The Digital Transformation Playbook: Rethink Your Business for the Digital Age

Start-Up Into Your Organization (Boston: Harvard Business Publishing, 2014), 13–14. In-
tuit was one of several companies singled out in research by Furr and Dyer as applying 
a lean and iterative approach to innovation; the authors measure the impact of this ap-
proach in terms of an “innovation premium”—the premium that investors will pay for 
a company’s stock compared to the net present value of its existing business revenues.
7. Stefan Thomke and Jim Manzi, “The Discipline of Business Experimentation,”
Harvard Business Review, December 2014, https://hbr.org/2014/12/the-discipline-of 
-business-experimentation.

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8. Eric T. Anderson and Duncan Simester, “A Step-by-Step Guide to Smart Busi-
ness Experiments,” Harvard Business Review, March 2011, https://hbr.org/2011/03 
/a-step-by-step-guide-to-smart-business-experiments. (Note: I have updated the market 
capitalization of Capital One from its figure to the amount on September 9, 2015.)
9. I recommend reading Thomke’s book Experimentation Matters, Thomke and 
Manzi’s article “The Discipline of Business Experimentation,” and Anderson and 
Simester’s article “A Step-by-Step Guide to Smart Business Experiments.” (Bibliographic 
information for each can be found in the other endnotes for this chapter.)
10. I highly recommend Furr and Dyer’s book The Innovator’s Method: Bringing 
the Lean Start-Up Into Your Organization and their article “Leading Your Team Into the 
Unknown.” (Bibliographic information for both can be found in the other endnotes for 
this chapter.) Readers at start-ups should enjoy Steve Blank and Bob Dorf ’s The Startup 
Owner’s Manual (Pescadero, Calif.: K & S Ranch, 2012) and Eric Ries’s The Lean Startup 
(New York: Crown, 2011).
11. Hanson, “Creating a Culture of Rapid Experimentation.”
12. John Hayes, interview with author at American Express headquarters, New 
York, May 29, 2012.
13. Andre Millard, Edison and the Business of Innovation (Baltimore: John Hopkins 
University Press, 1990), 40.
14. John Mayo-Smith, e-mail interview with author, August 4, 2015.
15. Roc Cutri and Tim Conrow, “WISE Mission Operations System CDR,” July 18–
19, 2007, http://wise2.ipac.caltech.edu/staff/roc/docs/WISE_MOS_CDR_WSDC.pdf. 
16. Millard, Edison and the Business of Innovation, 15–16.
17. Rae Ann Fera, “How Mondelez International Innovates on the Fly in 8 (Sort 
of) Easy Steps,” Fast Company, February 7, 2013, http://www.fastcocreate.com/1682100 
/how-mondelez-international-innovates-on-the-fly-in-8-sort-of-easy-steps.
18. Hanson, “Creating a Culture of Rapid Experimentation.”
19. Joe Ricketts, telephone interview with author, September 25, 2014. 
20. Alistair Croll and Benjamin Yoskovitz, Lean Analytics: Use Data to Build a Better 
Startup Faster (Sebastopol, Calif.: O’Reilly Media, 2013), 55–63.
21. Thomke and Manzi, “The Discipline of Business Experimentation.”
22. Thomas R. Eisenmann and Laura Winig, Rent The Runway (Cambridge: Harvard 
Business School, 2011). 
23. Ibid.
24. Ibid. 
25. Rita Gunther McGrath and Ian MacMillan, Discovery-Driven Growth: A Break-
through Process to Reduce Risk and Seize Opportunity (Boston: Harvard Business Review 
Press, 2009).
26. Carmen Nobel, “Lean Startup Strategy Not Just for Startups,” Forbes, February 
25, 2013, http://www.forbes.com/sites/hbsworkingknowledge/2013/02/25/lean-startup 
-strategy-not-just-for-startups/.
27. Stefan H. Thomke, Experimentation Matters: Unlocking the Potential of New