[SOUND] Hello I'm Shlomo Maital, welcome to our course part three of our Coursera, Startup Entrepreneurship Specialization. The name of our course, is the third course in a series of three, Is called Innovation Lessons From a Master, and here with me is the master that we're going to chat with. His name is David Dadi Perlmutter, In a moment I'll introduce him. We're privileged to have him to share his wisdom, but first I'd like to give you a very brief introduction to the subject matter of this third course in this series of three. So, startups are by definition driven by the spirit and the culture of innovation, and I think innovation is an art, not a science. Dadi, do you agree? >> I think it's both. >> Both an art and a science? >> It's both an art and a science because in science is where you define when known things that you can rely on and do it again and again. >> Right, so let's do some definitions. The difference between an art and a science is that science is from the physical world, and it's based on laws, or at least laws that we think we can prove and identify with evidence, Newton's laws, quantum mechanics, E = MC squared. Shannon's famous Law of Information Theory, the second law of thermodynamic. Art, in contrast, is subjective, and it's driven by creative people who have great ideas and they break the rules. One of my favorite definitions of innovation is, innovation is intelligently breaking the rules. So, for example, poetry used to rhyme, and poets all used to rhyme their poems, and then someone said, why? They broke the rule, and they wrote poems that didn't rhyme, and then my favor poet, EE Cummings, came along and said, we use capital letters and small letters. Right, so he wrote his poems in small letters, and I recommend, if you wish, if you like poetry, look up ee cummings, which always he wrote his name in lowercase letters. So, having said that, it's still true that there are certain principles of innovation that we need to follow. These can help guide entrepreneurs and make them more likely to succeed, and that's the aim of our three courses, our specialization. We want you to succeed when you launch your startup, so what are those principles of innovation, the things that probably you shouldn't try to break the rules that you shouldn't try to break? Remember, there are always things that you need to follow as core principles and things that you can change freely, and, in fact, have to change freely, and the trick is to distinguish between them. So, I'm a retired professor, I've been teaching innovation and entrepreneurship, and creativity for over 45 years, but I still don't feel fully qualified to teach you students, you learners, what these rules are. George Bernard Shaw once wrote in his play, Man and Superman, if you can, do, if you can't, teach. So I know somebody who can, and with authority, credibility, and authenticity, can teach us the lessons of entrepreneurship, and that is my friend, David Dadi Perlmutter. We all call him Dadi. Spent 34 years as a successful innovator with Intel corporation. He retired, I think, in 2014. >> Right. >> As number two of the whole Intel Corporation, we should tell you a bit about Intel. Intel is a huge global company, they make microprocessors and other products, they employ 106,000 people. They sell every year almost $60 billion worth of revenue and a startling profit margin, Dadi. 20% net margin, about $12 billion a year in profit, so Intel is an amazing, huge company, and, you were a highly successful innovator at Intel over 34 years and some of your innovations were truly path breaking, truly world changing. And I'm pretty sure that most of our learners maybe nearly all of them, have made use of these innovations, Centrino, Pentium, Pentium Pro, at some point and even today. The origins of Intel are really interesting Dadi maybe we can mention that. Intel was founded almost 50 years ago 1968 by Bob Noyce and Gordon Moore and the came from Fairchild's semiconductor. And they had an idea and they wanted to implement it which for some reason was difficult and the company you're working for. Bob Nice is a co-inventor of integrated circuits and of course it's impossible to imagine life today without integrated circuits. They started off calling the company 'Moore Noise' and then Gordon Moore decided 'uh-uh, that won't work'. Because it sounds like more noise. So they changed it to NM Electronics, and that wasn't too great, so then they changed it to Intel, which is Integrated Electronics. And they found that a hotel chain had trademarked the name and they had to buy the name and the rest is history. And in 2018, they'll celebrate their 50th year. So, [COUGH] This is part three, and the title is Innovation Lessons from a Master. And Dadi Perlmutter has prepared for you, after reviewing his long 34 years career as an innovator Ten key lessons that he has learned, sometimes the hard way, from experience with Intel, in leading and creating innovation. But Dadi, there's a question that we have to answer that I'm sure our learners are asking. This is a specialization through Coursera on start up entrepreneurship, but the innovation that you are talking about was in this huge company called Intel. Can we motivate that? What can our start up entrepreneurs learn from your 34 years working for this huge global company? People like to think about the difference between innovating via start ups versus innovating within a large company. And I agree that there are very many differences. Nevertheless, as I am involved and engaged with many startups. And the end of the day the basics are very Similar: you have to have an idea. You have to submit with in a company or sort of a investors. You have to find the customers, you have to find the partners. You have to go through a lot of hardship of opposition and there are a lot of commonalities and similarities between the two even though and we'll try to do it within the lessons what may be different and what may not. But at the end of the day the very basics of starting something new which has not been before Have a lot of similarities. >> So briefly I'll give you a preview to our learners about the ten lessons that has chosen. And the first is very unusual. It's titled Love and Knowledge are Infinite, Grow and Share. And in this first lesson is going to talk about his wife, his children, the issues of family, work and life, relocating, all of the issues that very often we don't discuss in courses on entrepreneurship. We teach how to write a business plan. But what about the issue of the demanding nature of starting a company, and the crucial need to coordinate with the spouse. Second lesson, learn from failures and of course from successes and Dadi he has written here. Failure is good. What in the world can be good about failure and failure is an important part of the start of entrepreneurship because many startups simply fail. Lesson three, vision. Nothing moves without a vision. How do you shape a vision? What's the role of vision? Lesson four Have a differentiated market transforming strategy, do something different, really different, 10 times better, transform the market. Lesson 5, dare to take action, ideas are great. The first course in the specialization was called Discovering Ideas. Okay, so now what, how do you implement your ideas, how do you implement to make them into a successful business? Lesson six, fight resistance. The more innovative your idea, the more opposition you're going to have. You need to be prepared for that and to know how to overcome Sometimes really fierce opposition. Dadi has some really wonderful stories about overcoming opposition within the organization that he worked in. Number seven, it's all about the ecosystem. Many Intel products, products inside this thing for example, many Intel products are great products but they have no value without a whole ecosystem surrounding them. For example wi-fi hotspots. So think about the ecosystem in which your innovative product or service is embedded. Lesson eight. Build a team, and it's all about the culture. How do you build a team with the right culture in order to succeed? Lesson nine. Keep it simple. Simplicity. Many startup entrepreneurs are really really smart. And smart people deal easily with complexity. But us ordinary people, we like things simple. So how can you keep your product, your service, your design, your process, how can you keep things simple? And the last one, lesson 10, work hard. So we'll discuss what does that mean, work hard, how hard? And many issues related to that. So just moving on here. The background of David Dadi Perlmutter, he himself in our first lesson together, our first session, we'll tell you a little more. But he worked at Intel for 34 years. He begun after graduating from my university, Technion - Israel Institute of Technology. Went to work immediately for Intel and worked there for 34 years eventually becoming Executive Vice-President and I think also Head of Mobile Architecture, is that it? >> No, whole Intel Architecture. >> The? >> The whole Intel Architecture, I was Chief Product >> What does that mean, Intel Architecture? >> It means the whole product built on Intel microprocessors >> Let it be in a cloud data center, mobile, desktop, mobile, internet of things, embedded, whatever market that the uses the Intel-based product. >> Got it. Okay. So, The format of our course is going to be as follows, Dadi and I are going to have a conversation about each of the 10 lessons. And we're going to follow our conversation or sprinkle through the conversation with interviews with some really leading innovators around the world. And we'll also add some video quizzes for you to make sure that you grasp the principles, and we'll have some action learning assignments. What we always say in our courses in our specialization is that, if you're a carpenter, there's no way that you can learn to build a table or shelves by reading about theory. By reading about a saw, hammer, and anvil and screwdriver. You have to use them. You have to practice building shelves. The same is true of innovation. So we have action learning assignments for you to do. Nike has wonderful mantra. Just do it. And that kind of expresses our philosophy in start up entrepreneurship. Think carefully, do your homework, work it out, and then go for it. Dadi, Final comments as our introduction for our learners all around the world, thousands of people who are thinking about starting a business? >> Well starting a business or studying or creating ideas it's very exciting thing. The more you do the more engaged you become. And the more enthusiastic you'll be. Nevertheless, it goes through a lot of hardship, a lot of issues, a lot of pain. That have to be well-understood. This is not easy, is not for everyone. It's for people that really love to go very close to the heat of the kitchen and be in the center of things and create new things. But creating new things is always exciting, always great, especially in retrospect when you look at the what you have done. Exactly. And you know, one final word Dadi for our learners. Somebody once wrote that you can learn a lot about yourself, who you are, by investing in the stock market. But sometimes the tuition can be very high. The same is true of startup entrepreneurship. When you engage in something that's fairly risky, very difficult, very demanding, in doing so, you'll learn about who you are. But it's well to start the process by deeply understanding who are you, what are your skills, what are your weaknesses. What do you really want to achieve? What's your vision? What's you purpose in life and when you have that clearly worked out then go for it. So, again, welcome to this third course in our Coursera Specialization, Innovation Lessons From a Master. And I'm looking forward to this a lot. I think that we're all going to learn a lot from my guest David Dadi Perlmutter. See you in session one, our session about love and knowledge and family.
