that's correct, flow goes that way.
Normally you shoul open up center of the filter by cutting bigger hole in top of the filter. Usually on my 800 (different filter, same principle) I am cutting following pressed edge
Attached is photo where I marked cut. This is not ideal, because you actually creating unstable airflow on that sharp edge, but it is still better than stock. To make it nicer it is recommended to actually use some kind of "flow smoothener" on that metal edge, for example that stuff that used on windscreens on bikes, the round edging rubber.
Then you need to get intake to match inlet of modified filter - no point opening up filter if intake still restrictive.
As far as I remember on 750 air intake is under left side plastick cover and has snorkel, correct?