Category: Events

Sustainable, autonomous and shared. Here’s the mobility of the future

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New forms of propulsion, the sharing economy, environmental sustainability. These are some of the themes that characterize the road towards the mobility of the future A revolution that involves on one side the technological nature of means of transport and, on the other, the relationship users have with their vehicles. Confirming this is Simone Franzò, researcher at the Politecnico di Milano’s School of Management and Director of the Executive Master in Management at MIP: «One of the main macrotrends that is reshaping mobility is electrification, or rather the passage from traditional internal combustion typically powered by gas or diesel to electric motors. Without forgetting other emerging “fuels”, such as hydrogen, which in a near future could play an important role.  The other big theme is so-called autonomous driving: vehicles able to carry out, completely or in part, the activities of a normal driver, an area that promises to revolutionize the driving experience itself and, more in general, vehicle use».

But changes are also of a social nature: «As in many other areas, the sharing economy is also becoming increasingly popular in mobility – continues Simone Franzò –, supported by very clear data: an owned vehicle is used on average for only 5% of its useful life, while for the remaining 95% it goes unused.  Going beyond the concept of ownership, the sharing economy allows to more fully exploit the asset-vehicle. And this isn’t true only for the automobile, but for other means like bicycles, scooters and kick scooters».

A second example of sharing, applied to electric mobility, can be seen in the vehicle-to-grid (V2G) concept or, in its broadest sense, vehicle-to-everything (V2X): in this case what is shared isn’t the means of transport, but its energy source. «An electric vehicle can share its fundamental asset, that is a battery, with the power grid, or with consumers such as an apartment or a building. In the first instance, electric autos can help resolve problems with the electric grid by exchanging energy with it in a bi-directional manner, as a function of the needs of the grid itself; in the second, they can be used to provide power to consumers in case of a grid deficit».

In general, the issue of the environmental sustainability of electrical vehicles – which represents one of the main drivers for the spread of electric mobility – is widely debated, and for certain aspects is still under the magnifying glass, as confirms Franzò: «Numerous studies show that the source from which the electricity that fuels batteries comes has a significant impact on vehicle emissions and, thus, on their sustainability. The decarbonization path to produce energy underway at the national level will thus have a positive impact on this».

Now the spread of electric vehicles is still limited in Italy and strictly connected to the rollout of a suitable recharging infrastructure. While in an urban setting, and thus for short trips, alternatives aren’t lacking, it’s for long distances that electric vehicles continue to show their limits: «Today the number of recharging stations in Italy is well below that of the other main European countries. In addition, the fact they are mainly located in urban settings makes the use of electric vehicles for long distances more complex, despite an average autonomy that by now has reached 300-400 kilometres».

Obviously, the challenges change if we are talking about a city or the surrounding area. According to Franzò, «we need to think about mobility in a holistic way to unite cities and suburbs, for example creating interchange points at which those who arrive from the suburb heading to town centres can easily use shared vehicles, perhaps electric ones».

A synergy that is increasingly necessary, especially as cities increasingly focus on the decongestion of traffic and reducing pollution.

 

 

 

 

A Point of view on Leadership

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Clear objectives and acute emotional intelligence. These, according to Lorenzo Wittum, chief executive officer of AstraZeneca Italia, are the two pillars on which managers must build their success. A certainty that comes from years of personal experience, which Wittum shared with students in the Executive MBA programme of MIP Politecnico di Milano. «Pressure without direction only generates agitation – explained Wittum –. Companies are focused on results, and to obtain them it’s fundamental to have a clear and precise strategy, especially if you find yourself managing a team of hundreds of people. The working group must know what the final objective is. For this it’s important that the leader is able to communicate this correctly and effectively».

In a context like this, soft skills become more decisive than hard ones, which however also shouldn’t be undervalued: «I also entered the work world thanks to an MBA in Business Administration and Management, without which I probably wouldn’t be here today. I started my career using hard skills I gained during years of study, and in the meantime I was able to develop empathic and communicative skills, which for a leader are fundamental», said Wittum.

Indeed, it would be difficult to describe a person who isn’t able to involve and motivate his or her colleagues as a good leader. «It’s necessary to know how to speak clearly: define expectations, the level of difficulty, opportunities and risks. Few things are as engaging as the opportunity to work on one’s personal growth and that of colleagues».

In addition, soft skills, unlike hard ones that often involve specific fields, can be used across all work areas.  «Business, no matter what sector, is always based on the same principles. And making the difference are always the same elements: the involvement of people, a clear strategic direction and motivation. Factors that are even more important if you think that, within an organization, there are many projects that involve high-level professionals with different corporate roles: when, as in this case, you lead a “superteam” of experts who respond to other corporate hierarchies, more than leadership, we talks about lateral influence», explained Wittum.

Indeed, it’s the leader’s job to create the right conditions to stimulate cooperation: «In this, what helps immensely is a quality I developed during my master’s programme, that of humility, which must be understood as the ability to be transparent, to know how to recognize when someone else’s idea is better than yours. It’s this attitude that generates involvement».

The role of the leader, obviously, changes significantly as a function of the dimensions of the team. «When I was leading smaller teams, I loved working in the field and giving an example. Put at the head of a larger group, I realized that this approach generated a counterproductive complexity. I realized that to involve and motivate not a team but an entire company I had to first be recognized as a leader, beyond the position I hold, by the key individuals in the different corporate functions».

The AstraZeneca Italia CEO stressed the importance of a master’s degree in an individual’s training path: «Provided, however, that you have patience and consider your career in a constructive way. It’s not a series of 100 metre sprints, but it’s much more like a marathon. It’s important to know what you want to do when you grow up, but this doesn’t mean that you should expect to find your desired job immediately. It’s a growth path that requires, also in this case, a clear objective and great resilience».

Martina Pietrobon

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A graduate in “The Psychology of Marketing,” a previous job in the sales division of a large company, an MBA under her belt and a three-month experience in India that has left its mark: her name is Martina Pietrobon and she is Microsoft Italia’s new Head of Marketing. More particularly: she is one of our alumnae.
How did she achieve such a prestigious role? We asked her straight out!

Starting off in sales at Johnson & Johnson immediately after graduating, Martina quickly realised that her real interest lay in marketing. Looking around, she soon became aware that many of those at her company who occupied the role to which she aspired had an MBA behind them.
As she was highly ambitious, the decision was soon taken and she enrolled in MIP’s Full-time MBA program. Given Martina’s educational background in humanities and sociology, the Politecnico Business School’s “complementary” approach represented the ideal opportunity for filling in the gaps.

“I handed in my notice, while those around asked me if I was sure about leaving a permanent employment contract with a large company… but I was convinced that this was what I wanted to do in life”, Pietrobon told us.
It may seem strange to those entering the world of work today but even before her thirtieth birthday, Martina not only had a permanent contract but she had also never even done an internship.

So why leave this comfort zone?
“I am someone who, when she loves, loves with her whole being,” she explains. “Keeping a foothold in something that no longer gave me any satisfaction, even if it would have enabled me to hold onto a contract, made me feel tied down and would have been a limitation to the challenge that I was about to face. I said to myself, “In the worst case, you can always go back to doing what you did before at Johnson & Johnson, or at another company.” Resigning, for me, meant believing in this completely.  At a certain point, you need to invest in yourself or you cannot expect others to do it for you. You’re the one who has to believe first and foremost, otherwise others will only see obstacles, the job you gave up during a period of economic crisis, the uncertain future…”

When Martina talks of her experience, her enthusiasm is palpable. It is natural to ask what the MBA has meant for her.

“It is as if the MBA gives you an encyclopaedic view: you know that each requirement in the world of work has a corresponding instrument to resolve it. Obviously, in one year it’s not possible to acquire all the tools to fix everything by yourself, and that’s also the beauty of the game. In the end, what you learn is that there are various levers, and the important thing is to know when, how and with whom to activate them. So what the MBA gave me was a 360° vision of the many tools  ̶  including financial instruments  ̶  that I didn’t know before”, she reveals to us.  “You will understand that like in an engine, each part is linked to the other. For the engine to run properly, all the individual parts must be working well “.

So many concepts, then, but there is more and in fact, our alumna goes on to explain: “The MBA educated me, it certainly gave me skills but what it also taught me is that often it is the aptitude and attitude you have towards the willingness to learn which make a difference. What was fundamental for me was to have an approach that here at Microsoft we define as a growth mindset, namely the desire to face up to challenges and learn new things. I think that it is often arrogance that holds people back at work and stops their career from progressing. The MBA makes you understand that you know very little  ̶  too little  ̶  and that you need to keep yourself continuously updated and to stay proactive in your risk-taking”.

And, as our chat continues, it becomes clear that Martina really threw herself into the challenge. How? By choosing to complete her MIP educational experience with a three-month exchange programme in India at the Indian Institute of Management, Lucknow.

“I chose the IIM because it was the most renowned school for marketing in the Asian world. What I wanted to see were the features of marketing in that type of culture. Their approach is, in fact, very different from that which we study. In India, everything is based on numbers, even in marketing and communication. There, the common thread was provided by a numerical ROI based on financial KPIs. It was a very formative experience, both in terms of skills and culture. Three months in India – although in a renowned Business School – have a powerful, somewhat cathartic effect. To find myself in an international environment, meeting people whose culture and way of seeing things is so different from my own, enabled me to develop my soft skills in an extraordinary way…”

Having returned from India and received her diploma, Martina found that a new road in marketing was opening up ahead, first at Johnson & Johnson and then at Microsoft, until she reached the position she holds today.

These intermediate stages have given her so much: “When I started at Microsoft I was working in co-marketing with partners, a position that gave me less visibility than now, but one that allowed me to understand the business, the mechanisms of marketing and selling”, she explains to us.

Alongside the challenges she faces on a daily basis, this experience has made Martina the professional she is today. So, partly with a view to the future and to the new generations and partly looking back, we close the interview by asking what advice she would give to the recently graduated Martina of ten years ago, but also to our students who are now discovering their own professional paths.

With passion, Martina explains: “I was almost 30 when I finished my MBA. Perhaps I should have found the courage to do it a little earlier. Once I entered the world of work I realised that abroad, they graduate earlier than we do, they are able to do an MBA sooner and then get into the world of work before us…or at least, they got there before I did. So if I could go back in time, I’d find the courage earlier to hand in my notice and do an MBA”.

Then, thinking of the youngsters who are now embarking on their careers, she adds: “I was lucky not to have been part of the intern generation. Perhaps I was one of the last to avoid that. I didn’t do an internship, I started off working on a fixed-term contract for a large company. When you see that just a year later, people are beginning to have problems in finding work, you feel as if you are in a comfort zone. So really, the advice that I would give to myself and that I feel I can give to those who are approaching the business world today is that often, staying in the comfort zone does not allow you to really get into the game. If you are truly ambitious, don’t stick it out in those situations where “it’s not really all that bad”. It is precisely that “not all that bad” that locks people in and does not allow them to fly. It is as if at a certain point, a fledgling gets used to its cage and the relative security that  provides. I think that every little bird should be trying to open that cage – not to furnish it! – and to take flight, even at the cost of colliding with a predator.”

 

 

The frontiers of Fintech

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You can’t do without Fintech. The figures make it clear: in 2018, M&A (merger and acquisition) transactions tied to this sector at a global level generated a value of nine billion dollars, up 25% on the year earlier.  Affirming this is an analysis carried out by the Mind the Bridge startup school. In other words, Fintech startups attract an increasing amount of capital and investments. And the trend is growing, because a rising number of users choose to manage their finances online.

Whether its mobile payments, InsurTech or Robo Advisors, financial transactions are increasingly managed online, bypassing the traditional intermediation, until recently indispensable, of banks and insurance companies. Confirming this is Professor Emilio Barucci, director of Politecnico di Milano’s International Master in FinTech, Finance and Digital Innovation. «Disintermediation is a key factor. It allows us to carry out numerous operations much more quickly with the tools made available via new technologies. We no longer go to the bank once a month like we used to».

Banks themselves aren’t standing by and watching: «Right now they are moving in two directions. On one hand they’re trying to appropriate the ways of operating typical of Fintech companies, increasingly developing home banking and fast payment channels. On the other they’re trying to cope with the growth of non-traditional channels, that are eroding a large part of their market.  The startups that launched Robo Advisors, for example, provide the user with personalised financial advice, cutting out banks, fund managers and financial advisers», explains Professor Barucci.

The convenience and opportunities offered by Fintech are particularly attractive, even in a market a little bit less receptive to digital transactions like the Italian one. The issue of cybersecurity remains crucial: «The risks for those who use digital tools today are not bigger than those we already faced years ago, like the classic “theft” of credit card data – stresses Professor Barucci –. But it’s also true that the issue of security is perhaps the one on which the actors involved concentrate most and invest more. A single crack is enough to destroy the credibility of a service, and as a result sink the business».

The advantages of FinTech aren’t only for private users, but also for companies. According to Professor Barucci, «they will materialise in important cost reductions. Furthermore, there will be the possibility to interact with more subjects and the non-banking channel will grow». Some technologies, to the contrary, will remain confined to a more restricted area of use, far from the general public. That’s the case, for example, of Blockchain: «Personally I’m not convinced that Bitcoin is the currency of the future – says Barucci –. But it must be recognized that cryptocurrencies based on blockchain have led to extensive studies on this technology, generating a great legacy in terms of knowledge: it won’t be the solution for all problems, but in some areas it will represent an interesting solution». Something similar can be said about Artificial Intelligence: «Machines won’t substitute man, let alone in the financial world. But thanks to AI and to big data we’ll have the possibility to better understand the dynamics of some financial phenomena».

In short, cutting-edge technologies can’t do without the mastery of underlying digital phenomena. The International Master in Fintech, Finance and Digital Innovation of Politecnico di Milano’s School of Management has the objective of training professionals with these skills: «The process of change triggered by Fintech is irreversible – concludes Barucci –. Our master’s provides suitable skills, focusing on a complete education: no other university offers the same combination of method, technology and business».

 

 

 

 

 

Sailing and Management: MIP Politecnico di Milano is hosting the Alumni Business Cup 2019 in Capri

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This regatta is one of many events celebrating the School’s 40th anniversary

MIP Sailing Club is the winner of the 2018 MBA Sailing League. Many acclaimed business schools from around the world compete in this league – with the ABCup being one of regattas.

MIP Sailing Club – a MIP Politecnico di Milano Graduate School of Business sports club – is hosting the 26th ABCup (Alumni Business Cup) regatta in Capri on the 24th and 25th of May 2019, a long-standing regatta for students and alumni run by the French INSEAD and HEC business schools. This regatta is one of many events celebrating the School’s 40th anniversary.

Sailing is at the top of the list for people looking for exciting team building exercises. Crews win by challenging the obstacles and upsets thrown at them by the sea and putting into practice many techniques learnt in business school. This is a great occasion for people to test themselves and see how they match up to teamwork – but it is also great for networking!

This is one of the reasons why MIP Politecnico di Milano Graduate School of Business backed a group of students and launched the MIP Sailing Club in 2010. Since then, the club has involved 250 students and alumni and competed in 35 national and international regattas.

And won. In 2018, MIP Sailing Club topped the prestigious MBA Sailing League – competing against some of the world’s most vaunted business schools, London Business School, INSEAD, Bocconi, Cranfield, Istituto de Empresa, HEC, Harvard, Yale, MIT, Warwick and RSM.

This year, MIP Sailing Club has the honour of hosting ABCup, one of the four regattas in the MBA Sailing League 2019. The other regattas are being held in Lanzarote, the Isle of Wight, the Solent, Porto and Santa Margherita).

The races that make up the overall classification will be held on Friday 24th and Saturday 25th May, against the magnificent backdrop of the Bay of Naples. Prizes go to the top three crews in two boat classes. Crews in class A compete in ESTE 24 racing boats and those in class B in larger cruiser yachts. These are expected to be two days of fun, sport and networking in an international environment.

The winners’ prizes are being made specially by the Neapolitan painter and sculptor Lello Esposito. He is famous for his interpretation of the “essence of Naples” and his take on Pulcinella, reinventing the city’s symbol as a modern artwork. For the ABCup 2019, the artist has created a trophy with a sail sporting a typical Neapolitan mask. SLAM, manufacturer of technical sailing clothing and SAMI, producer of hi-tech sailing rope, are supporting the regatta.

MIP’s crews are: Giulia Zucchetti (skipper), Otello Costa, Michele Albertini and Mario Aquino (division A) and Davide Casola (skipper), Hugues Bartnig, Claudio Marconi, Francesco Vagnoni, Giampaolo Mercati, Filippo Croce and Maria Cristina Rossi (division B).

 

Politecnico di Milano: School of Management’s Executive MBAs among top 50 in the world

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School up 10 places in the QS Global EMBA Rankings 2019 from 2018 – despite stiff and greater competition.  Up also in Europe: the School is 23rd out of 55 (from 26th out of 49)

The School has a great reputation among companies, and this creates real opportunities for our students to advance rapidly in their careers – professionally and in terms of income; its teaching body and facilities are excellent; it has concrete equal opportunity policies. These are some of the distinctive factors behind the success of the Executive MBAs at the School of Management of Politecnico di Milano. Up by ten places in one year in the QS Global EMBA Rankings 2019, this underlines their place among the best 50 in the world.

In its second year, this ranking identifies the best 134 MBAs for company executives across the world (119 in 2018). In Europe, the ranking lists 55 programmes (up from 49) and the School has climbed from 26th to 23rd.

QS Global EMBA Rankings 2019 examines a series of aspects relating to each EMBA programme, looking at them through the eyes of their students. This classification goes beyond simply considering the programme’s effect on the students’ careers or its reputation within companies, which are certainly of prime importance. It also explores how each class is composed, looking at diversity and professional experience.

In the words of Federico Frattini, MBA and EMBA Programme Director: “Gaining ten places in one year is an unmistakable signal that we are responding well to the needs of our executive students and the demands of companies – where our reputation continues to grow. Our massive effort to innovate our products, renewing their content and expanding our use of digital learning is clearly proving more than successful”.

Artificial intelligence, human choices

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“There are no bad students, only bad teachers”. A saying that’s perhaps not always true, but perfect for understanding the workings of Artificial Intelligence, something that for the public at large is still a mysterious subject and (for some) a bit worrisome. «Fearing AI and machine learning would be a mistake – says Fabio Moioli, director of the Enterprise Services Division of Microsoft Italia –. If artificial intelligence sometimes makes huge mistakes, for example when it analyses CVs using non-inclusive criteria, it’s not the fault of AI, but that of programmers who were responsible for training and probably didn’t consider certain variables. A human error, therefore, just like that which occurs in many other fundamental sectors».

So, not a racist AI, nor one that has a subconscious or will of its own, but a tool that instead should be used, taking into account its immense potential. «For this reason, it’s good – explains Moioli – to ask ourselves about the possible risks tied to the improper use of AI, as does Elon Musk, for example. Think of the impact atomic fission or gunpowder had on the world: there are aspects to which we must pay the maximum attention, like privacy, transparency, security, inclusiveness».

Companies know that most people, when they think of AI, often rely on imaginative, almost “apocalyptic” notions. Partially to contrast this trend, many companies directly involved in the AI sector, starting with Microsoft, «have internally set up ethical committees, disconnected from any evaluation of profit or marketing, which critically analyse and in many cases reject projects considered to be at risk. A theme that also interests our client companies a lot», adds Moioli.
And companies themselves are directly called on to evaluate and tap into the potential offered by AI: «It’s a  pervasive technology, that I’d call general purpose, like electricity – explains Moioli –. It can be used in any process: in interaction with clients, in the personalization of services, in the processing of products. But it can also revolutionise productive strategies, helping people to work better. Advantages that apply both to the blue-collar worker and to the engineer».

Advantages, above all, that thanks to recent developments can also be exploited by small and medium enterprises. Usually these firms can’t afford a team of data scientists, nor do they have the vast amounts of information available to larger companies. However, the situation is changing rapidly: «The fastest growing trend is that of AI that can learn more, but with the use of less data. Furthermore, increasingly popular are AI-based preconfigured cognitive service libraries, ready-to-use services (some examples: automatic translations, facial recognition, chatbots) that are highly customizable based on the needs of each individual entrepreneur. The other advantage is that in this case we don’t need real data science experts to programme everything from scratch, but easier to find and less specialized professionals are enough, such as software developers».

There’s no doubt, then, that technicians are needed. But Moioli also offers a suggestion to those who work or will work in corporate functions apparently not involved in this process of change: «Whether dealing with marketing, human resources or something else, a manager must always be aware of the potential offered by AI. He or she must know that certain tools exist and that they can improve his or her work». Thus, a widespread awareness that can’t be separated from training and education, at all levels. «In Italy there are a number of examples of sectoral excellence. FLEXA, the personalised and continuous learning digital platform of Politecnico di Milano’s School of Management, itself was designated by Microsoft as one of the most innovative projects in the world. Now, however, a lot of work also needs to be done in primary and secondary schools: in the future we’ll need professionals who speak the language of AI with increasing familiarity. This is the real priority».

 

 

 

 

MBA programs: what’s new

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For our MBA and Executive MBA programs, 2019 promises to be a particularly innovative year: the courses we are offering have actually been revolutionised to follow five main strands: innovation, personalisation, digitalisation, soft skills and the ecosystem.

With the aim of placing a greater emphasis on topics such as innovation and digital transformation, the curriculum of our MBA programs has been completely redesigned, adding new courses such as Design Thinking, Corporate Entrepreneurship, Lean Startup and Entrepreneurial Finance.

Our range of Elective courses has also been expanded, with a 30% growth in the number of courses on offer compared to past editions. This makes it even easier to customise the pathway, which is now all the more adaptable to our students’ aspirations and professional needs.

There is also great news for anyone interested in Digital Transformation: this specialisation can be attained by taking part in the Silicon Valley study tour, a Management Boot Camp or an Elective Major of your choice on the subject.

It is not only the variety of content that is innovative, however, but also the way it is put to use. Since the launch of the first Flex EMBA, digital learning has played an ever greater role in MIP’s range of courses. The new editions of the MBA and the Executive MBA are based on a revamped, revolutionary digital learning platform.

In addition – even after the course is over – students will have access to a new library of multimedia clips, with 100 hours of lectures and 850 quick-view videos produced by the MIP faculty.
This promises to be an excellent tool to be used during the Master and ensuing years for following up on key concepts or reviewing opinions in the light of new work experiences.
Furthermore, in order to continue growing even after the MBA has been achieved, all students on the new editions of the courses, as well as alumni, will have the opportunity to access FLEXA – our new continuous learning platform, based on Artificial Intelligence and developed in partnership with Microsoft.

With such a wide offering as this, the soft skills are, of course, given due attention. In fact, with the new edition, more space is dedicated to the Leadership Program, which, through the testimony of managers of large companies such as Moleskine and Groupe Edmond de Rothschild, enlightens the class with various examples of leadership from the perspective of leaders, top managers and entrepreneurs.

Finally, in addition to the program, the whole student environment is also important. MIP, in fact, has dual fundamental links – on the one hand, with the Politecnico di Milano and on the other with the  entrepreneurial fabric constituted primarily by MIP’s partners. These strong connections enable the integration of academic know-how and the whole ecosystem of the institution’s laboratories, research centres and observatories with the strong involvement of the business world; firms have extensive involvement in the program, both by giving testimonies on campus and by welcoming students in person on company visits.

Manufacturing 4.0. The Future is Now

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If there’s a widespread misperception regarding Industry 4.0, then it’s the idea of considering it as a revolution which, although imminent, has yet to happen. Nothing could be further from the truth: Industry 4.0 is now. The transformation is already taking place, and if, on the one hand, many companies are adopting the most innovative technology and are rethinking the frontiers and forms of their business, on the other, there are those that still resist.

“It’s impossible not to embrace this transformation,” said Sergio Terzi, Director of the Management Academy at the MIP and Co-director of the Industry 4.0 Observatory, as he opened proceedings at the round table on Industry 4.0: How companies are evolving. This took place at the MIP Politecnico di Milano as part of MBA Day on 9 March.

Also taking part were Antonio Bosio, Head of Product and Solutions at Samsung, and Ilker Ahmet Kalali, Head of Industrial Engineering and Smart Manufacturing at Pirelli Tyre. The event also took an in-depth look at the various formats of the MIP’s MBA programme (International Full Time MBA, International Part Time MBA and Distance Learning MBA).

Bosio and Kalali both explained how their companies, which are leaders in their respective fields, are reshaping their strategies. They also talked about the new opportunities and challenges that are presented by Industry 4.0. Samsung, for example, is placing a lot of emphasis on B2B2C (business to business to consumer). We are inclined to see the Korean multinational as a company that makes  smartphones and electrical appliances  for the consumer market. “The fact of the matter is that we work with a lot of companies,” Bosio explained. “It’s true we do develop technology for the home, but we then use it for a range of different businesses. This is consumerization. Let’s think, for example, about wearables like smartwatches, which today are seen as gadgets, whereas they have important applications in the industrial sector where they can simplify manufacturing processes and help increase productivity”.

Augmented reality also plays a role: “We’re working in experimenting technology that enables clients to browse through infinite virtual catalogues and to try out different pairs of glasses without having to put them on physically”.

Such technology is, however, also useful in production plants, says Kalali: “Augmented reality provides workers with a guide in real time, by showing them the output of the various steps that have to be taken.”

The concept of personalisation is another cornerstone of Industry 4.0. It’s also crucial for Pirelli Tyre: “Today clients increasingly demand highly personalised products that are designed for their specific needs. This is particularly true for Pirelli in the case of the top end of the market. The company has to be predictive rather than reactive, and in order for that to happen it needs to concentrate on two elements: connectivity and data analysis. These are two tools which, when used alongside a scientific approach towards behaviour  analysis, can produce remarkable results. Above all, they can help create added value.”

This is a major challenge because, as Kalali went on to explain, it cannot be separated from sustainability, a concept that companies must play a leading role in promoting.

According to Bosio, “In order to bring all these elements together, Industry 4.0 needs to understand, innovate and obtain results.” Engineering alone isn’t enough: it needs to go hand in hand with creativity and determination. Or, as Kalali put it, “It requires brain and not just brawn”

 

Luxury in the time of Instagram

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Once upon a time there were glossy magazines. Now there’s Instagram. And luxury brands are taking advantage of it.

With due caution, however, because if on one hand the opportunity to address potential customers directly is huge, on the other we’re talking about a world whose rules are constantly changing.

Finding a balance between community involvement and preserving one’s status isn’t at all easy. «Luxury has always worked on the idea of exclusive distribution and on a consequent communication», explains Professor Fabrizio Maria Pini, Director of the International Master in Luxury Management at Politecnico di Milano’s School of Management. «Digital media, instead, in the beginning was perceived as something undefined and standardized. In a context in which everyone could create everything, the showcasing of a luxury product, which is characterized by its high symbolic and narrative content, seemed to lose its fascination. There’s a big difference between a digital showcase and a boutique».

The social media landscape is so varied and fluid that it becomes impossible to identify a single strategic model: «Luxury companies can adopt extremely innovative strategies, with which they immerse themselves in the communicative flow of social media, interacting directly with users and potential customers, or to the contrary remain attached to models that are actually still quite similar to the publication of magazine ad campaigns».

However, luxury brands certainly haven’t just stood and watched over the years. «They started late but are now forging ahead» says Pini. And numbers confirm it. In particular, Instagram has shown itself to be the most appetizing for fashion brands. In 2017 a study carried out by L2, a company specialized in digital performance metrics, reported 53% growth in the number of followers. Thanks also to fashion bloggers: Professor Pini defines them as «luxury translators, who in the beginning knew how to take advantage of unchartered social territory. While first they were perceived almost as enthusiastic groupies, today they are perhaps the concrete embodiment of the change of the relations of strength in the world of fashion. At the expense, for example, of more institutional actors that are perceived as being more qualified, like journalists».

«It is precisely the influencers, now, who act as a filter and link between the brand and its potential consumers» continues Pini. «While previously customers followed a brand, now brands must try to break into the conversation, because being found has become more problematic».

The current transition phase also leaves room for experimenting with new production strategies, perhaps with the use of new profiling strategies. The leitmotiv in this case is the same: «Some companies continue to think of collections and lines in a traditional way, younger brands instead start with community involvement».

However, daring also means risking. One false step is enough to generate a reputation crisis, which is much more difficult to manage than in the past: «The rules of conversation are different from those of communication, and icons usually communicate, they don’t converse» reflects Fabrizio Maria Pini. «In addition, social conversations are very rapid, while large and structured companies are necessarily slower to react. To gather the information needed for a response, at times it can be necessary to involve different corporate functions. In the meantime, however, other stories take hold on social networks and become dominant. Thus, there is a struggle between narratives and myths. But sometimes there’s nothing to do but to apologize and admit one’s mistakes. This is also a big difference compared with the past: in other times brands didn’t take into consideration the idea of declaring themselves wrong».