A growing number of adaptive competitors are using an array of new approaches and technologies to expand the scope and impact of experimentation in their business. In doing so, they create a simulation advantage by achieving superior “economics of experimentation.” They generate, test, and replicate a greater number of innovative ideas quicker, at lower cost, and risk than their rivals. The Perspective examines six levers that companies can use to transform their approach to experimentation.
Change in retail markets comes slowly, so it’s easy to miss opportunities to make necessary adjustments. Yet a small group of retailers have steadily improved their performance over time, despite shifting economic conditions, regulations, and consumer demographics. What they have in common is an ability to adapt. Their fine-tuned radar can pick up early signs of shifting shopping patterns while their competitors see the same market, day in and day out. As a result, they adapt their business models to gain market share and deliver superior financial returns.