How ‘non-linear’ thinking and ‘creativity’ can increase our probability of success?

We are in middle of the Fourth Industrial Revolution (a.k.a Industry 4.0) and as a result our world is transforming at an unprecedented pace. Technologies like artificial intelligence (AI), data analytics, cognitive technologies, and the internet of things (IoT) are underpinning this change and likely to fundamentally alter the way we live, work, and relate to one another.

According to the World Economic Forum, “Industry 4.0 is disrupting every industry in every country and creating a massive change which is non-linear. The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as AI, robotics, IoT, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing.”

‘Linear’ versus ‘Non-linear’ thinking

Linear thinking is approaching an idea/process in linked sequential steps. The second Industrial Revolution (beginning late 19th century) created a need for standardisation, mass production and industrialisation. Linear, one-way production models focussing on efficiencies and scale, have dominated global manufacturing since then. As a result, business systems have developed to become linear and mechanical, following a strict 'top down' approach. Our education system has also consequently focussed more on developing linear skills with emphasis on consistency, hierarchy, and rules.?

On the other hand, non-linear thinking is non-sequential. It is more abstract in nature and characterised by the ability to create connections between concepts and ideas, even when they are not related. Non-linear thinking is more creative and relies on experience, intuition and imagination to understand problems, and solve them by being more collaborative. Instead of focussing on sequential, efficient, and consistent processes, the focus of non-linear thinking is ideation, collaboration, creativity and speed.

To succeed in Industry 4.0, businesses will not only need to develop non-linear business capabilities but will also need a workforce which is more creative.

Rethinking - Business capabilities

Non-linear business capabilities require a shift away from standardisation, hierarchy and rules, and a shift towards agility, collaboration, and utilising human capital.

According to the Organisation for Economic Co-operation and Development (OECD), “'Human Capital' can be broadly defined as the stock of knowledge, skills and other personal characteristics embodied in people that helps them to be productive.” Human capital will be a critical asset required for sustained business success.

The following business capabilities will require a big shift in thinking:

1. Governance. Good governance will continue to be critical to ensure ethical business practices and financial health. But many governance processes continue to have roots from the era of standardisation, mass production and industrialisation. Corporate governance needs to change its focus from standardisation to agility, mass-production to sustainability, top-down to inclusive, and avoiding-risks to failing-better.
2. Supply chains. With the advancement of analytics, distribution, manufacturing, and robotics, supply chains are expected to become efficient, localised, and sustainable. Unlike traditional linear models driven by profitability and consequently generating a high amount of wastage and environmental impact, future supply chains will be part of a 'circular economy' which will involve designing products for longevity, keeping products and materials in circulation as long as possible, shared ownership/use, and recycling.
3. Digital assets. Technologies like cloud computing, AI, 3D printing, robotics, IoT, and cognitive technologies will have a significant impact across all industries. Having competitive digital strategies and digital assets will be key to succeeding in Industry 4.0. Agile product development will be critical in this fast-paced and fiercely competitive world.
4. Culture. With technology becoming cheaper and more accessible, the human capital will be the key differentiator for future success. Businesses will need to attract, develop, engage, and retain the best talent to succeed. Linear and top-down culture focussing on standardisation, hierarchy, and rules are not fit for purpose anymore. A culture of psychological safety, diversity, inclusion, and flexibility will be essential in developing a workforce which is engaged, productive, and creative.

Rethinking - Learning and skills

With the big focus on digital, foundation skills like STEM (Science, Technology, Engineering, and Mathematics) will be key for the next generation of workers. But there will also be an increasing need for soft skills like creativity, collaboration, and problem-solving, and character qualities like persistence, curiosity, and initiative.

A great summary below from the World Economic Forum on the 21st-Century skills needed for Industry 4.0.

We need to rethink learning and skills to prepare for this change:

1. Lifelong learning. According to the OECD, “'Lifelong Learning' will be key for individuals to adapt and succeed in labour markets and societies shaped by longer life expectancy, rapid technological advances, globalisation, and demographic change, as well as sudden shocks such as the COVID-19?pandemic.” Businesses will need to develop incentives to encourage and support continuous learning for their workforce.
2. Microlearning. Microlearning consists of small learning units and short-term learning activities. It is usually short bursts of training, which is more engaging, less time consuming, and easily adopted in a continuous learning routine. Platforms like Linkedin.com, Udemy.com, YouTube.com, and Duolingo.com provide various forms of microlearning today. With the increasing use of virtual and augmented reality, interactive videos, and gamification, microlearning is predicted to become a key tool for professional/skill development in the future.
3. Soft skills. Creativity is predicted to be one of the top three skills workers will need in the future. The need for other soft skills like collaboration, communication, problem solving, and adaptability, is also expected to increase. Individuals will not be able to rely just on their technical skills and will need to develop and improve soft skills for future jobs.

To succeed in Industry 4.0, businesses will not only need to develop non-linear business capabilities but will also need a workforce which is more creative. Business leaders will need to prepare and transition their businesses for this change.

We need to embrace and prepare for these changes too, by increasing our focus on developing/improving our soft skills and adopting lifelong learning in our work-life.