Session 5 Business Experimentation

A clear and focused reason for conducting an experiment. It addresses specific questions about proposed actions.

A statement that can be tested through an experiment. It proposes a relationship between variables.

The process of determining if an experiment can be practically conducted considering resources and feasibility.

Ensuring that the experiment's design and execution minimize bias and maximize accuracy.

Evaluating the experiment's worth by considering whether it provided valuable insights and data.

The commitment by stakeholders to accept and act upon the results of the experiment, regardless of the outcome.

A specific, measurable, achievable, relevant, and time-bound (SMART) objective for an experiment.

A list of key questions and considerations to ensure a successful business experiment.

The practice of making significant and unexpected alterations or shifts in strategies, approaches, or products. In business, it involves exploring new ideas and implementing novel solutions.

The information gathered from past customer interactions and transactions. This data can reveal patterns in buying behavior, preferences, and trends.

The ability to make good decisions without relying solely on complete information. This often involves using intuition, experience, and judgment.

A deep-seated feeling or understanding that provides guidance, especially when there's limited information. It can be a powerful tool for making decisions in uncertain situations.

The act of using data to understand past customer behaviors, but recognizing its limitations in predicting future reactions to new initiatives.

The process of creating something new or different, usually involving a shift in strategies, products, or approaches.

The reliance on personal experience and past knowledge when making decisions, particularly in situations where data is limited.

The act of significantly changing direction or course, often in response to changing circumstances or new information.

When leaders lack solid data to make decisions about new ideas, they often rely on personal experience, gut feelings, or common knowledge, which might not be reliable.

A controlled test where the impact of a specific factor (the cause) is measured by observing changes in a related outcome (the effect), while keeping other potential causes constant.

Before starting an experiment, it's crucial to define a clear and specific goal, addressing a crucial question about the proposed innovation.

After conducting an experiment, reflect on its effectiveness, identifying any shortcomings or areas for improvement in future experiments.

A method for evaluating the effectiveness and profitability of different program components by testing various combinations and analyzing the results.

A technique used to isolate the impact of specific elements on a program's outcome, such as promotional offers, advertising, or staff training.

A metric used to assess the profitability of a program by comparing the benefits generated to the costs incurred.

A group in a business experiment that receives the standard treatment or no treatment, used as a baseline for comparison.

A group in a business experiment that receives the new treatment or change being tested.

A systematic approach to improving program effectiveness by focusing on the most impactful elements and discarding those with low or negative ROI.

A business experiment designed to test and analyze the impact of various program components, including sales, marketing, and operations.

The process of identifying and analyzing the factors influencing the outcome of a business experiment, such as promotional offers or staff training.

A process for evaluating new initiatives before launching them, often involving testing and data analysis. Its goal is to ensure projects are aligned with business goals and have a high chance of success.

The use of real-world experiments to collect data and inform business decisions. This approach helps leaders see the true impact of a change before implementing it company-wide.

The process of evaluating the results of an experiment to understand what worked, what didn't, and what insights can be applied to future decisions.

The process of ensuring that experiments are aligned with the company's overall strategy and priorities. This helps ensure that the insights gained are valuable to the organization.

The importance of focusing on specific questions or variables when designing an experiment. This helps keep the experiment focused and ensures that meaningful insights are obtained.

The willingness of stakeholders to accept the results of an experiment, regardless of whether they are positive or negative. This enables learning and improvement based on real data.

The process of adjusting the experiment design or process based on the results of earlier experiments. This iterative approach allows for continuous learning and improvement.

The practice of using experiments to understand the cause-and-effect relationships between different variables in a business setting.

Analyzing data to determine if a change in one variable directly causes a change in another.

Observing that two variables occur together, but not necessarily proving that one causes the other.