Tag: innovation

Educating, innovating, adapting to a changing environment: the future of MIP

Posted on | by Veronica Rafaniello | Leave a Comment on Educating, innovating, adapting to a changing environment: the future of MIP

Vittorio Chiesa and Federico Frattini, recently appointed respectively President and Dean, talk about changes, strategy and goals of Politecnico di Milano’s Graduate School of Business

 

After celebrating its 40th anniversary in 2019, MIP began 2020 under the sign of change. Starting from the top. Vittorio Chiesa and Federico Frattini are now respectively holding the positions of President and Dean.

While the people holding positions of responsibility have changed, the goals of the Business School remain the same: offering its students all the tools to compete in an increasingly complex job market. But, to do that, it’s necessary to develop new offerings and new strategies. «The business school scenario has changed», Vittorio Chiesa tells us. «The context in which we act has evolved, it has become more competitive and challenged the traditional educational model, revealing all its limits». It’s a reality that, as Federico Frattini reaffirms, «requires a rethinking of the way the educational offering is provided, increasingly oriented towards lifelong learning».

 

Digitalization that looks to the world

New contents, different formats, lifelong learning: these are the keywords that sum up the MIP guidelines, and which in turn also indicate the challenges faced. «The first involves innovation in the ways education takes place», explains Frattini. «We want to stimulate a reflection on the physical spaces in which we educate our students. The campus of the future is distributed, consisting of smaller, more agile and flexible spaces. It’s an evolution made possible by digital technologies. With this in mind we must ask ourselves about the nature of formats: are they correct? Can they become more integrated with the professional and private lives of our students? We have already experimented with projects in this field, for example with Flexa, but we must do even more with a view to continuous learning».
Digitalization, on the other hand, is one of the two strategic axes that led to the growth of MIP in recent years. «The other», says Vittorio Chiesa, «is internationalization. Our classes welcome students from the entire world. But we must not stop here: we must broaden our geographical scope. And if on one hand we can count on a city, Milan, which can now boast the same appeal of the biggest and most modern European capitals, on the other it also up to us to expand our international reach. The second challenge is this».

 

Together with companies education is continuous

The third and last challenge, instead, relates to the theme of continuing education: «The concept of alumnus itself must be rethought», says Federico Frattini. «Until not long ago, an educational programme like a Master’s ended and students began to work. Today this passage is no longer so clear: there’s a continuous need for education and training, for this reason teaching must be rethought with this in mind. And it’s for this reason that we can’t ignore the development of critical skills and the ability to know how to learn in our students».

The corporate nature of MIP itself offers a privileged point of view on world of work and on the needs of companies, as President Chiesa explains: «MIP is a non-profit joint stock company. Sitting on the MIP board of directors of MIP are numerous leading Italian and international companies. We have noticed that their presence has translated into a multiplication of the value of our offering, always in step with the requests that come from the world of work».

 

A competitive business school

So the challenges are clear. As is the future strategy. «Business education finds itself in a highly competitive context», concludes Federico Frattini. «A business school is in all respects a company subject to strong competitive pressures, determined by the entry of new competitors on the market and accelerated by digitalization. Our priority is to implement a management style for the school focused on increasingly greater professionalization. That can be done by involving people with specific capabilities and skills. Competitiveness, professionalism and speed of action are three keywords for the future of MIP».

Educating, innovating, adapting to a changing environment: the future of MIP

Posted on | by Veronica Rafaniello | Leave a Comment on Educating, innovating, adapting to a changing environment: the future of MIP

Vittorio Chiesa and Federico Frattini, recently appointed respectively President and Dean, talk about changes, strategy and goals of Politecnico di Milano’s Graduate School of Business

 

After celebrating its 40th anniversary in 2019, MIP began 2020 under the sign of change. Starting from the top. Vittorio Chiesa and Federico Frattini are now respectively holding the positions of President and Dean.

While the people holding positions of responsibility have changed, the goals of the Business School remain the same: offering its students all the tools to compete in an increasingly complex job market. But, to do that, it’s necessary to develop new offerings and new strategies. «The business school scenario has changed», Vittorio Chiesa tells us. «The context in which we act has evolved, it has become more competitive and challenged the traditional educational model, revealing all its limits». It’s a reality that, as Federico Frattini reaffirms, «requires a rethinking of the way the educational offering is provided, increasingly oriented towards lifelong learning».

 

Digitalization that looks to the world

New contents, different formats, lifelong learning: these are the keywords that sum up the MIP guidelines, and which in turn also indicate the challenges faced. «The first involves innovation in the ways education takes place», explains Frattini. «We want to stimulate a reflection on the physical spaces in which we educate our students. The campus of the future is distributed, consisting of smaller, more agile and flexible spaces. It’s an evolution made possible by digital technologies. With this in mind we must ask ourselves about the nature of formats: are they correct? Can they become more integrated with the professional and private lives of our students? We have already experimented with projects in this field, for example with Flexa, but we must do even more with a view to continuous learning».
Digitalization, on the other hand, is one of the two strategic axes that led to the growth of MIP in recent years. «The other», says Vittorio Chiesa, «is internationalization. Our classes welcome students from the entire world. But we must not stop here: we must broaden our geographical scope. And if on one hand we can count on a city, Milan, which can now boast the same appeal of the biggest and most modern European capitals, on the other it also up to us to expand our international reach. The second challenge is this».

 

Together with companies education is continuous

The third and last challenge, instead, relates to the theme of continuing education: «The concept of alumnus itself must be rethought», says Federico Frattini. «Until not long ago, an educational programme like a Master’s ended and students began to work. Today this passage is no longer so clear: there’s a continuous need for education and training, for this reason teaching must be rethought with this in mind. And it’s for this reason that we can’t ignore the development of critical skills and the ability to know how to learn in our students».

The corporate nature of MIP itself offers a privileged point of view on world of work and on the needs of companies, as President Chiesa explains: «MIP is a non-profit joint stock company. Sitting on the MIP board of directors of MIP are numerous leading Italian and international companies. We have noticed that their presence has translated into a multiplication of the value of our offering, always in step with the requests that come from the world of work».

 

A competitive business school

So the challenges are clear. As is the future strategy. «Business education finds itself in a highly competitive context», concludes Federico Frattini. «A business school is in all respects a company subject to strong competitive pressures, determined by the entry of new competitors on the market and accelerated by digitalization. Our priority is to implement a management style for the school focused on increasingly greater professionalization. That can be done by involving people with specific capabilities and skills. Competitiveness, professionalism and speed of action are three keywords for the future of MIP».

 

 

 

 

Digital Experience

Posted on | by albe@mip.polimi.it | Leave a Comment on Digital Experience

 

Digital innovation is a central theme at MIP.
It all started in 2014, with the launch of the first Executive MBA in digital learning.
Since then, FLEX EMBA has been included by AMBA among the most innovative MBAs in the world, and its courses have been the first in Italy to receive the EOOCS certification. Cherry on the top, it ranked 7th in the world and among the top 4 in Europe in the QS Distance Online MBA 2019 Rankings.

In the last five years, our engagement in innovating education through digital has skyrocketed and today, digital learning is part of most of our programs.
Not only our MBA and Executive MBA programs  have been updated to put a greater emphasis on topics such as  digital innovation and digital transformation, but the School also launched the Executive Program in Digital Transformation FLEX , a digitally delivered program aiming at giving to professionals, managers and entrepreneurs the tool-box to spread Digital Transformation in their business.

Moreover, video-clips and live sessions have been included also in the new editions of a number of programs that used to be delivered only on campus, such as a selected portfolio of the Management Academy and Corporate courses, some masters targeting Institutions & Public Administrations such as MaBIC, MIDIS, SUM, EMMPF and EMGIS, and – starting from next fall – also the International Specializing Masters IM4, AMIE, MSCPM.

Yet, an innovative learning platform developed in partnership with Microsoft, a renewed library of interactive multimedia clips, interactions via social media tools moderated by our lecturers and live sessions are just some the ingredients of MIP Digital Experience!

Indeed, the School has just launched FLEXA, the innovative Artificial Intelligence platform developed in partnership with Microsoft to ensure personalized continuous learning to students, Alumni and – soon – to professionals.

Look for the Masters and courses with the Digital Experience logo to live a truly innovative #MIPexperience!

Why people are the best investment

Posted on | by Veronica Rafaniello | Leave a Comment on Why people are the best investment

The secret of Italian excellence? People, without a doubt. It’s one of the teachings that students enrolled in the International Master in Marketing Management, Omnichannel and Consumer Analytics programme of the School of Management at the Politecnico di Milano “took home”. Five days, from 6 to 10 May, in which well-known Italian companies talked about their approach to the Italian Way, illustrating the characteristics that led to their brand’s success.

Studying and innovating

«We at Artemide have always been very supportive of collaborating with all those groups in which research and training are priorities, in the university setting but not only», explained Laura Salviati, marketing and communication manager of the company which is a leader in the lighting sector. «For over twenty years now we have worked with the Politecnico and other educational institutions. The spirit of Artemide is to support training accompanying it with research. We launched a campaign, GenerAction, that follows this double track. We support young talents that have distinguished themselves for their ideas: for example, using the laser to connect to Internet (Valerio Pagliarino) or coming up with a way to detect lead in water (Gitanjali Rao). Intuitions that are also far from our company, tied to light and its variants, but on which we want to focus on all the same. Because we care about innovation regardless of its application». And Piaggio also cares about innovation, as stresses the executive vice president for marketing and communication Davide Zanolini: «Piaggio is the ideal environment for those who want to address the new challenges offered by the present and the future. We work on hybrid, on sustainability, on artificial intelligence systems. We have even opened in Boston, in the United States, a plant entirely dedicated to robotics. We are strongly oriented towards continuous growth». A characteristic that is also encouraged among employees.

The team spirit is born at the university

However, the proactive approach must also involve studying. Indeed, it would be a mistake to passively face this period of learning. Dennis de Munck, head of employer branding in Ferrari, wanted to offer some very clear advice: «There’s nothing more precious than curiosity, a characteristic that shouldn’t be set aside when studying, but instead should be cultivated. It’s the best moment for learning, discussing not only with professors but also colleagues. A one-of-a-kind opportunity, that helps to improve oneself and the ability to work in a team». As de Munck explains, Ferrari believes that the education of people is fundamental. «Throughout the world we form selective partnerships with the best universities, in every field. It’s a two-way relationship: we bring our experience to students, but at the same time we listen to know the needs of the workers of today and tomorrow».
A similar approach is taken by Alessi, a historic Italian design brand, as explains CEO Marco Pozzo: «We want the people who work with us to be put in the best condition to maximize their skills. Our Omnichannel division, for example, was born thanks to the creation of a new team made up of human resources already present in the company and hailing from different fields like marketing, sales, information systems. Thanks to the union of their expertise, we can face the challenges and take advantage of the opportunities offered by digital».

Training: a corporate mission

The value of companies, therefore, no longer consists solely of the product. It’s a consideration that applies to consumers, increasingly inclined to reward groups with a strong brand identity, but also for those who are considering a job: «Today more than ever, the sense of purpose conveyed by the company is important. What is the goal? What is the purpose? What are the values in play, and what can a company give its workers? Those who choose Ferrari», continues de Munck, «want to share their capabilities and increase their skills, in a perspective that is both top down and bottom down. In addition, training no longer takes place solely upon entering the company, but over one’s entire career. For us it is important that this applies to everyone, blue-collar and white-collar employees, labourers and managers. Our company professions school is open to everyone.».

The strength of ideas

Learning and knowing how to enhance your capabilities, therefore. The same message that came from Tancredi Alemagna, chief executive of T’a Milano, a Milanese confectionary company also active in the events, catering and banquet sectors: «Our country is facing an economically turbulent period. I and my brother started out in two, working from a room, entering a ruthless sector like food. Despite the difficulties, today we have 54 employees. We are a country with many brilliant minds. This makes the difference compared to competitors. With a strong and original vision, emerging is a possible challenge».

European Commission appoints top innovation leaders to guide the European Innovation Council

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Europe needs to capitalise on its science and start-ups to compete in global markets increasingly defined by new technologies. That is why the European Commission is introducing a European Innovation Council (EIC) to turn science into new business and accelerate the scale-up of innovative companies. Currently in its pilot phase, the European Innovation Council will become a full-fledged reality from 2021 under the next EU research and innovation programme Horizon Europe with a proposed € 10 billion budget.

Today, the Commission has appointed 22 exceptional innovators from the worlds of entrepreneurship, venture capital, science and technology to the European Innovation Council Advisory Board, which will provide strategic leadership to the EIC. The Board will oversee the roll out of the current pilot and lead the strategy and design of the EIC under Horizon Europe. See the full list here. 

Among them, there is also Roberto Verganti, Professor of Leadership and Innovation at the Politecnico di Milano School of Management.
“In the last 20 years, the dynamics of innovation have changed radically. Today, innovation is fast, entrepreneurial. Models that used to support innovation in the past are not working anymore. 
EIC represents a sharp change in the way innovation is supported in Europe and around the world. EIC focuses on people: that’s the most promising aspect. Innovation makers are those that make the difference, beyond financial and structural resources”, explains Verganti.

The Commission also published today a vacancy notice to recruit the first EIC programme managers. Inspired by the renowned US agency DARPA, the EIC programme managers will be experts in their fields, able to work closely with fast moving technology projects and  open doors to the wider ecosystem. Applications can be sent until the 31 July 2019 at 12.00 CET.

Carlos Moedas, the EU Commissioner for Research, Science and Innovation said: “With the EIC, we are filling a critical funding gap in the innovation ecosystem and putting Europe at the forefront of market creating innovation. I am delighted that the EIC will be advised by some of Europe’s most accomplished innovators and investors, and that we will be bringing in talented programme managers to get the work off the ground.”  

Also today, the Commission announced €149 million for the latest round of 83 SMEs and startups to be awarded EIC Accelerator Pilot grants (previously known as the SME Instrument Phase 2). The SMEs and startups are all developing potential game changing innovations, such as: next generation of safe and environmentally-friendly light aircrafts; anti-bacterial textile for hospitals; 3D audio software; motion planning technology for autonomous driving; and a superbot for audio calls. A list of the companies from 17 countries across the EU and from countries associated to Horizon 2020 is available here.

In addition, the Commission announced €164m to 53 new EIC Pathfinder pilot grants for bottom-up high-risk, high-impact research ideas (previously known as FET Open). Projects include;  metal-free MRI contrast agents; treatment to replace antibiotics in lung infection diseases; custom-crafted graphene nanostructures; precise measuring and monitoring of highly penetrating particles in deep space; artificial proteins for biological light-emitting diodes; and many other ideas. The full list can be found here.

Members of EIC Advisory Board*

  • Mark Ferguson, Entrepreneur, Science Foundation Ireland (Chair)
  • Herman Hauser, Co-founder of Amadeus Capital Partners (Vice-chair)
  • Kerstin Bock, CEO of Openers
  • Jo Bury, Managing Director of Flanders Institute of Biotechnology
  • Dermot Diamond, Principal Investigator: INSIGHT Centre for Data Analytics, Dublin City University
  • Laura González Estéfani, Founder and CEO at TheVentureCity
  • Jim Hagemann Snabe, Chair Siemens AG, Chair A P Moller Maersk A/S
  • Ingmar Hoerr, Co-founder and CEO of CureVac
  • Fredrik Horstedt, Vice president of utilisation Chalmers University of Technology
  • Heidi Kakko, Partner of BaltCap Growth Fund
  • Bindi Karia, European Innovation Expert + Advisor, Connector of People and Businesses
  • Anita Krohn Traaseth, Former CEO Innovation Norway
  • Jerzy M. Langer, Physicist, Emeritus Professor at the Institute of Physics of the Polish Academy of Sciences
  • Ana Maiques, Chief Executive Officer, Neuroelectrics
  • Marja Makarow, Biochemistry/molecular biology, director of Biocenter Finland
  • Valeria Nicolosi, Chair of Nanomaterials and Advanced Microscopy
  • Carlos Oliveira, Serial Entrepreneur, Innovator, Executive President of José Neves Foundation (Farfetch founder)
  • Bruno Sportisse, Chair and CEO at INRIA
  • Kinga Stanislawka, Managing Partner and Founder of Experior Venture Fund
  • Roberto Verganti, Innovation academic, former RISE group
  • Martin Villig, Co-founder of Bolt (formerly Taxify)
  • Yousef Yousef, CEO of LG Sonic

*official membership is subject to finalisation of internal procedures

Background

In June 2018, the Commission proposed the most ambitious Research and Innovation programme yet, Horizon Europe, with a proposed budget of €100 billion for 2021-2027. In March 2019 the European Parliament and the Council of the EU reached a provisional agreement on Horizon Europe. A key novelty of Horizon Europe is the establishment of a European Innovation Council with a proposed budget of €10 billion. An agreement of the European Parliament and Council on the EIC was reached as part of the Common Understanding on Horizon Europe.

 

A first pilot phase of the EIC was launched in October 2017, followed by a reinforced pilot in March 2019, with an overall budget of €3 billion, and the objective of funding Europe’s most exciting innovations of our most talented innovators. The new Advisory Board is part of the reinforced pilot. Members were selected following an open call for expressions of interest, which resulted in over 600 applications.

The European Innovation Council is part of a wider ecosystem that the EU is putting in place to give Europe’s many entrepreneurs every opportunity to become world leading companies. Other initiatives include a Pan-European Venture Capital Funds-of-Funds programme (VentureEU), the Investment Plan for Europe (EFSI), the work of the European Institute for Innovation and Technology, the Capital Markets Union Action Plan to improve access to finance or the proposal for a Directive on business insolvency.

 

Fluid, integrated and mixed: here’s the publishing industry of the future

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The New York Times recently reported 700 million dollars in revenue just for its digital business. On the other hand, at a global level, revenue for the information industry is down in many countries, including Italy, as news publications struggle to interpret the current communication context in an economically sustainable way. How is the market for information evolving?

«This situation doesn’t surprise me and has very deep roots – says Giuliano Noci, professor of Strategy & Marketing at Politecnico di Milano’s School of Management and Vice Rector for China at the same university –. In the past some people thought that advertising alone could sustain an online business, a prediction that was proved wrong. At the same time, twenty years ago many publishers responded to the arrival of digital by cutting costs and lowering quality as a result. That turned out to be a mistake, because news today has become a commodity: news alone has no value, anyone can provide it. It was and is necessary to offer depth of analysis, the ability to interpret phenomena in the medium and long term. In the United States they have moved in this direction, increasingly strengthening the component of interpretation with respect to reporting of pure and simple current events and leveraging off the reputation that comes from the prestige of their brands».

The web hasn’t led to a lowering of quality, rather to a polarization between those who care only about price, and so look for free contents, and those who instead are looking for quality and are ready to pay for it.

 «Then there’s also an organizational aspect, on which Italy is particularly late – continues Professor Noci –. Delivering information today doesn’t only mean producing texts, but working from a multimedia perspective, which means centralized newsrooms instead of newsrooms separated from web activities».

At the base of the success of some publishing models there’s therefore also a rethinking of the relationship between digital means and “traditional” journalism, with an eye on greater integration between the two components.

In addition, we are witnessing a reversal in some workflows, with news that is produced directly for digital channels and the paper versions of newspapers that serve as a collection or “best of” the contents that appeared digitally even several days earlier.

Thus it’s not surprising that some iconic newspapers have been purchased and relaunched by big web entrepreneurs. Recently Marc Benioff, founder and CEO of Salesforce (the world’s leading CRM platform), and his wife announced the acquisition of the famous Time weekly. And behind the revival of The Washington Post there’s Jeff Bezos, founder of the famous e-commerce portal Amazon, who in 2013 took it over, full of debt, from the Graham family. And to those who asked him the reason for this purchase, Bezos answered that Internet destroyed most of the advantages that dailies had built up over time but offered them a gift: free global distribution. To benefit from that gift, Bezos implemented a new business model no longer based solely on high revenue per reader, but on the acquisition of a greater number of readers.

But does English language information also benefit from the large size of the audience and its different cultural predisposition?  «No – answers Giuliano Noci –. If Italian media survived twenty years ago, there’s no reason it can’t in the current environment, in which instead, if you know how to exploit it, there are prospects for greater growth. My experience with omnichannel sales leads may to say that the presumed immaturity of consumers is instead an inadequate offering, which over time ends up also negatively impacting demand.
If many publishers in Italy and in Europe are in trouble, it’s because they are not up to manoeuvring the changes underway in society and don’t offer something that is perceived as being of value».

Digital is growing, but according to R&S Mediobanca data, 91.6% of worldwide publishing turnover still comes from print media.  What’s more, publishers that are solely digital like Buzzfeed have announced cuts, while many new publishing products are born in a mixed print-digital form.  Professor Giuliano Noci comments: «Today the mixed model prevails, because people prefer to use media in a mixed manner.
Both digital and print fundamentalists are wrong. All the most recent studies tell us that consumption behaviours must be segmented not based on individuals, but on the life context in which they’ve found themselves. So, there’s not the person who under all conditions prefers to be informed by the radio, TV, web or by reading a newspaper, but everyone, depending on the moment of the day or the situation in which they find themselves, favours one or the other means. Behaviours are very fluid and can be intercepted only by an equally fluid offering».

 

 

 

 

 

 

AMIE: My experience

Posted on | by Bendetta Biotti | Leave a Comment on AMIE: My experience

You come up with an idea. You see it in your head and you think about the many reasons why it would make the next hit. You tell your colleagues about it. You form a team.

You engage in the challenging ride of building a startup and making it epic. Your team loves it. So do you. You pitch, you test, you iterate. You find a few bumps on the way.

You tell yourself to keep on. You keep on. You and your team find more bumps. You all keep on. You find yourselves with market limitations. The idea falls short. Motivation soars. The team splits.

The truth is: that’s real-life entrepreneurship. So… never give up!

And it all started back in Mexico City in June of 2017, when I received notice from the Italian Ministry that I had been awarded a scholarship for my Master’s tuition. It had been a long time since I had wondered about the opportunity of living in Europe and pursuing further learning abroad. The possibility of diving deep into my favorite topics while sitting next to an international class made it all even more attractive.

And it was thanks to the Invest Your Talent in Italy program that I was able to pursue the Advanced Master in Innovation and Entrepreneurship (AMIE), a joint program between MIP Politecnico di Milano in Italy and Solvay Brussels School in Belgium. The Master featured 3 main projects: the New Venture Lab, the Field Project, and the Summer Internship.

With its kick-off in October 2017, the New Venture Lab was aimed at engaging our class in a real-life simulation of a new startup venture. Throughout the year, we had the opportunity to design, pitch, and work in groups on the incubation of a business idea, all the way from the conceptualization of a business model, to the value proposition defining, and then to the go-to-market strategy design.

For me, the course began with an exciting start, working alongside a great international team of four, and focusing on an online tool for peer-to-peer education. Despite our great group spirit, as the project moved forward, we realized that the market we were targeting was not as responsive to our proposition as we had initially thought. After a few setbacks, the group opted to pivot towards a completely different sector. In this case, we were no longer addressing educational concerns, but rather we were trying to propose an alternative to help people quit smoking.

Even if this choice meant making a 180° turnaround, as a team, we were confident that our new solution, a motion-detecting wearable bracelet, would help this specific market segment reduce its smoking habits. This device was to be linked to an app that allowed users to create a tailor-made quitting program, obtaining rewards as progress was being made. We then had the opportunity to pitch this concept at the Microsoft House in Milan.

After moving to Brussels, with a great new team and a with a different objective in mind, our new venture model was built upon an online marketplace for upcoming Italian high-end brands. Through this framework, Italian designers could connect more easily with a growing high-end international market segment, a project that ended up building the foundation for the next challenges to come.

And that’s because on the Field Project, we got the opportunity to work on a textile recycling project for the Belgian office of a leading global FMCG company. For the Summer Internship, on the other hand, I performed industry research on the Mexican hosiery market, proposing a circular solution for an Italian textile industrial district. As a result, I got to present my findings in a regional workshop that was honored by the presence of the Mexican Consul in Italy.

In retrospect, I can say without a doubt that my AMIE year was an intense, fast-changing, and highly rewarding experience. I believe that the richness of it all comes not only from the course syllabus, the lectures, and the study hours, but it also lies within the quality of people you get to meet, the character you build when facing the bumps, and the learning you gain as a result of the process.

As it is with entrepreneurship, uncertainty is always around the corner. But after this exceptional journey, I believe it is time for us to take action, fill in the gaps, and start designing our ideal future.

And not leaving before we build it.

 

About the author

Bruno Leopardi

Bruno is a 26-year-old Strategy Specialist from Mexico. He recently graduated from his Master in Innovation and Entrepreneurship at MIP Politecnico di Milano and Solvay Brussels School of Economics and Management. He holds a Bachelor’s Degree in International Business Administration from Universidad Iberoamericana in Mexico City. His goal is to build and guide organizations through strategy and performance.

 

 

Milano, the startup capital

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An innovative city. The numbers show it: in an increasingly dynamic Italian landscape, Milan confirms its position as the favourite place for young entrepreneurs. In the shadow of the Madonnina, the symbol of the city known throughout the world, are concentrated 15% of Italy’s new, innovative SMEs. Among 9,742 entrepreneurial firms, between startups and small companies, set up in Italy in the last year, 1,505 are in Milan. But, beyond this number, what’s perhaps more important is the extremely high survival rate (98%) of these new companies, evidence of a very favourable environment for the development of new businesses.

The figures were presented recently by Cristina Tajani, councillor for Labour Policies for the City of Milan, who also pointed out that the city invested some 11.5 million euros in new companies from 2012 to 2018. In the same period, the revenue generated by new businesses exceeded one billion euros.

In Italy, Milan can thus boast a leadership position that dates back decades and an ecosystem of services, institutions and infrastructure that offer entrepreneurs all the necessary instruments to allow their business to best function, including easier access to credit. Moreover, the entrepreneurial attractiveness of the Lombard capital is now well established and recognized at an international level. In 2016, Financial Times elected Milan as the Italian capital of startups. Then in the last three years, the city has been able to capitalize on the experience of Expo 2015, which successfully repositioned it on the world scene.
And, as the United Kingdom finds itself struggling to deal with Brexit, several institutions and large companies are considering abandoning London and looking to Milan for their next headquarters. Prestigious multinationals long ago chose it for their Italian offices: Microsoft, IBM, Google, Deloitte, Adecco, Gartner and many others.

The Lombardy Region also does its part in providing loans and other financing to innovative startups: a concrete example of this is the “Intraprendo” tender, which offers up to 65,000 euros in funding and is part of a broader three-year Strategic Program for research and innovation with total resources of about 750 million euros.

Empirically supporting this widespread awareness of the leading role played by Lombardy and, in particular, by Milan, for Italian startups are also the figures of the Hi-tech Startup Observatory of the Politecnico di Milano’s School of Management, which quantifies investments made by formal investors, such as venture capital funds and informal ones, like business angels and crowdfunding platforms, in startups with a high innovative content in the Digital, Cleantech & Energy and Life Science sectors.

Since 2012, the year in which both the Observatory was established and the Innovative Startup Decree was issued by the Ministry of Innovation and Economic Development, Lombard hi-tech startups raised a total of more than 600 million euros, while those headquartered in the province of Milan raised more than 550 million euros. In 2018 alone, the capital raised by the 43 startups receiving financing amounted to almost 250 million euros, about half of Italy’s total.

In addition to the strong presence of high-quality startups and growth potential, the city boasts a well-developed support system made up both of investors, whose capital enables startups to achieve their growth potential, and accelerators and incubators, which instead concentrate on companies in their embryonic phase, providing support and expertise to help fine-tune the business model.

These actors are sometimes tied to local universities, like the Poli360 investment fund – a partnership between Politecnico di Milano and the VC fund 360 Capital Partners for the financing of technological ideas – and PoliHub, a Politecnico di Milano incubator and accelerator, the third best incubator in the world according to Ubi Index, an international research firm specialized in the sector.

So there is fertile ground for all aspiring startuppers who want to become part of Milan’s vibrant economic fabric and a dense network of business relations that is destined to grow. Just ask Palermo native Giovanni De Lisi, who in Milan found the opportunity to set up Greenrail, a project involving eco-sustainable railway sleepers made from recycled material that can already boast a contract in the US worth 75 million euros. Or the Calabrian Osvaldo De Falco, who chose Milan for his Biofarm, a bonafide “digital agricultural” company that attracted the attention of Italian financial daily Il Sole 24 Ore thanks to its record crowdfunding: it asked for 80,000 euros, it got 300,000. And it’s now looking to expand abroad.

Milan’s appeal, however, isn’t strictly limited to business: fashion, food, the artistic patrimony, the cultural offering, even the climate, which in recent years has become milder, make it a city in which life is pleasant and stimulating. A winning mix.

But are you born a startupper or do you become one? Undoubtedly, talent and insight are fundamental to launch a business. Yet an entrepreneur, today, also needs economic and technological skills.

So while PoliHub offers a perfect environment to incubate and develop new entrepreneurial ideas, it is also within the Politecnico di Milano, in its School of Management, that aspiring startuppers can gain the necessary expertise for the development of new business ideas.

MBA and Executive MBA programmes, for example, encompass Startup & Strategy courses, but there are also specific Master’s degrees like the Advanced Master in Innovation and Entrepreneurship, offered in collaboration with the Solvay Brussels School.

In addition, the MIP Management Academy offers an extensive catalog of courses for the public executive who wants to explore the theme of Entrepreneurship & Strategy.

Startups: the “lean” route to success!

Posted on | by albe@mip.polimi.it | Leave a Comment on Startups: the “lean” route to success!

Do you have a brilliant business idea? Are you thinking of launching your own startup? If so, then keep reading and enjoy the tips Antonio Ghezzi, Professor of Strategy & Startups, has shared with us!

Startups and entrepreneurship are hot topics. Thus, when we heard of the latest article by Prof. Ghezzi – “Agile Business Model Innovation in Digital Entrepreneurship: Lean Startup Approaches” – we jumped at the opportunity to ask him for an interview.

Expressions like “agile business model” or “lean startup” may intimidate you, but Prof. Ghezzi’s explanation will make everything clearer.

 

What is the “lean startup approach”?

In the aftermath of WWII, companies needed to make the production process leaner and to cut waste. The answer was the “Toyota System”, the prelude to modern lean manufacturing.

Later, authors like Steve Blank and Eric Ries introduced the same “waste-reducing” idea to startups. They theorised that startups – traditionally short of money – could not afford to spend resources on something clients did not require.

 

Does this mean that innovation should originate only from customers’ demands?

Henry Ford used to say, “If I had asked people what they wanted, they would have said faster horses.”

Actually, the lean approach does not totally transfer the innovation process to customers: it is still up to the entrepreneur to conceive brilliant ideas.

Yet, entrepreneurs often make a mistake. They see customers – those the product is made for – as “enemies”, since they are the final judges of the product’s success, and they may even reject it. Thus, in the attempt to make the product “perfect”, they invest a large amount of money upfront and delay the launch on the market. But there is an inner fallacy in this notion of perfection: through heavy investments, the product or service will become perfect only from the entrepreneur’s perspective, but not necessarily from the customer’s.

The lean approach tries to reverse the situation, inviting entrepreneurs to ask for customers’ opinions as soon as possible, in order not to waste resources on something the public may dislike.

The lean approach suggests that the business model – i.e. how the company creates value, delivers it and captures it – is validated by the market at each step. Traditionally, startups are very good at creating value, but they have problems in monetising it. The lean startup approach helps entrepreneurs to overcome this difficulty.

 

How does the validation process work?

Entrepreneurs have to translate their business idea into a series of falsifiable assumptions, about the services they want to sell, to whom, about marketing decisions, partnerships, etc.
Then they have to test them. How? By designing a Minimum Viable Product. Through the MVP – a basic sample of the product – entrepreneurs can collect customers’ feedback without investing too much money.

Dropbox’s MVP, for example, was a video. There was no code at all! It simply showed how to create folders and how to share them… It was played hundreds of thousands of times and it made the beta waiting list jump from a few thousands of “tech nerds”  to over 75,000 people overnight.

This is the difference between the lean startup approach and marketing research: the first is about what people do, the latter about what people say.

Another great example is Zappos, the online retailer. A few years ago, Nick Swinmurn – Zappos’ founder – thought of selling shoes online. However, would people buy them? At that time, the answer to this question was not all that predictable and testing was needed.

He therefore tried to replicate customers’ natural behaviour through a “fake” e-commerce website. It showed pictures and prices of shoes, inviting customers to buy them online. When people hit the “buy” button, nothing happened.
Nonetheless, this helped Zappos’ founder to collect important data: out of all the traffic generated on site, a given percentage of customers tried to buy shoes on his website. He got a metric – the conversion rate – that he could use to make real-world forecasts.

Testing is very important because it helps entrepreneurs to understand whether they have found the Product/Market Fit – a product meeting the needs of the market. Otherwise, it would be better to make the idea perish as a whole or slightly change it in order to meet customers’ feedback. This shift – called “Pivoting “– happens all the time.

Thanks to the lean startup approach, entrepreneurs can reduce the amount of time and money spent in validating a business model and speed up the achievement of the Product/Market Fit.

 

Thank you Prof. Ghezzi for this exciting lesson. Before saying goodbye, we have one more question. Can we apply the “lean startup approach” to any sector and company size?

This process works well in the digital context as it’s easier to create MVPs for digital products. Still, it can also be applied in others sectors, provided that minimum is not that minimum and you’re eager to raise the bar. In the end, it can be considered a cross-industry approach that even large companies or institutions are adopting within a strategic renewal and corporate entrepreneurship framework. Just consider that, in the US, it is even applied to the Defence Sector!