[MUSIC] Creativity is my passion. It's all my life. I run probably, I know, 1,500 brainstorms in, in so many years. Some of them were, for me, real milestones. And I have this souvenir, something happened 15 years ago. There was good session, people were pleased, and at the end, one person came to me, ask me, look, dozen of times, you talk about out of the box. Could you please tell me, exactly, what is a box? And honestly, I was not proud. I didn't have good answer to the question, but I immediately felt this is a question I need to answer. And, it was so important, it nearly change the way I, I run session. And I don't run session today, like I did 20 years ago. The box is a good question. What's the box, in the end? Box don't exist in reality. You can not buy a box, you can not see a box, you can not build a box. Boxes are here. And, in the end a box is a mental model. In this expression, creative thinking for many, many years I was convinced the key word was creative. Today I'm convinced this is not true. The key word is thinking. And that's why I started this whole course with the thinking thing. And, now we reach not the end, but this is the last lecture, and I want to put everything together. This box question, two comments. First, box are in the mind, if for example, you work in a bank, think out of the box doesn't mean think out of the bank. It means, think out of the way you look at this path, particular bank. And secondly, even more important, even if you know where are the boxes, out of means you focus on the world you leave. The real challenge is where are you heading to? We can not think without boxes, without mental model. It's not too difficult to realize I should leave this world because it has changed too much. But how can I build the new box? And that is the heart of this last lecture. How do we build new boxes? Let's take immediately an example. I had the chance to work Philips in Holland for just a couple of years ago. If I tell you today, Philips what comes in your mind? A simplification, you can not escape this. The simplification, we have seen that during the second lecture. So which are the simplifications about Phillips? Probably light bulbs, probably coffee machine or TV sets or CD I don't know. Is this true? But if Phillips today, was only on those products, I'm not sure will be a real success, with all those companies from Korea, et cetera from Asia. If today Phillips is still alive, it is because 15, 30 years ago, they enter a completely new world. Health. Lets imagine, lets put it this way, if I show you here a microwave oven, and here an incubator for premature babies. Two objects, very similar. Maybe you're a bit shocked. And I can understand. But look at the situation. Where is the distance? The two objects are really similar. And today Philips manufactures and sells incubator for babies. If you have this bit shock just to compare those two objects, it is because in your mind the two objects belong to simplification far from each other. The microwave oven belongs to kitchen, kitchen at night, I don't know. The mi, the incubator belongs to another category, not that nice, with problem, far away in the mind. But objectively, the objects are really similar. And how did it happen? It happened this way. That maybe an additional element. I can tell about the way we simplify those are nearly synonym. And, of course, you know the this main, the main takeaway we got from the second lecture. Now, if you go to, to Phillips, you take the same pattern, the same model but focused on Phillips, the simplification was appliances. Home appliances. All those, washing machine, dish machine, et cetera. Within this simplification, you can have a lot of ideals. Microwave, coffee machines, et cetera, et cetera. And on the two sides, you have the two dimensions of change. Innovation on the right sides, more of the same. And creativity, we will see how it opens on the left side. With appliance, as a simplification, you will never get the incubator, never. What is it required to get incubator? You need to suddenly look at your business differently. [SOUND] like this, and suddenly realize hey, I can be a major actor in health, and I think today health is about 30% of the business at Philips. Hey, I can be a major actor and suddenly you realize, I can simplify my word differently. I can have another simplification. And then you go back to deduction. And that's what happening today. Phillips has a lot of different products, Connect too has somehow. This is to me the mechanics of creativity. It's like an engine. You cannot move from appliance to incubator. The straight line, not possible. You have to do this, tum, tum, tum, and I'll show in the next video, some other examples of the mechanic, mechanism. What is interesting, after the decision taken by the board of directors, we going to enter health. At Phillips they organized lots of brain storms, lots of brainstorms, and lots of ideas came out. Let's, what was really su, surprising, most of these ideas did exist before, like the incubator. But they were disregarded. Why? Because the new box was missing. So this is the key to take away for this lecture. Out of the box, fine. The real challenge find the new box.