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STRATEGIC THINKING

STRATEGIC THINKING. Prof.Dr.Dr.Dr.H.C. Constantin Bratianu Faculty of Business Administration Academy of Economic Studies Bucharest, Romania. My business is thinking. T.A. Edison. KNOWLEDGE PARADOX. We are living in a world which is infinite in time, space and complexity

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STRATEGIC THINKING

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  1. STRATEGIC THINKING Prof.Dr.Dr.Dr.H.C. Constantin Bratianu Faculty of Business Administration Academy of Economic Studies Bucharest, Romania

  2. My business is thinking T.A. Edison

  3. KNOWLEDGE PARADOX • We are living in a world which is infinite in time, space and complexity • We need to understand this world for survival, and for a better life • However, our mind is finite from biological and psychological point of views • How can we know and understand an infinite world with a finite mind ?

  4. THINKING MODEL • We are using thinking models which are cognitive approximations of complex real phenomena • Thinking models are developed throughout our education in family, school, church and society • The more powerful these thinking models are, the better cognitive approximations we can get • The more powerful these thinking models are, the better decisions we can make

  5. STRUCTURE • Basic structure knowledge rules values

  6. KNOWLEDGE • Data, Information, Knowledge - information = processed data - knowledge = processed information • Tacit knowledge - experience - talent - intuition • Explicit knowledge - concepts - ideas - theories

  7. KNOWLEDGE Knowledge Strudcture Knowledge Transfer Process Rational Mind Explicit Knowledge Tacit Knowledge Direct Experience Non-Rational Mind

  8. Cogito, ergo sum ! R. Descartes

  9. Kamakura To release the spirit one must accentuate the work with meditations of the heart and the soul. (M. Musaschi – The Book of five rings)

  10. RULES • Behavior rules – in childhood • Religious rules • Grammar rules • Mathematical rules • Logical rules

  11. VALUES • Values = Deeply held ideas of members about what is right or wrong, fair or unfair – anything that has personal worth or meaning • We are living in a given culture, which is defined by a set of fundamental values • We learn these values through education in family, school, church and society • Values constitute the reference system of our decisions

  12. STATIC THINKING • The simplest model of thinking • TIME is not included in this model • Things and events are almost the same. They do not change, or change is not significant • Think of Pyramids. Same image anytime • When things do not change we get a feeling of security • Static thinking opposes any change. It is like a resistance

  13. DYNAMIC THINKING • Time is a fundamental variable • Things and events change in time. Processes develop in time • For reversible processes time direction is not important • For irreversible processes time has direction past >>> present >>> future • Entropy is a measure of irreversibility • Entropic thinking is the most powerful thinking model from time point of view

  14. LINEAR THINKING representation Input (X) Output (Y) Process constant (K) Y = kX

  15. LINEAR THINKING • Outputs are proportional with inputs • Processes are described by linear equations • Linear thinking is the most frequently used approximation in our daily life • Measuring systems are based on linear thinking • Budgetary salaries are based on linear thinking • Democracy is based on linear thinking

  16. NONLINEAR THINKING • Life processes, natural processes, social processes are not linear • Outputs are related to inputs by nonlinear equations, of different forms • Scientific discoveries, Engineering innovations, Business negotiations • Intellectual work, artistic performance and knowledge processing are strongly nonlinear processes • Friendship, love, happiness, excellence, performance, quality etc. are strongly nonlinear

  17. LINEAR APPROXIMATION • Graphical representation

  18. DETERMINISTIC THINKING • Based on idea that things and events must be very well defined and determined • They are given, fixed, settled. They are certain • Mathematics, Physics have deterministic laws • Legislation, regulations in organizations • Time tables for trains, aeroplanes, students classes • Certainty is a feeling we are looking for all the time

  19. RANDOM THINKING • Life events, nature events, social events have all random/probabilistic occurencies • They have different probabilities of being produced • Outcomes are not strictly determined by known inputs • There are always risks associated with uncertainties • Understanding trends and challenges for different developments, and shaping the future is based on this kind of random thinking

  20. INTELLIGENT THINKING • A complex model of thinking able to optimize and to offer the best solutions to any problem • A model based on capacity of combining a lot of known data and knowledge, in a very short time • All the data and knowledge needed are known. There are no new elements • Intelligent thinking is strongly nonlinear and dynamic • Intelligent thinking is able to process tacit knowledge

  21. CREATIVE THINKING • A complex model of thinking able to generate always a new piece of knowledge • Knowledge creation, conversion, transmission and use are based on this model of thinking • Creative thinking is highly nonlinear and random • Scientific discoveries and Engineering innovations are based on creative thinking • In real life there is a strong connexion between intelligent thinking and creative thinking

  22. STRATEGIC THINKING • Strategic thinking is the most advanced and the most powerful model for Science, Engineering and Business • Strategic thinking is based mostly on the following: - dynamic thinking - nonlinear thinking - random thinking - intelligent thinking - creative thinking • Strategic thinking is the most adequate way of thinking for the future

  23. STRATEGIC THINKING • Graphical representation Time Strategic thinking model D S L NL D Complexity R Generation Simple thinking model

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