exploration - invention of business, moving across knowledge stages

exploitation - administration of business, working within a knowledge stage
design thinking
The Design of Business
by Roger Martin
Value Creation
deductive reasoning
inductive reasoning
quantitative analysis
declarative
truths
certainty
Enemies
judgement
variation
bias
creativity
innovation
knowing without reasoning
originality
resistent to change
focused on building size and scale
challenged by growth
dependent on personalities of leaders
reconciliation
both are necessary but not sufficient
+
continuous innovation
increased efficiency
perpetual competitiveness
Stifled by:
structure
processes
norms
analysis
mastery
Mystery - exploration and questions, hunches, beyond words but not beyond reason
Heuristic - rule of thumb, simplified way of understanding, open-ended prompts, no guarantee of results, explicit, bring intuition to language, provides focus
Algorithm - certified, processes, guarantees, performance
complex
simple
Music
mystery - one hit wonders like "Spirit In The Sky" by Norman Greenbaum
heuristics - Brian Eno (U2), The Beatles
algorithm - ???
mobile Californians
quick service, limited menu
site selection, cooking times, hiring practices, training
defense
offense
exploration
exploitation
look to past
look to future
reliability drives out innovation
logical leap of the mind
inference of best explanation
abductive logic
"The velocity of movement through the knowledge funnel, powered by design thinking, is the most powerful formula for competitive advantage in the twenty-first century."
must acknowledge that they currently favor exploitation over exploration
need to increase capacity for abductive reasoning
A new kind of organization
Structure - more projects
Processes - increase initiatives, unpredictable investments
Culture - reward abductive logic
A different kind of leader
CEO needs to be the one maintaining the balance
A different you
Develop new:
stance - view of the world and role in it
tools - models used to understand your world and organize thinking
experiences - build and develop skills
analytical thinking
intuitive thinking
shortcomings
reconciliation
creativity
knowledge funnel
design thinking organization
Real world examples
Core principle
Roadmap to success