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My Book on Strategic Decision Making

My Book on Strategic Decision Making
Applying the Analytic Hierarchy Process
Showing posts with label Decision Making. Show all posts
Showing posts with label Decision Making. Show all posts

Sunday, April 09, 2017

Choice Crafting - Invention and Decision Making



CHOICE CRAFTING – CREATIVITY, INNOVATION AND DECISION MAKING
(abstract of Talk given in 2012)

The new world is characterized by extreme pace of change. This is driven by science and technology. The key pillars of these changes have emerged as technology, software, innovation and complexity. Making effective decisions in the new world requires not only selecting an alternative from a predefined set but also creating new alternatives, simultaneously. The new alternatives need to be - novel, inventive and useful – the three key conditions for getting a Patent right. In fact, inventing and decision making as a continuous interplay of human mind is now becoming an essential skill. Unfortunately the literature and practice of invention, innovation and creativity has traditionally been separated from the body of knowledge developed and available for decision-making. We, however, believe new world decisions require a new craft combining invention and decision making. We call this new framework – Choice Crafting.

Surprisingly, the simultaneous demands of inventing new choices and selecting appropriate sub-set of choices are making today’s decision makers, inventors, creators and innovators ineffective as they are trained either to invent/create OR to decide/choose, but not perform both these tasks seamlessly, in a synergistic manner and simultaneously. This is having large impact on our ability to operate in the changing world. On one side we are faced with machines taking control of large part of monotonous processes and increasingly large part of repeatable procedures that we have designed and developed over couple of centuries of industrialization, and on the other hand world is increasingly becoming complex due to conflict of interests of disconnected part of humanity. The interplay of these trends shows a failure of our ability to make decisions using the old ways. We need new ways. There are many new ways and methods developed and employed in solving these problems. With the speakers personal experience of applying and developing various techniques – this talk offers a comprehensive approach to making decisions or leading to decisions using various known, old and new methods in a comprehensive framework. The talk details these mechanisms in cases where speaker has developed and applied for solving decision problems in Software, Innovation, Technology, and Complexity space.

Decision making traditionally has been about choice. Most of decision making methodologies have focused on courses of action, choices or alternatives to achieve desired objectives/purpose. The decision making methodologies have given predominant focus on selecting a specific choice or a subset of choices from the available set of choices. Decision making methodologies have not emphasized much on creation of alternatives, in fact, it has been relegated to psychological capabilities, creativity methodologies or more of an “art” form. We emphasize in this talk that – choices are not available upfront, in clear high resolution demarcation in the new world of extreme connectedness enabled by technology, high level of complexity, rapid innovation and revolutionary impact of software. To decide in the new world characterized by STIX (Software, Technology, Innovation and complexity) we need to re-look at our traditional decision making methods. The key methodological construct is to combine the known theories and new methods of creativity, invention and idea-generation with the known theories and new methods of decision making primarily characterized by selection or choice from a rank-ordered list of alternatives based on predefined set of criteria or under assumed, estimated or data based probability distributions under uncertainty conditions.
The requirement of creating new or different choices along with the selection of choices has led the speaker into methodologies such as Theory of inventive problem solving (TRIZ), Scenario Planning, Lateral thinking, game theory, Scenario planning and Scenario writing, design thinking, patent creation and patent analysis, systems thinking, simulation and modelling, computational emergence, computational creativity, network science and the architecture of human genome. This is besides the techniques of standard multi-criteria, multi-objective decision making methodologies.
In essence, to operate in the new world – one need to amalgamate two uniquely distinctive features of human mind. One is to invent/create and second is to select/choose. In fact, invent/create select/choose cycles are played out naturally in human mind whenever it has to operate in the world. In the new world, invent-decide cycle is become excruciatingly difficult – one who masters this will be the new world decision maker who will thrive in the world of STIX – Software, Technology, Innovation and complexity. This talk gives the methodologies in a framework for new world decisions – we call this new framework Choice Crafting.

Sunday, January 03, 2016

ALVIS for Innovation and Decision Making Talk at Dr Reddy's Labs



(**** Talk at DRL Science Day 07 January 2016, Hyderabad ****)
ALVIS for Innovation and Decision Making
Navneet Bhushan

Abstract
In broad terms, we define innovation as successful creation of change through ideas. We propose that most innovation attempts fail because we overemphasise success from the very beginning of the process. Further two main challenges of innovation are identified as generating strong ideas and making strong choices. What makes an idea and a choice “strong” is an integrative thinking involving three dormant dimensions which we identify as value, inventive, and systems thinking. Our overemphasis on analytical and logical thinking orients our collective mindset towards a particular emphasis on quick and first perceived successful idea or choice. We propose in this task an integrative thinking framework that incorporates value, inventive and systems thinking along with analytical and logical thinking into the Analytical, Logical, Value, Inventive and Systems thinking (ALVIS) dimensions. Further, we explain the innovation crafting process involving SOUL-ALVIS-CRAFT as an integrated framework for making innovative organizations.  Further we describe in comprehensive detail how to be an innovation co-crafter using ALVIS thinking.  
o   An Innovation Co-Crafter is a Simpleton, Scientist and Saint - who starts along with people in a system (experienced domain experts) to reach to the SOUL of the system. He starts every time as a simpleton - then he becomes a scientist and finally achieves sainthood - reaching and delivering a wisdom of the system to effect change that is needed - making the system as close to Ideal as is possible. In this journey - he creates systemic change along with people in the system.
o   Every time the co-crafter starts as a simpleton who has multiple lenses to view reality and many times creates new lenses to look at reality - during these adventures in wonderland he behaves like a scientist – experimenting, exploring, understanding through the steps of SOUL - See, Observe, Understand and Live - after the simpleton has reached to the SOUL of the system, he starts the change process needed - a change that impacts all around him. Slowly the wisdom gleaned from this becomes the new change that the system needs and experts start developing their expertise in the new change!
o   A co-crafter is a simpleton who becomes a scientist and then achieves sainthood by working with a system and the people in the system to make the system as close to an ideal system as is possible - He has to be humble, has to accept that he doesn’t know and actually need to reach the SOUL of the system by learning to See, Observe, Understand and Live (SOUL) the system. Achieving Sainthood from being a simpleton every time is a learning process!
o   A co-crafter takes the organization that he works with to the Simplicity on the other side of complexity - one has to go through complexity. This side of simplicity will keep us simpletons - I hope you can connect with being Simpleton at this side of complexity - being a Saint is on other side of complexity and exploring complexity is being a scientist!
o   The co-crafter takes the system through a journey of simplicity from this side of complexity to the other side of complexity, breaking and many times shattering the mountains of complexity!

Learning is the Key
·         Complex Learning Happens in an environment of High Challenge Low Threat through Immersion in multiple authentic experiences and then active processing of these experiences to glean meaning–The Innovation co-crafter focuses on the above three for all “creative learners”

·         What is needed is an approach that is less control more creation, less management more on-its-own, less of post-facto data analysis, more of empiricism and experimentation - less of hierarchies more of networks, less of pyramidal thinking more of all-inclusive thinking. We have to wake up to the fact that world is self-organizing!

·         Three Key Questions?
o   Understanding the world around you
§  Discover yourself and your business – Make your model of the world – articulate that model
§  Key Techniques/Methodologies
·         TRIZ  - Inventive Thinking                                                            
·         Scenario Planning/Crisis Gaming/Seminar Gaming           
·         The Scientific Method                                                                   
·         The Science of Networks/Social Networks
·         Theory of Evolution

o   Understanding your customers and markets
§  Describe and Develop your Business– Identify key opportunities and problems – Develop possible strategic directions that your business can take
§  Key Techniques/Methodologies/Subjects
·         Strategy                                                                              
·         Intellectual Property Systems   
·         Understanding Wealth and Money             
·         Globalization                                                  
·         Theories of Innovation                 

o   Understanding your business
§  Deploy and Measure your Business – What is working – How you are making decisions about your business
§  Key Techniques/Methodologies/Subjects
·         Why and how your Business can fail?               
·         Systems Thinking
·         Digital Disruptions                                           
·         Value, Lean and Quality Thinking
·         Theories of Decision Making                      

*****
Key Bullet Points of the talk
(a) ALVIS Thinking (Analytical Logical Value Inventive and Systems thinking)
(b) See Observe Understand and Live (SOUL)
(c) Scenario Planning with System operators
(d) ALVIS for new Concept creation
(e) CRAFT (communicate relate allow follow-up turn-around)
(f)  Designing an innovative organization
(g) How to be an Innovation Co-Crafter
(h) Conclusions and Q&A
*****
The agenda for the day 

 

Sunday, July 12, 2009

Decisions and Innovation

 

 

Innovation is about Change,

Decision Making is about Choice.

Thursday, August 21, 2008

Six Steps for Organizational decision crafting

Following is the preface of my book that I started writing in 2004 on Decision Crafting

I may have to revive the project after reading what was written in the preface

When we look at how a decision is made and executed – we can see six steps. First step is the assessment of the situation including where we stand with respect to the environment. An enterprise is a living entity. It exists in a dynamic environment consisting of the consumers of enterprise products, competitors producing the same or similar products, suppliers of unprocessed raw material that go into making of product, employees, internal enterprise dynamics, etc. Assessing a situation keeping the interest of the enterprise as the objective becomes a Herculean task sometimes. This assessment involves collection, collation, filtering and classification of data. Next step is the explanation of why are things as they are. Events and trends have an interrelationship that result in great variations in outcome of their interactions. Accurate explanation of why are things as they are becomes an important step in any decision-making. Third step in the decision-making is the prediction, projection and forecasting. This involves analyzing what will happen if the trends continue as they are. The fourth step is generating options regarding what all can be done to align the situation as per the requirements of the enterprise. The next step is choosing the relevant option or combination of options to be executed. Once a decision has been made, the execution of the decided option requires packaging it and planning to get the relevant buy-in from all the stakeholders.

Most decisions that are made in the enterprise undergo these six steps. However, the time given to each of these decision steps varies considerably based on the value of the consequences of an incorrect decision in the mind of the decision maker, time available for decision making, accuracy of the data available at each steps. As is evident the requirements of decision-making starting from data collection to optimized execution of the chosen option are enormous.

It is proposed that decision-making in the large enterprises involve much more than mere data or information analysis. Decisions need to be crafted – it is imperative that data, information, knowledge and other soft factors should be taken into account together when decisions are created and executed in the organization. We are talking about decisions that have higher values in terms of risk or have major impact on the enterprise future.

Wednesday, August 13, 2008

debunking the "sleep over it" theory

Somehow today seems to be the debunking myths day!

We know that when we are faced with complexity - complex decision making situations we say, "let me sleep over it" hoping the unconscious will take over it and give us solution - a sort of background process.

Well - the article here debunks this Myth as well!

"Thinking Things Through" - I use this quote often and I think it also helps to structure the complex decision making problem into a set of problems and solution framework that helps one to have faster route to solutions.

Analytic Hierarchy process, TRIZ, and other systematic methods definitely have a higher chance of success than the "sleep over it" method!

Sunday, January 06, 2008

The Analytic Hierarchy Process

The Analytic Hierarchy Process (AHP) - has been so much ingrained in me now that I can sleep walk though any group decision making problem which is quite complex and structure it quite nicely as an AHP problem and create a solution.

This is not a self-boasting statement, it is really the power of the method developed three decades back by Thomas L Saaty it is indeed the simplicity and natural way the AHP gets into a problem that the methodology has enormous power. My book on Strategic Decision Making - Using the AHP shows the width of the method that I have used to solve real-world strategic decision making problems.

Since then I have used the technique to create many frameworks that have been used in variety of scenarios

1. Aligning Enterprise Initiatives with Balanced Score Card
2. Assessment of IT applications for Globally distributed scenarios
3. Creating and Evaluating multiple strategies to achieve long term objectives

etc...

Wikipedia has the Analytic Hierarchy Process entry which explains the process. There are many dedicated companies providing AHP based software packages including the Expert Choice

Yet it is such a surprise that AHP has not been so well known as some of the other techniques or methods! What could be the reason - May be the mathematics behind the technique hinders people exploring it - I have to answer this I think, yet I cant find a better method for decision making in a group setting!

My Book @Goodread