MCM: When the Advantage Lies in Being Optimistic

Centuries-old olive trees, almost as tall as oaks. We drive through the typical countryside of the Gioia Tauro plain, specifically near Cittanova, wondering how it’s possible that, in such a natural haven, there’s an industrial area hiding successful entrepreneurial ventures.

With this question in mind, we arrive at MCM, a Calabrian company that has become a point of reference for multinational corporations involved in ATM security systems. From the very start, Domenico Morano greets us with contagious enthusiasm. He immediately shows us around his facilities and the new products he has developed—thanks in part to the innovation project carried out with CalabriaInnova. His company’s revenues are on the rise: with 1.8 million euros in 2014, it recorded a 33% increase compared to the previous year.

He proudly describes his organization: major national banking groups constantly demand updates and adjustments from ATM manufacturers to guarantee security against increasingly sophisticated attacks. These multinational companies struggle to develop new solutions in-house, so they often call on Engineer Morano who, with his design office, young technicians, and workshop, can swiftly produce a new prototype. Once the solution is approved, production begins. Here, the “pieces of iron”—as he calls them—are assembled together with the electronic components.

It quickly becomes clear that Domenico Morano is an enthusiastic entrepreneur. With his infectious optimism, he can transform any difficulty into a new opportunity. We start our conversation with a provocative question.

What’s a mechanical engineer doing in a blacksmith’s workshop?

I asked myself the same question in the spring of 2003, when I returned permanently to Cittanova—a small town in Calabria far from any infrastructure—due to family reasons. I had worked for about 20 years throughout Italy, first at the University of Genoa, where I graduated in mechanical engineering, and then at the consulting company I founded with other partners.

Then, on May 1st, 2003, luck struck just as I was trying to figure out what to do with my father’s workshop, active since the 1960s, where I grew up as though it were my second home. One of my consulting firm’s clients urgently needed some particular mounting plates to secure Banco di Roma’s ATMs. By that Friday of the same week, the plates were ready to be installed. At that point, seeing our rapid response in terms of design, prototyping, and production, they began asking us for more jobs, each one increasingly innovative. I immediately realized that this was an excellent market to enter.

That was the leap: from a small artisanal business, we began working in the ATM security device sector and made a series of investments, starting with the purchase of numerically controlled machines, laser cutters, welding robots, and powder coating systems. We abandoned the artisanal approach to become an industrial enterprise. But the most important effort was changing the mindset and approach of my collaborators. I strongly believe in the importance of staff motivation, something achieved through involving them in all phases—from the design and production process, right through to sales.

Do you remember other important dates?

Of course, I remember them all! For example, March 5th, 2005. It was a Saturday morning, I arrived at the company early as usual and found… nothing. With the complicity of an employee, they had stolen everything except the largest machines, which they couldn’t remove. The damage amounted to about 200,000 euros. But I didn’t lose heart and I repurchased everything. Since there were things in the layout that didn’t convince me, I took advantage of the situation to make a clean sweep and redesign our production processes.

With all these difficulties, why invest here?

Because life is better here. I lived in big cities for many years. I’ve also lived in small northern towns that are wonderful. But from a human perspective, there’s no comparison. Today, I finish work and in 10 minutes I’m at home with my children; I have the sea and the mountains just around the corner. My kids can choose from several excellent schools, like the ITIS in Polistena. This is a big advantage for my company as well—I recently hired two new graduates from ITIS. My clients envy me; they say, “You’re lucky.” The major investment we made was purchasing a large facility in Garlasco, near Milan. We’ve effectively relocated Calabria, while keeping all its benefits.

So, you’re an incurable optimist. What other unforeseen events have you turned into an advantage?

All the negative experiences our family has been through have made us unassailable and given us widely recognized credibility. Because of the racketeering threats, my father had police protection for years. But we reacted by reporting those responsible. Moreover, we founded in Cittanova the second anti-racketeering association in Italy; the first was in Capo d’Orlando in Sicily. My sister, Maria Teresa, coordinates the anti-racket associations in Calabria. Our multinational clients chose us also for this reason. It’s tough doing business here, but if you manage to turn difficulties into advantages, you become stronger and more competitive.

What did you accomplish with CalabriaInnova, and how was the collaboration?

Initially, I was very skeptical about public funding. In the past, whenever we participated, it turned into a disappointing experience because the structure of the calls for proposals was always disconnected from the daily reality businesses face. Then the technology brokers from CalabriaInnova came to visit us in the company—and that already seemed like a sign of a break from the past! Thanks to their practical approach and demonstrated expertise, we realized they were partners we could rely on for effective support. They conducted a technological audit, screening the company, identifying our innovation needs. This helped us refine all the details of some ideas I already had in mind. Then CalabriaInnova suggested we submit the project to “Attiva l’Innovazione” (Activate Innovation). It was the ideal framework: we already had the idea and the detailed project; the funding allowed us to support its implementation and development. Of the four products included in the innovation project, the first is already in production, and two more are in the prototyping phase. The DSH (Dispenser Shutter Hardening) product—essentially a kind of guillotine that instantly closes the cash withdrawal slot in the event of tampering attempts—is now being used by some of the largest national banking institutions, such as UBI and Unicredit. As for the Sop-Box product, a Spanish multinational has just requested it. If we had done the project on our own, it would have taken much longer because we’d be absorbed in day-to-day operations. With CalabriaInnova, we can truly say we “Activated Innovation”—the call’s title proved perfect in practice. The idea for innovation was already in my head and on my desk, waiting; you helped set it in motion.

How do you imagine the future of MCM?

Five years from now, the things we do today probably won’t be needed anymore. So, I’ve already started thinking about the weak point of our devices: ATMs are mute machines, they don’t communicate with installers or with the banks. Our company, therefore, will need an increasingly significant electronic component and the integration of ICT. This will allow us to create products that enable bank officials or technicians to remotely receive all the information on the status of each device, trigger alarms, shut down machines, etc.

So you’ll need CalabriaInnova again soon?

Certainly, without a doubt. Shall we start right away?

By Valentina De Grazia

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