What is experimentation?

Ever wondered how the greatest innovations come to life? Or how companies like Netflix and Google seem to always be ahead of the curve? It's not magic—it's experimentation. Experimentation isn't just for scientists in labs; it's a powerful tool that anyone can use to discover new insights and make better decisions.

In this blog, we'll dive into what experimentation really means, why it's crucial in product development and data science, and how you can adopt an experimental mindset in your own life. We'll also explore how modern platforms like Statsig are making experimentation more accessible than ever. Let's get started!

Understanding experimentation

Experimentation is all about trying new methods to see what happens. It's been a cornerstone of scientific inquiry for ages, driving discoveries and innovations across countless fields. Whether in science or in everyday life, experimentation helps us learn and grow.

Throughout history, the way we experiment has evolved. We started with simple A/B tests focusing on client-side optimizations, and now we're running complex experiments tied to core product experiences. Companies like Netflix prioritize experimentation as a key part of their data science workflow.

So, what is experimentation? At its heart, it's testing ideas to see what works. By adopting an experimental mindset, you can transform your life and gain a deeper understanding of your own preferences and goals. Living life as an experiment lets you explore new possibilities and make more informed decisions.

In product development, experimentation empowers organizations to quantify the impact of new ideas and features. Platforms like Statsig provide the tools and infrastructure needed to conduct rigorous, scientific tests at scale. By leveraging advanced statistical methods and supporting the entire lifecycle of experimentation, these platforms enable businesses to make data-driven decisions and foster a culture of innovation.

The role of experimentation in product development and data science

Leading tech companies like Airbnb, Booking.com, Microsoft, Google, Netflix, DoorDash, and Stitch Fix rely on controlled experiments to measure the impact of new ideas. By conducting tens of thousands of experiments each year, they can rigorously quantify the effects of features and innovations. Experimentation allows businesses to assess ideas for websites, business models, strategies, products, and marketing campaigns scientifically and inexpensively.

Using data-driven decisions through experimentation enhances products and user experiences effectively. For example, a simple experiment at Bing improved annual ad revenue by 12% when an engineer adjusted the ad header layout. Experimentation enables organizations to validate product changes and drive business impact, fostering innovation and growth.

But here's the problem: many organizations lack a systematic approach to experimentation. They run too few tests or struggle to conduct rigorous scientific experiments. After over 35 years of studying and practicing experiments, experts have observed that controlled experiments transform decision-making into an evidence-driven process. This approach helps avoid implementing ideas that might fail and uncovers breakthroughs that could have been missed.

Experimentation promotes innovation and significant business growth in competitive markets. Companies that have achieved experimental maturity adhere to key principles like end-to-end automation, self-service workflows, and investing in "DevOps" for experimentation. They leverage tools that cater to modern experimentation workflows, making the journey towards effective experimentation more accessible.

Modern experimentation platforms and practices

Modern experimentation platforms prioritize automation, self-service workflows, and collaboration to enable effective experimentation at scale. These platforms include essential components like assignment systems, metrics modeling, and monitoring tools to support the entire lifecycle of an experiment.

We've seen a shift from simple A/B tests to more complex, integrated experiments that span multiple services. This evolution requires experimentation platforms to be deeply integrated into the engineering stack to avoid conflicts and ensure accurate monitoring and debugging.

Companies like Netflix have set a high bar for experimentation, using advanced techniques like faster bootstrapping algorithms and sequential hypothesis testing. However, many organizations still struggle to replicate such experimentation programs due to manual processes, bottlenecked workflows, outdated statistical techniques, and inadequate tooling.

To overcome these challenges, companies must invest in "DevOps" for experimentation. This includes features like monitoring, debuggability, searchable metadata, and guardrails. Social and collaboration features are also crucial for fostering a culture of experimentation, allowing non-experts to run experiments and understand statistical thinking.

Platforms like Statsig are helping bridge this gap by providing modern experimentation tools that cater to today's fast-paced development environments.

Building a culture of experimentation

Cultivating a culture of experimentation is essential for driving innovation and growth. Empower your teams by providing accessible tools that enable data-driven decision-making through experimentation. This allows everyone to quantify the impact of their ideas, fostering an entrepreneurial mindset.

Overcoming obstacles like bottlenecks and inadequate tools is crucial for implementing robust experimentation programs. Modern experimentation platforms should offer end-to-end automation, self-service workflows, and advanced statistical methods to ensure reliable results. These tools help organizations scale their experimentation efforts effectively.

Fostering collaboration, sharing insights, and encouraging learning are key to cultivating an experimental mindset. Social and collaboration features in experimentation platforms promote transparency, feedback, and learning by doing. This enables non-experts to run experiments and understand statistical thinking, as demonstrated by companies like Booking.com.

And remember, living life as an experiment can be a powerful approach to personal growth and decision-making. By adopting an experimental mindset, you can move away from a life-or-death mentality and embrace a more exploratory approach. This allows you to test hypotheses about your preferences and life goals, leading to a deeper understanding and control over your life.

Closing thoughts

Experimentation isn't just for scientists or big tech companies—it's a mindset that can transform how we work and live. By embracing experimentation, we open the door to innovation, data-driven decisions, and continuous improvement.

Modern platforms like Statsig are making it easier than ever to run experiments, analyze results, and share insights. Whether you're in product development, data science, or just looking to make better decisions in life, adopting an experimental approach can lead to breakthroughs you never imagined.

Ready to start experimenting? Check out resources like the Harvard Business Review's guide to online experiments or learn how companies like Booking.com have built their experimentation culture.

Hope you found this useful!