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 Explicit Knowledge Tacit Knowledge Rational Mind Non-Rational Mind Knowledge Transfer Process Direct Experience

8. Cogito, ergo sum ! R. Descartes

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

12. RULES Behavior rules – in childhood Religious rules Grammar rules Mathematical rules Logical rules

13. 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

14. 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

15. 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

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

17. 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

18. 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

19. LINEAR APPROXIMATION Graphical representation

20. 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

21. 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

22. 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

23. 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

24. 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

25. STRATEGIC THINKING Graphical representation LNL Complexity D R S D Generation Time Simple thinking model Strategic thinking model