Author: harborcapitalgroupinc

Lateral thinking helps solve problems by looking at them in new ways, questioning assumptions, and trying approaches that aren’t obvious or based on standard logic.

Edward de Bono created the term ‘lateral thinking’ because traditional thinking is good at developing existing ideas but often struggles to create new ones.

He believed our usual ways of thinking are efficient but can also hold us back. We tend to notice only what we expect. Lateral thinking gives us ways to break out of these habits.

The idea behind lateral thinking

De Bono thought tough problems stick around because people keep using the same approach. Lateral thinking helps break that pattern.

Instead of only asking, “What is the logical next step?” you can also ask yourself:

• What if the opposite were true?
• What if I defined the problem differently?
• What ideas seem wrong but might contain something useful?

The main idea is simple:

• Vertical thinking moves logically from one justified step to the next.
• Lateral thinking encourages you to look at things from a different angle and find new ways to begin.

He created lateral thinking to fill a gap. Traditional logic is good for evaluating and improving ideas, but not for generating them. People often stick to familiar methods, even if they don’t work well. De Bono believed creativity can be learned, not just something you’re born with. Lateral thinking tries to make creativity a regular process, not just something that happens by chance.

How lateral thinking works

Lateral thinking shakes up our usual ways of thinking and prompts us to consider ideas we might otherwise ignore.

A simple, step-by-step process starts with:   

1. Clearly state the problem. Example: “How do we reduce traffic congestion?”
2. Identify hidden assumptions. Example: “More cars mean we need more roads.” That assumption might be true, but it can limit our ideas.
3. Use a deliberate thinking technique: 1.

1. Reverse the assumption.
2.  Introduce a random stimulus.
3. Generate a provocative statement.
4. Split Hold off on judging ideas right away. The goal isn’t to be correct immediately, but to explore new possibilities.to explore new possibilities.
5. Extract value from unusual ideas. Even a strange idea may contain a practical principle.
6. Turn promising ideas into practical solutions. Lateral thinking helps you come up with options, while traditional thinking helps you test and use them. Lateral thinking is most effective when combined with careful analysis.

Two lateral thinking techniques

1. Reversal: Reversal means taking a normal assumption or standard way of doing things and turning it around.

Example:

• Normal assumption: “Restaurants need to speed up table service.”
• Reversal: “What if restaurants made customers spend more time there on purpose?”

That reversed idea might lead to:

• lounge-style seating
• social dining experiences
• profitable desserts and drinks
• a restaurant focused on atmosphere instead of quick turnover. Reversal helps reveal hidden assumptions, but it’s just a starting point, not the final answer.

2. Random entry: Random entry uses a random word, image, or stimulus to force a fresh connection.

Example: Problem: “How can a school improve student engagement?” Random word: garden

This might lead to:

• learning spaces outdoors
• student ownership of projects that grow over time
• peer mentoring arranged like an ecosystem
• Subjects could be connected by ideas such as “cultivation” or long-term growth. Most random connections won’t lead to much, but a few can spark great ideas.

Examples of success: 

Lateral thinking can be seen in results, even though it’s sometimes hard to prove exactly when it was used.

1. Self-service business models

Instead of assuming service must always be delivered directly by staff, businesses asked: What if customers do part of the process themselves?

That kind of reframing contributed to the development of models such as ATM self-checkout systems. These successes came from questioning the idea that more convenience always means hiring more staff.

2. Low-cost airlines

Traditional airline thinking emphasized included services and full-service travel. A lateral shift asked: What if customers mainly want safe, cheap transport rather than bundled extras?

That reframing helped support the low-cost airline model:

• no-frills service
• faster aircraft turnaround
• direct booking
• optional add-ons. By looking at things differently, airlines redefined what customers actually pay for.

Problems and limitations of lateral thinking

Lateral thinking has limitations.

•  It can generate impractical ideas
• It may feel inefficient
• It depends on follow-through 
• It may be resisted in structured organizations
•  It is not ideal for every problem
• It can be mistaken for just coming up with any wild idea. 

Lateral thinking isn’t random. If used improperly, it turns into unfocused brainstorming.

Conclusion

Lateral thinking is a structured approach to breaking habitual thought patterns, enabling the generation of new and useful ideas, especially when conventional logical approaches are at a standstill.

 Here is a summary:

• Concept: solve problems by reframing them and breaking assumptions
• Why: to complement standard logical thinking with deliberate idea-generation methods
• How it works: disrupt patterns, suspend early judgment, explore alternatives, then evaluate.
• Successes: innovations such as self-service systems, no-frills models, and convenience-based redesigns
• Problems: can be inefficient, impractical. Here’s an easy way to remember: vertical thinking finds the fastest route, while lateral thinking gives you a new map to discover hidden opportunities and unexplored treasures.

Vertical thinking helps you build ideas in a logical, step-by-step way.

These techniques help you examine ideas carefully, narrow your options, solve problems step by step, and turn rough ideas into real solutions.

1. Analysis

Break a concept or problem into smaller parts so you can look at each one clearly.

This helps you find causes, strengths, weaknesses, and understand how everything fits together.

For example, you could break a business idea into customer needs, pricing, production costs, and competition.

2. Selection

Pick the most practical option from your choices.

This helps you sort through ideas and highlight the best ones.

For example, if you have five product ideas, you could pick the one with the highest demand and lowest risk. Follow the ideas step by step so each one leads to the next.

This approach works well for planning and making decisions.

For example, you might identify the problem, gather information, compare your options, choose a solution, and then test it.

3. Evaluation

Judge ideas using clear criteria like cost, value, and practicality. This helps you decide if an idea should be improved, changed, or dropped.

For example, you might evaluate a new service idea by asking whether customers need it, whether it can be profitable, and whether it can be delivered efficiently.

4. Group information together to make it easier to understand and compare.

This helps you organize research, market segments, or product features.

For example, you could group customers by age, income, habits, or location.

Compare your options to find differences, advantages, or better choices.

For example, you could compare two brands by looking at their prices, quality, and target customers.

5. Refinement

Improve an idea by making small corrections or adjustments over time.

This helps you polish ideas so they work in real situations.

Now that you know the main techniques, let’s look at how vertical thinking works in real situations.

You can use vertical thinking to turn ideas into practical solutions. It helps you solve problems in an organized way.

• Make decisions based on evidence.
• Improve existing products or plans.
• Reduce risk before taking action.
• Turn creative ideas into market-ready solutions.

Some popular vertical thinking techniques include 5 Whys, Pareto Analysis, and SCAMPER.

Each one gives you a structured way to solve problems.

1. 5 Whys

With this technique, you ask “why?” several times, usually five, to find the root cause of a problem.

1. Ask why it happened.
2. For each answer, ask why again.
3. Keep going until you find the real cause.

Example:

• Sales dropped.
• Why? Customers were unhappy.
• Why? Delivery was late.
• Why? Production was delayed.
• Why? A supplier failed.
• Why? There was no backup supplier.

Use: problem solving, quality control, process improvement.

2. Pareto Analysis

This technique uses the 80/20 rule, which means a few causes often account for most of the results or problems.

How it works:

1. List all the problems or causes.
2. Measure how often each one occurs or how much impact it has.
3. Rank them from biggest to smallest. Focus on the few causes with the greatest impact.

Example: A company finds that 80% of customer complaints come from only two service issues. Fixing those first gives the greatest improvement.

Use: prioritizing problems, decision-making, and resource allocation.

3. SCAMPER

SCAMPER helps you improve ideas by looking at them from seven angles: Substitute, Combine, Adapt, Modify, Put to other uses, Eliminate, and Reverse or Rearrange. These questions help you find new options and better solutions.

Substitute: replace one part with another. Combine: join two ideas or features. Adapt: borrow from another idea. Modify: change the size, shape, or quality. Put to other uses: use it in a different way. Eliminate: remove unnecessary parts. Reverse or Rearrange: change the order or direction.

Example: For a water bottle:

• Substitute plastic with steel.
• Combine the bottle with a filter.
• Adapt from sports bottles.
• Modify size for travel.
• Put to other uses as a thermos.
• Eliminate the extra pack.
• Reverse the design to make cleaning easier.

Use: improving products, generating structured variations, and innovating.

Conclusion

Vertical thinking techniques use logic—such as analysis, selection, reasoning, evaluation, comparison, classification, and refinement—to turn ideas into solutions. These creative methods help you analyze, refine, and improve ideas in a structured way. They are especially helpful when you already have a concept or problem to work with.

​The process of transforming abstract concepts into innovative ideas is central to creative thinking. Understanding this process involves examining how creative techniques reveal the inherent flexibility of concepts. Rather than maintaining a single, stable meaning, concepts are shown to shift according to context, perspective, comparison, or interpretation.

This is the main change:

• People often see a concept as something stable and general that applies to everyone in every situation. Examples are beauty, justice, success, or truth.
• A relative idea views the same concept in a new way, so its meaning changes depending on who sees it, where, when, and under what conditions.

Creative techniques question the belief that concepts have only one meaning.

1. Changing perspective

Think of a writer, artist, or designer who brings a concept to life by seeing it from a different angle. When the perspective shifts, the idea changes as well.

For example, freedom can feel exciting and empowering to one person, but might cause fear for someone else. Seeing different perspectives makes the concept unique to each person instead of universal.

2. Using contrast

Creative work often develops when two versions of an idea are compared side by side.

Comparing wealth and poverty can change how we define success. This shows that success depends on circumstances and values, not just money.

3. Metaphor is also an effective means of creative thinking. 

Metaphors help us reshape abstract concepts by connecting them to something concrete. For example, if we call time a thief, it suggests time steals moments. If we call it a river, it highlights flow and change. Each metaphor adds new meaning and shows how the image we choose forms our understanding.t.

4. Context does more than influence meaning.

 It can completely change it. An action might seem heroic in one situation but reckless in another. Details like setting, tone, and framing make these ideas highly context-dependent.

5. Inviting interpretation

Creative works often leave some things mysterious instead of explaining everything clearly.

Ambiguity, irony, open endings, and layered imagery invite the audience to find their own meaning. This makes the concept more flexible instead of fixed.

Simple example: Home.

Creative techniques can turn it into different ideas, such as:

• home as safety
• home as confinement
• home as memory
• home as exile
• Home is still the same concept, but its meaning changes depending on the emotional, social, or cultural lens.

Creative techniques turn notions into relative ideas by using perspective, contrast, metaphor, context, and interpretation. This means meaning depends on relationships, not just fixed definitions.

​Now, let’s look at some key creative thinking strategies:

Vertical thinking relies on logic and structure. Lateral thinking uses creativity and new methods to turn concepts into marketable ideas.

Vertical thinking

Vertical thinking is like a careful builder. It is logical, works step by step, and always checks before making a move. idea by following definite steps, testing evidence, improving details, and improving what already exists.

In business, vertical thinking turns a concept into a product, plan, or strategy by asking questions such as “What works?“ What is realistic? How can this improve? It is especially good for evaluation, planning, risk reduction, and execution.

Lateral thinking 

In innovation, lateral thinking transforms concepts by asking questions such as: What if we approached this differently? Who else could this help? 

For example, Edward de Bono, who developed the lateral thinking technique and coined the term, encouraged the generation of new ideas by deliberately moving beyond standard patterns of thought. 

A classic example of lateral thinking is using a brick not just for building but also as a paperweight or a doorstop, demonstrating how unconventional uses can emerge from re-examining the concept’s potential applications.

This is where new possibilities appear. Lateral thinking opens up many options.

These creative techniques can work together

Vertical thinking then sorts through creative ideas and shapes them into workable plans. For example, if the concept is home delivery, lateral thinking might suggest meal kit subscriptions, 10-minute grocery apps, or delivery of pet medication. Hacks cost, demand, logistics, and customer fit to decide which idea can actually succeed.

Many sources say these approaches work well together. Lateral thinking creates new possibilities by generating diverse ideas, while vertical thinking improves them by carefully evaluating and refining them toward practical solutions. psychologyfor.com oventhal.com

Conclusion

Vertical and lateral thinking are the main ways to turn concepts into marketable ideas. Lateral thinking sparks originality, while vertical thinking turns those initial ideas into solutions that work in the market. This is one of three blog posts about transforming concepts into creative ideas.

People often think creativity is just about sudden inspiration, but strong ideas usually come from clear and disciplined concepts.

A concept helps you organize what you notice in the market. It lets you spot patterns, identify opportunities, and understand customer needs, behaviors, and frustrations. Without clear concepts, creativity can lose focus. Teams might come up with ideas, but those ideas are often too broad, random, or easy for others to copy.

That’s why concepts give creativity its direction.

For example, instead of just saying, “We need a new service idea,” it’s more helpful to say, “We’re seeing more time-poor clients who want expert support without a complicated buying process.” That’s a concept. Once you have that, better ideas tend to follow.

Rather than brainstorming in general, teams can design offers that fit that specific market need:

• simplified premium packages
• faster onboarding
• expert-led guidance
• priority response models
• subscription-based advisory support

This link between clear concepts and focused innovation is why concepts matter so much for turning creativity into results. They help businesses move from vague ideas to real, relevant innovation.

Concepts help in four key ways:

• First, concepts help spot patterns. They let businesses focus on what really matters in the market, rather than just reacting to random bits of data.
• Second, concepts create focus. They give creative thinking a clear goal, so idea generation becomes more strategic.
• Third, concepts help businesses stand out. They make it easier to design products or services that meet real customer needs instead of relying on general assumptions.
• Fourth, concepts make ideas easier to act on. A strong concept can turn into a product, service, message, or experience that customers actually value.

In short, concepts connect insight to action.

This is important because creativity by itself isn’t enough. Many companies can come up with ideas, but far fewer turn those ideas into real business advantages. The difference often comes down to having clear concepts.

When businesses use strong concepts, they can ask better questions, like:

• What customer group are we really serving?
• What needs are competitors overlooking?
• What friction can we remove?
• What would make this offer feel more specific, useful, or distinctive?

That’s ultimately where better ideas start.

Conclusion

To sum up, creativity works best when it’s not just original but also relevant. Concepts make this possible. They add structure to what you notice, guide your ideas, and bring discipline to innovation.

If a company wants creativity to deliver real business value, it can’t just depend on inspiration. It needs concepts that sharpen thinking, guide action, and turn market insights into ideas customers actually want.

Concepts are what turn creativity into something useful.