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Hello

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In this session, we are going to talk about
opportunity identification and creativity

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As you already know

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opportunity is very important for the entrepreneurs

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Simply without opportunities, we cannot start our own businesses

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But the issue is

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Who gave the opportunity to us?

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Where did the opportunity come from?

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And who made the opportunity for us?

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That could be an issue

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Have you thought about it?

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In this session, I would like you guys to shift the focus

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 from how to find our opportunity

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to how to find out the problems of the consumers

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 It is called the problem-solution perspective

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Before we go into the main topic,

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I would like you guys to watch this short video clip

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His name is Kossler and he is a co-founder of Sun Microsystems

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And later, he became the venture capitalist in Silicon Valley

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He right now is a very famous venture capitalist

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This video clip took place in Stanford University

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Let's watch the video together

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It could be just 30 seconds

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Guys, what do you think?
Isn't it insightful?

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And what is his idea?

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His idea is pretty simple

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Do not talk about opportunity

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We should talk about the problem

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If we find out any big problem, then you can start

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you can come up with a big solution

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And then if we have a big solution, it could be big businesses

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The problem, solution and the businesses

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This is again, the problem-solution perspective

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In this session, we are going to practice in problem solutions

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Look at him

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He is a famous scientist

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His name is Albert Einstein, he said that

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if I were given one hour to save the planet

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 I would spend 59 minutes to define the problem

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And one minute to find out the solution

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59 minutes for the problem identification

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And one minute, one minute to come up with a solution

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Wow, what do you mean by that?

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Although people thought finding a solution is difficult

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but according to Albert Einstein

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finding a solution

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is relatively easy compared to finding the problem

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Nobody talks about what is the problem, Nobody

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Because for them, everything is fine

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For me, everything is fine

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If somebody else asks me, what is your problem?

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I don't know how to say

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Why? Because I don't know what is the problem

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That's why identification of the problem is really difficult

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You expect somebody have those kind of problem

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although he never talked about it

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Before we go into the real practice in this session

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Let's watch this video together

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He will provide very insightful lecture

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in terms of the problem solution perspective

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and he will explain the slow elevator problem very well

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because he wrote this article

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and published it to the Harvard Business Review

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Let's watch it together and we will continue to talk about it

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What do you think? Isn't it interesting?

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He said that there is a slow elevator problem

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The situation is pretty simple

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I will summarize the situation for you

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Look at this

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There is one apartment and there are several tenants

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And several tenants feel that the elevator is really slow

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That's why they complain about slow elevator problem

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They ask the landlord to fix the elevator as soon as possible

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This is the situation

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What is the problem? Yes, of course

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Yes, of course, apparently it is an elevator problem

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Elevator is slow. Slow elevator problem

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What could be the relevant solution?

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Yes, of course, if the problem is slow elevator

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then the solution is to fix the elevator right now

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The landlord asked the mechanic to fix the elevator right away

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and then he paid for it

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Then the problem solved, it's kind of natural

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What do think?

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No problem, no issues

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But according to the previous video

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 it is not the ideal problem solution situation

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The first thing to do is to refine the problem again

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rather than go into the visual solutions like fixing the elevator

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Before we fix the elevator, we'd better redefine the problem itself

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He suggested some stairs as an alternative solution

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Why did he suggest a stair?

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He redefined the elevator problem like

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as the lack of the alternatives

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Like this, it is not the elevator problem

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Elevator is totally fine

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But our true problem was
we don't have alternatives like great stairs

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 If we have decent and good condition stairs out there

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people can use these stairs instead of elevator

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Not too many people use the elevator

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The elevator problem, slow elevator problem resolved

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Stairs burn calories

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If you are a landlord,
then you put this instruction on the wall

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and just suggest people to use the stairs

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You can save the money

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And what else?

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Yes, it is not the elevator problem

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 It is the lack of the information problem

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What if we don't have information?

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What if we don't know, when elevator is available?

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Then we feel boring and we feel uncertain

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We feel elevator is slow

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Instead of fixing elevator right away

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we'd better put some information board inside the elevator

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so that people can enjoy it

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They don't feel boring inside the elevator

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Then nobody think about the elevator is slow

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This is alternative solution

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based on redefinition of the elevator problem

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And what about outside the elevator?

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When they are waiting for the elevator

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if there is some interesting thing in front of the elevator

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the tenant can spend their time

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Like this

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we just put the entertainment devices in front of the elevator

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so the tenant can use it

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They forgot everything, problem solved

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It is not just the elevator problem

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 It is kind of a lack of information problem

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It is a boring problem

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What about this?

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It is not the elevator problem itself

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It is a kind of allocation problem

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It means so many people use the elevator

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at the kind of a similar time

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You may not read this sentence

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because the sentence is pretty small

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I will read it for you

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Second floor not in service

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Instead, discount rent fee

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This is the new instruction

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Landlord think about the elevator problem

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as kind of an allocation problem as I already mentioned that

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Landlord can disperse people

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by not allowing people

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living in second floor use the elevator

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Instead, he can give a discount

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in the rent fee for the second floor person

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The people do not feel the elevator slow

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What about this? It is not the elevator problem

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It is not the allocation problem, it is not the boring problem

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Actual problem was this apartment is pretty old

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You know what I mean? Smell dirty

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It is smelly and it looks dirty and it looks old

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They complain about the apartment

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It is not the elevator problem

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It is old apartment problem, it is a dirty apartment

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Landlord clean up everything and put the artwork on the wall

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So that to make everybody, happy about it

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nobody talk about elevator

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It is not the elevator problem

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It is the cleaning issue or it is the old issues

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I mean, old apartment issues

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Related to the old apartment issues,
elevator itself looks very old

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That is why they feel elevator is so slow

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because it is not brand new elevator

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Landlord paint the elevator again

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then make a looking the brand new elevator

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The tenant will be very happy about it

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Problem solved

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It is a fresh cleaned and fresh painted, brand new elevator

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What else?

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Yes, it is not the cleaning issue

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It is not the allocation issue, it is not boarding issue

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It is about the mental issues

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These days, our tenants look very busy

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That is why they feel the elevator is so slow

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We educate tenant

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The slow is smooth and smooth
is fast and don't worry about it

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Your life is looking good,
elevator doesn't have any problem

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People relieve the stress

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People relieve the stress and reduce the stress

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Their

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Their anxiety about elevator is gone

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This is kind of alternative solutions

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And what else? Is that all?

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What about the rent fee?

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It is not the mental issue, it is the economy issue

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Rent fee is very expensive

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I pay a lot of rent fee monthly in this apartment

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But we have a dirty and old elevator

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It doesn't make sense, I am really upset

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That is why they complain about the elevator is slow

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But if you reduce the rent fee right now

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everything can be fine

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It is not the elevator problem

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Guys, what do you think? It is a simple question

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It is a simple and classic question about elevator

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But the solutions are very different

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It depends on, how you define the problems

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For example, if we define

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the elevator issue as an economy issue

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then your solution is a rent fee reduction

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If we define the elevator issues

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as kind of mental issue

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your solution is kind of education for the tenant

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If we define the elevator issue as a kind of a cleaning issue

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then your solution is cleaning up
your apartment, renovating your apartment

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Or if you define the elevator as 
a lack of information issue

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your solution could be providing some kind of information

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relevant information for the tenant

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Let's watch the remaining video

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Because his special lecture is 
so insightful and very helpful

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Now you understand how to define the problem

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and how to come up with

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the solution based on redefinition of your problem

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We've applied this problem-solution
perspective into the real world

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This is a current tragic accident

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based by sudden unintended acceleration

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What sudden unintended acceleration

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Let's watch the news clip together

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and discuss about what is the real problem

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In this video, in this news clip

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the drivers argued that he didn't make acceleration

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but the car is rushing

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That's why he hit the nine people and they all died

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All nine people are very young

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it is kind of a tragic accident

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What is the real problem in this accident?

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Sudden unintended accelerations

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Who's fault? Yeah, maybe car makers?

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What about the drivers?

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What is the problem? What is the real problem?

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Some people believe that 
the real issue is kind of proof issues

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The car makers said that they were not at fault

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And the drivers also argued that they were not at fault

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The real problem was

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there's no evidence of the drivers in court

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when they went to the trial together

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How to prove? Who's fault?

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That is the real issue

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If you define the problem like this

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then your solution could be different

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One of the startups in Busan 
created kind of new devices

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Their solution was to install the devices like this

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devices to check if you normally

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if drivers normally press acceleration 
or press the brake pedal

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If the drivers step on it normally

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then the devices turn green

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Otherwise, it is red

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And also, it is on the record

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It could be a great proof of 
the sudden unintended accelerations

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What do you think?

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If you redefine the problem 
as some kind of proof issue

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then the solution would be some kind of

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very unique devices to record every acceleration and brake

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And is that all?

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What about the other kind of problems

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related to the tragedic issues?

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Look at this

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Some people strongly believe that
it may be the driver's problem

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Especially for the elderly drivers

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They believe the driver's age

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will impact on the unintended acceleration

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and lead to the accident

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In fact, the drivers in the news

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was the elderly drivers more than 60

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I think it's 60 years old

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Looking at the graph

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The accident seemed to be related to the ages

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If your age is older than 60, the accident is increased

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Look at another graph

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More importantly, in the case of elderly drivers

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accident leads to major problems such as death

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You can see the graph

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The graph looks like J-curb

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after 70 years old, 65 years old, then

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tragedy accidents is increased dramatically

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What could be the solution

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if you define this problem 
as elderly driver's problem?

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What could be the solution?

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This is a real startup solution,
founded by my graduate student

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One of my graduate students

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thought of the problem as elderly drivers

285
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and she came up with very unique solution

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which is AI-based driver testing

287
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She was recently received an investment

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and has been actively engaged in this business

289
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Look at this

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Very unique solution

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Basically we test

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whether the elderly drivers

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drive cars very well or not

294
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or something like that

295
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This is a good practice for you

296
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to think about the problem-solution perspective

297
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Let's move on to

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the problem-solution perspective through the histories

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This is when a train is 
connected across the United States

300
00:19:48.183 --> 00:19:53.467
and then the standard time zone was created

301
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Let's watch the video together

302
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and see what kind of problems we can solve

303
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and what kind of business came out of the situation

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Let's watch together

305
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How about the video? Isn't it interesting?

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I will explain a little bit more detail

307
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Look at him

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His name was Richard Sears,

309
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he was an agent of the Minneapolis Railroad Station

310
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He took over the watches from

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$12 each from nearby railroad station

312
00:20:39.498 --> 00:20:46.048
He sold these watches with $14 each 
to other station agents

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his profit is $2 each from these activities

314
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he made $50,000, today's money, $100,000

315
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Think about $100,000

316
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He made $100,000 during six months

317
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and it's way beyond his salaries

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00:21:08.951 --> 00:21:10.451
What he did?

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He just quit his job

320
00:21:13.428 --> 00:21:18.863
He started a watch company in Minneapolis

321
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A watch company

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He collaborated with other entrepreneurs

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and built up some kind of Sears, 
Roebuck and company

324
00:21:31.570 --> 00:21:35.414
This company started a catalog of businesses

325
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As you saw in the video
they started a catalog of businesses

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00:21:42.206 --> 00:21:45.406
A catalog is a kind of a book, it's an order book

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It's 532 pages and 25,000 products

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Basically, they sold tons of products

329
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Almost everything, throughout the railroad

330
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Throughout the catalog

331
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It's a kind of an early version of e-commerce

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 In 1925, what happened?

333
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They started a retail store

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00:22:09.035 --> 00:22:13.553
This is a Sears department company

335
00:22:14.576 --> 00:22:18.576
The Sears department company came out of the trains

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00:22:20.230 --> 00:22:23.048
What do you think? Isn't it interesting?

337
00:22:23.246 --> 00:22:25.019
Let's watch another video

338
00:22:25.772 --> 00:22:32.040
This is a 1930s dust bowl in the middle of America

339
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It was a sandstorm, and it was kind of a natural disaster

340
00:22:38.392 --> 00:22:43.653
Many people live in the middle of America

341
00:22:44.465 --> 00:22:47.764
Most of them are farmers

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00:22:47.792 --> 00:22:49.951
and they abandoned their farmland

343
00:22:50.198 --> 00:22:53.933
and they went to the other area like California

344
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You understand the situation

345
00:22:58.448 --> 00:23:04.235
What kind of business opportunities you can think about?

346
00:23:05.284 --> 00:23:07.384
Let's watch the video together

347
00:23:07.384 --> 00:23:11.051
and guess what's going on at that time

348
00:23:11.496 --> 00:23:14.998
We will continue to talk about the business ideas

349
00:23:21.300 --> 00:23:23.187
Did you watch the video?

350
00:23:23.257 --> 00:23:24.663
And what do you think?

351
00:23:24.835 --> 00:23:28.221
I think it's kind of a tragedy

352
00:23:29.162 --> 00:23:33.952
And nobody lived there because of the sandstorm

353
00:23:34.533 --> 00:23:36.338
Nobody planted vegetables

354
00:23:36.338 --> 00:23:39.542
That's why many people abandoned their farmland

355
00:23:40.145 --> 00:23:43.997
What kind of solutions? What is the real problem?

356
00:23:45.198 --> 00:23:48.692
I want to give you those real examples

357
00:23:49.346 --> 00:23:52.919
Look at him, his name is Garst

358
00:23:53.351 --> 00:23:59.698
and he developed a hybrid corn seed in the 1930s

359
00:24:00.718 --> 00:24:04.518
which is a very strong corn seed

360
00:24:07.101 --> 00:24:13.314
He founded a hybrid corn seed company in Iowa

361
00:24:14.116 --> 00:24:16.516
He distributed more than

362
00:24:16.516 --> 00:24:20.116
10,000 sample bags of hybrid corn seed

363
00:24:20.116 --> 00:24:22.872
in western Iowa and Nebraska

364
00:24:23.931 --> 00:24:27.231
Basically, he negotiated with the farmers

365
00:24:27.231 --> 00:24:28.356
and then asked them

366
00:24:28.959 --> 00:24:33.759
to plant his developed hybrid corn seed

367
00:24:33.759 --> 00:24:37.228
He argued that this corn seed is very strong

368
00:24:37.228 --> 00:24:39.378
and you don't have to worry about it

369
00:24:39.378 --> 00:24:41.328
in this horrible situation

370
00:24:41.833 --> 00:24:46.330
You finally harvest great corns

371
00:24:46.330 --> 00:24:49.024
although there is a sandstorm

372
00:24:50.209 --> 00:24:51.809
If you make money,

373
00:24:51.809 --> 00:24:53.759
we can share the profit together,

374
00:24:53.759 --> 00:24:54.971
that is his idea

375
00:24:56.437 --> 00:24:59.887
By the mid-1960s the company produced

376
00:24:59.887 --> 00:25:04.646
5% of all the hybrid seed corns produced in America

377
00:25:04.861 --> 00:25:09.666
Basically, he occupied 5% of the entire market

378
00:25:09.855 --> 00:25:12.286
Of course, this company grew dramatically

379
00:25:12.405 --> 00:25:14.605
Then later, this company combined

380
00:25:14.605 --> 00:25:17.655
with a global agricultural company,

381
00:25:18.605 --> 00:25:21.020
Syngenta, which is Switzerland company