3 Strengths of Innovation Culture
Unlocking Italy’s Potential
Last month, I participated in the Italia Innovation Program. For a month starting mid-June, we visited Italian businesses and factories, and worked on innovation challenges using ‘design thinking’ methodologies and frameworks. Here was my first post on the experience.
Italy is an epicenter of artistic and design talent.
Walking through cobblestone streets and observing the seamless blend of ancient and new exuded a magical charm which was continuously breathtaking. Every church, a hidden gem of beauty and awe. There is an unending effort to recreate, reform, and reimagine, but not by disregarding the old, but incorporating it.
Both, in new products and how they use places, you can see the evolution using the ancient. Nardini, a brand that is over 200 years old that we visited in Italy, developed AMARO, a product with the flair of new packaging and labeling, but using similar production methods, the same seal, and mark showcasing the heritage (‘1779’).
Another example is how the residents of Vicenza, Italy use the Palladio (aka Palladian Basilica). This architectural masterpiece, first constructed in the 1400s, is not barred off to be preserved and admired from a far. It has local restaurants (not a chain) around its base, a rooftop bar to admire the spectacular night view, and a myriad of night life that takes place surrounding it (check out the picture of the ‘silent party’ below).
Incorporating heritage is a tenant at the core of Italian Innovation.
The question is…
How do you bring more of this elixir of heritage and innovation to the world?
How do we unlock Italy?
Below are three strengths I believe we need to leverage to help Italian businesses #UnlockItaly.
Strengths
- Passion for art and product design
My last post, Unlock Italy, centered around Italy’s history and love for art and design, specifically in products. Florence, Italy is the birthplace of the Renaissance. Sculptures pepper parks and breathtaking murals span the walls of every church.
Every business leader we heard during the Italia Innovation Program spoke about the evolution in the product design from the color and clarity of the wine to beauty and simplicity of a Molteni & C table’s underbelly. Product design is a passion.
2. Desire to Leave a Legacy
Family is at the center of the Italian culture, from the way they eat to the way they run their companies. As each business leader introduced themselves as the 3rd, 4th…even the 7th generation family member to champion the business, it was clear family and business are not separate affairs.
They would continue to recount stories of how they went against the grain, against the advice of others (selling off successful parts of the business or pooling their resources to buy back equity of foreign partners) to consider the legacy and longevity. One family member recounted…
“We think about what the decision will mean in 20 to 30 years, not just the next quarter.”
3. Cluster of Innovation Cells
About 99% of the 3.7 million enterprises in Italy are categorized as small or medium sized businesses (European Commission 2013 Fact Sheet). The single cause is unclear, whether is driven by the Italian entrepreneurial tradition of creating a family business or the pride of ownership, but one thing is certain, there are many businesses in Italy.
My initial reaction was that the fragmentation was a disadvantage, which can be true, but on the other side having many small and medium businesses fosters innovation through competition. While fragmentation is a challenge, each ‘innovation cell’ creates separate units that compete with each other. Choices can be made independently and at times they can move faster than larger enterprises.
The result of this intense competition yields a high bar for quality and craftsmanship which the world expects from Italy — (e.g. textiles, product engineering, fashion, food, wine)
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What are some opportunities to build on these strengths?
What are actions Italian companies can take to bring their innovations to the world?
More in the next post.
#UnlockItaly
