How an understanding of Gaussian distribution can benefit business strategies
Picture: a typical normal distribution: A normal distribution is an arrangement of a data set in which most values cluster in the middle of the range and the rest taper off symmetrically toward either extreme.
Highlight: “Researchers have recently taken visual solutions present in nature to incorporate them in a computer algorithm that radically improves the quality of sequences collected in dim light…This was made possible by studying nocturnal insects which are uniquely adapted to a life in dim light..these adaptations were discovered by recording the responses of photo-receptors to Gaussian-distributed white noise light stimuli in nocturnal insects…”
Insight: In nature many systems follow Gaussian distributions. It is one of the best mathematical representations (along perhaps with exponential growth) to describe the behaviors of natural systems. Factors such as populations dynamics, follow such patterns.
Gaussian distributions go beyond natural systems and are also a good assumption to many phenomenons which involve large amounts of data. In business for instance, the behavior of consumers towards a particular product or marketing campaigns outcomes would typically follow Gaussian distributions.
While there are many statistical tools that can be used to make assumptions with various degrees of certitude, keeping in mind the easy to visualize bell shaped curve can really help to forge robust business strategies through realistic risk management in anticipation of failure rates.
Basically what it hints is that in an outcome involving large numbers, the majority would be spread around the mean while a narrow few would go towards the extremes which in this case would be defined as failure or success; In other words the probability of a very successful/unsuccessful outcome will be small while average outcomes would be largely predominant…
Are you working on a plan that involves large numbers? If so, perhaps verify if the distribution would be favorable for Gaussian outcomes (there are statistical tools to help making this assumption) and anticipate accordingly. Keeping in mind the Gaussian distribution, one success strategy is to aim for the largest possible numbers (e.g potential customers) in order to maximize the chances of successful outcomes…
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What is Biomimetics: the field of gaining inspiration from nature first to solve some of our most difficult challenges. Instead of coming up with our own solutions to a problematic, the odds are that species or natural systems on the planet already offer an ultimate solution. This simple fact is also another strong case to preserve species at all cost as the intellectual heritage contained within or through the study of species is both irreplaceable and invaluable…