale changes by experimenting on a smaller scale. This minimizes the chance of costly failures.
3. Innovation and Adaptation: Experiments foster innovation. They encourage businesses to explore new ideas, products, or processes. In today’s dynamic markets, adaptability is key.
4. Customer-Centric Approach: Experiments help companies understand customer preferences, pain points, and behaviour. This knowledge drives customer-centric solutions.
5. Continuous Improvement: Businesses that embrace experimentation continuously refine their offerings. This iterative process leads to better products and services.
6. Competitive Advantage: Companies that experiment stay ahead of the curve. They can respond swiftly to market shifts and outperform competitors.

During a morning teaching by Dir. Grace Muyirwa of the Business Leaders Network International under Worship Harvest Ministries, I learnt that one builds their own company to be a big experimental engine as these drive innovation.

How to Experiment. The different methods as mentioned in the teaching;

• Begin with the hypothesis. Test and validate or invalidate the hypothesis.
• AB testing - 2 or more versions of ideas are simultaneously tested by different users.
• Involve individuals
• Keep it simple. Look for experiments easy to understand.
• Work with a proof of concept.
• When the results come In evaluate the outcome.
• Start out-of-the-box thinking.
• Measure every this that matters. Capture everything important. Be observant about everything and collect all the feedback.
• Look at natural experiments as well.