i. The Intelligent System has a temporary objective, that it has derived from its main objective.
ii. It senses its environment, although we have to realize that it has only a few senses and that these can only capture, for instance, light and sound of an object, but can not capture or know the object itself.
iii. The system then stores these sense impressions as elementary concepts. Concepts are a material way of storing information. Working on concepts creates new ones and stores relationships to other total, part, abstract and concrete concepts. Of course, there is a difference between an object or occurrence in the environment, the concept the system uses for its internal processing, and the word it uses to communicate the concept. To continue with the internal processes, in more intelligent systems there should now be a check of the incoming information.