Experimentation and Blue Ocean Strategy

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I am a big fan of Blue Ocean strategy. In blue oceans competition is irrelevant because the market space is unexplored. Demand has to be created and there is ample opportunity for growth.

One blue ocean strategy tool is the Eliminate-Reduce-Raise-Create (ERRC) Grid. I like that ERRC offers a balance between simplification and creation. You require both to pursue differentiation.

If you want to convince your organisation to adopt a culture of experimentation from idea to scale try to pitch the ERRC.

The ERRC is divided into four sections: eliminate, reduce, raise and create. Eliminate focuses on factors that no longer add value. Reduce targets areas that can be cut back. Raise is an opportunity to push beyond the standard. Create is about a new increasing the value proposition to increase demand.

We propose the following ERRC for experimentation from idea to scale:

opinionated decision makingnumber of experiments
number of experimentsbetter decisions

Experimentation favours data over opinions. Therefore, decision by committee or HIPPOS (Highest Paid Person Opinions) are not allowed.

Since experimentation is intentional everyone has a different threshold to failure. We like to think that every experiment offers an opportunity to learn. Does not matter if you persevere or pivot.

This is the most obvious section. We want to raise the number of experiments.

Experimentation is all about better learning with the help of data. Therefore, the intent is to make better decisions to build better products or services. Experimentation is not about building the right product or service.

What do you think?



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