Michael Schrage of the MIT Center for Digital Business sees inexpensive digital business experiments as a form of “innovation risk management.”
Heard an interesting talk today by Michael Schrage, a research fellow at the MIT Center for Digital Business. Schrage argued that the ability to create and conduct low-cost digital business experiments is a form of “innovation risk management.”
In other words, companies can now, using digital media such as the Web, test new hypotheses about their businesses inexpensively online. It’s now cheaper, Schrage argued, to do inexpensive experiments to test a new idea or concept than to do an extensive analysis of the merits of an idea.
But creating good experiments can be hard for businesspeople and organizations, Schrage observed. “Crafting a ‘good’ hypothesis apparently is hard” for businesspeople, he said.
Schrage has authored or coauthored several articles for MIT Sloan Management Review: “The Innovation Subsidy,” “The Myth of Commoditization” and, most recently, “How Boards Can Be Better — A Manifesto.”