Future Commerce

[DECODED] Unblocking the Exploration–Exploitation Dilemma

Jun 11, 2025
Neil Hoyne, Chief strategist at Google and author of 'Converted', joins Pini Yakuel, Founder and CEO, to dissect how organizations often prioritize optimization over customer needs. They highlight that behavioral rigidity, not technology, hampers innovation. The duo advocates for adaptable, outcome-driven teams that foster customer connections. They explore how small shifts in team structures can lead to significant improvements in customer experience and suggest that AI should amplify, not replace, genuine human strategy.
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INSIGHT

Turn Up Exploration In Turbulent Times

  • The exploration vs. exploitation trade-off must shift toward more exploration in uncertain times.
  • GenAI and change demand more curiosity and cross-disciplinary flexibility from teams.
INSIGHT

Specialization Becomes Identity Risk

  • Over-specialization locks organizations into identities tied to existing tools and channels.
  • That identity makes it hard for teams to pivot when customer demand shifts.
ANECDOTE

Catalog Attribution Distorted Strategy

  • A retailer attributed all purchases to catalogs and kept sending them frequently as a result.
  • The catalog team's size and identity blocked digital adaptation despite changing customer behavior.
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