1. Thinking, Creativity, Decision Making & Opportunity
Murray Hunter University Malaysia Perlis
2. Sensory Perception and Cognition
3. External Stimuli Perceptual Cognition Environmental energy
Inputs Conversion of environmental energy to neural Overview of the
Receptors Eye-electromagnetic energy, impulses photoreceptors
(primary visual cognitive system cortex) Various parts of Ear-air
waves, mechanoreceptors memory that (Auditory cortex) Sensory Store
hold unanalyzed Tactile/haptic-tissue distortion, skin, receptor
input. (somatosensory cortex) Tongue-aromatic chemicals,
mechanoreceptors, (organoleptic and olfactory cortex) The attention
Attentionmechanism selects and blocks Mechanism Visual/spatial,
auditory, haptic, perceptual olfactory, organoleptic and
information for motoristicpattern recognition. Pattern Recognition
Recognizes and determines which Also includes information a smell,
taste and person will use and Visual Phonological sensations.
remember. Perception Selection Where information is patterned
recognition and and sequences in a way our mind interpretation.
self organizes. Patterning Bias A working limited capacity memory
carrying out the functions of rehearsal, coding, decisions and
strategies. Temporary Mental Cognition Decision Psychotic, Working
(Short Output MakingBehavioral and Term) Memory Responses Processes
Cognitive Distortion Long term storage memory Heuristics, Long Term
where short term memory biases and retrieves and deposits Memory
other information. influencingmechanisms. (Arrows represent neural
transmissions)
4. Our cognitive system canonly process one thing at a
time
5. Please say the colours Yellow Blue Orange Black Red Green
Purple Yellow Red Orange Green Black Blue Red Purple Green Blue
Orange An example of cognitive confusion
6. Run Throughs Fix Start Blocks Change shoes Jogging Our
memoryand knowledge Fast sprints Size up competitors makes up a
Warm up schema Practice starts Pre-Start Stretching Call up Take
off Relax track suit Running a 100m race Wait for Dip at line Stand
behind call up blocks Final acceleration Slow Attention to finish
line down Get on marks Whistle Race Call to marks Accelerate hard
Start first part Call to setThese are linked Run relax and coastto
our emotions Explode off Gun Set position blocks
7. Learning & Learning New Experience
schemamodificationPresent feelings & New feelings &
emotions emotions Created Interpretation Experience unableExisting
Schema to coordinate new Modified Schema experience with(Prior
Knowledge) existing schema Use of metaphor to understand and solve
problems If solved will lead to reinforcement of existing schema
Time
8. Problem Solving and Decision Making
9. The primary objective of reasoning, problem solving and
decision making is to find ways out of difficulties, achieve aims
or objectives, make a selection or overcome some form of obstacle.
Decision making requires special sets of skills, which not only set
us apart from the animal kingdom but also set human apart from
human. In his book Sources of Power: How People makeDecisions, Gary
Klein (1998) goes further andstates that decision making skills are
a source of power for an individual.
10. Please construct 4 equilateral trianglesconstructed with 6
matches without any matches crossing
11. To discover the correct arrangement of objectsmay require a
flash of insight to discover theright combination of sequence. This
maysometimes occur after a number of attempts toarrange and
rearrange the objects through trialand error. The necessary
arrangement orsequence of items to solve the puzzle orproblem may
only be discovered after a numberof attempts to find the correct
sequence
12. Shows how we need to change our patterning 2D to 3D to
solve the problem
13. This was demonstrated well in a sequence of the film Apollo
13, directed by RonHoward. The level of oxygen was rapidly
declining in the lunar module of the ill-fated Apollo 13 mission,
so a solution was needed to maintain adequate filtering ofthe air
to rid it of CO2 build up. The technical team in Houston was given
theproblem of finding a way to make this (a square air scrubber
filter from thecommand module) fit into a hole like this (the shape
of a round air scrubber filter inthe lunar module) using nothing
but that (items that are available to the astronautsin either the
command or lunar module). This problem could only be solved
throughtrial and error until a solution was found.
14. Simple Decision making strategiesThe Attribute Rating
Totals of the two cars Car 1 Car 2Cost +2 +1Power +1 +2Economy +1
-1Comfort +2 +2Total +6 +4
15. Difference in the Scores of Each Attribute of the Two Cars
Car 1 Car 2 DifferenceCost +2 +1 +1Power +1 +2 -1Economy +1 -1
+2Comfort +2 +2 0Total +6 +4 +2 Our intuition will often override
attribute scoring
16. Finding a segment for a shampoo
17. D GAttribute 2 Attribute 2 F C E I H A B Attribute 3 A B C
D Attribute 1 Attribute 1Figure 4.19. Two-dimension and
three-dimension grids or matrixes.
18. Selection of different market levels High Active
Concentration Medium Active Concentration Highly Low Active
Fragranced Concentration Organically Produced Conditioner
Conditions Conditions Shampoo Various All Hair Selection of two
completely different Selection of different market marketing
strategies segments
19. Intuition plays a major role in opportunity identification
Degree of ambiguity Active/Imaginative Allocative Construction
Intuitive Analytical Supply/Demand changes New technologies
Demographic changes New Business models Value creation n io v at no
Locus of change In Inductive Imitation Discovery Deductive
Replication & Extension Incongruities (Black & white)
Structural changesPassive/Reactive The range of entrepreneurial
opportunities
20. Images and Connections Vision Platform - PerceptionThe
cognitive process behind the Time & Space Potential
conceptualization of Concept Generator ideas Making Connections
Concepts Learning: Conceptual World Real World Sources of
Opportunity Identifying Experimentation concepts & Testing
Evaluation after experience A Narrative Ideas Complete re-
evaluation (seek further information) Structure common to all
Evaluated and opportunities Elaborated Upon Vision Outcomes Time
& Space Opportunity Resources Networks Skills, Competencies
& Capabilities Competitive Environment Strategy scope &
depth
21. SinglePerspective Being able to switch from view to view to
see the object, person or event from multiple perspectives
22. Complex Problems like agriculture & engineering
23. Location Climate Genetic Material Humidity Collection
Temperature Purchase Sunshine hoursTopography UV radiation Plant
physiology Seasons Slope & drainage Propagation Yield and
Rainfall characteristics Chemical Constituents of the Humus
Nutrients Method of extraction Essential Oil Extraction time
Compactness Drainage & water holding qualities Pest & weed
pH control Pre-harvest handlingMineral residuals Irrigation &
preparation Plant densities Soil type Time & method of harvest
Agronomic Harvest & Soil Practices Extraction Practices
24. More Complex Problems
25. Complex decisions in relation to potential opportunities
and suitable strategiescannot be explained by simple models. These
types of decisions aremultiple, sequential and must be decided in a
flexible manner to suit differentsituations within an overall
changing environment. The characteristic environmentwhere these
decisions are made will be;Related to ill-defined and
ill-structured problems where a lot of effort has to be madeto
understand what is happening.In a dynamic environment under
situations of uncertainty where information will beincomplete and
ambiguous.Where there are multiple players within the environment,
whose actions andreactions are not always known.Where objectives
may shift during evaluation periods and during strategy
execution.Where strategy and work within the environment is complex
and requires a highamount of coordination.Where relationships
between variable is not fully clear and these relationship caneven
change over time.Where there is considerable time pressure where
stress exists.There are costs involved with failure, andWhere both
organizational and personal goals are a guide to the direction
decisionmaking will go.
26. Demographics The ever changing environment Technology Shock
Competitors new products Change New New Merging Opportunities
Information IndustriesLifestyle Economy Gestalt Changing Tastes
Regulation
27. Inputs Culture (the way of doing things) Input NewResearch
Ideas Technology Excitement New ChangingFood Producers The supply
Retailers products demands chain Sustainability Ethics Logistic
science Finance Lifestyle & Houses values Skills/capabilities
Underlying costs Retail practices Supply Demand Push Pull
28. Why do companiesneed Innovation?
29. Products more than 5 years old usually dont make
majorcontributions to a companys revenue Technology Consumer style
change
30. Product EvolutionPre 1900s Laundry BlueUp to Late 1940s
Solid Soaps & Powders Laundry Detergent Bars1950s until present
Laundry Detergents Powders Laundry Detergents with Liquids Special
Detergents Additives Concentrated1980s until present Laundry
Powders Laundry Detergent Tablets
31. Evolution Verses Revolution Changing Technology (slow to
Change) Changing Lifestyles Cheap Clothes Available (substitute)
Had to Reinvent the Company due to Slow Product Development
32. The Evolution of Fashion
33. 1800s
34. 1930s
35. 1950s
36. 1960s
37. 1970s
38. 1980s
39. 1990s
40. 2006
41. Thai Hong Kong MalayFashion Fashion Fashion Geographical as
well as time differences in fashion
42. Technology/Market Positioning Hotel Coffee Shop Coffee Bean
HighStyle Kedai Kopi Fast Food Low Low High Technology
43. New Economic PollutionParadigms Growth Fossil Fuels
Export/Import Transport Farm Raw materials Transport Government
Power Production Transport Diversity generation Warehouse
Management Supermarket Conflict Research & Community
Development Consumption Education Regulation Competition &
Tension Air Transport Poverty & Unhappiness Development Waste
Health Uncertainty A simplified environment
44. Any environment has the following factors;A field,Objects
within the field,Relationships between objects,Actors,Relationships
between actors,Events,Relationships between events,Relationships
between actors and events,Relationships between actors and
objects,Relationships between actors, objects and the
field,Relationships (or no relationships) between everything,The
situation,Movements and stillness,motives,relationship between self
and the actors, objects and the field, andInterpretations of the
above.
45. The generic problem solving process Problem Problem
Implementation The Identification Resolution &
StrategyEnvironmentThe Mess Data Ideation Elaboration Set of sub-
Gathering & Extensionenvironments Return to ideation to refine
detail to complete concept Objective Data Subjective Data Each step
requires: Followed By: Another problem Feeling & Intuition
Divergent Thinking Convergent Thinking in itself to open up the
issues to focus on the issues
46. Cognitive Tools Personal Desires The ongoing story
construct Perceptual BiasesEnvironmental Potential Scenarios 1
Information Narrative 2 3 Prior Knowledge 4 Concept + +
Organizational Goals Visual Spatial Consistent with personal and
organizational goals, New in accordance with prior knowledge,
enhanced Knowledge Developed Idea with new knowledge and developed
and verified with various cognitive tools.
47. MemoryTruth Beliefs Knowledge
48. Predicting the future
49. Present time The PastWe know the past and present Without
any changes our timeline will remain relatively unaltered
50. Present timeThe Past 2 in 1 shampoo This changes the
creates a new parallel of the market segment market gradually The
effect of competitor innovation will bring product evolution
51. Present time The Past A Radical change in technology Will
radically change the timeline into aThe advent of mobile phones new
industry
52. Consumers Positioning Potential new novel Opportunity
product extending market field or creating a new oneAttempting
through existing or to create Targeting new channels and Refining
thesome form business models. Idea ofcompetitive advantage
Segmentation Concept Product idea to compete with Market existing
products in market Identification The set of possible
ideas/products/markets The Causation Process The Effectuation
Process
53. Existing Products New ProductsExisting CausationMarkets New
EffectuationMarkets
54. Developing a Central Theme into an Implementable Strategy.
Brand Signal Features Benefits Channels Theme Attributes Strategy
Characteristics Central Theme Organically produced high active
(Product Proposition) concentration shampoo with product variants
to suit various conditions. Underlying High & discerning Low
Assumptions Rapidly growing market end. competition segment.
Customers who in segment. want mass custom produced products.
Sustainable Products match personal values.
55. Opportunity Shift Time Newly identified opportunity needing
different goals, An identified strategies,opportunity in
competencies, skills, the past resources and organization than
previously The Opportunity Landscape What strategies are required
to successfully Present Needed exploit the new Strategies
Realignment of Strategies Strategies opportunity and meet the
organizations new goals? Competitiveness What type of organization
and Present Needed business model is Organization Realignment of
Organization Organization needed to support the selected strategy?
What skills, competencies and Present Skills & Needed Skills
& technologies are Realignment of Skills & Competencies
needed to support the Competencies Competencies new business model
and strategy? What resources are needed to support Present Needed
Realignment of Resources skills, competencies, Resources Resources
technologies, new business model and strategy? What networks are
Present Needed needed to exploit the Networks Realignment of
Networks Networks opportunity, acquires skills, technologies and
resources, support the new business model and strategy? What new
goals are Present Goals New Goals Setting of New goals needed to
exploit the newly identified opportunity? Reengineering of Total
Organization
56. Product Reengineering Process (Process for FMCG Product)
Product from Market Step 1: Examination of the product to determine
characteristics. a) What type of process was it manufactured by? b)
What would be its formulation/recipe? C) What materials are used in
its manufacture? Step 2: Develop a full Product Technical &
technical specification for Market Specifications the product and
production process. Probable Product Production Process Step 3:
Include any improvements to the product Laboratory Development Step
4: Laboratory & Production Trials development of
formulation/recipe and Return to lab. For any development of
modifications production process Product Trials (Both consumer use
& Step 5: Undertake production) consumer product testing and
production trials Completed Product
57. C Constructed Concept Concept Extraction Charcoal Burger
GrillA (location) + B (characteristics) 1. Location near young
people = C (constructed Concept) (university): convenient 2. Cheap
and affordable University 3. Good service 4. Authentic charcoal BBQ
burger grill (western style) 5. Convenient meeting placeA with WiFi
etc. Location Fastfood B Concept Extraction (General
Characteristics) 1. Cheap 2. Good standard of hygiene 3. Good
service 4. Fast and efficient 5. Specialize in a particular food 6.
Know what to expect 7. A meeting place for people Potential success
parameters
58. GroupthinkJanis (1972) postulated that the symptoms of
groupthink are;The illusion of invulnerability which creates over
optimism of potential success andwillingness to take high risks,An
inherent belief of their own morality where the consequences of
their decisionsare ignored,Collective rationalization where
warnings, signs and messages are rationalizedaccording to existing
group assumptions,Negatively generalized and stereotyped views of
external people and entities,where they view others as weak and
foolish,Self censorship and pressure on dissenters to carry the
group line and not expressany disagreements, including the
suppression of outside views disagreeing withthe group,The illusion
of unanimity in the belief that individual views conform to the
majorityview and silence means consent,Social pressure on those who
have doubts about group consensus, andThere are self appointed
mind-guards to protect the leader and group frominformation that
may threaten any potential group cohesiveness.Kowert (2002) also
added that an overload of information mayalso contribute to causing
the groupthink phenomena.
59. Antecedents Observable Consequences Defective decision
Decision makers are a 1. cohesive group Symptoms of groupthink
making Organizational Overestimation Incomplete survey Structural
Faults Vulnerability of alternatives. Insulation of group illusion
of Incomplete survey Low probability of successful outcome Lack of
leader invulnerability of objectives. impartiality - Belief in
inherent Failure to examine Lack of procedural morality of group
risks of preferred methodology Closed Mindedness choice. Social
homogeneity of - Collective Concurrence- Failure to reappraise
members rationalization seeking initially rejected - Stereotyping
of tendency in alternatives. outsiders group Poor information
Pressures toward Provocative search. conformity Situational Context
Selective bias in - Self censorship High stress from processing. -
Illusion of external threat information at Unanimity Low self
esteem hand. - Direct pressure on induced from recent Failure to
develop dissentersfailures, difficulties in contingency plans -
self appointed current decision mindguards making that lower
members sense of self efficacy. Moral dilemmasThe Groupthink
Process
60. Influence of cognitive rigidity on firm Level of Innovation
Optimal level of Innovation Hierarchy Anarchy Too unstructured Too
rigid to to turn creativity be creative into innovation Level of
creativityChannelling of information Need to know basis Relevant
information available to who needs it Too much incoming
informationDegree of internal Strictly hierarchical Connections
occur where relevant Ungoverned connectionsand external
connectionsDispersal of power Hierarchical According to knowhow
& expertise No fixed determinationDegree of diversity
Conforming membership Diverse membership Diverse membershipLevels
of stress and High stress & anxiety Stress & anxiety
minimized High stress & anxiety
61. Experience Attribute SubstitutionIncreasing Availability
Word of Heuristics Mouth Media Reports Fallacies Intuition
Misconceptions Data Potential Creativity Information Abstract
Process Inferences (Circumvents knowledge logic & perception)
Faulty or invalid premises Cognitive Wisdom Biases Ideas Decision
Reasoning Making Strategy Factors influencing thinking Increasing
Usefulness
62. Self ConfidenceThe way our imagination develops
ideas,motivation and determination Belief in success Determine
Familiarity any future Emotions action Motivation (goals &
objectives) Vague Aspirations A Desirable future Determination
Imagination Image Concept Idea (conceptions) (vision)
(Framing/reframing) Stimulation Effectuation Retrieval Mental
imagery, Construction, Create new schema, Metaphor, Comes as
Analogy, Seeing something in Mixed Reality & Fantasy memories,
beliefs, new way, Connecting unrelated assumptions, concepts
(pictorial & haptic processes) emotions Memories Perceptual
experiences
63. Creativity Tool Cognitive Skill Knowledge (vocabulary) of
odorous substances Imagination Olfactory sensitivity Knowledge of
potential strengths, weaknesses and applications of odorous
materials Knowledge of Curiosity, enquiry outstanding and Perfumer
fragrance creations experimentation Excellence within the domain
Practical knowledge & experience Process & Interest and
Product passion Time, patience, perseverance Factors influencing
creativity EmotionKnowledge Base
65. Increase of energyNegative Energy Positive EnergyLow self
Esteem Excitement Anxiety Worthlessness Gravity Belief in Success
Gravity Sense of Challenge Feeling of Passion Powerlessness Things
not going well Moving forward towards success Assumption of Where
we are now worthlessness Tension Persons Vision The Forces of the
Motivational Trigger.
66. Curiosity Insight Exploration Security & Discovery
Purpose Openness toWisdom Learning Confidence/ Excitement Self
Esteem Obsessive Passion for Persistence the domain New Skills
Dedication Mastery The path to wisdom and insight
67. Personality Situation/Life ExperienceSense and view of
theworld & realityInner drive- aggressive/destructive-
sensitive/appreciative Filter ExternalObtainment strategies Ego
Mechanism StimuliLibidinal love for outsideworld/internal world
ConceptSelf confidenceResponsibility InfluencesAccountability
AttentionDrive/Courage Capacity to Synthesize Discipline Motivation
Feelings & Defense Thoughts Emotions Mechanisms Desires The
role of ego in thinking
68. Puzzling situation, curiosity, questioning of something
given or problem in the Some parts of the elaboration process
environment. require further creativity like strategy
development.The creative Engagement process Opportunity Insight
Preparation Period Incubation Frustration Period Period This may be
a process The Creative of creating a number of Insight innovations
so the idea will be able to be exploited as an opportunity.
Verification Elaboration Period Period If flaws found with the
insight, there may be a return to frustration, If no flaws in
insight found there will preparation or incubation again. In be an
advance to the elaboration Solution, concept, some cases there may
be a period where the insight is developed idea and eventual
questioning of engagement. into a concept, idea and eventually
opportunity into a potential opportunity
69. Stimulation from the The incubation process environment
through our sensory systems Insight Short Term Memory (STM)
Sub-Consciousness Imagination Long Term Memory Self Organizing
System Sub-consciousoperation creating free associations from
bitsof random information Coded Domain Prior Knowledge Domains
become more Imagery,fluid and flexible allowing Semantics & for
analogies Syntax Still following patterns from learning
71. Positive Optimum level of emotions for creativity
Self-actualization/spirituality Concern & compassion Service to
others Self Mastery The optimal Power within motivation Exploration
& improvement area Self assertion & power over others Anger
Greed & Craving Fear Anguish Apathy Guilt &
shameNegative