THE COMPLETE GUIDE

What is Rapid Experimentation?

The systematic approach to testing business ideas in days, not months. Created at Google, taught at Stanford, used by enterprises worldwide to save millions by killing bad ideas early.

"The Pretotyping course and rapid experimentation saved our organisation $200,000 before lunchtime on day 2! This should be BAU in every leading organisation."

Dan Roesler

Dan Roesler

Executive Manager, PEXA

DEFINITION

Rapid experimentation is a systematic approach to testing business ideas quickly and cheaply using real customer data, before committing significant resources to building them. Rather than spending months on business cases and market research, teams run lightweight experiments in days to weeks that reveal whether customers actually want what you're planning to build.

The methodology uses pretotyping — a set of tools and techniques created by Alberto Savoia at Google in 2010 — to gather real behavioral data from potential customers. The goal is simple: invest only in ideas that customers have proven they want, and kill the rest before they cost you millions.

THE PROBLEM

Why Rapid Experimentation Matters

90%

of new products fail

$30M+

saved by Exponentially clients

4,000+

experiments run since 2020

Most enterprise innovation fails not because of bad execution, but because teams build the wrong thing. They spend months on business cases, market research, and stakeholder buy-in — then launch a product nobody wants.

Alberto Savoia calls this "The Law of Market Failure" — the uncomfortable truth that most new ideas will fail in the market, no matter how well they're built. The failure rate is so high that building without validating first is essentially gambling with company resources.

Rapid experimentation replaces opinion-driven decisions with customer data. Instead of debating whether an idea is good, you test it. Instead of funding a 12-month roadmap, you validate the riskiest assumptions first. The cost of being wrong drops from millions to hundreds.

COMPARISON

Rapid Experimentation vs Other Approaches

Rapid experimentation answers a fundamentally different question than traditional innovation methods.

Traditional R&D

Research for months

  • • Build it and hope customers come
  • • Relies on market reports and surveys
  • • Expensive if the idea is wrong
  • • Typical cost to learn: $500K–$5M

A/B Testing

Optimize what exists

  • • Compares variations of existing products
  • • Requires a product to already exist
  • • Optimizes, doesn't validate demand
  • • Answers "which is better?" not "should this exist?"

Rapid Experimentation

Test before building

  • • Test ideas before writing any code
  • • Real customer behavioral data in days
  • • Kill bad ideas cheaply and quickly
  • • Typical cost to learn: $0–$1K

THE FRAMEWORK

How Rapid Experimentation Works

A structured, repeatable process from ideation to validation. Not gut feel. Not brainstorming. Real data from real customers, gathered as quickly and cheaply as possible.

1

Ideas

"How do you decide which ideas are worth exploring?"

Structured capture from anyone in the organisation — new products, improvements, AI features, venture ideas. Tap into customer insights, market signals, and cross-functional perspectives. The Exponentially Platform provides systematic capture so nothing gets lost in email chains or spreadsheets.

2

Prioritise

"How do you focus on what's viable, valuable, and urgent?"

Impact vs Effort analysis. High Value + Low Effort = test first. Low Value = don't pursue — save your resources. Align with strategic objectives and calculate opportunity cost. Not every idea earns an experiment, and that's the point.

3

Experiment

"How do you test ideas with real customers and real data?"

Define success criteria before you start. Design experiments using pretotyping methods — Fake Door, Mechanical Turk, Pinocchio, and more. Run 2–4 week testing cycles. Gather real customer behavioural data and review evidence with stakeholders. Not surveys. Not focus groups. What customers actually do.

4

Action

"How do you make a data-driven decision?"

Evidence drives one of three paths:

Stop — Didn't meet criteria. Save the investment. Document learnings. Move to the next opportunity.

Pivot — Shows promise with adjustments. Design follow-up experiments. Test new assumptions.

Scale — Exceeded criteria. Build with confidence. Validated ideas flow into your existing delivery pipeline.

Both outcomes are wins. You either find your next growth driver or save millions by stopping early. That's the power of making decisions with data, not opinions.

This framework is built on pretotyping, a methodology created at Google by Alberto Savoia. Leslie Barry has spent eight years adapting it for enterprise teams, developing the training, tools, and infrastructure that make rapid experimentation repeatable at scale.

An initial sprint runs 2–4 weeks. In that time, a team can test several ideas and run multiple experiments — enough to prove the approach works in your environment. From there, organisations like PEXA (9 months, 50 pretotypes), ANU (12 weeks, 45 experiments), and Tabcorp (18 months, $12M saved) have embedded rapid experimentation as an ongoing capability.

ENTERPRISE READY

Built for Enterprise Scale

Rapid experimentation doesn't operate in a vacuum. It works within your existing governance, compliance, and delivery frameworks — not around them.

Governance & Compliance

All experiments operate under a governance framework with built-in approval workflows and audit trails. Legal review applies to experiment categories, not individual tests — so compliance doesn't become a bottleneck. We've operated in regulated industries including property exchange (PEXA), education (ANU), and health insurance (HCF).

Plugs Into Your Existing Process

Rapid experimentation covers ideation to validation. It doesn't replace your product management framework — it's the missing first step that ensures you only build things customers want. Validated ideas flow into your existing delivery pipeline, whether that's Agile sprints, SAFe, or your own stage-gate process.

Roles & Change Management

Works across Product Managers, Product Owners, SMEs, Design, Tech, Marketing, and dedicated Innovation teams. Anyone can submit an idea. We build internal champions and train teams to run experiments independently — so the capability stays after we leave.

ROI Tracking

Estimate build cost using t-shirt sizing. Track cumulative savings from stopped ideas. Measure actual revenue from validated launches. The Exponentially Platform automates ROI tracking across your entire experimentation portfolio — no spreadsheets required.

METHODOLOGY COMPARISON

Where Rapid Experimentation Fits

Approach Core Question Speed Cost to Learn When to Use
Rapid Experimentation Will customers pay for this? Days $0–1K Before you build anything
Design Thinking What do customers need? Weeks $5–50K Understanding problems
Lean Startup Can we build a viable business? Months $50K–500K After initial validation
Agile How do we build it well? Sprints $100K+ After deciding to build

Rapid experimentation isn't a replacement for Design Thinking, Lean, or Agile — it's the missing first step that happens before all of them. It answers the most expensive question first: "Does anyone actually want this?"

TRUSTED BY ENTERPRISES

Who Uses Rapid Experimentation?

Rapid experimentation was born at Google and is taught at Stanford University. Through Exponentially, it's been embedded in enterprise organisations across Australia and beyond.

PEXA AGL Tabcorp Treasury Wine Estates RACQ RACV ANU News Corp Reece Lion Qantas HCF Caltex Racing Victoria

Leslie Barry and the Exponentially team have embedded rapid experimentation in 50+ enterprise organisations since 2017, training thousands of innovators and helping teams save $30M+ by testing before building.

FREQUENTLY ASKED QUESTIONS

Rapid Experimentation FAQ

What is rapid experimentation?

Rapid experimentation is a systematic approach to testing business ideas quickly and cheaply using real customer data before building. It uses pretotyping methods to validate demand in days rather than months, so teams invest only in ideas that customers actually want.

How is rapid experimentation different from A/B testing?

A/B testing optimizes existing products by comparing variations. Rapid experimentation validates whether a product should exist at all, before any code is written. A/B testing asks "which version is better?" while rapid experimentation asks "does anyone actually want this?"

How long does a rapid experimentation sprint take?

An initial proof-of-value sprint typically runs 2–4 weeks. That's enough time to test several ideas, gather real customer data, and prove the approach works. Most organisations then move into a longer-term engagement to embed the capability across teams. Individual experiments can be designed and run in as little as 1–3 days. See our Tabcorp case study for a real example.

What tools do you need for rapid experimentation?

You can start with nothing — many experiments use ads, landing pages, or even physical materials. The Exponentially platform helps teams capture, track, and measure experiments at scale, with AI assistance for designing hypotheses and selecting methods.

Can rapid experimentation work in regulated industries?

Yes. PEXA (property exchange) and ANU (education) both used rapid experimentation successfully in regulated environments. The key is testing demand signals — whether customers want something — without building the regulated product itself.

What is the ROI of rapid experimentation?

Exponentially clients have saved $30M+ by stopping bad ideas early and generated $38M+ from validated winners. AGL alone saved $7.5M from running 1,000+ experiments per year. The ROI comes from not building the wrong thing.

Who is Leslie Barry?

Leslie Barry is the founder of Exponentially and one of the world's leading rapid experimentation practitioners. He trained directly with Alberto Savoia (creator of pretotyping at Google), guest-lectures at Stanford, was Head of Innovation at Sportsbet and ThoughtWorks, and has embedded rapid experimentation in 50+ enterprise organisations.

Ready to embed rapid experimentation in your organisation?

Talk to Leslie about pretotyping training, experimentation sprints, or implementing the Exponentially platform in your organisation.