By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data-driven image seo
    Data Analytics Helps Marketers Substantially Boost Image SEO
    8 Min Read
    construction analytics
    5 Benefits of Analytics to Manage Commercial Construction
    5 Min Read
    benefits of data analytics for financial industry
    Fascinating Changes Data Analytics Brings to Finance
    7 Min Read
    analyzing big data for its quality and value
    Use this Strategic Approach to Maximize Your Data’s Value
    6 Min Read
    data-driven seo for product pages
    6 Tips for Using Data Analytics for Product Page SEO
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: The Importance of Data Experimentation
Share
Notification Show More
Latest News
anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security
ai in software development
3 AI-Based Strategies to Develop Software in Uncertain Times
Software
ai in ppc advertising
5 Proven Tips for Utilizing AI with PPC Advertising in 2023
Artificial Intelligence
data-driven image seo
Data Analytics Helps Marketers Substantially Boost Image SEO
Analytics
ai in web design
5 Ways AI Technology Has Disrupted Website Development
Artificial Intelligence
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > The Importance of Data Experimentation
Uncategorized

The Importance of Data Experimentation

JamesTaylor
Last updated: 2010/08/04 at 4:21 PM
JamesTaylor
4 Min Read
SHARE
- Advertisement -

The McKinsey Quarterly had an article today on Ten Tech-enabled business trends to watch and number 5 caught my eye -Experimentation and big data. As the authors say

What if you could analyze every transaction, capture insights from every customer interaction, and didn’t have to wait for months to get data from the field?

The McKinsey Quarterly had an article today on Ten Tech-enabled business trends to watch and number 5 caught my eye -Experimentation and big data. As the authors say

More Read

big data improves

3 Ways Big Data Improves Leadership Within Companies

IT Is Not Analytics. Here’s Why.
Romney Invokes Analytics in Rebuke of Trump
WEF Davos 2016: Top 100 CEO bloggers
In Memoriam: Robin Fray Carey

What if you could analyze every transaction, capture insights from every customer interaction, and didn’t have to wait for months to get data from the field?

If you could, and of course you can, then you could constantly experiment to see what would work best for your business. The article talks about using experimentation to make strategic choices about

new products, business models, and innovations in customer experience

and goes on to give some great, if well known, examples.

What is interesting to me, however, is that all the examples are really about experimenting with operational or micro decisions – transactional, customer-specific, small scale decisions – that are taken in huge numbers such as what to display to a customer, what promotion to offer to a customer, what credit line to extend. The management or strategic decisions involved are those about picking between alternative approaches – the experiments being conducted. These strategic choices are only possible if the micro decisions are being managed and experimented on. This has two consequences:

  1. You cannot conduct the kind of experimentation being discussed unless you have control of these micro decisions – unless you have adopted a decision management mindset in other words.
  2. When you implement systems to automate these micro decisions – when you build decision services – you need to build in the capability for experimentation

This is a challenge because, frankly, IT departments don’t like experimentation and adaptive control or champion/challenger testing. Most folks in IT think there should be a “right” answer and that the code should implement it. Persuading them that multiple approaches should be allowed so that other approaches can be tried, many of which will be worse than the default, can be very difficult. Nevertheless, this capability should be built in to your decision services and the decision analysis reporting that you develop.

Similarly many business people don’t like the idea that some customers will be “tortured” with an experimental approach that is likely to be worse than the default. They want to treat every customer the best they can and have a hard time letting go of the short term to build understanding for the long term. They too may resist experimentation.

But experimentation is going to be more and more important. Companies that can use their data to push the envelope, to get better and better, will out perform those that stick to the tried and true. Making test and learn part of your normal approach to business will be important, though not easy. As the article says:

Using experimentation and big data as essential components of management decision making requires new capabilities, as well as organizational and cultural change.

And one of those changes is making operational decision making a corporate asset to parallel your strategic decision making process.

 

Copyright © 2010 http://jtonedm.com James Taylor

Syndicated from ebizQ

JamesTaylor August 4, 2010
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
- Advertisement -

Follow us on Facebook

Latest News

anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security
ai in software development
3 AI-Based Strategies to Develop Software in Uncertain Times
Software
ai in ppc advertising
5 Proven Tips for Utilizing AI with PPC Advertising in 2023
Artificial Intelligence
data-driven image seo
Data Analytics Helps Marketers Substantially Boost Image SEO
Analytics

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

big data improves
Big DataJobsKnowledge ManagementUncategorized

3 Ways Big Data Improves Leadership Within Companies

6 Min Read
Image
Uncategorized

IT Is Not Analytics. Here’s Why.

7 Min Read

Romney Invokes Analytics in Rebuke of Trump

4 Min Read

WEF Davos 2016: Top 100 CEO bloggers

14 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?