Invention is when you create an entirely new way to do something. Innovation might be a new way to do things by refining or combining existing methods.
Experimentation, on the other hand, simply means trying things to see if they work. And not just trying things, but doing something akin to true science: Come up with a hypothesis about the benefits of a new idea, then test for results.
Serious invention—and even innovation—might be beyond the resources of some companies. But any company can experiment. And most companies should experiment more than they already do.
Here's how Amazon and Starbucks do it.
Amazon Delivers On Experimentation
As you probably know, Amazon CEO Jeff Bezos this week announced plans to deliver packages via flying "drones"—unmanned aerial vehicles.
Bezos dropped this bomb during a CBS 60 Minutes interview with Charlie Rose. It's pretty clear that the announcement—especially its timing—had everything to do with publicity for Amazon a day before the "Cyber Monday" online shopping push, and little to do with informing the public about Amazon’s intentions.
I imagine that in preparing for his CBS interview, Bezos may have asked: How can we get everyone talking about Amazon? So they looked at their various projects and decided that drones would do the trick. The biggest news story on Monday was Amazon and its incredible delivery innovations.
Amazon was able to pull this rabbit out of the hat because in fact Amazon is a highly experimental company, and that spirit of trial and error is part of Amazon's approach to consistent success.
There's no question that Amazon is experimenting with drones. But the experiment is likely to end in failure, at least within the 5-year timeframe targeted by Amazon.
They'll probably struggle to get regulatory approval, and they'll probably find the whole idea expensive, difficult and potentially dangerous. But failure is part of experimentation, and the willingness to risk failure is what separates the experimental companies from the risk-averse.
Amazon has experimented with "lockers," for example—locked cubbies in various stores where Amazon customers can pick up their packages, even if they're visiting another city. It seemed like a good idea, but some stores, including RadioShack and Staples, ended up rejecting the lockers and kicking Amazon out. So maybe lockers aren't going to work out.
On the other hand, Amazon has started paying the U.S. Postal Service to deliver Amazon packages on Sundays. That sounds like a winner.
All these initiatives are examples of Amazon experimentation around delivery. Some will fail. Others will succeed. But the ones that succeed will set Amazon apart from its many competitors.
Anyone who thinks Amazon is just another online retailer isn’t paying attention. Everything in this list of customer-facing projects that set Amazon apart started with experimentation:
- Amazon 1-Click,
- Mechanical Turk,
- Amazon Marketplace,
- Customer Reviews,
- Amazon Recommendations,
- Amazon Wish List,
- Amazon AutoRip,
- Amazon Storyteller,
- Amazon Studios,
- the Kindle line of eBook readers,
- Print on demand,
- Amazon Cloud Drive, and
- Kindle Direct Publishing.
Why Keeping Up With Starbucks Is A Tall Order
Like Amazon, Starbucks stands apart from other coffee chains through focused experimentation.
For years, Starbucks experimented with a high-end, $11,000 coffee brewing machine called the Clover. They rolled them out in a tiny number of stores as an experiment. The trials succeeded, so Starbucks bought the company that makes them in 2008.
The number of Clover machines has been increasing in Starbucks stores, and next year the company plans to double the number of stores that have them.
Clover will become part of Starbuck’s Internet-of-Things strategy. The Clover machines will start keeping track of which settings and coffees each customer prefers, so that when the customer scans their phone to pay for the order, the machine receives instructions on precisely how to make the drink.
Starbucks also says that, within a year, they'll put refrigerators and coffee makers on the Internet. For example, if a carton of milk in the refrigerator spoils, the fridge itself will tell employees to discard it.
Starbucks also plans to experiment with big-data sensors in their "for here" ceramic coffee cups, which will track the acidity of the coffee, and even monitor how much coffee is in the cup. This information will enable Starbucks to see how big people's sips are, how fast they drink their coffee, how much coffee was still in the cup when people give up on it, what people add to their coffee and other information.
Starbucks has also been experimenting with wireless charging mats at dozens of Boston and Silicon Valley area stores. Wireless charging mats work with specific smartphones and tablets designed to charge wirelessly—or by using a special case that enables wireless charging. The devices need only to be placed on a special "mat" that is surrounded by an electromagnetic field.
If the experiment works—i.e., it increases revenue and customer loyalty—we might see charging mats in all Starbucks stores, even built into the tables.
The end result of Starbucks’ Internet-of-Things infrastructure will appear daunting. But each part of it started with some very low-cost and limited experiments.
Ignorance Is Good
Experimentation isn’t about gaining knowledge. It’s about embracing ignorance and not being paralyzed by it.
Will trying some new way of doing things help your company achieve its goals? You won’t know until you try it.
You may not be able to build drones, but just about any mom-and-pop store can try out a couple of wireless charging stations or a new coffee machine.
Some company is going to be the next Amazon or Starbucks—experimenting their way to business-expanding innovation. It might as well be yours.
Ready to fail? Weigh in with a comment below...
By Mike Elgan (@MikeElgan)
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