In order to build value, it can be important to conduct experiments that produce

Question

In order to build value, it can be important to conduct experiments that produce information. These experiments should increase the probability of success or increase the future value of cash flows from the idea. Consider the idea of a phone app.

What are some experiments you could run to increase the value of your idea?

Which elements (probability, future cash flows) would they affect?

What benefits would you gain if those experiments come back with positive results? Negative results?

Where can you get the financing for these experiments? Will that influence the scope of experimentation?

Explanation / Answer

We can use experiments such as beta testing, using customer feedback systems as well as utilizing focus groups in order to achieve the best possible critique in the section that we wish to compete in. these values are what will fuel the development and research process for the application. Thus in principle, we can utilize them, their data as well as work out a feasibility factor which essentially allows us to get the maximum benefit from the received data in the sense of bringing a change, better practices in order to work on the design of the app we are trying to build.

The elements which the tests would affect would include usability factors, potential user base, customer satisfaction, change management, structural and functional aspects such as the design itself and potential in order to create value which would allow it to be differentiated from the competition. In generalized form, we can essentially say that these tests would allow us to build a better application, provide a better solution, market better as well as learn what works and what doesn't which not only affects the cash flow but the entire reason of implementation as well.

If the tests came positive, it would allow us to understand the structure and functional aspect that would be needed to be changed in order to accommodate such changes and create a better solution to the problems underline in the tests. But, if the tests came back negative, we would only be utilizing half of what we can achieve in the idea for the implementation of the service as well as remain uncertain about the changes we need to implement to provide the best services to the customers as they require and not how we theoretically plan. Without proper real-world tests that are driven by practical usability and values that allow us the ability to provide the reason, we would not be able to create a structurally sound solution to our problem and thus won't be able to utilize the best option in our case.

Financing for these experiments can be considered as being a crucial element which requires a large amount of [planning as well as formulating the entire process on a structural approach which could potentially provide the best resources to be used. Funding can come from sponsors, the primary shareholders, developing an interest in the public as well which could essentially then lead to the use of Kickstarter funding which can only be raised after a functional part of the application can be constructed. We can also utilize investment firms, but, unless the idea for your application is unique enough to be considered an innovation or at least a change in the right direction, that would be a little hard to sell. it would, therefore, be a huge factor in our scale of testing as well as the medium we choose to run these tests, in order to make the best use of the funding and the present resources as well.

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