3.02 Utilizing Critical-Thinking Skills to determine best options/outcomes

Critical Thinking What is critical thinking? the objective analysis and evaluation of an issue in order to form a judgment also known as problem solving.

What is Innovation? Innovation is an invention or creation that is brand new There are 4 types of Innovation Product innovation Process innovation Position Innovation Paradigm innovation

Types of Innovation...

Product Innovation A type of innovation that occurs when a business either creates a or improves a product.

Process Innovation A type of innovation that occurs when a business changes how something is done. Process innovation focuses on the process in other words how the product is being delivered or manufactured. Examples of Process Innovation --JIT (Just-in-Time) – goods arrive when needed for production, use, or sale rather than sitting in storage -Another example would be a website like Amazon that makes its products by charging commistion on all the “drop-shipping” it does for its users. CreateSpace is a part of Amazon group that allows writers, filmmakers, musicians to publish their work on the website. They only produce the product if there is a demand and then the product is manufactured.

Position Innovation A type of innovation that occurs when the purpose of a product is changed. Carhartt Levi Jeans Both products changed from being used for work to being used for fashion.

Paradigm Innovation Something new, such as a new product, strategy, or process. Drastic Changes -Henry Ford- Model T “From Horses to Cars” A good description of Paradigm innovation is drastic change. It can be summed up as a way to do things completely different.

Invention Vs. Innovation Something new, such as a new product, strategy, or process To produce (as something useful) for the first time through the use of the imagination or of ingenious thinking and experiment

Demonstrate Problem-Solving Skills

Process/ Procedure For Problem Solving Define the Problem State and check your assumptions Collect information Analyze the information Determine possible solutions Select and implement a solution Evaluate the solution

Making Decisions Objective 3.02: Utilize critical-thinking skills to determine best options/outcomes.

Decision Making Choosing among alternatives. Anyone can learn how to do it. We can apply a process The more often we use the process the more natural it seems.

The Business Person with Minimum Input Moderate Input Maximum Input Who is involved? The Business Person with Minimum Input Moderate Input Maximum Input

Minimum Input The decision maker makes the decision without help. Example You are in charge of planning the company’s potluck picnic. You don’t need help deciding who to invite. It is a company picnic so you invite the employees.

Moderate Input The decision maker asks for some input before make the decision. Example When you need to decide where to hold the picnic, it may be helpful to ask the employee steering committee for suggestions.

Maximum Input The decision maker makes the decision with a lot of help

Decision-Making Process Pinpoint your objective. Determine what you need to know. Gather the information you need. Select an appropriate decision making style. Establish decision criteria. Identify alternatives. Weigh the pro’s and con’s. Make the decision. Evaluate the decision’s success.

Decision Making Process (cont.) Pinpoint your objective Who needs to make the decision? What do you hope to accomplish? Why do you need to make the decision? When do you need to make the decision?

Decision Making Process (cont.) Determine what you need to know What information will you need? Where can you get the information?

Decision Making Process (cont.) Gather the information you need Personal knowledge Business records Outside research

Decision Making Process (cont.) Select an appropriate decision-making style Minimum Moderate Maximum

Decision Making Process (cont.) Establish decision criteria On what are you basing the decision? Quantitative criteria Cost, Potential profit, Time Qualitative criteria Quality of data/information Quality of decision Tradition

Decision Making Process (cont.) Identify alternatives Doing nothing is always a decision Make sure you identify enough alternatives Sometimes the most difficult task

Decision Making Process (cont.) Weigh the pros and cons What is good about each alternative? What is bad about each alternative? Cost, time, effort, benefit

Decision Making Process (cont.) Make the decision Choose the best option Know why you made that decision Put the decision into operation

Decision Making Process (cont.) Evaluate the decision’s success Were the results successful? If not, where did you go wrong? Did the process work?