Matías Hirschmann y Sebastian Senlle, directors of program in Business Experimentation from the Faculty of EngineeringThey gave a webinar on Experimentation in Companies, understanding it as The application of the scientific method to improve business decision-making.
During the meeting, they emphasized that information overload today makes decision-making more difficult, with companies forced to operate in complex environments. In this context, the experimental methodology This becomes very relevant because cause-and-effect relationships need to be validated in order to identify what actually works to move business metrics.
It is interesting to transfer the scientific method to the business field to carry out tests and test hypotheses on a sample of customers, in order to then make effective decisions on a larger scale. With the data obtained from iterations, This generates valuable information for the company that helps reduce risks and accelerate learning. And, on the other hand, it allows us to avoid contaminating our own decisions with cognitive biases (for example, avoiding falling into "confirmation bias", which leads us to pay more attention to information that reinforces our previous beliefs).
Experimentation is customer-centric Because when it's implemented, the company learns continuously from customer feedback: it can see how customers respond to changes in our value proposition, based on the various tests that are carried out. In turn, it stimulates creativity and innovation. “We celebrate finding problems to conduct experiments that allow us to progress and learn.”, he claimed Matías Hirschmann.
To conduct experiments, a rigorous methodology is essential: only in this way can the results obtained from a sample be scaled to the rest of the customer base. Simultaneously, a cyclical approach is adopted, where the very execution of the experiment sparks new ideas or questions, which can lead to new hypotheses that we then aim to validate.
In order to apply these methodologies, one needs to have a entrepreneurial spirit and valuing continuous learning within the company. The first step is always to begin: run the first experiment and start demonstrating value to the company based on that initial experience.
All the topics covered in the webinar are explored in greater depth throughout the program in Business ExperimentationFor those interested in this decision-making tool, you can visit the following link.
