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.