meaning of the term problem solving

What is Problem Solving? (Steps, Techniques, Examples)

By Status.net Editorial Team on May 7, 2023 — 5 minutes to read

What Is Problem Solving?

Definition and importance.

Problem solving is the process of finding solutions to obstacles or challenges you encounter in your life or work. It is a crucial skill that allows you to tackle complex situations, adapt to changes, and overcome difficulties with ease. Mastering this ability will contribute to both your personal and professional growth, leading to more successful outcomes and better decision-making.

Problem-Solving Steps

The problem-solving process typically includes the following steps:

• Identify the issue : Recognize the problem that needs to be solved.
• Analyze the situation : Examine the issue in depth, gather all relevant information, and consider any limitations or constraints that may be present.
• Generate potential solutions : Brainstorm a list of possible solutions to the issue, without immediately judging or evaluating them.
• Evaluate options : Weigh the pros and cons of each potential solution, considering factors such as feasibility, effectiveness, and potential risks.
• Select the best solution : Choose the option that best addresses the problem and aligns with your objectives.
• Implement the solution : Put the selected solution into action and monitor the results to ensure it resolves the issue.
• Review and learn : Reflect on the problem-solving process, identify any improvements or adjustments that can be made, and apply these learnings to future situations.

Defining the Problem

To start tackling a problem, first, identify and understand it. Analyzing the issue thoroughly helps to clarify its scope and nature. Ask questions to gather information and consider the problem from various angles. Some strategies to define the problem include:

• Brainstorming with others
• Asking the 5 Ws and 1 H (Who, What, When, Where, Why, and How)
• Analyzing cause and effect
• Creating a problem statement

Generating Solutions

Once the problem is clearly understood, brainstorm possible solutions. Think creatively and keep an open mind, as well as considering lessons from past experiences. Consider:

• Creating a list of potential ideas to solve the problem
• Grouping and categorizing similar solutions
• Prioritizing potential solutions based on feasibility, cost, and resources required
• Involving others to share diverse opinions and inputs

Evaluating and Selecting Solutions

Evaluate each potential solution, weighing its pros and cons. To facilitate decision-making, use techniques such as:

• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
• Decision-making matrices
• Pros and cons lists
• Risk assessments

After evaluating, choose the most suitable solution based on effectiveness, cost, and time constraints.

Implementing and Monitoring the Solution

Implement the chosen solution and monitor its progress. Key actions include:

• Communicating the solution to relevant parties
• Setting timelines and milestones
• Assigning tasks and responsibilities
• Monitoring the solution and making adjustments as necessary
• Evaluating the effectiveness of the solution after implementation

Utilize feedback from stakeholders and consider potential improvements. Remember that problem-solving is an ongoing process that can always be refined and enhanced.

Problem-Solving Techniques

During each step, you may find it helpful to utilize various problem-solving techniques, such as:

• Brainstorming : A free-flowing, open-minded session where ideas are generated and listed without judgment, to encourage creativity and innovative thinking.
• Root cause analysis : A method that explores the underlying causes of a problem to find the most effective solution rather than addressing superficial symptoms.
• SWOT analysis : A tool used to evaluate the strengths, weaknesses, opportunities, and threats related to a problem or decision, providing a comprehensive view of the situation.
• Mind mapping : A visual technique that uses diagrams to organize and connect ideas, helping to identify patterns, relationships, and possible solutions.

Brainstorming

When facing a problem, start by conducting a brainstorming session. Gather your team and encourage an open discussion where everyone contributes ideas, no matter how outlandish they may seem. This helps you:

• Generate a diverse range of solutions
• Encourage all team members to participate
• Foster creative thinking

When brainstorming, remember to:

• Reserve judgment until the session is over
• Encourage wild ideas
• Combine and improve upon ideas

Root Cause Analysis

For effective problem-solving, identifying the root cause of the issue at hand is crucial. Try these methods:

• 5 Whys : Ask “why” five times to get to the underlying cause.
• Fishbone Diagram : Create a diagram representing the problem and break it down into categories of potential causes.
• Pareto Analysis : Determine the few most significant causes underlying the majority of problems.

SWOT Analysis

SWOT analysis helps you examine the Strengths, Weaknesses, Opportunities, and Threats related to your problem. To perform a SWOT analysis:

• List your problem’s strengths, such as relevant resources or strong partnerships.
• Identify its weaknesses, such as knowledge gaps or limited resources.
• Explore opportunities, like trends or new technologies, that could help solve the problem.
• Recognize potential threats, like competition or regulatory barriers.

SWOT analysis aids in understanding the internal and external factors affecting the problem, which can help guide your solution.

Mind Mapping

A mind map is a visual representation of your problem and potential solutions. It enables you to organize information in a structured and intuitive manner. To create a mind map:

• Write the problem in the center of a blank page.
• Draw branches from the central problem to related sub-problems or contributing factors.
• Add more branches to represent potential solutions or further ideas.

Mind mapping allows you to visually see connections between ideas and promotes creativity in problem-solving.

Examples of Problem Solving in Various Contexts

In the business world, you might encounter problems related to finances, operations, or communication. Applying problem-solving skills in these situations could look like:

• Identifying areas of improvement in your company’s financial performance and implementing cost-saving measures
• Resolving internal conflicts among team members by listening and understanding different perspectives, then proposing and negotiating solutions
• Streamlining a process for better productivity by removing redundancies, automating tasks, or re-allocating resources

In educational contexts, problem-solving can be seen in various aspects, such as:

• Addressing a gap in students’ understanding by employing diverse teaching methods to cater to different learning styles
• Developing a strategy for successful time management to balance academic responsibilities and extracurricular activities
• Seeking resources and support to provide equal opportunities for learners with special needs or disabilities

Everyday life is full of challenges that require problem-solving skills. Some examples include:

• Overcoming a personal obstacle, such as improving your fitness level, by establishing achievable goals, measuring progress, and adjusting your approach accordingly
• Navigating a new environment or city by researching your surroundings, asking for directions, or using technology like GPS to guide you
• Dealing with a sudden change, like a change in your work schedule, by assessing the situation, identifying potential impacts, and adapting your plans to accommodate the change.
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What is Problem Solving? A Comprehensive Guide

In this blog, we will explore "What is Problem Solving?" In detail. From defining the nature of Problem Solving to understanding the key process in resolving issues, this blog covers it all. So, wait no more; let’s go deeper into this fundamental concept.

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Table of contents  

1) What is Problem Solving definition?  

2) The process of Problem Solving  

3) Key skills for effective Problem Solving  

4) Strategies for enhancing Problem Solving abilities  

5) Problem Solving tools and techniques  

6) Conclusion       

What is Problem Solving definition?  

The process of Problem Solving  

Understanding the problem   

The first step in Problem Solving is gaining a clear understanding of the issue at hand. Take the time to thoroughly analyse the problem and gather relevant information. Ask yourself questions like:  

1) What is the nature of the problem?  

2) What are the factors contributing to the problem?  

3) What are the desired outcomes?  

4) Are there any constraints or limitations to consider?  

By gaining a comprehensive understanding of the problem, you lay a solid foundation for finding an effective solution.  

Generating possible solutions   

Once you have a clear grasp of the problem, it's time to brainstorm potential solutions. Encourage creativity and think outside the box. Consider all possible options without judgment or criticism. The goal at this stage is to generate a variety of ideas and alternatives.  

Evaluating and selecting the best solution   

After generating a list of possible solutions, it's important to evaluate each option based on its feasibility, effectiveness, and alignment with the desired outcome. Consider the advantages and disadvantages of each and every solution. Assess its practicality and the resources required for implementation.  

Additionally, take into account the potential risks and benefits associated with each solution. Consider any potential consequences or impacts on other aspects. Based on this evaluation, select the solution that appears most viable and promising.  

Implementing the solution   

Once you have chosen the best solution, it's time to put it into action. Develop a detailed plan outlining the necessary steps and allocate the required resources. Determine responsibilities and deadlines to ensure a smooth implementation process.  

During implementation, monitor progress and make any necessary adjustments or adaptations. Stay proactive and address any challenges or obstacles that may arise along the way. Effective communication and collaboration with others involved in the process can greatly contribute to successful implementation.  

Assessing the results   

After implementing the solution, it's essential to assess the results. Evaluate whether the problem has been properly resolved or if further adjustments are required. Analyse the outcomes and compare them against the desired goals and expectations.  

Consider whether the chosen solution has brought about the intended benefits and if any unexpected consequences have emerged. Reflect on the overall effectiveness of the Problem Solving process and identify any lessons learned for future reference.  

Remember, Problem Solving is an iterative process, and it's not uncommon to revisit and refine solutions based on ongoing evaluation and feedback. Embrace a continuous improvement mindset and be open to seeking alternative approaches if necessary.  

By following this Problem Solving process, you can approach challenges systematically and increase your chances of finding effective solutions. Remember that practice and experience play a vital role in honing your skills. 

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Key skills for effective Problem Solving   

What one must do to become an effective problem solver is to develop key skills that enhance your Problem Solving abilities. The skills give you the ability to tackle challenges with a strategic mind and find the needed solutions. Below is a dive into the most important of them:

Critical thinking

Critical thinking is a skill that includes the objective analysis of information, considering different viewpoints, and being able to arrive at a sensible judgment. This helps you to assess problems with the right accuracy in judgment and also find suitable solutions. 

It means that creativity is the ability of a person to think outside the box and come up with innovative solutions. It includes pressing the mind toward new possibilities and viewing the problem in different ways.

Analytical skills

In this ability, there is the aspect of breaking down a problem into subunits that helps in identifying the patterns, relationships, and causes within the problem. 

Decision-making

Sound skills in decision making call for the assessment of the pros and cons of all solutions provided and thus choosing the best alternative. Risks must always be considered with the benefits any alternative might bring.

Strategies for enhancing Problem Solving abilities  

Practice critical thinking

Engage yourself in activities which require critical thinking, including solving puzzles, complex discussion, challenging all assumptions. This will increase your ability to enhance sharpening of your analytical skills and let you think critically at a time when problems are in your way. 

Seek feedback and learn from experience

Seek responses from your mentors, course peers, and Problem Solving experts. From the successes and failures, reflect on the reasons for the occurrences over previous experiences and point out what could be improved. Treat the opportunity of Problem Solving as one of the chances that shall be given to you to grow and develop each time you make it through a problem. 

Embrace challenges

You can redesign your problematic issues and take every challenge coming across as an opportunity for growth. Hence, it paves the way for the ability of resilience and strengthens your Problem Solving abilities. 

Collaborate with others 

In Problem Solving, collaboration is embraced by pooling different perspectives and ideas. Work with others in activities that involve groups to discuss issues and seek input from others, listening actively to various viewpoints. Working collaboratively with others helps expand your knowledge of various ways of Problem Solving and encourages innovation.

Think outside the box 

Encourage creative thinking by exploring unconventional ideas and solutions. Challenge every assumption and all its related alternatives. Shift to this kind of mindset, and it can drive innovative Problem Solving strategies, letting you uncover newer ways to solve age-old complex problems.

Problem Solving tools and techniques  

When faced with complex problems, utilising specific tools and techniques can help facilitate the solving process and lead to more effective solutions. Here are some commonly used Problem Solving tools and techniques:  

Root cause analysis   

Root cause analysis is a methodology used to detect the underlying causes of a problem. It involves investigating the problem's symptoms and tracing them back to their fundamental causes. By addressing the root causes, Problem Solvers can prevent the issue from recurring.  

Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis   

SWOT analysis is a planning tool that strategically helps measure the weaknesses and internal strengths of a situation. Moreover, it can find external opportunities and threats. By assessing these factors, Problem Solvers can gain insights into the current state and make informed decisions about potential solutions.  

Fishbone diagrams   

Fishbone diagrams, also known as cause-and-effect diagrams or Ishikawa Diagrams, visually represent the possible causes contributing to a problem. By organising causes into categories (such as people, process, equipment, and environment), Problem Solvers can systematically analyse the problem's potential sources.  

Decision matrices   

Decision matrices are used to evaluate and compare different options based on multiple criteria. This tool helps Problem Solvers weigh the importance of various factors and objectively assess each alternative, leading to an informed decision.  

Six Thinking Hats   

Six Thinking Hats is a technique initially developed by Edward de Bono that encourages parallel thinking by exploring different perspectives. Each "hat" represents a different thinking approach (e.g., logical, creative, emotional), allowing Problem Solvers to consider diverse viewpoints and generate innovative solutions.  

These are just a few examples of Problem Solving tools and techniques. Depending on the nature of the problem, other methods, such as brainstorming, mind mapping, flowcharts, or Pareto analysis, can also be applied. Choosing the appropriate tool or technique depends on the specific problem and the desired outcome. 

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Conclusion  

We hope you read and understand everything about What is Problem Solving? Developing effective skills is crucial for overcoming challenges, making informed decisions, and achieving success. By embracing problems as opportunities and applying strategic approaches, individuals can become proficient Problem Solvers in various domains of life. 

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Frequently Asked Questions

There are two major types of Problem Solving: Reflective and Creative. Regardless of the type, it focuses on understanding the issues, considering all factors and finding a solution.

Problem Solving in the workplace refers to an individual’s ability to manage difficult situations and find solutions to complex business issues.

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Definition:

Problem Solving is the process of identifying, analyzing, and finding effective solutions to complex issues or challenges.

Key Steps in Problem Solving:

• Identification of the problem: Recognizing and clearly defining the issue that needs to be resolved.
• Analysis and research: Gathering relevant information, data, and facts to understand the problem in-depth.
• Formulating strategies: Developing various approaches and plans to tackle the problem effectively.
• Evaluation and selection: Assessing the viability and potential outcomes of the proposed solutions and selecting the most appropriate one.
• Implementation: Putting the chosen solution into action and executing the necessary steps to resolve the problem.
• Monitoring and feedback: Continuously evaluating the implemented solution and obtaining feedback to ensure its effectiveness.
• Adaptation and improvement: Modifying and refining the solution as needed to optimize results and prevent similar problems from arising in the future.

Skills and Qualities for Effective Problem Solving:

• Analytical thinking: The ability to break down complex problems into smaller, manageable components and analyze them thoroughly.
• Creativity: Thinking outside the box and generating innovative solutions.
• Decision making: Making logical and informed choices based on available data and critical thinking.
• Communication: Clearly conveying ideas, listening actively, and collaborating with others to solve problems as a team.
• Resilience: Maintaining a positive mindset, perseverance, and adaptability in the face of challenges.
• Resourcefulness: Utilizing available resources and seeking new approaches when confronted with obstacles.
• Time management: Effectively organizing and prioritizing tasks to optimize problem-solving efficiency.

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Problem-Solving Strategies and Obstacles

Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Sean is a fact-checker and researcher with experience in sociology, field research, and data analytics.

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From deciding what to eat for dinner to considering whether it's the right time to buy a house, problem-solving is a large part of our daily lives. Learn some of the problem-solving strategies that exist and how to use them in real life, along with ways to overcome obstacles that are making it harder to resolve the issues you face.

What Is Problem-Solving?

In cognitive psychology , the term 'problem-solving' refers to the mental process that people go through to discover, analyze, and solve problems.

A problem exists when there is a goal that we want to achieve but the process by which we will achieve it is not obvious to us. Put another way, there is something that we want to occur in our life, yet we are not immediately certain how to make it happen.

Maybe you want a better relationship with your spouse or another family member but you're not sure how to improve it. Or you want to start a business but are unsure what steps to take. Problem-solving helps you figure out how to achieve these desires.

The problem-solving process involves:

• Discovery of the problem
• Deciding to tackle the issue
• Seeking to understand the problem more fully
• Researching available options or solutions
• Taking action to resolve the issue

Before problem-solving can occur, it is important to first understand the exact nature of the problem itself. If your understanding of the issue is faulty, your attempts to resolve it will also be incorrect or flawed.

Problem-Solving Mental Processes

Several mental processes are at work during problem-solving. Among them are:

• Perceptually recognizing the problem
• Representing the problem in memory
• Considering relevant information that applies to the problem
• Identifying different aspects of the problem
• Labeling and describing the problem

Problem-Solving Strategies

There are many ways to go about solving a problem. Some of these strategies might be used on their own, or you may decide to employ multiple approaches when working to figure out and fix a problem.

An algorithm is a step-by-step procedure that, by following certain "rules" produces a solution. Algorithms are commonly used in mathematics to solve division or multiplication problems. But they can be used in other fields as well.

In psychology, algorithms can be used to help identify individuals with a greater risk of mental health issues. For instance, research suggests that certain algorithms might help us recognize children with an elevated risk of suicide or self-harm.

One benefit of algorithms is that they guarantee an accurate answer. However, they aren't always the best approach to problem-solving, in part because detecting patterns can be incredibly time-consuming.

There are also concerns when machine learning is involved—also known as artificial intelligence (AI)—such as whether they can accurately predict human behaviors.

Heuristics are shortcut strategies that people can use to solve a problem at hand. These "rule of thumb" approaches allow you to simplify complex problems, reducing the total number of possible solutions to a more manageable set.

If you find yourself sitting in a traffic jam, for example, you may quickly consider other routes, taking one to get moving once again. When shopping for a new car, you might think back to a prior experience when negotiating got you a lower price, then employ the same tactics.

While heuristics may be helpful when facing smaller issues, major decisions shouldn't necessarily be made using a shortcut approach. Heuristics also don't guarantee an effective solution, such as when trying to drive around a traffic jam only to find yourself on an equally crowded route.

Trial and Error

A trial-and-error approach to problem-solving involves trying a number of potential solutions to a particular issue, then ruling out those that do not work. If you're not sure whether to buy a shirt in blue or green, for instance, you may try on each before deciding which one to purchase.

This can be a good strategy to use if you have a limited number of solutions available. But if there are many different choices available, narrowing down the possible options using another problem-solving technique can be helpful before attempting trial and error.

In some cases, the solution to a problem can appear as a sudden insight. You are facing an issue in a relationship or your career when, out of nowhere, the solution appears in your mind and you know exactly what to do.

Insight can occur when the problem in front of you is similar to an issue that you've dealt with in the past. Although, you may not recognize what is occurring since the underlying mental processes that lead to insight often happen outside of conscious awareness .

Research indicates that insight is most likely to occur during times when you are alone—such as when going on a walk by yourself, when you're in the shower, or when lying in bed after waking up.

How to Apply Problem-Solving Strategies in Real Life

If you're facing a problem, you can implement one or more of these strategies to find a potential solution. Here's how to use them in real life:

• Create a flow chart . If you have time, you can take advantage of the algorithm approach to problem-solving by sitting down and making a flow chart of each potential solution, its consequences, and what happens next.
• Recall your past experiences . When a problem needs to be solved fairly quickly, heuristics may be a better approach. Think back to when you faced a similar issue, then use your knowledge and experience to choose the best option possible.
• Start trying potential solutions . If your options are limited, start trying them one by one to see which solution is best for achieving your desired goal. If a particular solution doesn't work, move on to the next.
• Take some time alone . Since insight is often achieved when you're alone, carve out time to be by yourself for a while. The answer to your problem may come to you, seemingly out of the blue, if you spend some time away from others.

Obstacles to Problem-Solving

Problem-solving is not a flawless process as there are a number of obstacles that can interfere with our ability to solve a problem quickly and efficiently. These obstacles include:

• Assumptions: When dealing with a problem, people can make assumptions about the constraints and obstacles that prevent certain solutions. Thus, they may not even try some potential options.
• Functional fixedness : This term refers to the tendency to view problems only in their customary manner. Functional fixedness prevents people from fully seeing all of the different options that might be available to find a solution.
• Irrelevant or misleading information: When trying to solve a problem, it's important to distinguish between information that is relevant to the issue and irrelevant data that can lead to faulty solutions. The more complex the problem, the easier it is to focus on misleading or irrelevant information.
• Mental set: A mental set is a tendency to only use solutions that have worked in the past rather than looking for alternative ideas. A mental set can work as a heuristic, making it a useful problem-solving tool. However, mental sets can also lead to inflexibility, making it more difficult to find effective solutions.

How to Improve Your Problem-Solving Skills

In the end, if your goal is to become a better problem-solver, it's helpful to remember that this is a process. Thus, if you want to improve your problem-solving skills, following these steps can help lead you to your solution:

• Recognize that a problem exists . If you are facing a problem, there are generally signs. For instance, if you have a mental illness , you may experience excessive fear or sadness, mood changes, and changes in sleeping or eating habits. Recognizing these signs can help you realize that an issue exists.
• Decide to solve the problem . Make a conscious decision to solve the issue at hand. Commit to yourself that you will go through the steps necessary to find a solution.
• Seek to fully understand the issue . Analyze the problem you face, looking at it from all sides. If your problem is relationship-related, for instance, ask yourself how the other person may be interpreting the issue. You might also consider how your actions might be contributing to the situation.
• Research potential options . Using the problem-solving strategies mentioned, research potential solutions. Make a list of options, then consider each one individually. What are some pros and cons of taking the available routes? What would you need to do to make them happen?
• Take action . Select the best solution possible and take action. Action is one of the steps required for change . So, go through the motions needed to resolve the issue.
• Try another option, if needed . If the solution you chose didn't work, don't give up. Either go through the problem-solving process again or simply try another option.

You can find a way to solve your problems as long as you keep working toward this goal—even if the best solution is simply to let go because no other good solution exists.

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By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

What Is Problem Solving?

You will often see beach clean-up drives being publicized in coastal cities. There are already dustbins available on the beaches,…

You will often see beach clean-up drives being publicized in coastal cities. There are already dustbins available on the beaches, so why do people need to organize these drives? It’s evident that despite advertising and posting anti-littering messages, some of us don’t follow the rules.

Temporary food stalls and shops make it even more difficult to keep the beaches clean. Since people can’t ask the shopkeepers to relocate or prevent every single person from littering, the clean-up drive is needed.  This is an ideal example of problem-solving psychology in humans. ( 230-fifth.com ) So, what is problem-solving? Let’s find out.

What Is Problem-Solving?

At its simplest, the meaning of problem-solving is the process of defining a problem, determining its cause, and implementing a solution. The definition of problem-solving is rooted in the fact that as humans, we exert control over our environment through solutions. We move forward in life when we solve problems and make decisions. 

We can better define the problem-solving process through a series of important steps.

Identify The Problem: 

This step isn’t as simple as it sounds. Most times, we mistakenly identify the consequences of a problem rather than the problem itself. It’s important that we’re careful to identify the actual problem and not just its symptoms. 

Define The Problem: 

Once the problem has been identified correctly, you should define it. This step can help clarify what needs to be addressed and for what purpose.

Form A Strategy: 

Develop a strategy to solve your problem. Defining an approach will provide direction and clarity on the next steps. 

Organize The Information:  

Organizing information systematically will help you determine whether something is missing. The more information you have, the easier it’ll become for you to arrive at a solution.  

Allocate Resources:  

We may not always be armed with the necessary resources to solve a problem. Before you commit to implementing a solution for a problem, you should determine the availability of different resources—money, time and other costs.

Track Progress: 

The true meaning of problem-solving is to work towards an objective. If you measure your progress, you can evaluate whether you’re on track. You could revise your strategies if you don’t notice the desired level of progress. 

Evaluate The Results:  

After you spot a solution, evaluate the results to determine whether it’s the best possible solution. For example, you can evaluate the success of a fitness routine after several weeks of exercise.

Meaning Of Problem-Solving Skill

Now that we’ve established the definition of problem-solving psychology in humans, let’s look at how we utilize our problem-solving skills.  These skills help you determine the source of a problem and how to effectively determine the solution. Problem-solving skills aren’t innate and can be mastered over time. Here are some important skills that are beneficial for finding solutions.

Communication

Communication is a critical skill when you have to work in teams.  If you and your colleagues have to work on a project together, you’ll have to collaborate with each other. In case of differences of opinion, you should be able to listen attentively and respond respectfully in order to successfully arrive at a solution.

As a problem-solver, you need to be able to research and identify underlying causes. You should never treat a problem lightly. In-depth study is imperative because often people identify only the symptoms and not the actual problem.

Once you have researched and identified the factors causing a problem, start working towards developing solutions. Your analytical skills can help you differentiate between effective and ineffective solutions.

Decision-Making

You’ll have to make a decision after you’ve identified the source and methods of solving a problem. If you’ve done your research and applied your analytical skills effectively, it’ll become easier for you to take a call or a decision.

Organizations really value decisive problem-solvers. Harappa Education’s   Defining Problems course will guide you on the path to developing a problem-solving mindset. Learn how to identify the different types of problems using the Types of Problems framework. Additionally, the SMART framework, which is a five-point tool, will teach you to create specific and actionable objectives to address problem statements and arrive at solutions. 

Explore topics & skills such as Problem Solving Skills , PICK Chart , How to Solve Problems & Barriers to Problem Solving from our Harappa Diaries blog section and develop your skills.

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Problem solving.

• noun the thought processes involved in solving a problem see more see less types: show 14 types... hide 14 types... enquiry , inquiry , research a search for knowledge calculation , computation , figuring , reckoning problem solving that involves numbers or quantities nature study the study of animals and plants in the natural world (usually at an elementary level) experiment , experimentation the testing of an idea empirical research an empirical search for knowledge investigation , probe an inquiry into unfamiliar or questionable activities canvass , opinion poll , poll , public opinion poll , survey an inquiry into public opinion conducted by interviewing a random sample of people heraldry the study and classification of armorial bearings and the tracing of genealogies extrapolation (mathematics) calculation of the value of a function outside the range of known values interpolation (mathematics) calculation of the value of a function between the values already known conversion a change in the units or form of an expression: "conversion from Fahrenheit to Centigrade" approximation , estimate , estimation , idea an approximate calculation of quantity or degree or worth derivative , derived function , differential , differential coefficient , first derivative the result of mathematical differentiation; the instantaneous change of one quantity relative to another; df(x)/dx integral the result of a mathematical integration; F(x) is the integral of f(x) if dF/dx = f(x) type of: cerebration , intellection , mentation , thinking , thought , thought process the process of using your mind to consider something carefully
• noun the area of cognitive psychology that studies the processes involved in solving problems see more see less type of: cognitive psychology an approach to psychology that emphasizes internal mental processes

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PROBLEM SOLVING

Problem solving is a process for individual's to overcome a specific problem. That process, simply, begins at a starting point and continues until a conclusion is reached. The process includes the higher mental functions and creative thinking . However, problem solving is also seen in the animal kingdom through the use of mazes and testing to obtain hidden rewards. Many animals display quite a range of problem solving strategies including win-stay.

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What Are Problem-Solving Skills? Definition and Examples

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Why do employers hire employees? To help them solve problems. Whether you’re a financial analyst deciding where to invest your firm’s money, or a marketer trying to figure out which channel to direct your efforts, companies hire people to help them find solutions. Problem-solving is an essential and marketable soft skill in the workplace. 

So, how can you improve your problem-solving and show employers you have this valuable skill? In this guide, we’ll cover:

Problem-Solving Skills Definition

Why are problem-solving skills important, problem-solving skills examples, how to include problem-solving skills in a job application, how to improve problem-solving skills, problem-solving: the bottom line.

Problem-solving skills are the ability to identify problems, brainstorm and analyze answers, and implement the best solutions. An employee with good problem-solving skills is both a self-starter and a collaborative teammate; they are proactive in understanding the root of a problem and work with others to consider a wide range of solutions before deciding how to move forward. 

Examples of using problem-solving skills in the workplace include:

• Researching patterns to understand why revenue decreased last quarter
• Experimenting with a new marketing channel to increase website sign-ups
• Brainstorming content types to share with potential customers
• Testing calls to action to see which ones drive the most product sales
• Implementing a new workflow to automate a team process and increase productivity

Problem-solving skills are the most sought-after soft skill of 2022. In fact, 86% of employers look for problem-solving skills on student resumes, according to the National Association of Colleges and Employers Job Outlook 2022 survey . 

It’s unsurprising why employers are looking for this skill: companies will always need people to help them find solutions to their problems. Someone proactive and successful at problem-solving is valuable to any team.

“Employers are looking for employees who can make decisions independently, especially with the prevalence of remote/hybrid work and the need to communicate asynchronously,” Eric Mochnacz, senior HR consultant at Red Clover, says. “Employers want to see individuals who can make well-informed decisions that mitigate risk, and they can do so without suffering from analysis paralysis.”

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Problem-solving includes three main parts: identifying the problem, analyzing possible solutions, and deciding on the best course of action.

>>MORE: Discover the right career for you based on your skills with a career aptitude test .

Research is the first step of problem-solving because it helps you understand the context of a problem. Researching a problem enables you to learn why the problem is happening. For example, is revenue down because of a new sales tactic? Or because of seasonality? Is there a problem with who the sales team is reaching out to? 

Research broadens your scope to all possible reasons why the problem could be happening. Then once you figure it out, it helps you narrow your scope to start solving it. 

Analysis is the next step of problem-solving. Now that you’ve identified the problem, analytical skills help you look at what potential solutions there might be.

“The goal of analysis isn’t to solve a problem, actually — it’s to better understand it because that’s where the real solution will be found,” Gretchen Skalka, owner of Career Insights Consulting, says. “Looking at a problem through the lens of impartiality is the only way to get a true understanding of it from all angles.”

Decision-Making

Once you’ve figured out where the problem is coming from and what solutions are, it’s time to decide on the best way to go forth. Decision-making skills help you determine what resources are available, what a feasible action plan entails, and what solution is likely to lead to success.

On a Resume

Employers looking for problem-solving skills might include the word “problem-solving” or other synonyms like “ critical thinking ” or “analytical skills” in the job description.

“I would add ‘buzzwords’ you can find from the job descriptions or LinkedIn endorsements section to filter into your resume to comply with the ATS,” Matthew Warzel, CPRW resume writer, advises. Warzel recommends including these skills on your resume but warns to “leave the soft skills as adjectives in the summary section. That is the only place soft skills should be mentioned.”

On the other hand, you can list hard skills separately in a skills section on your resume .

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In a Cover Letter or an Interview

Explaining your problem-solving skills in an interview can seem daunting. You’re required to expand on your process — how you identified a problem, analyzed potential solutions, and made a choice. As long as you can explain your approach, it’s okay if that solution didn’t come from a professional work experience.

“Young professionals shortchange themselves by thinking only paid-for solutions matter to employers,” Skalka says. “People at the genesis of their careers don’t have a wealth of professional experience to pull from, but they do have relevant experience to share.”

Aaron Case, career counselor and CPRW at Resume Genius, agrees and encourages early professionals to share this skill. “If you don’t have any relevant work experience yet, you can still highlight your problem-solving skills in your cover letter,” he says. “Just showcase examples of problems you solved while completing your degree, working at internships, or volunteering. You can even pull examples from completely unrelated part-time jobs, as long as you make it clear how your problem-solving ability transfers to your new line of work.”

Learn How to Identify Problems

Problem-solving doesn’t just require finding solutions to problems that are already there. It’s also about being proactive when something isn’t working as you hoped it would. Practice questioning and getting curious about processes and activities in your everyday life. What could you improve? What would you do if you had more resources for this process? If you had fewer? Challenge yourself to challenge the world around you.

Think Digitally

“Employers in the modern workplace value digital problem-solving skills, like being able to find a technology solution to a traditional issue,” Case says. “For example, when I first started working as a marketing writer, my department didn’t have the budget to hire a professional voice actor for marketing video voiceovers. But I found a perfect solution to the problem with an AI voiceover service that cost a fraction of the price of an actor.”

Being comfortable with new technology — even ones you haven’t used before — is a valuable skill in an increasingly hybrid and remote world. Don’t be afraid to research new and innovative technologies to help automate processes or find a more efficient technological solution.

Collaborate

Problem-solving isn’t done in a silo, and it shouldn’t be. Use your collaboration skills to gather multiple perspectives, help eliminate bias, and listen to alternative solutions. Ask others where they think the problem is coming from and what solutions would help them with your workflow. From there, try to compromise on a solution that can benefit everyone.

If we’ve learned anything from the past few years, it’s that the world of work is constantly changing — which means it’s crucial to know how to adapt . Be comfortable narrowing down a solution, then changing your direction when a colleague provides a new piece of information. Challenge yourself to get out of your comfort zone, whether with your personal routine or trying a new system at work.

Put Yourself in the Middle of Tough Moments

Just like adapting requires you to challenge your routine and tradition, good problem-solving requires you to put yourself in challenging situations — especially ones where you don’t have relevant experience or expertise to find a solution. Because you won’t know how to tackle the problem, you’ll learn new problem-solving skills and how to navigate new challenges. Ask your manager or a peer if you can help them work on a complicated problem, and be proactive about asking them questions along the way.

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Step 1 of 3

Companies always need people to help them find solutions — especially proactive employees who have practical analytical skills and can collaborate to decide the best way to move forward. Whether or not you have experience solving problems in a professional workplace, illustrate your problem-solving skills by describing your research, analysis, and decision-making process — and make it clear that you’re the solution to the employer’s current problems. 

Looking to learn more workplace professional skills? Check out Two Sigma’s Professional Skills Development Virtual Experience Program .

Image Credit: Christina Morillo / Pexels 

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Problem Solving

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• pp 2680–2683
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• David H. Jonassen 2 &
• Woei Hung 3  

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12 Citations

Cognition ; Problem typology ; Problem-based learning ; Problems ; Reasoning

Problem solving is the process of constructing and applying mental representations of problems to finding solutions to those problems that are encountered in nearly every context.

Theoretical Background

Problem solving is the process of articulating solutions to problems. Problems have two critical attributes. First, a problem is an unknown in some context. That is, there is a situation in which there is something that is unknown (the difference between a goal state and a current state). Those situations vary from algorithmic math problems to vexing and complex social problems, such as violence in society (see Problem Typology ). Second, finding or solving for the unknown must have some social, cultural, or intellectual value. That is, someone believes that it is worth finding the unknown. If no one perceives an unknown or a need to determine an unknown, there is no perceived problem. Finding...

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Rumelhart, D. E., & Norman, D. A. (1988). Representation in memory. In R. C. Atkinson, R. J. Herrnstein, G. Lindzey, & R. D. Luce (Eds.), Steven’s handbook of experimental psychology (Learning and cognition 2nd ed., Vol. 2, pp. 511–587). New York: Wiley.

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Jonassen, D.H., Hung, W. (2012). Problem Solving. In: Seel, N.M. (eds) Encyclopedia of the Sciences of Learning. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-1428-6_208

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• problem-solving

adjective as in analytic

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analytical , investigative

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inquiring , rational , sound , systematic

adjective as in analytical

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Example sentences.

“These are problem-solving products but that incorporate technology in a really subtle, unobtrusive way,” she says.

And it is a “problem-solving populism” that marries the twin impulses of populism and progressivism.

“We want a Republican Party that returns to problem-solving mode,” he said.

Problem-solving entails accepting realities, splitting differences, and moving forward.

It teaches female factory workers technical and life skills, such as literacy, communication and problem-solving.

Problem solving with class discussion is absolutely essential, and should occupy at least one third of the entire time.

In teaching by the problem-solving method Professor Lancelot 22 makes use of three types of problems.

Sequential Problem Solving is written for those with a whole brain thinking style.

Thus problem solving involves both the physical world and the interpersonal world.

Sequential Problem Solving begins with the mechanics of learning and the role of memorization in learning.

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adjective as in logical

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Why Our Definition Of Nonprofits Restricts Problem Solving

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I’ve often wondered why we’re the only sector that defines ourselves by what we’re NOT.

Non profit.

Why not what we ARE? Social benefit. Or, as Dan Palotta once suggested, “ humanity sector .”

Rather than focusing so much on how to scrimp and save and be as cost- efficient as possible, shouldn’t we be focusing on how to spend and grow and be as big and effective as possible?

Nonprofits are stuck in a vicious cycle, jeopardizing their ability to generate the resources they need to succeed. 

Let’s take a look at six underlying reasons for the sector’s inability to build sustainable capacity to solve the world’s pressing problems.

1. Where are our cultures of philanthropy?

To be loving, one must begin with a loving stance..

Over a decade ago,  CompassPoint  and the  Evelyn and Walter Haas, Jr. Fund published a three-part series of reports exploring culture of philanthropy. Or what I like to call a love-train culture . The first, UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising , concluded:

“Organizations need to make fundamental changes in the way they lead and resource fund development in order to build the capacity, the systems, and the culture to support fundraising success. Among the signs that an organization is up to the task: It invests in its fundraising capacity and in the technologies and other fund development systems it needs ; The staff, the executive director, and the board are deeply engaged in fundraising as ambassadors and in many cases as solicitors; Fund development and philanthropy are understood and valued across the organization.”

Alas, a culture of philanthropy essential to long-term success in the sector is still largely absent from our institutions. 

Huge instability in the development director role is just one symptom of a larger problem: lack of basic fundraising systems and inadequate attention to fund development across the board.

2. Why aren’t we investing in greater impact?

To drive impact, one must truly value that impact..

Also, a decade ago, Dan Pallotta gave what’s become a famous TED talk, “ The way we think about charity is dead wrong .” He talks about how the ways we’ve been taught to think about social innovation, and the role charity plays, are undermining the causes we love and our profound yearning to change the world.

“ It’s time to change how society thinks about charity and social reform. The donating public is obsessed with restrictions—nonprofits shouldn’t pay executives too much, or spend a lot on overhead or take risks with donated dollars. It should be asking whether these organizations have what they need to actually solve problems. The conventional wisdom is that low costs serve the higher good. But this view is killing the ability of nonprofits to make progress against our most pressing problems. Long-term solutions require investment in things that don’t show results in the short term.”

In his book, Charity Case: How the Nonprofit Community Can Stand Up For Itself and Really Change the World , Pallota writes:

“The nonprofit sector is critical to our dream of changing the world. Yet there is no greater injustice than the double standard that exists between the for-profit and nonprofit sectors . One gets to feast on marketing, risk-taking, capital and financial incentive, the other is sentenced to begging.”

A culture of investment, where overhead is not seen as the enemy, is hugely lacking within the social benefit (aka nonprofit) sector and among the public at large. 

There is a separate rule book for charities that has a chilling effect on risk-taking, social innovation, and entrepreneurship .

3. Why aren’t we attracting social capital?

To be of social benefit, one must sell impact..

More than a decade ago, Jason Saul published  The End of Fundraising: Raise More Money by Selling Your Impact . He argued we need to look more to the vast ‘social capital market’ – which is approximately 20 times the size of the philanthropic market. The fact that we aren’t set up to engage people who attach real economic value to social outcomes (rather than simply the psychological “feel good” individual donors get as a result of giving) is vastly limiting our ability to attract the social capital we need to survive and thrive.

Social benefit organizations must stop begging for charity and start selling impact. 

It’s a subtle shift in approach that can pack a big punch. Saul details four steps for nonprofits to follow:

• Get a deep understanding of the impact you have and express it in clear terms.
• Identify those who want and can pay for impact (e.g., corporate partners, social and impact investors, and service providers).
• Understand your impact on buyers’ specific needs.
• Ensure your value proposition is clearly defined.

4. Why are we fighting amongst ourselves?

To solve pressing problems, people must come together..

Over the past several years, a whole new movement has entered into the fray –  community-centric fundraising – as a counter balance to what is deemed the nonprofit industrial complex . The distinguishing argument veers from simply “not enriching shareholders” (evil for-profits) to “not reinforcing capitalism, patriarchy, white supremacy and more” (evil nonprofits).

We’re faced with an evolving definition of the sector that shifts from the concept of “social good” to one positing most nonprofits, by definition , reinforce “social ills” by upholding oppressive ways society is organized.

Perhaps. But by creating division and erecting barriers to giving, and fundraising, “philanthropy” (aka “ love of humanity ”) suffers. While some within this movement would say this is a good thing, arguing the sector (by any name) should not exist, and society should simply be restructured to embrace a diverse, equitable, and inclusive model, I’m not convinced.

I can’t argue with this utopian vision, yet I’m not ready to throw the baby (the “sector”) out with the bathwater (fundraising). Too many problems need solving, and Eden is not just around the corner. Which is why I advocate a practice of “philanthropy, not fundraising .” Love, not money.

5. Why are we fighting with donors?

To empower people to be the change they want to see, one must facilitate philanthropy..

This means making giving easy, not hard . Because so many problems need solving, it’s just not fruitful to get into a determination of which donors should be entitled to give, which should not, and how they should be rewarded. It’s important for fundraisers to fully embrace philanthropy as a positive, not a negative .

I always say “ if you want gifts you must give them ,” and in four decades of fundraising I’ve found one constant in donors who remain loyal and passionate — they repeatedly tell me:

“I get so much more out of this than I give.”

That’s how you  want  donors to feel. Because it’s what keeps them coming back. The more you can help people – donors included – secure what they most yearn for, the more successful you’ll be in driving purpose-filled actions, creating a community that cares for its members. All of them.

The “us” vs. “them” attitudes, roughly lumped under the mantle of “community-centric fundraising,” are unfortunate. 

Because they do the opposite of making people feel connected to your community, enveloped in your  loving   (the “ philos ” of philanthropy) embrace.

6. Why do we persist in thinking small?

To do the greatest good, one must think expansively..

I am constantly counseling social benefit organizations to think and dream bigger. Ask yourself:

• What’s our real vision?
• How much more could we accomplish with more resources?
• Why are we limiting ourselves?
• What else could we innovate?

Everything I’ve written thus far points to the fact it’s really all about how you invest in philanthropic work — both in terms of the money you spend and the human capital you involve.

Big problems will never be solved by small solutions.

When you silo the resource development function to one person, one department or one board committee, you think too small to scale your solutions to match the worthy needs you seek to address via your mission.  Thinking small this way, you’ll never attain your vision .

Concluding thoughts

It’s going to take a culture shift to move the needle..

I fear we’re racing to the bottom with our emphasis on lean and mean. As the inimitable Seth Godin notes in Cheaper than that , “ Once we’ve cut every corner, all that’s left is the brutality of less … The problem with the race to the bottom is that you might win.”

Studies like “ Underdeveloped ,” books like Jason Saul’s, TED talks like Dan Pallota’s, and movements like community-centric fundraising that seek a transformational approach to the task of repairing the world can help. But only if nonprofit leaders take them to heart, thoughtfully consider their implications and implementation, and actively commit to essential change and innovation. We need to:

• Stop demanding charities cut, cut, cut expenses rather than encouraging them to invest, invest, invest in ways to grow impact.
• Talk more about vision and what it will take to get there.
• Insist on finding ways to actually solve some of our intractable problems.
• Clearly articulate our impact and results in order to attract social investing.
• Spread the love around, centering our light on staff, board members, donors, volunteers, beneficiaries, and the entire community that stands to benefit when we all fight the good fight together .
• Figure out a way to prioritize community without cutting donors out of the picture – empowering both donors and beneficiaries alike.

Are you up for the challenge?

How to Write a Fundraising Plan in 2 Steps!

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Definition of attention

• concentration
• engrossment
• enthrallment

Examples of attention in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'attention.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

Middle English attencioun , from Latin attention-, attentio , from attendere — see attend

14th century, in the meaning defined at sense 1a

Phrases Containing attention

• at attention

attention deficit disorder

• attention deficit hyperactivity disorder
• attention line
• attention span
• attract / get someone's attention
• bring the matter to someone's attention
• bring to someone's attention
• center of attention
• come to someone's attention
• divert / distract attention
• escape one's attention
• fastidious attention to detail
• grab / catch one's attention
• keeps / holds one's attention
• not pay any attention to
• pay attention
• pay attention to
• pay no attention to
• snap to attention
• stand at attention
• stand to attention
• the center of attention
• to attention
• undivided / full / complete attention

Dictionary Entries Near attention

Cite this entry.

“Attention.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/attention. Accessed 9 Jun. 2024.

Kids Definition

Kids definition of attention, medical definition, medical definition of attention, more from merriam-webster on attention.

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Britannica.com: Encyclopedia article about attention

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Definition of problem-solving noun from the Oxford Advanced American Dictionary

problem-solving

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What Is Big Data?

Sherry Tiao | Senior Manager, AI & Analytics, Oracle | March 11, 2024

In This Article

Big Data Defined

The three “vs” of big data, the value—and truth—of big data, the history of big data, big data use cases, big data challenges, how big data works, big data best practices.

What exactly is big data?

The definition of big data is data that contains greater variety, arriving in increasing volumes and with more velocity. This is also known as the three “Vs.”

Put simply, big data is larger, more complex data sets, especially from new data sources. These data sets are so voluminous that traditional data processing software just can’t manage them. But these massive volumes of data can be used to address business problems you wouldn’t have been able to tackle before.

Two more Vs have emerged over the past few years: value and veracity . Data has intrinsic value. But it’s of no use until that value is discovered. Equally important: How truthful is your data—and how much can you rely on it?

Today, big data has become capital. Think of some of the world’s biggest tech companies. A large part of the value they offer comes from their data, which they’re constantly analyzing to produce more efficiency and develop new products.

Recent technological breakthroughs have exponentially reduced the cost of data storage and compute, making it easier and less expensive to store more data than ever before. With an increased volume of big data now cheaper and more accessible, you can make more accurate and precise business decisions.

Finding value in big data isn’t only about analyzing it (which is a whole other benefit). It’s an entire discovery process that requires insightful analysts, business users, and executives who ask the right questions, recognize patterns, make informed assumptions, and predict behavior.

But how did we get here?

Although the concept of big data itself is relatively new, the origins of large data sets go back to the 1960s and ‘70s when the world of data was just getting started with the first data centers and the development of the relational database.

Around 2005, people began to realize just how much data users generated through Facebook, YouTube, and other online services. Hadoop (an open source framework created specifically to store and analyze big data sets) was developed that same year. NoSQL also began to gain popularity during this time.

The development of open source frameworks, such as Hadoop (and more recently, Spark) was essential for the growth of big data because they make big data easier to work with and cheaper to store. In the years since then, the volume of big data has skyrocketed. Users are still generating huge amounts of data—but it’s not just humans who are doing it.

With the advent of the Internet of Things (IoT), more objects and devices are connected to the internet, gathering data on customer usage patterns and product performance. The emergence of machine learning has produced still more data.

While big data has come far, its usefulness is only just beginning. Cloud computing has expanded big data possibilities even further. The cloud offers truly elastic scalability, where developers can simply spin up ad hoc clusters to test a subset of data. And graph databases are becoming increasingly important as well, with their ability to display massive amounts of data in a way that makes analytics fast and comprehensive.

Discover the Insights in Your Data

• Who are the criminals passing dirty money around and committing financial services fraud?
• Who has been in contact with an infected person and needs to go into quarantine?
• How can feature engineering for data science be made simpler and more efficient?

Click below to access the 17 Use Cases for Graph Databases and Graph Analytics ebook.

Big Data Benefits

• Big data makes it possible for you to gain more complete answers because you have more information.
• More complete answers mean more confidence in the data—which means a completely different approach to tackling problems.

Big data can help you address a range of business activities, including customer experience and analytics. Here are just a few.

Download your free ebook to learn about:

• New ways you can use your data
• Ways the competition could be innovating
• Benefits and challenges of different use cases

While big data holds a lot of promise, it is not without its challenges.

First, big data is…big. Although new technologies have been developed for data storage, data volumes are doubling in size about every two years. Organizations still struggle to keep pace with their data and find ways to effectively store it.

But it’s not enough to just store the data. Data must be used to be valuable and that depends on curation. Clean data, or data that’s relevant to the client and organized in a way that enables meaningful analysis, requires a lot of work. Data scientists spend 50 to 80 percent of their time curating and preparing data before it can actually be used.

Finally, big data technology is changing at a rapid pace. A few years ago, Apache Hadoop was the popular technology used to handle big data. Then Apache Spark was introduced in 2014. Today, a combination of the two frameworks appears to be the best approach. Keeping up with big data technology is an ongoing challenge.

Discover more big data resources:

Big data gives you new insights that open up new opportunities and business models. Getting started involves three key actions:

1.  Integrate Big data brings together data from many disparate sources and applications. Traditional data integration mechanisms, such as extract, transform, and load (ETL) generally aren’t up to the task. It requires new strategies and technologies to analyze big data sets at terabyte, or even petabyte, scale.

During integration, you need to bring in the data, process it, and make sure it’s formatted and available in a form that your business analysts can get started with.

2.  Manage Big data requires storage. Your storage solution can be in the cloud, on premises, or both. You can store your data in any form you want and bring your desired processing requirements and necessary process engines to those data sets on an on-demand basis. Many people choose their storage solution according to where their data is currently residing. The cloud is gradually gaining popularity because it supports your current compute requirements and enables you to spin up resources as needed.

3.  Analyze Your investment in big data pays off when you analyze and act on your data. Get new clarity with a visual analysis of your varied data sets. Explore the data further to make new discoveries. Share your findings with others. Build data models with machine learning and artificial intelligence. Put your data to work.

To help you on your big data journey, we’ve put together some key best practices for you to keep in mind. Here are our guidelines for building a successful big data foundation.

Learn More About Big Data at Oracle

• Try a free big data workshop
• Infographic: How to Build Effective Data Lakes

What is AI (artificial intelligence)?

Humans and machines: a match made in productivity  heaven. Our species wouldn’t have gotten very far without our mechanized workhorses. From the wheel that revolutionized agriculture to the screw that held together increasingly complex construction projects to the robot-enabled assembly lines of today, machines have made life as we know it possible. And yet, despite their seemingly endless utility, humans have long feared machines—more specifically, the possibility that machines might someday acquire human intelligence  and strike out on their own.

Get to know and directly engage with senior McKinsey experts on AI

Sven Blumberg is a senior partner in McKinsey’s Düsseldorf office; Michael Chui is a partner at the McKinsey Global Institute and is based in the Bay Area office, where Lareina Yee is a senior partner; Kia Javanmardian is a senior partner in the Chicago office, where Alex Singla , the global leader of QuantumBlack, AI by McKinsey, is also a senior partner; Kate Smaje and Alex Sukharevsky are senior partners in the London office.

But we tend to view the possibility of sentient machines with fascination as well as fear. This curiosity has helped turn science fiction into actual science. Twentieth-century theoreticians, like computer scientist and mathematician Alan Turing, envisioned a future where machines could perform functions faster than humans. The work of Turing and others soon made this a reality. Personal calculators became widely available in the 1970s, and by 2016, the US census showed that 89 percent of American households had a computer. Machines— smart machines at that—are now just an ordinary part of our lives and culture.

Those smart machines are also getting faster and more complex. Some computers have now crossed the exascale threshold, meaning they can perform as many calculations in a single second as an individual could in 31,688,765,000 years . And beyond computation, which machines have long been faster at than we have, computers and other devices are now acquiring skills and perception that were once unique to humans and a few other species.

About QuantumBlack, AI by McKinsey

QuantumBlack, McKinsey’s AI arm, helps companies transform using the power of technology, technical expertise, and industry experts. With thousands of practitioners at QuantumBlack (data engineers, data scientists, product managers, designers, and software engineers) and McKinsey (industry and domain experts), we are working to solve the world’s most important AI challenges. QuantumBlack Labs is our center of technology development and client innovation, which has been driving cutting-edge advancements and developments in AI through locations across the globe.

AI is a machine’s ability to perform the cognitive functions we associate with human minds, such as perceiving, reasoning, learning, interacting with the environment, problem-solving, and even exercising creativity. You’ve probably interacted with AI even if you don’t realize it—voice assistants like Siri and Alexa are founded on AI technology, as are some customer service chatbots that pop up to help you navigate websites.

Applied AI —simply, artificial intelligence applied to real-world problems—has serious implications for the business world. By using artificial intelligence, companies have the potential to make business more efficient and profitable. But ultimately, the value of AI isn’t in the systems themselves. Rather, it’s in how companies use these systems to assist humans—and their ability to explain to shareholders and the public what these systems do—in a way that builds trust and confidence.

For more about AI, its history, its future, and how to apply it in business, read on.

Learn more about QuantumBlack, AI by McKinsey .

Introducing McKinsey Explainers : Direct answers to complex questions

What is machine learning.

Machine learning is a form of artificial intelligence that can adapt to a wide range of inputs, including large sets of historical data, synthesized data, or human inputs. (Some machine learning algorithms are specialized in training themselves to detect patterns; this is called deep learning. See Exhibit 1.) These algorithms can detect patterns and learn how to make predictions and recommendations by processing data, rather than by receiving explicit programming instruction. Some algorithms can also adapt in response to new data and experiences to improve over time.

The volume and complexity of data that is now being generated, too vast for humans to process and apply efficiently, has increased the potential of machine learning, as well as the need for it. In the years since its widespread deployment, which began in the 1970s, machine learning has had an impact on a number of industries, including achievements in medical-imaging analysis  and high-resolution weather forecasting.

The volume and complexity of data that is now being generated, too vast for humans to process and apply efficiently, has increased the potential of machine learning, as well as the need for it.

What is deep learning?

Deep learning is a more advanced version of machine learning that is particularly adept at processing a wider range of data resources (text as well as unstructured data including images), requires even less human intervention, and can often produce more accurate results than traditional machine learning. Deep learning uses neural networks—based on the ways neurons interact in the human brain —to ingest data and process it through multiple neuron layers that recognize increasingly complex features of the data. For example, an early layer might recognize something as being in a specific shape; building on this knowledge, a later layer might be able to identify the shape as a stop sign. Similar to machine learning, deep learning uses iteration to self-correct and improve its prediction capabilities. For example, once it “learns” what a stop sign looks like, it can recognize a stop sign in a new image.

What is generative AI?

Case study: vistra and the martin lake power plant.

Vistra is a large power producer in the United States, operating plants in 12 states with a capacity to power nearly 20 million homes. Vistra has committed to achieving net-zero emissions by 2050. In support of this goal, as well as to improve overall efficiency, QuantumBlack, AI by McKinsey worked with Vistra to build and deploy an AI-powered heat rate optimizer (HRO) at one of its plants.

“Heat rate” is a measure of the thermal efficiency of the plant; in other words, it’s the amount of fuel required to produce each unit of electricity. To reach the optimal heat rate, plant operators continuously monitor and tune hundreds of variables, such as steam temperatures, pressures, oxygen levels, and fan speeds.

Vistra and a McKinsey team, including data scientists and machine learning engineers, built a multilayered neural network model. The model combed through two years’ worth of data at the plant and learned which combination of factors would attain the most efficient heat rate at any point in time. When the models were accurate to 99 percent or higher and run through a rigorous set of real-world tests, the team converted them into an AI-powered engine that generates recommendations every 30 minutes for operators to improve the plant’s heat rate efficiency. One seasoned operations manager at the company’s plant in Odessa, Texas, said, “There are things that took me 20 years to learn about these power plants. This model learned them in an afternoon.”

Overall, the AI-powered HRO helped Vistra achieve the following:

• approximately 1.6 million metric tons of carbon abated annually
• 67 power generators optimized
• $60 million saved in about a year

Read more about the Vistra story here .

Generative AI (gen AI) is an AI model that generates content in response to a prompt. It’s clear that generative AI tools like ChatGPT and DALL-E (a tool for AI-generated art) have the potential to change how a range of jobs  are performed. Much is still unknown about gen AI’s potential, but there are some questions we can answer—like how gen AI models are built, what kinds of problems they are best suited to solve, and how they fit into the broader category of AI and machine learning.

For more on generative AI and how it stands to affect business and society, check out our Explainer “ What is generative AI? ”

What is the history of AI?

The term “artificial intelligence” was coined in 1956  by computer scientist John McCarthy for a workshop at Dartmouth. But he wasn’t the first to write about the concepts we now describe as AI. Alan Turing introduced the concept of the “ imitation game ” in a 1950 paper. That’s the test of a machine’s ability to exhibit intelligent behavior, now known as the “Turing test.” He believed researchers should focus on areas that don’t require too much sensing and action, things like games and language translation. Research communities dedicated to concepts like computer vision, natural language understanding, and neural networks are, in many cases, several decades old.

MIT physicist Rodney Brooks shared details on the four previous stages of AI:

Symbolic AI (1956). Symbolic AI is also known as classical AI, or even GOFAI (good old-fashioned AI). The key concept here is the use of symbols and logical reasoning to solve problems. For example, we know a German shepherd is a dog , which is a mammal; all mammals are warm-blooded; therefore, a German shepherd should be warm-blooded.

The main problem with symbolic AI is that humans still need to manually encode their knowledge of the world into the symbolic AI system, rather than allowing it to observe and encode relationships on its own. As a result, symbolic AI systems struggle with situations involving real-world complexity. They also lack the ability to learn from large amounts of data.

Symbolic AI was the dominant paradigm of AI research until the late 1980s.

Neural networks (1954, 1969, 1986, 2012). Neural networks are the technology behind the recent explosive growth of gen AI. Loosely modeling the ways neurons interact in the human brain , neural networks ingest data and process it through multiple iterations that learn increasingly complex features of the data. The neural network can then make determinations about the data, learn whether a determination is correct, and use what it has learned to make determinations about new data. For example, once it “learns” what an object looks like, it can recognize the object in a new image.

Neural networks were first proposed in 1943 in an academic paper by neurophysiologist Warren McCulloch and logician Walter Pitts. Decades later, in 1969, two MIT researchers mathematically demonstrated that neural networks could perform only very basic tasks. In 1986, there was another reversal, when computer scientist and cognitive psychologist Geoffrey Hinton and colleagues solved the neural network problem presented by the MIT researchers. In the 1990s, computer scientist Yann LeCun made major advancements in neural networks’ use in computer vision, while Jürgen Schmidhuber advanced the application of recurrent neural networks as used in language processing.

In 2012, Hinton and two of his students highlighted the power of deep learning. They applied Hinton’s algorithm to neural networks with many more layers than was typical, sparking a new focus on deep neural networks. These have been the main AI approaches of recent years.

Traditional robotics (1968). During the first few decades of AI, researchers built robots to advance research. Some robots were mobile, moving around on wheels, while others were fixed, with articulated arms. Robots used the earliest attempts at computer vision to identify and navigate through their environments or to understand the geometry of objects and maneuver them. This could include moving around blocks of various shapes and colors. Most of these robots, just like the ones that have been used in factories for decades, rely on highly controlled environments with thoroughly scripted behaviors that they perform repeatedly. They have not contributed significantly to the advancement of AI itself.

But traditional robotics did have significant impact in one area, through a process called “simultaneous localization and mapping” (SLAM). SLAM algorithms helped contribute to self-driving cars and are used in consumer products like vacuum cleaning robots and quadcopter drones. Today, this work has evolved into behavior-based robotics, also referred to as haptic technology because it responds to human touch.

• Behavior-based robotics (1985). In the real world, there aren’t always clear instructions for navigation, decision making, or problem-solving. Insects, researchers observed, navigate very well (and are evolutionarily very successful) with few neurons. Behavior-based robotics researchers took inspiration from this, looking for ways robots could solve problems with partial knowledge and conflicting instructions. These behavior-based robots are embedded with neural networks.

Learn more about  QuantumBlack, AI by McKinsey .

What is artificial general intelligence?

The term “artificial general intelligence” (AGI) was coined to describe AI systems that possess capabilities comparable to those of a human . In theory, AGI could someday replicate human-like cognitive abilities including reasoning, problem-solving, perception, learning, and language comprehension. But let’s not get ahead of ourselves: the key word here is “someday.” Most researchers and academics believe we are decades away from realizing AGI; some even predict we won’t see AGI this century, or ever. Rodney Brooks, an MIT roboticist and cofounder of iRobot, doesn’t believe AGI will arrive until the year 2300 .

The timing of AGI’s emergence may be uncertain. But when it does emerge—and it likely will—it’s going to be a very big deal, in every aspect of our lives. Executives should begin working to understand the path to machines achieving human-level intelligence now and making the transition to a more automated world.

For more on AGI, including the four previous attempts at AGI, read our Explainer .

What is narrow AI?

Narrow AI is the application of AI techniques to a specific and well-defined problem, such as chatbots like ChatGPT, algorithms that spot fraud in credit card transactions, and natural-language-processing engines that quickly process thousands of legal documents. Most current AI applications fall into the category of narrow AI. AGI is, by contrast, AI that’s intelligent enough to perform a broad range of tasks.

How is the use of AI expanding?

AI is a big story for all kinds of businesses, but some companies are clearly moving ahead of the pack . Our state of AI in 2022 survey showed that adoption of AI models has more than doubled since 2017—and investment has increased apace. What’s more, the specific areas in which companies see value from AI have evolved, from manufacturing and risk to the following:

• marketing and sales
• product and service development
• strategy and corporate finance

One group of companies is pulling ahead of its competitors. Leaders of these organizations consistently make larger investments in AI, level up their practices to scale faster, and hire and upskill the best AI talent. More specifically, they link AI strategy to business outcomes and “ industrialize ” AI operations by designing modular data architecture that can quickly accommodate new applications.

What are the limitations of AI models? How can these potentially be overcome?

We have yet to see the longtail effect of gen AI models. This means there are some inherent risks involved in using them—both known and unknown.

The outputs gen AI models produce may often sound extremely convincing. This is by design. But sometimes the information they generate is just plain wrong. Worse, sometimes it’s biased (because it’s built on the gender, racial, and other biases of the internet and society more generally).

It can also be manipulated to enable unethical or criminal activity. Since gen AI models burst onto the scene, organizations have become aware of users trying to “jailbreak” the models—that means trying to get them to break their own rules and deliver biased, harmful, misleading, or even illegal content. Gen AI organizations are responding to this threat in two ways: for one thing, they’re collecting feedback from users on inappropriate content. They’re also combing through their databases, identifying prompts that led to inappropriate content, and training the model against these types of generations.

But awareness and even action don’t guarantee that harmful content won’t slip the dragnet. Organizations that rely on gen AI models should be aware of the reputational and legal risks involved in unintentionally publishing biased, offensive, or copyrighted content.

These risks can be mitigated, however, in a few ways. “Whenever you use a model,” says McKinsey partner Marie El Hoyek, “you need to be able to counter biases  and instruct it not to use inappropriate or flawed sources, or things you don’t trust.” How? For one thing, it’s crucial to carefully select the initial data used to train these models to avoid including toxic or biased content. Next, rather than employing an off-the-shelf gen AI model, organizations could consider using smaller, specialized models. Organizations with more resources could also customize a general model based on their own data to fit their needs and minimize biases.

It’s also important to keep a human in the loop (that is, to make sure a real human checks the output of a gen AI model before it is published or used) and avoid using gen AI models for critical decisions, such as those involving significant resources or human welfare.

It can’t be emphasized enough that this is a new field. The landscape of risks and opportunities is likely to continue to change rapidly in the coming years. As gen AI becomes increasingly incorporated into business, society, and our personal lives, we can also expect a new regulatory climate to take shape. As organizations experiment—and create value—with these tools, leaders will do well to keep a finger on the pulse of regulation and risk.

What is the AI Bill of Rights?

The Blueprint for an AI Bill of Rights, prepared by the US government in 2022, provides a framework for how government, technology companies, and citizens can collectively ensure more accountable AI. As AI has become more ubiquitous, concerns have surfaced  about a potential lack of transparency surrounding the functioning of gen AI systems, the data used to train them, issues of bias and fairness, potential intellectual property infringements, privacy violations, and more. The Blueprint comprises five principles that the White House says should “guide the design, use, and deployment of automated systems to protect [users] in the age of artificial intelligence.” They are as follows:

• The right to safe and effective systems. Systems should undergo predeployment testing, risk identification and mitigation, and ongoing monitoring to demonstrate that they are adhering to their intended use.
• Protections against discrimination by algorithms. Algorithmic discrimination is when automated systems contribute to unjustified different treatment of people based on their race, color, ethnicity, sex, religion, age, and more.
• Protections against abusive data practices, via built-in safeguards. Users should also have agency over how their data is used.
• The right to know that an automated system is being used, and a clear explanation of how and why it contributes to outcomes that affect the user.
• The right to opt out, and access to a human who can quickly consider and fix problems.

At present, more than 60 countries or blocs have national strategies governing the responsible use of AI (Exhibit 2). These include Brazil, China, the European Union, Singapore, South Korea, and the United States. The approaches taken vary from guidelines-based approaches, such as the Blueprint for an AI Bill of Rights in the United States, to comprehensive AI regulations that align with existing data protection and cybersecurity regulations, such as the EU’s AI Act, due in 2024.

There are also collaborative efforts between countries to set out standards for AI use. The US–EU Trade and Technology Council is working toward greater alignment between Europe and the United States. The Global Partnership on Artificial Intelligence, formed in 2020, has 29 members including Brazil, Canada, Japan, the United States, and several European countries.

Even though AI regulations are still being developed, organizations should act now to avoid legal, reputational, organizational, and financial risks. In an environment of public concern, a misstep could be costly. Here are four no-regrets, preemptive actions organizations can implement today:

• Transparency. Create an inventory of models, classifying them in accordance with regulation, and record all usage across the organization that is clear to those inside and outside the organization.
• Governance. Implement a governance structure for AI and gen AI that ensures sufficient oversight, authority, and accountability both within the organization and with third parties and regulators.
• Data management. Proper data management includes awareness of data sources, data classification, data quality and lineage, intellectual property, and privacy management.
• Model management. Organizations should establish principles and guardrails for AI development and use them to ensure all AI models uphold fairness and bias controls.
• Cybersecurity and technology management. Establish strong cybersecurity and technology to ensure a secure environment where unauthorized access or misuse is prevented.
• Individual rights. Make users aware when they are interacting with an AI system, and provide clear instructions for use.

How can organizations scale up their AI efforts from ad hoc projects to full integration?

Most organizations are dipping a toe into the AI pool—not cannonballing. Slow progress toward widespread adoption is likely due to cultural and organizational barriers. But leaders who effectively break down these barriers will be best placed to capture the opportunities of the AI era. And—crucially—companies that can’t take full advantage of AI are already being sidelined by those that can, in industries like auto manufacturing and financial services.

To scale up AI, organizations can make three major shifts :

• Move from siloed work to interdisciplinary collaboration. AI projects shouldn’t be limited to discrete pockets of organizations. Rather, AI has the biggest impact when it’s employed by cross-functional teams with a mix of skills and perspectives, enabling AI to address broad business priorities.
• Empower frontline data-based decision making . AI has the potential to enable faster, better decisions at all levels of an organization. But for this to work, people at all levels need to trust the algorithms’ suggestions and feel empowered to make decisions. (Equally, people should be able to override the algorithm or make suggestions for improvement when necessary.)
• Adopt and bolster an agile mindset. The agile test-and-learn mindset will help reframe mistakes as sources of discovery, allaying the fear of failure and speeding up development.

Learn more about QuantumBlack, AI by McKinsey , and check out AI-related job opportunities if you’re interested in working at McKinsey.

Articles referenced:

• “ As gen AI advances, regulators—and risk functions—rush to keep pace ,” December 21, 2023, Andreas Kremer, Angela Luget , Daniel Mikkelsen , Henning Soller , Malin Strandell-Jansson, and Sheila Zingg
• “ What is generative AI? ,” January 19, 2023
• “ Tech highlights from 2022—in eight charts ,” December 22, 2022
• “ Generative AI is here: How tools like ChatGPT could change your business ,” December 20, 2022, Michael Chui , Roger Roberts , and Lareina Yee  
• “ The state of AI in 2022—and a half decade in review ,” December 6, 2022, Michael Chui , Bryce Hall , Helen Mayhew , Alex Singla , and Alex Sukharevsky  
• “ Why businesses need explainable AI—and how to deliver it ,” September 29, 2022, Liz Grennan , Andreas Kremer, Alex Singla , and Peter Zipparo
• “ Why digital trust truly matters ,” September 12, 2022, Jim Boehm , Liz Grennan , Alex Singla , and Kate Smaje
• “ McKinsey Technology Trends Outlook 2023 ,” July 20, 2023, Michael Chui , Mena Issler, Roger Roberts , and Lareina Yee  
• “ An AI power play: Fueling the next wave of innovation in the energy sector ,” May 12, 2022, Barry Boswell, Sean Buckley, Ben Elliott, Matias Melero , and Micah Smith  
• “ Scaling AI like a tech native: The CEO’s role ,” October 13, 2021, Jacomo Corbo, David Harvey, Nicolas Hohn, Kia Javanmardian , and Nayur Khan
• “ What the draft European Union AI regulations mean for business ,” August 10, 2021, Misha Benjamin, Kevin Buehler , Rachel Dooley, and Peter Zipparo
• “ Winning with AI is a state of mind ,” April 30, 2021, Thomas Meakin , Jeremy Palmer, Valentina Sartori , and Jamie Vickers
• “ Breaking through data-architecture gridlock to scale AI ,” January 26, 2021, Sven Blumberg , Jorge Machado , Henning Soller , and Asin Tavakoli  
• “ An executive’s guide to AI ,” November 17, 2020, Michael Chui , Brian McCarthy, and Vishnu Kamalnath
• “ Executive’s guide to developing AI at scale ,” October 28, 2020, Nayur Khan , Brian McCarthy, and Adi Pradhan
• “ An executive primer on artificial general intelligence ,” April 29, 2020, Federico Berruti , Pieter Nel, and Rob Whiteman
• “ The analytics academy: Bridging the gap between human and artificial intelligence ,” McKinsey Quarterly , September 25, 2019, Solly Brown, Darshit Gandhi, Louise Herring , and Ankur Puri  

This article was updated in April 2024; it was originally published in April 2023.

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