1. According to Daniel Kahneman, the overall thought process when it comes to decision-making and judgment, our minds have a two-system process that works together in situations that require it. When it comes to the two system, the first system is responsible for fast thinking that is done instantaneous and without effort. A great quote from the book about system one states:
System one executes skilled responses and generates skilled intuitions, after adequate training. System one creates a coherent patter of activated ideas in associative memory.When it comes to system two, this involves the process of slow, methodical thinking. It is more complex and mental than system one because it involves using your conscious self to make the decisions. When they are working together, system one serves as the pilot of the craft, but when it runs into an issue that involves a deeper thought process, system two kicks in to help make the decisions in those situations. System one is the pilot that makes the initial decisions and system two is the co-pilot that monitors those decisions.
2. Entrepreneurship requires a lot of thinking by an individual when coming up with opportunities that they would like to exploit. When connecting this book and the lessons we have learned from this class, system one serves as the initial recognition of the opportunity that thinks of when researching into what we can do, but system two serves as the process of digesting and figuring out if that opportunity really exists and if it can be effectively exploited by an entrepreneur. The book also talks about defeat and how entrepreneurs are prone to overestimating the chances of success of the opportunity they would like to exploit. Along with defeat comes to regret, because not only do we see it as an emotion, but as punishment, as well for the mistakes we have made with our decisions.
3. If I were to create an assignment for ENT3003 that is based on this book, I think I would design a simple assignment where the student has to think about the times they have had a regret from the decisions they made on anything in their lives or where they didn't do something in their lives because they were afraid to lose something from the experience. It would be similar to the first few assignments that we had in-class where we listed off the 'bugs' that we encountered in life.
4. I think my biggest 'Aha' moment from reading this book was about the different attributes of the two system process of thinking and how each one applies to system one and system two respectively. Not only that but how each system works together in situations to help you make decisions from our past experiences and beliefs. The thought process is very complex because it just happens and we never take the time to sit down and think why did I make this decision or that decision in this scenario or that scenario.
Sean,
ReplyDeleteThis book sounds rather interesting. I presume that system two may be the default system. By that, I mean that when a decision can't or shouldn't be made off of intuition (system one), system two is the default system.
The more skilled and experienced the decision maker, the better they will be able to utilize system one. This is simply due to the fact that their intuition is reliable as a result of their skills and experiences. I will have to add this book to my future reading list!
Sean,
ReplyDeleteThis seems to be a very intriguing book that you have read and it seems to provide great insight into how our minds operate. I think that it is a good thing that our minds have a two system process when it comes to the decision making process. There will be numerous occasions where one needs to think quickly and react very fast. On the other hand, there are many decisions that require deep thought and critical analysis. Great post!