Business Model Innovation by Experimentation
How to maximize learning and minimize risk
All new products start as a series of unvalidated assumptions. The most critical assumptions are usually implicit and relate to the purpose of the product and the value it is intended to deliver. The more key assumptions involved, the greater the risk. It is enough to have 7 key assumptions about which you are 90% certain for the combined odds of success to be below 50%.
Contrary to popular belief, when we know very little about a situation, it only takes a small amount of new data to realise significant insights.
Unfortunately, people often underestimate the value of information and misunderstand risk. As Product Owners we are often afraid to test our assumptions. We routinely pile on additional risk without a second thought.
Do we have a death wish or are we simply masochists? Risk management is the bread and butter of the finance and insurance industries. Isn’t it time we evolved?
In this fast paced and practical session we will explore answers to the following questions:
- What is risk and how do we quantify and manage it?
- How do we assess the value of information?
- How can experimentation reduce risk and where does it fit in the product development cycle?
- What makes a good experiment?
- How to run experiments in a cost effective manner?
- What are good metrics?
- How to obtain Zen like focus and prioritisation?
New concepts will be introduced, examples will be given and we will then point out where to seek further information. Hold onto your hats.