There are many definitions of what an insight is, and a few useful ones. An insight can be a novel revelation that leads to unexpected ideas. An insight can also be a perception of a unique opportunity that exists in the marketplace at a particular time. Finally, an insight is an understanding of how things work — the causal rules that govern a particular system.
We need to understand these causal rules in order to make tools that are effective within the system:
Scientists have noted that animals that exhibit higher intelligence have two notable descriptive differences. First, these animals are capable of using tools. Second, they tend to live in complex social structures.
One simple model for the process of intelligence in the creation and use of tools is illustrated in the upper row of boxes in [the chart]. Here, the first step is to make sense of reality. By making sense of reality, simple causal relationships can be understood. This understanding of causality, in turn, allows for prediction and finally the use of tools.
The chain, while simple, is extremely powerful. It has led to ravens using simple tools, to early man creating stone weapons and wheels, and eventually to modern man creating the Large Hadron Collider.
The Sense-Making Process and Its Side Effects, from Systems Thinking In Business by Rich Jolly