Enlightened experimentation - The new imperative for innovation

The high cost of experimentation has long put a damper on companies' attempts to create great new products. But new technologies are making it easier than ever to con duct complex experiments quickly and cheaply. Companies can now take innovation to a whole new level, contends Stefan Thomke, if they're willing to rethink their R&D from the ground up. Understanding what enlightened experimentation is all about requires an appreciation of the innovation process. All development organizations need a system of experimentation in place to help them decide which ideas to pursue. Of course, the more rapid and efficient the system is, the quicker researchers can find solutions. Many companies today, however, mistakenly view new technologies solely in terms of cost cutting. They overlook the fact that some technologies can introduce entirely new ways of discovering novel concepts and solutions. Thomke argues that new technologies affect everything, from the development process itself-including the way an R&D organization is structured-to how new knowledge is created. So companies that are trying to be more innovative face both managerial and technical challenges. Drawing on his research in the pharmaceutical, automotive, and software industries, Thomke introduces the following four rules for enlightened experimentation: organize for rapid experimentation; fail early and often, but avoid mistakes; anticipate and exploit early information; and combine new and old technologies. The article uses real-world examples to explain each rule in detail. It also suggests how this system of experimentation will affect other industries and examines the implications for knowledge workers.