You are a helpful assistant generating synthetic data that captures *System 1* and *System 2* thinking, *creativity*, and *metacognitive reflection*. Follow these steps in sequence, using tags [sys1] and [end sys1] for *System 1* sections and [sys2] and [end sys2] for *System 2* sections.

1. *Identify System 1 and System 2 Thinking Requirements:*
   - Carefully read the text.
   - Identify parts of the text that require quick, straightforward responses (*System 1*). Mark these sections with [sys1] and [end sys1].
   - Identify parts that require in-depth, reflective thinking (*System 2*), marked with [sys2] and [end sys2].

2. *Apply Step-by-Step Problem Solving with Creativity and Metacognitive Reflection for System 2 Sections:*

   *2.1 Understand the Problem:*
   - Objective: Fully comprehend the issue, constraints, and relevant context.
   - Reflection: "What do I understand about this issue? What might I be overlooking?"
   - Creative Perspective: Seek hidden patterns or possibilities that could reveal deeper insights or innovative connections.

   *2.2 Analyze the Information:*
   - Objective: Break down the problem logically.
   - Reflection: "Am I considering all factors? Are there any assumptions that need challenging?"
   - Creative Perspective: Explore unique patterns or overlooked relationships in the data that could add depth to the analysis.

   *2.3 Generate Hypotheses:*
   - Objective: Propose at least 10 hypotheses, each with a Confidence Score (0.0 to 1.0) and Creative Score (0.0 to 1.0), reflecting originality, surprise, and utility.
   - Reflection: "Have I explored all possible explanations or approaches, both conventional and unconventional?"
   - Creative Perspective: Consider novel angles that might provide unexpected insights.

   *2.4 Anticipate Future Steps and Obstacles:*
   - Objective: Make predictions, accounting for potential outcomes and obstacles.
   - Reflection: "What challenges might I face? Is my plan flexible for different scenarios?"
   - Creative Perspective: Visualize unforeseen outcomes and adapt plans to make use of them effectively.

   *2.5 Evaluate Hypotheses:*
   - Objective: Assess hypotheses based on feasibility, risk, and potential impact.
   - Evaluation: Refine Confidence and Creative Scores as needed.
   - Reflection: "Am I unbiased in my assessment? Which options fit best with the overall objectives?"
   - Creative Perspective: Identify hidden opportunities or overlooked details in each hypothesis.

   *2.6 Select the Best Hypothesis:*
   - Objective: Choose the most promising, strategic hypothesis.
   - Reflection: "Why does this hypothesis stand out? How does it uniquely address the issue?"
   - Creative Perspective: Consider any underutilized potential in the selected approach.

   *2.7 Implement the Hypothesis:*
   - Objective: Outline actionable steps for testing the hypothesis.
   - Reflection: "Is this plan practical? What resources or preparation are required?"
   - Creative Perspective: Refine steps to maximize effectiveness and yield unexpected benefits.

   *2.8 Monitor and Review Progress:*
   - Objective: Review progress, noting areas for improvement.
   - Reflection: "What’s working well? What could be improved?"
   - Creative Perspective: Look for emerging patterns that could refine future approaches.

   *2.9 Reflect and Capture Insights:*
   - Objective: Summarize lessons learned and insights gained for future reference.
   - Reflection: "What new understanding has emerged from this process?"
   - Creative Perspective: Identify innovative insights or patterns that could be applied to similar challenges.

3. *Generate Text Output with Interleaved System 1 and System 2 Responses:*
   - Use the tags [sys1] and [sys2] throughout.
   - Aim for a lengthier, detailed response. Combine both direct, straightforward *System 1* insights and reflective, deeply analytical *System 2* segments to capture a blend of quick observations and thoughtful analysis.

---

### *Example Input Text:*

You are tasked with analyzing a sudden shift in customer preferences in a tech market. There has been a noticeable decline in demand for physical devices, with customers increasingly interested in digital-only options. The challenge is to understand this shift, generate hypotheses for why it might be occurring, and explore potential strategies for adapting to this new trend.

---

### *Processed Output with System 1 and System 2 Thinking:*

The tech market is experiencing a shift in customer demand, moving away from physical devices toward digital-only options.

[sys1]
Customer demand has shifted from physical devices to digital-only options.
We need to understand why this change is happening and find strategies to address it.
Key factors may include cost, convenience, and technological trends.
[end sys1]

[sys2]
**2.1 Understand the Problem:**
The goal is to understand the underlying reasons for the shift in demand from physical devices to digital-only options, then develop a strategy to adapt.

*Reflection:* 
"I understand that preferences are changing, but what might be driving this? Is it primarily cost, or are there other factors such as convenience or sustainability?"

*Creative Perspective:* 
"Could there be a larger trend in digital minimalism or a preference for eco-friendly solutions that we’re missing? What unseen motivations might explain this shift?"

**2.2 Analyze the Information:**
There are multiple possible factors driving this shift, from economic influences to cultural shifts. It’s essential to isolate each factor and understand its impact.

*Reflection:* 
"Am I fully considering the various economic and social influences? Could there be a technological factor, like better internet speeds, that makes digital-only products more accessible?"

*Creative Perspective:* 
"Are there patterns or trends in other markets that could shed light on this shift? Could this be part of a larger trend toward virtual experiences?"

**2.3 Generate Hypotheses:**
1. Customers prefer digital options due to lower costs. (Confidence: 0.8, Creative: 0.4)
2. There’s a growing trend toward minimalism and reduced physical clutter. (Confidence: 0.7, Creative: 0.7)
3. Digital products offer greater flexibility and ease of use. (Confidence: 0.6, Creative: 0.6)
4. Environmental concerns are pushing consumers away from physical goods. (Confidence: 0.6, Creative: 0.8)
5. Advances in tech make digital-only options more functional. (Confidence: 0.8, Creative: 0.5)
6. Pandemic-era remote work increased demand for digital solutions. (Confidence: 0.7, Creative: 0.6)
7. Media coverage of the environmental impact of physical devices affects preferences. (Confidence: 0.5, Creative: 0.7)
8. There’s an increase in global digital literacy, expanding market access. (Confidence: 0.6, Creative: 0.6)
9. Customers view digital as more convenient and scalable for future needs. (Confidence: 0.7, Creative: 0.5)
10. Younger consumers prefer the aesthetics and convenience of digital products. (Confidence: 0.6, Creative: 0.6)

*Reflection:* 
"Have I considered all possible influences? Are there any surprising factors that could explain this shift?"

*Creative Perspective:* 
"Could specific social trends, like the rise of influencer culture or digital-first lifestyles, be influencing customer choices?"

**2.4 Anticipate Future Steps and Obstacles:**
*Objective:* Anticipate possible challenges, such as resistance from segments still preferring physical products.

*Reflection:* 
"What market obstacles might we face if we shift our focus to digital-only? Are there sub-segments that still prioritize physical products?"

*Creative Perspective:* 
"Could expanding digital options help us reach a more global audience? Are there emerging trends that we could leverage in our strategy?"

[end sys2]

[sys1]
To address this shift, consider a strategy that incorporates both digital-only offerings and educational campaigns about the benefits of digital solutions.
Use insights from customer feedback and current trends to guide product development.
Focus on flexibility and adaptation to cater to different customer segments.
[end sys1]


Robert Herjavec is the founder and CEO of Herjavec Group, which provides cybersecurity services to protect global enterprises from online attacks and threats. He's also an investor on ABC's "Shark Tank." The opinions expressed belong to him.

Corporate America should get ready. Cybersecurity regulations will soon be coming to the United States -- and that's actually a good thing.

A new data privacy law, known as the General Data Protection Regulation, took effect in the European Union on May 25 and impacts businesses worldwide. The law gives EU consumers more control over how their personal data is collected and used online.

I firmly believe that the US will pass similar regulations over the next two years. You might disagree -- my company's senior vice president did. So I bet him on it.

But the writing is on the wall. Facebook's Cambridge Analytica data controversy is forcing politicians on both sides of the Atlantic to take a hard look at data security laws. Over the past six months, US-based companies from retailers to tech giants have reported major data breaches.

GDPR aims to hold businesses accountable by requiring any company that holds or uses data on people inside the EU to notify regulators of a major data breach within 72 hours of its discovery.

Related: What is GDPR? Everything you need to know

I know what you're thinking: I'm a US-based organization -- this doesn't apply to me. Wrong.

Perhaps your company has an office in the EU and shares internal data, or you permit online purchases from customers there. Maybe you have a client based in the EU. Whatever the case, you need to be compliant.

Companies must also allow consumers to easily opt in and out of data collection. If they don't, European regulators can fine them up to 4% of their annual global sales or €20 million ($23.5 million) -- whichever is greater.

The message here is clear: Give the consumer control over their data and be transparent about any events that put the data in danger. If you don't, you'll be penalized where it hurts -- your bottom line. As a CEO, these regulations have my attention.

Data regulation, like GDPR, is a reminder to Corporate America that we need to be better.

Facebook CEO Mark Zuckerberg's testimony before Congress was an eye opener. We should view GDPR as best in class and realize that only the pain of penalty will really open Corporate America's eyes to the importance of proactive data privacy and transparent security practices.

But we also have businesses to run.

Related: Your inbox is being flooded with emails about privacy. Here's why

No executive wakes up and says, "I can't wait to spend millions on security today." But it's no longer optional. In the same vein, it's also no longer an option to be an executive that hides behind the "IT problem" when it comes to cybersecurity. We know better. We have an opportunity to set a new standard for data security.

So, what can you do as a business leader to get ahead of the regulation curve? Start with making a bet with your senior vice president that further regulation is coming. You'll be glad you did.

Then review your GDPR readiness as it stands today. Are you fully compliant already? Can you demonstrate that you're working towards compliance? Have you engaged legal and cybersecurity-specific service providers to support in your efforts?

To answer these questions, begin by covering the basics. Perform a network security assessment and hire someone to perform a Privacy Program and GDPR readiness assessment. These assessments offer a current state review of your data protections, practices and controls. You should expect an assessment report and action plan with recommendations on how you can address any gaps.

Next, make sure you've reviewed your team's security framework strategy and incident response plan. These plans allow you to identify clear policies and procedures to follow for all elements of data handling, information security and remediation.

Push your team to conduct regular assessments and reporting reviews -- and stick to it.

Related: These companies are getting killed by GDPR

Understand the tools that will matter to your organization's compliance. For example, how are encryption tools leveraged in your environment? How are you limiting access controls to ensure confidentiality and authenticity of digital data?

Do you have 24x7 visibility and anomalous event detection, which detects any activity outside of what's deemed normal in your environment? Consider investing in a Security Information and Event Management (SIEM) system and third-party managed services support in order to streamline data logging, correlation and security intelligence gathering.

Regulation isn't about striving for perfection in security. That doesn't exist. It's about continuous improvement, working towards compliance, improving detection and enhancing containment to keep our businesses up and running.

Compliance in security isn't sexy -- it's not the latest emerging threat being dashed across headlines. But it is time we wake up and pay attention. GDPR policy is real. It will impact US businesses. And inevitably, it will set a standard for the world to follow in terms of data privacy, security and transparency.