there ae 2 types of change realitypercetionThere is a difference between creatvity and Innovations Creativity---- skill of somebody who can change his perception Innovation----- The capacity of a company to change realty by working on itTo change is to change Twice(Both creativity and Innovation) , eg Xerox-- they had creativity to introduce mouse to world, but never innovated on itYou have t change twice, and rules are completely differentFor Innovation for example you need Budget, Planing, Team , manage problems etc. For Creativity- its about thinking , brain storming etc. So we have two types of changes, they are completely diff although:Perception: called creativity, require thinking, is a challenge for individual, discontinuous process, takes an instant, envision a new systemRealiy : called Innovation, requires action , is a challenge for a team , contionuous process , takes long time , delivers something new to systemThe world is changing , we need to change our perception:Perception is always simplification , In other words we need to move from one simplification to other there are only two possibilities then: Being victim of change --- u might realize u r wrong and didn't change ur perception on timebeing Driver of change --- or u do , eureka, wow, m gonna do thisalthough possibilities are similar cognitively, its sudden changelook at cross in graph, shows not a single good idea was good at its birth, If you really want to achieve a great new IDEA , you need to reset the new steps(* thing) # Imagination: you break existing stereotypes, you break existing rules, you don't dream about being winnereg, at Edison's time you need to burn something to get light, his idea was to get light without burning [now ths is diff ], but this was day of New Idea not New Good Idea, the air is at same time the problem of world as it s resistance but also condition of flight, This is a good metaphor for creativityso Bad idea should not always be avoided, Bad Idea is thus like air, it is condition for Good Idea, without fail there will be no Good ideaYOU HAVE TO OBEY FORCES YOU WANT TO COMMAND eg, If you want to be better on change you have to obey laws of change,(like to better or change thinking, obey laws of thinking)YES-BUT Syndrome (This should be replaced by YES-AND)we need two brains(creative/imagiative and judgemental), but not at same timeThe new idea (not new good idea) should be given at least another chance as with some change perception for it may change(*)This is respecting rules of thinking, as we shouldn't rely only on one brain or use bot at same timeYou need to know you are man of perception or reality, and should work with some one who completes, you need both but not at same time,but can work together at diff times in companySO THE BEST WAY TO HAVE GOOD IDEA IS TO HAVE MANY IDEA, as this respect thinking laws and thus success chances can be higher There are THREE type of NEW IDEAS:# Discovery : which is not new,is necessity , explainable, no intellactual protection,eg.find idea now like law of gravity but it was already there# Creativity: Which is new,is not necessity, not explainable, intellectual copy rights eg. Eiffel Tower # Invention: Which is new, , is necessity, is explainable, this is MAIN CHALLENGE of company, how can we find something that is not but that will come, and how an we find it before competitor INVENTION: it is mostly about reorganizing perception, eg, lets think about steam machine, steel existed, wood existed, but what happened in inventor mind was sudden reorganization of peceptionLECTURE:2If you want to change the world Act, if you want to change the perception then Think.(both are req at diff times)We need a better understanding of what it is to think.In Creative Thinking: key word is to THINK not creativity Eg. If a CEO say he is thinking about his client he is wrong, as he can not think about 2 million clients at same time so he has to forget 99.99 % of clients at that time , actually he us making concepts or categories of customers and we need to understand the process of it.So STEP 1 of Thinking or to give judgement is to Forget, like to judge or share your views on a movie, u need to forgot a lot of movie --- You dont control what to forget eg. part of movie--- Diff person will forget diff things eg about a movie as one who love guitar may remember Guitar sceneSo, to change world or think about it we need to also forget a lot of itWhere does thinking happen? Between you an world and you, In brainEg.World is to be understood like in terms of it has some concepts may be marketing, we can say it like it is in front of us--- It can have some elements like facts, data etc., so how do we look at world is important In business world for example, what is in front is like magazine, analysis etc., and this i most of time in front of you simplification of somebody else, we can call that is REALITY. Now we can look our side, that is within us, We never have in brain what is out there, we only have simplification Simplification can also be said models or may be boxes So, data , facts etc what we see are simplification of reality Nothing is really SIMPLE, we need to SIMPLIFIEDworld is like diverse(we have models like segments) , uncertainity(wee have models like scenarios),for market we have segments,but these models are not reality but simplification although these are efficientSo each characteristic of world forces us to have different type of models. There are two ways of thinking DEDUCTION(easy, our simplification of world, like we have concept of microsoft,which is simplification, as we cant live with unstable models, so we simplify)and INDUCTION (complex, making new concepts of world, the other way to think, we build hypothesis, concepts etc.)To think is mostly using and producing mental models.DEDUCTION AND INDUCTION . Eg. # An Example of a car is ====> Fiat, Volvo etc. This is INDUCTION # Car is an example of ======> This is DEDUCTION, (first guess is old) You can have perfect deduction like with algorithm, But Never Perfect INDUCTION(as there are infinite possibilities, this may explain manyideas might be required , and not all ideas are good but we need to find.)World of Deduction is world of LOGIC ---- not easy,World of Induction is world of----ANALOGY [ Black Swan can be symbol] (analogy is easiest way to induce but there are many other ways also to induce, analogy brings new Idea never certainty )eg. previously there was assumed to be one moon, but Gallelio by analogy mentioned moon of Jupiter, and hence moons was now a concept, thus kind of induction using analogyIts not rational to be 100% rational. (eg. if we want to buy a car we cant consder rev all around world, so thatas way of working,we dont receive uncertainty. )Whatever we do , we do in models, like theories in science are models, A possible way of analysing models.+Knowledge UJudgement NTheory DStrategy ER + PERMA C NENT-OBelief NValues TStereotype ROL- Upper Left: Models you decide to implement, they are there for a long period of time, its called Knowledge,eg. what we studyLower Left: Strong, resistant, really permanent, but you never decide really to implementvalue is an Idea you have that something shouldBottom Right: Not permanent and not undercontrol, Eg. Representation(very fragile mental model, to explain to ourself what is in front of us These models come suddenly and disappear. Eg. we try to judge/explain stranger around us, eg. news is some company aquired, you immediately think why it was aquired etc.)Upper Right: its IDEA quadrant, that is were we process, we think, we try, world of finding, its like working area, we test, Its like a lab for new models, its a LAB , and goal is to give a concept which every body accepts. Models are very important when it comes to cognitive biases , its like a piece of reasoning which is assumed to be strong but it is notA CEO need to think:# What s next big thing# When to move from Old idea to new IdeaLECTURE 3:LECTURE 4:When we see world we may want to organize it. MENTAL MODEL: A construction that exists in your mind , in which reality in front of you is simplified in order to be apprehended in a useful way, according to a given objective. It is an abstraction from present and sometime a base to build future.DEDUCTION : a form of thinking involving application of an existing box, such as framework of world in front of you ,testing box's capacity to interpret themINDUCTION : a form of thinking involving moving from fragmentary detail (particulars) observed in world in front of us to a connective view of situation, a binding principle which eventually forms a theory , a working hypothesis, a box.THNKING : To think is mostly using and producing mental models.DEDUCTION AND INDUCTION .CHANGE is easy to perceive, but what remains SAME?A Model s never good and never Bad, only relevant question about it is IS IT USEFUL?A CEO need change n perception and thus new boxes:For COMPETITVE STRATEGY----he needs STRATEGIC VISONFor UNCERTAINITY ----------he needs SCENARIO 1, SCENARIO 2 etc.to simplify things STRATEGIC VISION: Is an ambitious image of future state that is radically preferable to the curent state, according to those who develop it. It is a box that becomes reference for a company, and thus serve as a guide allowing each employee to approach work more effectively = It has to be built on values, has to be visible, credible, feasible, has to be communicated credibly to outside world as vision is built inside but perceived from outside. Not a single strategic vision is good forever MEGATRENDS: Is something that happen whether you exist or not, big change,a bit slow, predictable, that gona happen and one day will effect you business, eg. population etc. MEGATRENDS is someone else's simplification where we have to INDUCE strategy not deduce(Induced from world to you)but there is freedom in way to Induce also. UNCERTAINITIES: # You know what you don't know----------------try to make forecast # You don't know what you don't know----------try to be robust and prepared at least more than us SCENARIO: A Story about possible future, it has a beginning, an end, which are possible , scenarios are extreme situation and company can use to test robustness. Also, like to chose candidates in short list. STEPS: 5 :1. DOUBT: doubt your all mental models as they might not be reality, only your perception of it. --- To be effective reformulate question so that it is specific and not very broad. 2. EXPLORE: Once you doubt explore diff possibilities 3. DIVERGE: curiosity, doubt, Quantity4. CONVERGE: Chosse, quality of ideas matter here So Doubt, ask good questions, ask some good what-if question like, what f we can get a few engineers or technology from NASA or ISRO.