Question

Please explain the difference between exploration and exploitation. Please, in your opinion, discuss unexplored area in your business (accounting) and justify the need of its exploration. Provide your justification from the context of beneficial impact on business. This is a CIS class

Answer 1

Exploration refers to the discovery of new products, resources, knowledge or opportunities by learning through experimentation.

Exploitation refers to the refinement of existing products, resources, knowledge and competencies leading to incremental changes.

In business (accounting), for a given set of financial transactions/invoices human capital can be exploited/refined to work longer or efficiently to make accounting entries for large no. of transaction in short period of time say in a day or in few hours.

And through exploration new softwares or SQL codes could be generated which might help to record same set of transactions in a few seconds.

If desired results are obtained exploration can have mutlifold advantages over exploitation.