Diego Piacentini, an Amazon executive, explains how the company uses experimentation to drive innovation. He covers A/B testing, the 'Just Do It Award' for risk-taking, and why making mistakes is essential to Amazon's culture.
Maximize experimentation. Making mistakes is incredibly important for an innovative company. So we do crazy experiments at Amazon. We do lots of web labs, a, B testing. Sometimes you see a treatment of a product, a program. You'll see different versions until statistically significant change happens. We can implement the change, but we make lots of mistakes there. The important thing is that you create an environment where making mistakes within a company is okay. It's encouraged. We do have an award in Amazon called the Just Do It Award, which is a big used Nike shoe that we give to people that actually did something innovative outside of their task. So two requirements needs to be outside of your normal task, and it has to work. It has to be something smart. So we do incentive mistakes. As long as you don't repeat the same mistake, it's fine.
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