MCM: When the Advantage is Being Optimistic

Centuries-old olive trees, nearly as tall as oaks. We pass through the typical countryside of the Gioia Tauro plain, specifically that of Cittanova, wondering how it’s possible that in such a natural oasis there exists a genuine industrial zone that conceals successful entrepreneurial ventures.

With this question in mind, we arrive at MCM, a Calabrian company that has become a reference point for multinationals specializing in ATM security systems. From the very start, Domenico Morano overwhelms us with his enthusiasm, immediately showing us his facilities and the new products he developed thanks also to an innovation project carried out with CalabriaInnova. His company’s revenues are growing: in 2014 it reached 1.8 million euros, a 33% increase compared to the previous year.

He proudly describes his organization to us: major national banking groups demand from ATM manufacturers continual updates and adjustments to ensure security against increasingly sophisticated attacks. These multinational companies struggle to develop new solutions internally, so it often happens that they call Engineer Morano who, thanks to his design office, his young technicians, and his workshop, quickly develops a new prototype. Once the solution is approved, production begins, assembling the “pieces of iron,” as he calls them, together with the electronic parts.

It quickly becomes clear that Domenico Morano is an enthusiastic entrepreneur, capable—through his contagious optimism—of turning any difficulty into a new opportunity. We begin our chat with a provocation.

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

That’s exactly what I asked myself when, in the spring of 2003, I returned permanently to Cittanova—this small Calabrian town far from any infrastructure—for family reasons. I had worked for about 20 years throughout Italy, first at the University of Genoa, where I earned my mechanical engineering degree, then at the consulting company I founded with other partners.

Then, on May 1st, 2003, came a stroke of luck, right when I was trying to figure out what to do with my father’s workshop, active since the 1960s and where I grew up like in a second home. A client of my consultancy at that time urgently needed some large iron plates to secure ATMs for Banco di Roma. By that Friday, the same week, the plates were ready to be installed. At that point, given our rapid response in terms of design, prototyping, and production, they started asking us for other orders, with increasing innovation content. I immediately realized that this was an excellent market to get into.

From here came the leap: from an artisanal business we began working in the ATM security device market, making a series of investments starting with purchasing CNC machines, laser cutting systems, welding robots, and powder coating systems. We abandoned the artisanal approach to become an industrial reality. But the most important effort was changing the mentality and work approach of my collaborators. I strongly believe in the importance of staff motivation, an activity that involves getting them engaged in all phases, from the design and production process to sales.

Do you remember other important dates?

Of course, I remember them all! For example, March 5, 2005. It was a Saturday morning, as always I arrived early at the company and found… emptiness. With the complicity of an employee, they had stolen everything except the largest machines they couldn’t carry away. The damage amounted to around 200,000 euros. But I didn’t lose heart and repurchased everything, also because I wasn’t convinced by the old layout, and I took the opportunity to clean things up and redesign the production processes.

But with all these difficulties, why invest here?

Because life is better here. I lived in big cities for many years. I also lived in small northern towns, which are wonderful. But from a human perspective, there’s no comparison. Today, I finish work and in 10 minutes I’m home with my children; I have the sea and the mountains just a stone’s throw away. My children have access to various excellent schools, such as the ITIS in Polistena. This is also a huge advantage for my company; I’ve recently hired two new graduates from ITIS. My clients are envious: they tell me “you’re lucky.” The big investment was purchasing a large facility in Garlasco, near Milan. We essentially “relocated” Calabria, keeping all its benefits.

In short, you’re incurably optimistic. What other unforeseen event have you turned into an advantage?

All the negative experiences our family has lived through have made us invulnerable and given us recognized credibility. Due to the racket, my father lived under police protection for years. But we reacted by reporting them. Not only that, we founded in Cittanova the second anti-racket association in Italy; the first one was in Capo d’Orlando, Sicily. My sister Maria Teresa is the coordinator of the Calabrian anti-racket associations. Our multinational clients also chose us for this reason. It’s hard to do business here, but if you manage to turn difficulties into an advantage, you become stronger and more competitive.

What did you achieve with CalabriaInnova, and how did the collaboration go?

Initially, I was very skeptical about public funding. Past experiences were disappointing because the structure of the calls for proposals was always far from the reality businesses face daily. Then the technology brokers from CalabriaInnova came to visit us at the company, and that already seemed like a sign of discontinuity! Thanks to their concrete approach and demonstrated expertise, we realized they were interlocutors we could rely on for effective support. They conducted a technological audit, a screening of the company, identifying our innovation needs. This helped us define all the details of a few ideas I already had in mind. Then CalabriaInnova suggested we submit the project to “Attiva l’Innovazione” (Activate Innovation). It was the perfect framework: we already had the idea and the detailed project, and 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, while two others are in the prototyping phase. The DSH product, Dispenser Shutter Hardening—a kind of guillotine that immediately closes the cash dispenser slot in the event of a break-in attempt—is now adopted by major national credit institutions such as UBI and Unicredit. The Sop-Box product, on the other hand, has just been requested by a Spanish multinational. Had we done the project alone, it would have taken much more time, being absorbed by day-to-day management. With CalabriaInnova, we can definitely say we “Activated Innovation”: the name of the call proved perfect in practice. The idea of innovation was already in my head and on my desk, waiting—you activated it.

How do you imagine MCM’s future?

In five years, what we’re doing now probably won’t be necessary 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 banks. The company will therefore need to have an increasingly significant electronic component, integrating ICT to develop products that allow bank employees or technicians to remotely receive all the information about the status of each device and to activate alarms, block machines, etc.

So you’ll be needing CalabriaInnova again soon?

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

By Valentina De Grazia

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