If Intuition Helps Predict Stock Market Trends, How Can I Apply This Skill To My Physical Products?

You have heard it many times

You have heard it many times. You are listening to your friend, the stockbroker, talk about the big deal he just scored. He says, I read all of the analytics and they were telling e to play it one way but my gut was telling me to do the opposite. When I follow my gut, I usually do okay so I did and it paid off!

Was he lucky or did he really have some intuitive sense of the right decision to make?

Two German researchers, Christian Harteis and Hans Gruber, decided to test that theory. They followed thirty two persons of varying experience in the stock market who used both intuition and rational analysis to predict stock rates. They found that in most cases intuitive predictions of stock market development are better than rationally justified ones and that experts predict more precisely than novices. Their empirical evidence supports the literature that theorized that intuition was a better predictor. Well, that is terrific news sort of. The problem is, what is this phenomenon called intuition and how do you get it?

Back to good news. Everyone has access to intuitive skills. It is not a psychic ability handed out through genetics (though that might help). Instead, intuition is an unconscious sorting of information that you hold in your brain, based on all of the knowledge and experience recorded there. The gut feeling that your friend had about the stocks he was analyzing was probably based on a combination of not only the analytics he had reviewed but also his experience with companies like the ones he was evaluating. He might have had no idea that his brain (his subconscious) had broken those experiences into bits of data that were assimilated into a pattern he could use to predict outcomes. His gut was really sophisticated pattern recognition programming in his brain. Now, add the Harteis and Gruber results. They learned that the more experience the trader has, the better the intuitive decision making. That makes perfect sense since intuition is based on accumulations of experience sorted at unconscious level.

In his book, Strategic Intuition, William Duggan talks about the flash of insight that intuition supplies. He notes that intuition is usually the product of combining previous information in different ways to respond to a new situation.

He and other business thinkers suggest that you can organize yourself to receive that intuitive bolt of lightning that becomes the next new idea for your business, whether its product, technology or process. The underlying critical requirement for intuition to be able to do its job is the need for deep information about your business and industry. It is hard to make new connections when there are gaps in basic understanding. From there, Duggan and others suggest that you seek out information about other businesses and industries and think about how to apply it to your product and business. In an interview about his book, Duggan said, Startups often innovate by taking technology that is mature in one field and introducing it to a field in which that technology currently does not exist, doing so at the moment when the market is ready for that unique technology transplant.

How can you apply this advice? Take as an example, the online entrepreneur who is selling household appliances. As he looks to other industries, what can he learn that helps him innovate in his business?

How about:

- Personalization seems to be an incredibly important part of life today. Take the car seat that memorizes each drivers settings, for example. Would it make sense to have a toaster that records each family members crispiness and toastiness preferences so that when the bread goes in, you push the John button and the toast pops out lightly toasted and the Sue button for a much darker and drier version?

Interaction is also important. How about a counter top grill that announces how the cooking is coming, e.g., The steak is medium rare, shall I keep cooking it?

Silly? Maybe but maybe not. Try it yourself and see if you can find a way to modify your product to catch the newest trend.

by: Jane Dawson

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