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This lecture explores the concepts of design thinking and business models, focusing on the process of innovation and value creation. It covers the steps involved in design thinking, such as empathizing, ideating, prototyping, and testing. Additionally, it delves into the importance of business models as a tool to express the logic of a firm and create, deliver, and capture value. The lecture also discusses the evolution of business models over time, from traditional approaches to modern innovations, and provides insights into the key resources, revenue streams, and delivery channels that shape successful business models.