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Security systems can even interact with your energy management system, using their motion detectors to determine when the system turns on lights and adjust thermostats. Cushman & Wakefield/CRESCO Real Estate's Simon Caplan lays out the benefits of using a real estate broker. Babst Calland's Mary Binker looks at how landlords and tenants can adjust to an evolving Pittsburgh commercial real estate market. Huntington Bank's Jim Altman outlines the process, benefits and reasons to sell a company to an ESOP. Adjust evaluation and compensation plans for managers so that they are not negatively affected by tests.

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Some firms, such as Capital One and eBay, have built their own software for managing experiments, but several off-the-shelf options exist—the most common ones being broad statistical packages and analytical tools like SAS. With every passing year, these tools make it more possible for numerate—but not statistically expert—users to conduct truly defensible experiments. At eBay, there is an overarching process for making website changes, and randomized testing is a key component. Like other online businesses, eBay benefits greatly from the fact that it is relatively easy to perform randomized tests of website variations. Simple A/B experiments can be structured within a few days, and they typically last at least a week so that they cover full auction periods for selected items. Some companies with rich consumer-transaction data—Toronto-Dominion, CKE Restaurants, eBay, and others—are routinely testing innovations well outside the realm of product R&D.

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After the test is carried out for the specified period—which sometimes can take several months but is usually done in less time—the data are analyzed to determine the results and appropriate actions. The results are ideally put into some sort of “learning library” . They might legalkushonline lead to a wider rollout of the experiment or further testing of a revised hypothesis. Thanks to new, broadly available software and given some straightforward investments to build capabilities, managers can now base consequential decisions on scientifically valid experiments.

Meet with test and control site managers and analytical experts to discuss what might go wrong and what would constitute test-confounding events. Assess whether control group strategies previously used for similar tests will suffice; they usually do. As your managers become more comfortable with testing, they’ll discover that it paves the way for, rather than throwing up barriers to, promising new ideas. Companies that equip managers to perform small-scale yet rigorous experiments don’t only save themselves from expensive mistakes—they also make it more likely that great ideas will see the light of day. A fully integrated digital platform for all your transaction needs.

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