Practical sheet | REF: FIC1744 V1

Understanding the differences between exploration and exploitation

Author: Marc EVANGELISTA

Publication date: November 10, 2021 | Lire en français

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    3. Test hypotheses through experiments rather than risk analysis

    The classic, causal approach means that for each action we take, we have to consider the risks that could jeopardize the achievement of the desired objective. But to carry out a relevant risk analysis, it's essential to know the environment, whether it's market-related, technical, or both.

    3.1 Working on the basis of hypotheses

    In exploration, this knowledge of the environment is often limited, and sometimes even non-existent. So you need to work in iterations, as if you were taking baby steps. To do this, starting with your idea or the idea you're trying to turn into a business, you'll need to examine aspects of its desirability, feasibility and viability. From there, you'll set out your hypotheses. For example, if you have the idea of setting up a new digital...

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