Survival In The Cloud Depends On Experimentation

Survival In The Cloud Depends On Experimentation

I was fascinated to hear Jeff Bezos comment that Amazon’s expected $1.5 billion in revenue via their Amazon Web services business was successful due their focus on experimentation. The experimentation paradigm is the most important strategy for cloud executives to execute successfully, lest they fail to take full advantage of the monumental opportunity the cloud is offering.

Our brains are actively involved in mental experiments almost continuously. We’re always speculating about what comes next and what our response will be. However, the experimental process Bezos is referring to is something much more formal and takes a lot more effort. Focusing on this more formal level of experimentation requires a commitment to the experimental process.

Executing Experimental Concepts For Success

An experiment involves assumptions, exercises, and measurement. With regard to assumptions, it is critical to start with the right statements or questions. By asking concrete questions specific to your task, you will be guided to the specific answers you’re looking for. The key here’s to avoid interesting but distracting rabbit trails. An example of a concrete question could be: If we hire a writer to write sales copy and sales increase 20% percent, what will our return on investment (ROI) be?

The next step is to develop exercises or assumptions. That way you will know what to measure in step three to determine whether or not the experiment was successful.

  • Hypothesis #1: if we invest $1000 for a writer and sales go up 20%, we will have gained an ROI of 30%
  • Hypothesis #2: if we invest $1000 for a writer and sales go up 10%, we will have gained an ROI of 15%
  • Hypothesis #3: if we invest $1000 for a writer and sales do not go up we will have a loss of $1000.
  • Result #1: when we invested $1000 for a writer and sales grew 20%, should we assign more work to this writer?
  • Result #2: we invested $1000 for a writer and sales grew 10%, what can we do next time to get sales up to the targeted 20% increase? (Hire a different writer?)
  • Result #3: we invested $1000 for a writer and sales did not go up and we lost thousand dollars, what’s other strategies can we experiment with to get sales up to the targeted 20% increase?

Before you write off the oversimplification of the above example, consider how many of us actually put pen to paper at the various stages described above?

By writing through the research process we are better able to strategize and track results. Many believe they can wing it by simply thinking about it. However, memory is not as accurate as we would like it to be. Life’s daily distractions cloud an unwritten experiment while a written one holds us accountable to the success we seek.

Most of us will not achieve $1.5 billion in revenue. But we can increase our business year after year by disciplining ourselves to take experimentation to a new level.

By Donald Cleveland

don

Although relatively new to technology writing Don Cleveland has been writing and working in the fields of business and psychology over the last 25 years. After earning his B.A. in psychology at the University of South Florida he has returned to finish an M.A. in counseling. His passions are shining psychology’s empirical light on the world of computing and work through research and writing.

Sorry, comments are closed for this post.

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

15 Emerging Technologies To Watch Before 2020 The cloud, big data, the internet of things, and wearable technology have all featured heavily in Forrester’s latest list of fifteen technologies to watch before 2020. It is becoming a reality for businesses that they need to adapt and change to an increasingly technologically-minded customer base. Traditional marketing…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Cloud Infographic – What Is The Internet of Things?

Cloud Infographic – What Is The Internet of Things?

What Is The Internet of Things? “We’re still in the first minutes of the first day of the Internet revolution.”  – Scott Cook The Internet of Things (IOT) and Smart Systems are based on the notions of Sensors, Connectivity, People and Processes. We are creating a new world to view and measure anything around us through…

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts It’s no secret that Cloud Computing is more than just a buzz term as that ship has sailed off a long time ago. More and more companies are adopting the uses and benefits of cloud computing while aggressively factoring cloud services spending into their budget. Included is an excellent…

CONNECT TO THE CLOUD

 

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Branded Content Programs

Advertising