• Innovative Strategies That Create More Profits

Tag: Innovation

Strategic Thinking: From Data To Creative Insights

Posted on by harborcapitalgroupinc

 

Now that you have researched and diagnosed your problem or opportunity, It is time to take your strategy thinking

from data to creative insights. I started by writing this blog post about using the information obtained from your research

and diagnosis and turning it into insights, concepts, and innovations.

 

I quickly realized that “being creative” is a terrifying idea. Most people believe creativity is for artists or

stand-up comedians. But they need to be more creative. About 80% of people think they are not creative —

even schools don’t bother to teach creative Thinking. If I didn’t explain that everyone can be creative, I wouldn’t

have any readers — 80% would think reading it is a waste of time, and 20% wouldn’t need it. 

 

In this blog post, I want to give you a little background on creativity and show you some of the

many techniques you can use to help you reach your objectives.

 

Why is Everyone “Wired” to be Creative?

Creativity is a universal human trait that resides within us, just waiting to be unlocked. Our mind is wired to continuously

collect data and store that data into long-term data and short-term data. Then, set up patterns that connect

the two. When a pattern is interrupted, it can create a new perspective. 

At its core, creativity is an intrinsic human quality. From the early stages of childhood, humans exhibit

creative tendencies through imaginative play, drawing, and storytelling. These early expressions of creativity

testify to its fundamental presence in our nature.

 

Following are some compelling reasons why we can all be creative.

Cross-Pollination of Ideas. Creative Thinking often thrives when ideas from different domains converge. Drawing

inspiration from diverse sources, disciplines, and experiences can result in fresh perspectives

and innovative solutions. Creative individuals are often adept at connecting seemingly unrelated concepts.

Yes, There Are Failures. Creative endeavors are not immune to setbacks and failures. However,

embracing failure as an integral part of the creative process can reduce the fear of making mistakes.

It encourages risk-taking and ultimately leads to breakthroughs and novel ideas.

The Power of Collaboration. Collaborative efforts and brainstorming sessions often spark creative ideas.

Interacting with others, sharing ideas, and building on collective knowledge can result in innovative

solutions that have yet to be achievable in isolation.

Conclusion Creativity is not a scarce resource reserved for a select few; it is an abundant human trait.

Anyone can embark on self-discovery, innovation, and personal growth. 

 

Is Creativity Intuitive Thinking or Insightful Thinking

 Intuitive Thinking is the ability to arrive at insights and conclusions without conscious reasoning or analysis.

It is a form of rapid cognition that operates unconsciously, often described as a “gut feeling” or “instinct.” 

Intuitive Thinking relies on past experiences and knowledge that has been internalized, allowing the 

individual to make quick judgments and decisions based on patterns and associations.

Intuitive Thinking often contrasts with analytical Thinking, which involves conscious reasoning and logical

information analysis. While analytical Thinking helps solve complex problems, intuitive Thinking

can be valuable when quick decisions are necessary or when information is incomplete or ambiguous.

Intuitive Thinking is often associated with creativity and innovation, as it can lead to novel ideas and approaches.

However, it can also be influenced by biases and heuristics, leading to errors in judgment.  

For example, Newton’s intuitive insight about gravity led to his discovery of the laws of motion. 

 

Insightful Thinking is a cognitive process involving sudden and deep understanding or realization

of a problem, situation, concept, or relationship. It often occurs when you connect previously unrelated information

or experiences, leading to a profound and often transformative understanding. Insight can also manifest

as an “aha” moment when a complex or puzzling issue suddenly becomes clear. 

Critical characteristics of insight include:

Suddenness: Insights tend to occur abruptly and without warning. They often emerge when an individual

grapples with a problem or question for some time, and the solution appears suddenly and unexpectedly.

Connection of Ideas: Insight often involves connecting ideas or experiences that were not previously 

linked. It can reveal hidden patterns, relationships, or solutions that were not immediately apparent.

Problem Solving: Insight is closely associated with problem-solving by providing that missing piece of the puzzle,

allowing individuals to overcome obstacles, find creative solutions, or make sense of complex situations.

Innovation: Many breakthroughs in science, technology, and creativity result from insight.

Innovators and inventors often use insights to develop new theories, products, or artistic expressions.

Personal Growth: Insight can also extend to self-awareness and personal growth. It can provide

a deeper understanding of one’s emotions, motivations, and behaviors, facilitating personal

development and self-improvement.

Transformation: Insight has the power to transform perspectives, beliefs, and paradigms.

It can challenge long-held assumptions and lead to a more enlightened or enlightened outlook.

Problem Resolution: Insights can be applied to resolve practical and conceptual problems.

They provide a path forward when conventional approaches have proven ineffective.

Conclusion. Insight is a valuable creative process that can lead to profound understanding, innovative

solutions, and personal growth. It often emerges due to mental processes such as pattern recognition,

associative Thinking, and the integration of diverse knowledge and experiences. Also, cultivating

an open and curious mindset can enhance one’s capacity for insight.

 

Strategic Thinking: From Data To Creative Insights

How To Create Insightful, Creative Ideas and Solutions

Generating insightful and creative ideas and solutions involves a complex cognitive process within the mind.

Research has provided insights into how the mind generates new or different patterns to create insights:

There are over a dozen ways to generate new ideas. Following are some of the most popular ways to create

new creative insights, ideas, concepts, and innovative solutions. 

I will define five techniques here to give you some ideas of the possible techniques available.

I will cover many techniques in other blog posts within the ClickVisor program. 

I want to show you how you can create insights and creative solutions to your problems and opportunities.

Associative Thinking involves connecting unrelated concepts or experiences stored in memory to form

novel associations or patterns. It’s the basis for many creative insights, enabling the mind to draw connections.

between seemingly unrelated ideas. Suppose unexpected cues or associations disrupt or trigger the association or pattern.

In that case, a memory pattern can lead to different conclusions, thoughts, or insights. The brain’s ability to make

new associations and drawing unexpected findings are fundamental to creativity and problem-solving. 

Divergent Thinking: Divergent Thinking is about generating a wide range of unique ideas, solutions,

and possibilities in response to a specific question or problem. It encourages exploring multiple perspectives

and solutions to a problem, promoting creativity. It’s about generating unique ideas,

solutions, and possibilities in response to a specific question or problem. Divergent Thinking

is the opposite of Convergent thinking, which focuses on finding a single correct answer to a problem.

Incubation:  Incubation is based on the idea that the subconscious mind continues to work on unresolved

issues, and by providing it with the time and space to do so, individuals can experience breakthrough insights

and generate creative solutions. During this subconscious processing, the brain works on the problem

in the background, making connections and associations. It is often used by writers, inventors, and problem solvers

who encounter mental roadblocks or seek to overcome creative challenges.

Metaphorical Thinking: Metaphors and analogies are powerful tools for creative Thinking.

It is a cognitive process that involves understanding, explaining, or conceptualizing one thing i

n terms of another, often dissimilar, by drawing parallels, comparisons, or analogies between them. 

Metaphorical Thinking enables us to convey abstract or complex ideas by relating them to more familiar or concrete concepts.

Creative Techniques: This involves various creative techniques, such as mind mapping. This technique

involves mapping out a visual and graphic design for organizing, representing, and generating ideas,

information, or concepts in a structured and interconnected manner. It’s a creative and effective

tool for brainstorming, problem-solving, note-taking, planning, and learning. 

Six Hats is another technique great for groups. Each of the hats represents a phase of the process

with a time limit for each phase. By adopting different perspectives through each phase (or hat),

teams can systematically explore a problem, generate innovative solutions, and make well-informed decisions. 

This method encourages a more structured and balanced approach to Thinking. It promotes

collaborative problem-solving within a group or team setting.

Conclusion

In summary, creativity is a fundamental aspect of human nature that can be developed

and enhanced. It’s not restricted to a select few techniques. With the right mindset,

environment, and practice, anyone can generate innovative solutions to problems. 

Encouraging and fostering creativity in oneself and others can lead to greater personal

fulfillment and contribute to innovative advancements in various fields.

 

The insight /Innovation module of my online ClickVisor program has more information on generating creative

ideas to solve problems and take advantage of opportunities with practical business and marketing strategies.

I like the Random Word technique (interrupting your current concept pattern with a word that disrupts

that pattern with new ideas) and the Six Hats method (for teams, which is far more effective than brainstorming).  

 

Try a few and let me know your positive or negative thoughts. I need to keep learning as well.

Incremental Innovation For Competitive Markets

Posted on by harborcapitalgroupinc

Incremental Innovation For Competitive Markets

 

In our constantly changing world, customers demand that businesses give them something new,

which results in the release of more than 30,000 unique products each year —and about 95 percent fail,

according to Harvard Business School professor Clayton Christensen and (northeastern.edu)

At the same time, many businesses need help coping with a fiercely competitive marketplace

or need to rely more on current customers. Some are reluctant to make changes because of potential risks.

The solution to many of these problems is incremental innovation — rather than radical or disruptive innovation

— to improve their value proposition continuously and, subsequently, their overall results.

 

What is incremental innovation?

 

Incremental innovation is a series of improvements to a company’s existing products or services.

There are two basic types of innovation: incremental and radial.

Incremental innovations are when companies make small changes to existing products through incremental improvements

to the business model to improve customer retention and marketing.

These developments also help improve efficiency, productivity, and competitive differentiation.

Radical innovations transform the business model altogether.

It transforms an existing system, design, or invention into something new.

These innovations can change parts of the system or the entire production process.

Radical innovators create an entirely new market for their products.

However, only some products or procedures are brand-new ideas.

Most new products are alterations or new applications of existing products, with some twist in design, function, portability, or use.

For example, Apple didn’t invent the mobile phone but kept innovating it over the years.

Now it’s one of the world’s most profitable companies.

 

 In a large study by McKinsey & Company, they were told by business leaders that

many companies were putting less emphasis on radical innovation and more emphasis on incremental innovation.

These companies focus on improving their major products, reviewing known opportunities, conserving cash, and minimizing risk.

However, they concluded that more urgent actions must be taken in turbulent times. For example,

Adapting their core products and service to meet changing customer needs

Identify and quickly respond to opportunities created by these market changes

Restart their innovative programs and allocate resources as needed

Develop products and services to be ready for post-crisis recovery.

 

  What Are Some Examples of Incremental Innovation

 

Gillette had created and patented a unique razor handle and inexpensive replacement blades.

They upgraded the handles with innovations like pivoting heads. When the patented handle expired,

they replaced the expensive handle with a cheaper one and sold “improved,” more expensive blades.

Coca-Cola has been innovating and staying relevant with line extensions for over 100 years.

For example, Cherry Coke, Coke with lime, Diet Coke, Etc. They have managed to be relevant as trends change.

Apple iPhone was first introduced in 2007 with few features. Here are a few examples.

From small metal flip phones to glass with touchable features, from 3G to 5G to small phones

to large, multipurpose phones with cameras to thousands of apps so you can even do your banking on the phone.

 

Focus On Your Entire Business Model

 

Often, incremental innovations focus on the company’s specific product or service.

This focus is not a problem, but I suggest starting with your business model and examining every area within that model —

plus your competitor’s business model. Look at every value proposition of your offering, brand, and more.

Another strategy is to set up a schedule for each iteration. When implemented, you will have a period of exclusivity.

Then hit your competitors with another significant improvement.

When you have gone through your entire business model, your competitors will find it difficult to copy your value-price offering.

Or look at improving just two or three areas and implement them.

Then come back and innovate another two or three areas several months later and

not only impress your customers but also drive your competitors crazy and make it hard for them to copy you.

 

Creativity

 

Entrepreneurs work with two types of thinking. Linear thinking—sometimes called vertical thinking—

involves a logical, step-by-step process. In contrast, creative thinking is more often lateral,

in which established logical thought patterns are purposefully ignored or challenged.

According to Wikipedia, lateral thinking is solving problems indirectly using a creative approach

where the reasoning process is only sometimes obvious. It involves ideas that may take time to be noticeable.

Lateral thinking involves ideas that may only be obtainable with a step-by-step approach.

It solves problems using an indirect method. Rather than going from A directly to B, you start from a different place, not on the A to B road.

You begin at location C, which is lateral (at an angle) to the A to B road.

This process causes your mind to think of new, different ways to reach your destination at B.

It is a powerful way to generate very creative ideas.

You can learn more about lateral thinking from Edward De Bono’s book, “The use of lateral thinking,”

or from our blog on lateral thinking.

Edward De Bono also links lateral thinking to humor, where your mind has to switch from

a familiar pattern to an unexpected one that generates surprises and new insights.

This innovative thinking process is a powerful creative tool worth your time learning.

 

 The Benefits of Incremental Innovation 

 

Instead of risking radical innovations, many companies are now pouring their development budgets

into incremental innovations. Also, many customers prefer upgraded products over radical new products.

This also provides the company with additional cash that allows them to work toward more radical innovations.

An incremental innovation strategy enables you to retain your market share

by staying relevant. But you also have to understand what your clients want. For example,

 Incremental innovations allow you to stay ahead of your competition while taking negligible risks and using limited financial resources.

Customer satisfaction with your offering creates customer retention.

Radical innovations are essential elements of an organization’s long-term strategy,

but short-term upgrades to existing products keep customers interested in your business.

If you keep the products you have now without keeping them up to date,

you could be in trouble as the economy and markets change in the future.

 

Conclusion

 

With our constantly changing economy and competitive marketplace,

the solution is to develop an incremental innovation strategy.

These small and often frequent changes help improve efficiency, customer retention, and competitive differentiation.

Apple is a perfect example of how to do it.

When looking for areas to improve, be positive in your approach. Don’t focus on problems.

Focus on the opportunities that will result from your efforts.

You get what you focus on. Also, broaden your perspective and use both vertical and lateral thinking skills.

The benefits from this incremental innovation can be powerful and include:

Staying relevant to your market.

Improving your growth with minimal risk.

Retaining clients longer.

Protecting yourself from a changing economy and marketplace

To get a substantial update, innovate two or three business model modules.

I would love to hear how it works out.

Steps To Create Incremental Innovations?

 

Step One: Start by studying your current customers and competitors. Include their business models.

Step Two: Look at all the modules in your business model. Don’t ask, “What’s wrong?”

Ask, “How can I make this module (product, price, performance, Etc.) better?

When you are looking for ideas, keep your questions positive. Focusing on the positive will result in positive answers. 

Step Three: Select a reachable, measurable objective and do the research needed to expand that objective. 

Step Four: Get several ideas for each module. The more modules you examine,

the stronger your innovation will be. Select which idea you will implement (this may be challenging

because you may only be able to execute some of your ideas simultaneously.

Step Five: Make sure you have the time and resources, test it, then iterate and try again.   

 

 

 

 

 

Innovative Strategies: Leverage Potential Change

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Difficulty of making decisions about the future.

Exploit Market Changes

Industries and markets are constantly changing for many reasons, including technology, a new business model, or a pandemic.

When this occurs, companies have two choices: adapt to current changes or, longer-term, be disrupted.

But, if you pay attention to these changes, you can develop innovative strategies for revenue growth and exploit these market changes. 

That is what we are going to talk about in this blog, how companies react to these changes, how you can adapt your strategy to these changes

to gain product value, revenues, and even a long-term monopoly in your market.  

Companies that do not adapt generally resort to inertia or entropy.

What is inertia?

Inertia is the unwillingness of the affected company to adapt.

Not adapting could be caused by routines (the way we have always done things) or an unwillingness to change strategies because it will hurt current profit streams.

They assume that these current profit streams will continue. 

However, this also opens up opportunities for others. For example, Netflix replaced Blockbuster. Walmart replaced K-Mart.

What is entropy?

Inertia generally leads to entropy. Entropy is not keeping your product line up to date and, therefore, losing clients, sales, and market share.

The primary reason entropy becomes the problem is that the company becomes less focused on its products,

often reduces prices and generally becomes less responsive to its customers. You might agree with Elon Musk, “I think you should always bear in mind that entropy is not on your side.

Again, entropy opens opportunities for competitors to innovative strategies for revenue growth.  Product-market fit is not a permanent status.

For example, the Encyclopedia Britannica was replaced by Wikipedia. Photographic film was replaced by digital cameras. 

Innovative Strategies: Examples of Potential Opportunities

Your strategic opportunity is to pay attention to these changes and be willing to innovate your products or services and experiment.

In that case, you can leverage your current strategy.

You can capitalize on these changes with new concepts, ideas, products, or services that should generate new revenues and profits for years to come. 

A few examples of potential innovative strategies for revenue growth in market changes are happening today.

 

Innovative strategies for potential changes in auto Insurance

Every car insurance company says -one way or another- you only pay for what you need.

And there are companies with apps comparing prices. How long can profitability last?

I also realize that much of their money is made on premiums and reinvesting premiums into other interest-paying assets.

But what happens when interest rates change, and the spread collapses?

 

What happens when car buyers switch from buying cars to subscribing to vehicles?

This concept is just getting started, but the idea is increasing globally.

Just pay a monthly fee and drive off the lot. You have a three-year subscription and can change car models every 12 months.

You subscribe at the dealership, and your monthly subscription includes insurance (they want to protect their asset.)

 

This concept is new, and I assume changes will be made along the way.

Other opportunities include electric cars, charging stations, gasoline prices, parts costs, and many more. 

Is there an opportunity for an innovative strategy for growth, or are insurance companies the next Blockbuster video rental company? 

How could you take advantage of these opportunities if you are in this industry? 

 

Innovative strategies for opportunities in the phone market

One telephone service company sells its service for $75 per month,

and another sells the same service with the same coverage for $25 per month.

Are costs plummeting, or are more and more competitors entering the market? 

Or are the phone companies still making money on phone sales?

But we see ads claiming you can save about 50 percent on some phones.

Are these companies simply discounting to get updates or new customers

— or calling it the marketing cost of acquiring a new customer who will eventually be profitable over the long term.

Plus, what technological advancements are going to happen? Will SMS messages all become MMS multimedia messages?

Will there be anyone left on laptops?  What will happen with 5 G?

How will this evolving industry affect your market, product, or service? And how quickly?

 

Innovative strategies for opportunities in the real estate market.

Real estate companies continue to reduce their commissions and have gone from 6% commission down to about half that amount.

Companies and agents use marketing companies to get listings and independent agents to sell homes.

This new sales model has dramatically reduced costs. 

There have also been new sales models like “ibuyers,” who buy a home in cash with no fees,

spend a few dollars updating the home, and resell the house for a profit. Can this last with higher interest rates and slowing house prices?

 

Also, many real estate companies own title companies because that is another way to “cross-sell” and increase their sales and profits.

But what if title companies begin using blockchain technology to make title registration faster, easier, and safer –maybe reducing title insurance? 

Or what if the real estate agent took the average discount the buyer wanted and gave the buyer a portion of that discount as a “bonus” at closing for buying the house?

That money would be much more valuable to the buyer than the small amount that would reduce the monthly payment.

Considering all the variables that go into the real estate market, how will this market change in the next 3-5 years?

How will the real estate companies deal with all the brick-and-mortar offices across the country? 

More changes and opportunities to come

Those few common examples are only the beginning of the changes we will see in the coming years.

For example, what will RoKo streaming television do to cable companies?

Or is Artificial Intelligence taking over more and more tasks?

Or are 3D printers building homes in a couple of days? 

 

The list could be extensive, but you get the idea: everyone is or will be affected by continuous changes in our world.

One way you can deal with these changes is to monitor the changes knowing that some companies

will adapt quickly while others will respond with inertia and/or entropy.

Those companies are easier to identify and give you time

to create and modify your strategy to be the value leader in your industry and market

-and maybe own the monopoly position in a new market niche.

 Conclusion

Gain Strategic Leverage From Market Changes

-Market fit continues to evolve and change with the economy and the customer’s needs and wants.

Therefore, stay alert and be ready to take advantage

of the many new opportunities to modify your strategy as required.

Who can argue with Elon Musk’s perception of the future?

He says, “you have to get into a new market several years ahead of the apparent trend to be a player in that market.” 

 

Cheers,

Jim Zitek

 

PS. If you would like to learn more about business growth strategies,

check out this blog post: Why your business growth story is your story

PPS If you want to get the right information at the right time, check out our website, 

 

 

How To Create Value Monopolies, Part Two

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The source of sur/petition

Sur/petition goes far beyond housekeeping. Getting things right within the organization (cost control, quality) is undoubtedly essential, but this merely gets the baseline right. Classic competition is part of housekeeping, though it is also concerned with getting the baseline right. 

Quality and prices have to be correct. There is a slight overlap between product differentiation and sur/petition, but the overlap is not considerable.

Sur/petition is not so much concerned with differentiating changes in the product as it is with the uniqueness of the value provided. There are several ways in which value monopolies were established in the past. Some are still as important as they ever were, but others have become less important over time. The following are some of the ways you can establish value monopolies.

Physical uniqueness

There is only one Mona Lisa and only one Van Gogh irises. Their price may fluctuate with the market, but their unique value will remain. A retail store built in a prime location may, over time, lose its special status. 

Technological uniqueness

Patents are an obvious example of a value monopoly. Intellectual property is crucial and should be protected. The pharmaceutical industry has the most patent protection because of the long development time required.

 Outside of the pharmaceutical field, sur/petition through technology is much less secure. Technology may only provide a six-month to one-year lead time, and except for exceptional cases, lead times may be reduced further. 

There’s also the problem of very high technology development costs with a small, narrow market. This problem is happening in the chip market as more chipmakers focus on specially designed chips vs. the broad commodity chip market. You can keep up your margins but also progressively reduce your market.  

Also, new products are being developed that are not technology breakthroughs but new applications of technology. The application can be more valuable than pure technology. That is why there is a need to treat concept development as seriously as technical development. 

Name recognition

The extent to which the name of a politician, company, brand, author, Etc., is familiar to the public. Name or brand awareness and brand recognition lead to Brand Trust.  

Dominance

Occasionally, a corporation becomes so dominant that it provides sur/petition by its position alone. This dominance is undoubtedly true for Apple, Microsoft, Alphabet, Amazon, and Facebook.  

A dominant position is a good base for sur/petition, but it needs to be continuously used. Boeing may be somewhat complacent about his dominant position, which is always much more vulnerable than it looks.  

Cost of entry

CMOS chips require less power than standard chips but require heavy capital investment. The cost of entry is high and requires continuous injection of development funds; there is protection from newcomers. However, existing cash flow has to cover these development costs.  

Once something is established, the cost of displacing it may be huge. The keyboard’s design, which was to slow down typing, is still the prominent keyboard today. We could design a much more efficient one today, but the cost of introducing it would be huge.

Brand image

The most traditional way of getting a value monopoly is through the brand image. McDonald’s does very well despite its many competitors. Heinz tomato ketchup continues to be a favorite. Familiarity, availability, dependability, and public image are essential when other values are similar.

Although brand images are a useful way of gaining recognition, there will probably be an even greater need for them in the future. However, it will become increasingly difficult to sustain them as quality improves and consumers become more conscious of their values. 

Segmentation

 Specific niches, segmentation, and market focus have always been ways of gaining a sur/position. At the very least, they give a company a good starting position. Even when others enter the same area, there is still an initial advantage, provided management can keep up the quality.

As always, there is an initial advantage and the importance of follow-through. It is possible to have market segments that are even too specific. Then, there is the same problem as with very specialized products. The market may be tiny. Having a dominant position in a small market may not be good enough. If the market gets bigger or seems lucrative, others will undoubtedly take a good look at it.

Protection or plus

Above were some of the more traditional methods of getting value monopolies. Some of them are forms of protection, like patterns and cost of entry. A few are based on uniqueness. The rest have to be based on some sort of a plus.

The plus factors will come from careful attention to integrated values. For example, Domino’s Pizza was based directly on this concept. People who want pizza do not feel like going out to get one, so Domino’s delivers to their door. 

Perrier is another example of integrated values. Perrier introduced the concept of designer water and kept up the pressure to remain the market leader. People are becoming more health-conscious. The two-martini lunch was going away, so what were you going to have for lunch? Water made you seem very cheap and often tasted awful. So consumers were crying out for the most expensive possible way of drinking water, and Perrier satisfied that need. It became not only socially acceptable but even a mark of sophistication.  

One of the worst reasons for not doing something is that it might hurt existing businesses. But that is where sur/petition may be found in new concepts.

 

Create New Concepts Before Your Competitors Do 

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Design thinking aims to create new thoughts about the solution or answer we seek and then visualize and shape those thoughts into concepts that will result in new strategies or tactics. It is how we solve problems and create new or improved sources of revenue.  

Wikipedia defines concepts as abstract ideas or general notions occurring in our minds, speech, or thoughts. A concept is challenging to describe, but we need to look for them, design them and use them. This discussion is based on information from Edward de Bono and his books on thinking.

A concept consists of two parts: the concept and its implementation. Concepts are essential but very difficult to generate. However, In hindsight, almost all successful concepts seem obvious.

An idea is how you put a concept into action. For example, traveling along the road is a concept. Still, you have to do something specific in practice, such as walking, riding a bike, or driving a car.

 A Concept vs. Perception

There is a difference between perception and a concept. Perception is seeing a group of things when we look at the world we haven’t named, like flowers or mountains. A concept is a group of things with a purpose or benefit like sales tax, traffic control, or a restaurant.  

There are some exceptions. The restaurant is both a description and a concept, it sells people food, and there’s a place to eat it. The purpose and benefit are apparent. 

Forming concepts

With perception, we can only receive information in the patterns that we have already formed. So, an analysis of data is unlikely to create new concepts. However, we can select from concepts we already have. However, you can form a new concept by modifying or improvement of an existing concept. Also, a simple piece of information can give rise to many concepts, but they will come from concepts we already have in our minds.

The critical point is the need to do conceptual work in our head and not just wait for information to provide concepts because that is unlikely to happen.

Business use of concepts

Many businesses are impatient with concepts and prefer “doing things rather than thinking.” However, the world is getting crowded with products and services, so creating new concepts is critical as we move into the future.  

A new concept is unquestionably the best and cheapest way of getting added value out of existing resources. Businesses have been approaching concept development haphazardly. They wait for someone else to develop the concept and then jump in with a similar copy.

In the future, we must take concepts more seriously. Major companies spend billions on technical research, but new concept creation is as important as technical resources. 

Conclusion

Learning how to analyze information and make decisions is not going to be enough. These skills are necessary for maintenance management in a competitive market. But, in a globally competitive market, you need to shift part of your focus to conceptual thinking in addition to analysis and decision making. 

Why? Because analysis of information can never yield the concepts hidden in data. Also, we now know from the research into self-organizing information systems like our mind, we know what we need to do to get creative concepts.

Also, because the brain was not designed to be creative, we have to use methods that are “not natural,” like the random word method, to generate innovative concepts.

For a quick start to creating new concepts, check out the information on the Random Word method to get creative concepts and ideas. It is easy and powerful.

 

Creative Results From Your Team  

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Creative Results From Your Team

As someone who has been in many “brainstorming” sessions, I can’t tell you they don’t work, but I can tell you they don’t work as well as some other methods. The Six Hats method makes much more sense. It is easy to use, structured to include everyone, and the processes make the meetings more productive.

The Six Hats method allows us to think in parallel to explore a subject in a constructive rather than an adversarial way. 

The Six Hats method of thinking, created by Edward de Bono, author, and professor, challenges all those at the meeting to fully use their minds and not just negatively. Someone who is against an idea being discussed is expected to honestly and objectively still see the values in the proposed concept.

The framework of the six hats might seem to complicate discussions and make the meetings last much longer. But the opposite is true. The use of the six hats method significantly reduces meeting time. Sessions progress in a natural, orderly way from getting initial information to creating concepts and ideas. 

After using this method a few times, you will be able to get many creative ideas in a setting that is not only productive but also team-building. Plus, you will get results in a fraction of the time it usually takes for such a meeting. 

Following are the six hats:

 The Blue Hat is the person who organizes and controls the meeting.  It is used right at the beginning of a discussion to decide the focus and what sequence of hats the session will use. The conference does not have to be conducted in the order presented here, but this order is the most logical progression. The blue hat reminds people of the hat in use during the meeting if they stray away for some reason. The Blue Hat is also used at the end of the outcome, summary, and next steps.  

The White Hat is concerned with information.  What information do we have? What information is missing? What information do we need – and how are we going to get it?  If conflicting information is put forward, there is no argument. Both versions are put down in parallel and then discussed when that information needs to be used. 

Red Hat has to do with feelings, emotions, and intuition. Under the Red Hat, all participants are invited to put forward their feelings. In a regular discussion, you can only put forward these things if they are disguised as logic. There is no need to justify or explain them. They exist and can therefore be put forward. The Red Hat is very brief and simply allows these things to get out on the table.  

Black Hat is for critical thinking. What is wrong with the idea? What are its weaknesses? The black hat looks at the downside, why something will not work, the risks, and dangers. All the negative comments made during a meeting are concentrated under the Black Hat. The Black Hat is beneficial, but it has a defined time and place.   

Yellow Hat focuses on the positive. What are the benefits? How could it be done? What is the value? Traditionally, our education is primarily about critical thinking. We are never really exposed to developing forward-thinking concepts. For example, the ability to find value in anything, even things we do not like and will not use. Nevertheless, we should, honestly and objectively, find value in things. Without sensitivity to value, creativity can be a waste of time.

Green Hat is directly concerned with creativity. When the Green Hat is in use, participants are expected to make a creative effort or keep quiet. Most people do not like keeping quiet, so they make an effort. This effort means looking for new ideas. It means considering alternatives, both the obvious ones and new ones. It means generating possibilities. It means modifying and changing a suggested idea, possibly through the use of lateral thinking tools.

Conclusion

That is all there is. A simple method that allows everyone to think together to explore a subject and generate new concepts and ideas on how to move forward in a constructive rather than an adversarial way.  

Try to use this method in a small group first, so you get the hang of it. It may take a couple of times to get it right. But, once you have the method down, it’s easy to use and productive.

Let us know how it works for you.

 

 

 

 

The Random Word Technique/A Creative Tool For New Ideas

Posted on by harborcapitalgroupinc

 

It is our perceptions that control emotions, and emotions control behavior. If your perception changes, you have no choice; your emotions and behavior will change also. The random word technique helps you change your perspective, so you see concepts and new ideas differently.  

The mechanism of the mind

We can now base thinking on the way the mind works. In Edward de Bono’s book, “mechanisms of the mind,”  he describes the mind as a self-organizing system. Based on this self-organizing system, he designed the lateral thinking process.

The asymmetric patterning behavior of all human minds gives us creativity and humor. That is why we have excellent thinking (landing on the moon, fly faster than sound, computers, etc.) The interaction of our asymmetric mind is what gives us the ability to do creative thinking.

Perception

Perception is far more important than logic. Logic is excellent but not enough. 

We have made significant achievements in science, technology, and engineering. We need to supplement our existing thinking methods with perceptual thinking, creative thinking, and design thinking.  

The formal tools of lateral thinking

Lateral thinking means moving across established patterns of thought instead of moving along them. For example,  if there is an obvious route in one direction, we are naturally blocked from taking other unknown ways. (The dominant pattern).

The lateral thinking tool requires that we block the obvious path (A to B). It may be the best way, but we will seek alternatives (drilling oil wells from vertical to horizontal, for example).

Focus is important:  

What do you want to focus questions? What problem do you want to solve? Where do you want new ideas? There are two types of focus:

Purpose focus: a problem to solve, a process to simplify, a conflict to resolve, a product to improve. Etc.

Area focus: the general area in which you want new ideas. This area could be the market, the industry, or your market niche, for example. The random word tool is very useful for area focus because it works even with no defined starting point. 

The focus area may be broad or narrow. You want new ideas about your focus objective (purpose or scope).  

                          C wallet

A______________________________B

                         Restaurant

Therefore, to get new ideas, you need to get your mind off the traditional path A to B (the pattern already in your mind) and move laterally across the path to point C, a new starting point. For example, a random word disrupts the known pattern and asymmetrically opens your mind to a new pattern, pathway or idea.  

In the random word technique, point C would be a random word you connect mentally to the focused area. This process allows you to create multiple new concepts or ideas about your targeted focus area.

Select Random Words

Select the random words to use as your new starting points. There are several ways to get random words. One of the best ways is to use the dictionary. Open the dictionary to a random page and then put your finger on a random word and select the closest word (a noun). Choose about five more words. Write them down. 

Be sure you know the definition of each word because you will associate the characterizations of each word with your focus question  Work quickly through each of the words, but don’t judge your responses at this time. Each idea response represents the possibility of a great idea. You are going to spend about 5-10 minutes exploring each random word. 

For example, focus: on a new restaurant. 

Random word: wallet.

One concept would be a restaurant where people order food, pay immediately, and take the food elsewhere to eat vs. ordering in, eating the food at the restaurant, and only paying after eating. 

A restaurant where people are charged by the amount of time they spend at the restaurant. 

A restaurant known for one special, unique and expensive dish served at one particular time every day.  

Concepts

There can be functional or operational concepts to describe the way something is done. There are usually several levels of concept, from broad to detailed.

There can be value concepts (why is this a value?) Or purpose concepts (why are we doing this?) And descriptive concepts.

The importance of concepts is developing alternatives and new ideas by extracting the concept and looking for ways to deliver this concept through a specific idea. Ideas are the way of putting the concept into action.

Try it out

Try it on a focus of yours. The more you do, the more you learn and the more ideas you will get.

Let us know how this works for you or if you have any questions.