So, Donny, let's talk about risk. Because innovation is risky, and the more innovative you are, the bigger the risk, and the bigger the risk means you fail a lot of times. So, in a real sense innovation is about managing risk, how you estimate the risk, and how you decide whether it's worthwhile to take the risk or not. We talk about product failure, but there are a lot of other kinds of risks there, marketing risks and operational risks, and a very long list of dangers. Though as someone who has innovated and you've managed risk for 34 years, share some of the principles that you use in dealing with innovation risk. >> This is a very critical thing, because as we will talk in a future lesson. The art of being innovator is to really doing things in coming with a solution, or a product or a service. Which is extremely differentiated with what exists else, why would one pick your product? What happens in many cases that people taking risk on one aspect decide they can open up to risk in everything else and the counter is the right answer. Pick the area by which you want to differentiate and take as much risk as you can, to create a real differentiated product. But don't take risk on things that you shouldn't. For example you took a risk on a big technological feature, why take a risk on manufacturing? Make sure the manufacturing of this product will be as benign, as standard way of doing things. Also, find ways, why take risk on marketing or any other aspect? So pick the thing that you must take risk, and leave all the others with less risk, you'll have enough surprises independent. The second one, even in the areas that you took risk, as long as you go, understand if you're making progress, and minimizing the risk. Understanding that the thing that you analyze with work, and make changes as you go other than pray that something good will happen. We mention the team the project earlier. We had an estimate about the learning curve of a new memory technology we decided to use and we assume that the cost reduction curve will be as we expect, it didn't. And the mistake that we have done, we have continued to pray that it will work While we could have I developed a good back up plan. Or we could have abandoned the whole product because in the end of the day it was a low cost product, resulted in the cost targets. Why count with the product anyway. And we failed to understand and we sticked to the risk because we loved the idea. That's the third lesson. You fall in love with the thing you take a risk on and you fail to understand that it's going nowhere. Sometimes its good to have people that you're kind of good circle of knowledge that will tell you that you're wrong and help you to see the thing that you fail to see emotionally. >> So Donny, it's very hard to imagine our lives without something called flash memory. Flash memory is everywhere. It's in our cell phones, in our laptops, in our tablets, everywhere. Flash memory actually arose out of a failure tell us the story of flash memory, what can we learn from the huge failure that became flash memory? >> Well, the flash memory or basically the EEPROM, which is the grandfather of the flash memory. Just for all of us who doesn't know, a flash memory is a non-volatile semiconductor memory that could be reprogrammed. We use it in every day in our life. On a disc on key, everything that runs on a smart phone, and even big computers in the cloud uses flash memory to store data. This is a very useful way. But back in the 70s, that is nothing of the kind. People really used different kind of technologies to store using magnetic solutions. Were very expensive, very big. The story that Dov Foman reminded that time was one of the first engineers at Intel was given an assignment to solve the problem of an oxide, electrical break down. I'm not getting to the technological detail, it doesn't matter. He went to the lab, spent a lot of time to try to understand it because it was really killing the product, and Intel could not sell it. After some working, Dov came back to his boss, Gordon Moore, and told him, I don't have a solution to your problem, but I have an idea to a new product. We could use the same mechanism that created this breakdown into programming a memory cell that was, no one knew how to do it before him. As a result came the first programmable non-volatile memory that turned eventually to be the flash with huge impact on the computer industry and huge impact on the life of everyone. It all started by a problem that turned into a feature because Dov was open enough to think about not just how to fix the problem, but understand the mechanism, what happened, and how it could be utilized on a completely different problem. >> Interesting, and of course Dov later returned to Israel, started the first Intel RND lab here, and the rest is history.