1. 3.02 Utilizing Critical-Thinking Skills to determine best options/outcomes

2. 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.

3. 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

4. Types of Innovation...

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

6. 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.

7. 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.

8. 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.

9. 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

10. Demonstrate Problem-Solving Skills

11. 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

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

13. 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.

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

15. 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.

16. 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.

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

18. 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.

19. 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?

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

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

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

23. 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

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

25. 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

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

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