© Roland Berger Strategy Consultants

"No excuses"

Best of European Business in Italy
Leading Italian companies were honored with a Best of European Business award for their achievements in growth, value creation, innovation and for their 'New Europe strategies.'

The Italian awards ceremony of the Best of European Business competition underlined the importance of highlighting companies' success stories as part of the wider discussion on economic perspectives.

An angel, torch in hand, is the dominating figure of the rich fresco that looks down on the baroque-style hall of the Palazzo Visconti. On the stage below, Fulvio Conti, head of the Italian energy giant, Enel, is delivering an impassioned plea for increased competitiveness: "We have to start investing more, we must abandon this 'I don't want to' syndrome," he argues.

Conti is one of the speakers of the Italian awards ceremony, part of the seven national events that make up the Best of European Business competition. He is here to discuss the economic future of his country with his peers – Italy's management elite. The discussion goes on for over an hour and a half.

Other participants feel just as strongly about the topic as Conti does. Francesco Mengozzi, Co-Director of Poste Italiana and head of the banking group within Banco Poste, calls on the 150 guests in the room to be committed and courageous in creating growth and innovation.

Mengozzi's words are echoed in the audience's applause. Poste Vita, the insurance sector of his company is an award winner of the evening. The company was able to develop a once idle market into a booming sector: reason enough for the competition's jury to give it top honors in the growth category of the award.
Palazzo Visconti
The Palazzo Visconti
"The example of Poste Vita shows that there can be no excuses. Growth can be created in all sectors," Corrado Passera, Head of Banca Intesa and one of the jury members for the competition underlined. He stressed the importance of the evening: instead of lamenting the existing situation, the evening is about celebrating those that write success stories, even in seemingly adverse conditions. Fast Web is another of these outstanding examples, taking home the mid-sized company award for growth. Stefano Parisi, head of the internet service provider is rightfully proud of the award for his company's achievement: "Six years ago, we were little more than an idea and today we're one of the most important providers in the country." Another accomplished company and prize winner is Finmeccanica, the Italian leader in high-technology including aerospace, who has managed to defend its leadership role in a highly competitive market. It received the Best of European Business award for its impressive record in innovation.

The constructive approach of Best of European Business obviously hit a nerve in Italy, as economic prognoses there are anything but positive. With a GDP growth of only 1.2% Italy is among the laggards in comparison with its European peers, coming in behind Germany and France. The country's ranking in the Global Competitiveness Report of the World Economic Forum is similarly disastrous: Italy ranks 47th. Finland, by comparison, is number one, coming in ahead of the United States, while Great Britain is 13th and Germany manages to place 15th.
Further Information
_
 Interview with Portuguese BEB judge, Emilio Rui Vilar
_
 British competitiveness winner shine
In the words of Giovanni Albanese, Partner with Roland Berger Strategy Consultants, it is thus all the more important to underline the performance of Italian companies. They are the "motors for the future of Europe," he noted. According to his analysis, the 100 largest European companies witnessed an average growth of 7.9% in 2004 – while the EU-15 economies only managed a growth figure of 2.3%.

The enlargement of the European Union, Albanese said, should be seen as an opportunity rather than a threat for established companies. To honor those companies which have seized these new opportunities, the award for 'Strategies for a New Europe' was created as part of the Best of European Business competition. Unicredit, one of Italy's largest banks took that award home, for the way in which "it built a strong position and excellent reputation in Central and Eastern Europe with its foresight and understanding of the marketplace," according to the jury.

The particular strength of Italian companies was recognized in the awards for value creation, which went to Luxottica and Bulgari. The eyewear manufacturer and the luxury goods producer were able to carve out a niche for themselves against the global competition, continuously positioning themselves at the top with consistent innovation and an internationalization of the business. According to Umberto Quadrino, head of the energy company Edison, it is imperative for the survival of the Italian economy to emulate these companies and their best practices to defend their place among the global leaders: "And if we were global manufacturing leaders for faucets – at least we're be up there."

A profile of the winning companies:
  • Poste Vita
    Growth (Large Companies)

    Poste Vita, part of the Italian postal group, has created a range of products designed to meet savings and personal pension demands. Poste Italiane's offer is conceived to combine the need for security with the opportunity of getting returns on savings. The company was able to establish a competitive advantage for itself in a new business area. Poste Vita thus contributed to the extension of the not yet fully developed life insurance market in Italy. The company is a good example of how enterprises can use diversification to boost growth.
  • Fast Web
    Growth (Mid-sized Companies)

    Fast Web offers Internet Protocol (IP)-based broadband services, supplying voice, video, and data services to residential and business customers in Italy. The company's success comes from using existing fiber-optic lines to deliver multiple services via a single IP network. With courage and new ideas, Fast Web was able to grow rapidly in a market with established providers. The company was able to adapt very quickly to the changing demands within a dynamic market and has become the most important broadband supplier in Italy today.
  • Luxottica
    Value Creation (Large Companies)

    Luxottica is the world leader in the design, manufacturing, marketing and distribution of prescription frames and sunglasses in the mid- and premium-priced segment. It has managed to stand its ground in a very competitive market. The company was able to create long-term value by consistently pushing the market to develop further and by its ability to integrate important acquisitions into the company.
  • Bulgari
    Value Creation (Mid-sized Companies)

    Bulgari, the contemporary Italian jeweler, has expanded into other markets, including perfume and the hotel industry in recent years. With continuous innovation, strategic acquisitions and the expansion of the business into the luxury product range, Bulgari has achieved value creation in an otherwise volatile market area. Part of its success is attributable to the successful internationalization of the business and its ability to position the brand in different markets.
  • Finmeccanica
    Innovation

    The Finmeccanica group is the Italian leader in high technology. Production activities focus on aeronautics, helicopters, space and defense, with additional well-established skills and production assets in the transport, energy and information technology sectors. With Finmeccanica the Italian industry has a strong player in a technically demanding and internationally competitive market. The company was able to continuously place itself among the leading international companies through investment in research and development.
  • Unicredit
    New Europe

    The large Milan-based bank with a EUR 1,3 billion in net gains in the first six months of 2005, realized the opportunities arising out of European enlargement early on and launched a very strong investment and acquisition phase. Unicredit's solid business model was instrumental in cementing customer, competitor and market confidence in the business in the new European as well as in established markets.
Oct 14, 2005

 Top