Types of Problems in Business and Their Advantages

What are the benefits of problem-solving? Before we move on to the video, let’s ask ourselves why it is so important for us to understand this. It is because problems help us see patterns to human needs and create innovations that impact people at scale. Whether it is the new home decor lab by IKEA or a virtual showroom by Diesel, all entail the ability of a team to discover patterns and seize an opportunity.

Now, let’s proceed to the video and learn from our expert:

In conclusion, you learnt about the advantages of problem-solving. In the video, our expert, Prashanth, gave you a brief overview of the five key advantages of problem-solving, which can help you accelerate your career in a firm. 

1. Problem-solving helps you fix things that are broken.
2. It enables you to address risks proactively and foresee potential pitfalls in the future. 
3. It helps you seize opportunities disguised as challenges. 
4. It enables you to improve your professional performance. 
5. It helps you advance your career since firms prefer people with solution-oriented thinking. 

In the video, Prashanth also refers to the book “Problem Solving: The Owner's Manual”, by Pierce Howard, to highlight the different types of problems, as shown below. 

1. Problems with unknown causes 
2. Problems with irrelevant causes 
3. Problems with known solutions but uncertain outcomes 
4. Problems with known solutions but certain outcomes 

In the upcoming video, you will learn about the types of business problems in the digital age:

Let's quickly summarise the key takeaways from this video:

You need to weigh the pros and cons, as well as the cause and the effect created, in order to understand the type of problem at hand. 

There are several archetypes of problems that you are likely to encounter in business. In the video, Prashanth uses various examples to define these types of problems. These types are:

1. Increasing the profitability of the business 
2. The challenge of growth 
3. The efficiency of the value chain
4. Improving customer experience
5. Conducting mergers and acquisitions

So, now that you have learnt about the various types of problems, in the next segment, you will learn about the different types of problem-solving and the skills required to be a good problem solver.