How does the concept of planning experiments like an investment portfolio challenge existing business practices?

The concept of planning experiments like an investment portfolio challenges existing business practices by introducing a new approach to risk management and growth. Traditional business practices often focus on maintaining stability and avoiding risk. However, treating experiments as investments encourages businesses to take calculated risks for potential high rewards. This approach categorizes experiments into growth, sustaining, and insurance experiments, each serving a different purpose. Growth experiments, although risky, can lead to disproportionate payoffs. Sustaining experiments aim to protect existing interests and reduce poor outcomes. Insurance experiments enhance organizational resilience against negative scenarios. This diversified approach to experimentation can lead to more robust business strategies and potentially higher growth.