The Importance of Logic in Business


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Delivered for logic and critical thinking course at Institut Teknologi Bandung's School of Business Management (SBM-ITB).

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  • The Importance of Logic in Business

    2. 2. Presenter Profile  15 years of experiences: 12 years of Training and Education, 8 years of IT Audit, 7 years of strategic partnership, 8 years of writing and development, 6+ years of consulting and project management  Advisor at Global Innovations and Technology Platform  VP - Head of Information Technology at Roligio Group  Subject Matter Expert at ISACA  Program Evaluator at Project Management Institute  Association of Educational Communication and Technology International Division Committee  Contributor for ZDNet Asia, Forbes Indonesia, Youth Marketers,, The Jakarta Post, DetikINET and InfoKomputer among others
    3. 3. Today’s Agenda Redefining Logic Why Important? Common Sense Ways of Thinking Logic in Business Why so Important? Logic Competency in Business
    4. 4. Redefining Logic  No relevancy with gender, age issues  Result yielded from human brain  Driven by skeptical and critical state-of- mind then raised critical thinking  To have a common ground about something
    5. 5. Why Important?  Human is “Ubermensch” (Nietzsche, 1944)  Help us learning to think properly  Focus our mind so we can come up with a logical solution  More rational in our decisions  Helps other understand reasoning behind issues which could be applied in other issues as well
    6. 6. Common Sense  Determines what we do, regardless of what we think  For if we use logic alone, we would probably be able to take only a few actions a day  Helps us to deal with real world complexity  Provides shortcut to making critical decisions very quickly  Sometimes will produce desired results whenever we need to make a decision quickly, but not always
    7. 7. Ways of Thinking  Trainable, programmable (method, technique)  Some are: Out-of-the-box, Critical, Strategic, Lateral, Programmatic  Independent from human brain capacity  Involved big and little, left and right brain
    8. 8. Thinking Out-of-the-Box  Encompasses 1.5kg, 1200cm3, 86 billion neurons and 16.3 billion cerebral cortex human brains  Against mainstream  Brings creativity and even more innovation  Within inside VS outside the norm
    9. 9. Critical Thinking “A desire to seek, patience to doubt, fondness to meditate, slowness to assert, readiness to consider, carefulness to dispose and set in order; and hatred for every kind of imposture.” – Francis Bacon (1605)
    10. 10. Critical Thinking (cont’d) Primarily concerned with judging true value of statements and seeking errors “Your MAP is NOT your TERRITORY” – Richard Bandler and John Grinder NLP Co-Founders (1979) Common Stages 1. Identify, define and clarify the problem 2. Gather information 3. Evaluate information 4. Choose the best alternative and present them 5. Implement the solution
    11. 11. Strategic Thinking • Ability to see the total enterprise, to spot the trends and understand the competitive landscape, to see where the business needs to go and to lead it into the future • Needs strong foundation of critical thinking  Thinking process applied by an individual in the context of achieving success in particular endeavor  Mostly utilized for or within strategic planning process
    12. 12. Strategic Thinking (cont’d)
    13. 13. Lateral Thinking  Popularized by Psychologist Dr. Edward de Bono (within his book, 1975)  Logical ('vertical') thinking carries a chosen idea forward, sideways ('lateral') thinking provokes fresh ideas or changes the frame of reference
    14. 14. Lateral Thinking (cont’d)
    15. 15. Programmatic Thinking  Trending due to Neuro-Linguistic Programming (NLP) Richard Bandler and John Grinder  How to program our minds with our words  Targets unconscious minds in particular  Sublimed and in the end change our behavior
    16. 16. Logic in Business  Consists of unwritten rules, which set up a framework for companies’ mode of action and possibilities for custom-oriented actions.  Sloan Jr. (1950, p 58) ”There is a logical way of doing business in accordance with the facts and circumstances of an industry… ”  Then what need to do? Understand, adapt to it or to break with it, thereby creating something new  Way of thinking utilized by business executives
    17. 17. Why So Important?  Part of business decision making process  Utilized for scientific approach  Objective, waive the subjectivity  Solid, firm baseline  Arguable, debatable  Requires for quantitative analysis  Complements qualitative analysis
    18. 18. Why So Important? (cont’d) Understanding the logic in business and reasoning behind a given aspect of reality We may be able to adapt, grow, leverage and capitalize using the same reasoning particularly in challenging situation
    19. 19. Why So Important? (cont’d)  Logic link cause to effect, action to reaction and input to output in business world  By finding result, we use logic to analyze  Basis of learning methodology and decision making  Bad logic link effect to false cause (“Fallacy”)  Catalyst of reason, the foundation of experimentation and the weakness of a lie
    20. 20. Why So Important? (cont’d)  When applied in strategic management process, it involves generation and application of unique business insights and opportunities  In the end, it is aimed to form competitive advantage of an organization  Done individually or collaboratively to shape organization’s future
    21. 21. Logic Competency in Business Citing Jeanne Liedtka (1998)  Systems perspective Understand implications of strategic actions and has complete end-to-end system of value creation, his or her role within it  Intent focused To marshal and leverage their energy, to focus attention, to resist distraction, and to concentrate at the max achieving a goal
    22. 22. Logic Competency in Business (cont’d)  Thinking in time Hold past, present and future in mind at same time creating better decision making and speed implementation Hypothesis driven Ensuring creative and critical thinking incorporated into strategy making Intelligent opportunism Being responsive to good opportunities
    23. 23. 11 March 2014 Q & A
    24. 24. THANK YOU!