The IC view: a process-driven innovation in the first place

When considering the three foundational pillars of IC, MAML favours with no doubt structural assets. For this case study, IPRs fit then naturally within these structural assets. Prior developing further the three elements of IC, Fig. 2 describes the approach MAML has on its entire capital. It reflects clearly the emphasis on structural capital that is echoed by our findings.

Fig. 2. Mediolanum’s view of corporate tangible and intangible capital

(1) Structural assets

Structural assets are identified as the backbone of MAML’s success and instil an innovation-driven culture and performance. Basically, they encompass a solid portfolio of IPRs that protects unique processes in terms of investment, product development, R&D and risk assessment. MAML refers to the previous as “innovation capital”. It also overlaps with “Process capital” mentioned in Fig. 2 and outlines the reliance on clear processes, techniques and procedures that are developed in the following section. These items are the core value-adding centres that have been identified by the firm, conceptualised and protected. In particular, Med3® encapsulate MAML’s investment process and captures the know-how and IC accumulated over the years. It is constantly refined and amended by reviewing each active investment choice pay-out to improve decision making (“Hit Ratio”) aiming at better future outcomes. Also this process leverages on global intelligence and delineates different identified steps to translate into investment decisions the opportunities and risks arising from financial markets (see appendix). These processes constitute strong points of reference for company’s and Group’s stakeholders, foster a strong corporate culture, organisational routines and participate in communicating the company’s strategic vision. Those processes are designed with a view to generate innovation.

A network-based philosophy is central to internal and external organisational structure and infrastructure. Focusing primarily on value-adding activities, the philosophy strives to

outsource other functions to selected external partners with whom they build long-term relationships, i.e. other companies, universities, research centres or governmental bodies. MAML refers to this as ‘Global Intelligence’. In MAML’s view, this pertains to relational capital and outlines the endeavours to ‘collaborate with partners’ rather than ‘work with suppliers’. Internally, a so-called flat organisational structure is observed together with an open-plan layout office where the desks are not attributed following the ranks (only two individuals have closed offices as they handle confidential matters). This facilitates lateral communication, learning, knowledge sharing and collaboration between all staff. This pertains to the ‘organisation capital’ section of the company’s structural assets.

Supporting IPR and the network-based ethos, information technologies are another strong structural asset on which company’s organisational performance rests. Within budget constraints and a prioritization agenda, it strives to implement the most updated systems that are deemed relevant. Substantial investments are made into information systems, equipment and software with a view to alleviating staff workload, gaining flexibility and speed and enhancing risk assessment. This infrastructure is also key in easing knowledge flows. Proprietary systems are developed in-house such as their Data Warehouse (Big Data platform), a Virtual Library with its collaboration tool MedCred® or, its Knowledge-Network Platform (KNP). The KNP is an idea management tool involving local and Group stakeholders and guaranteeing maximum transparency and collaboration among the different stakeholders that often inadvertently work in silos when it comes to managing their relationships even if they are all dealing with the same provider.

(2) Relational assets

Relational assets are strongly embedded in the client-centric culture of the company. Consistent with their value-centred outsourcing model, final investors’ relationships are primarily in the hands of MIFL distributors and their network of ‘family bankers’ in Italy, Spain and Germany. Those ones are professional ‘Financial Advisors”. Following the model and spirit instilled by the original founder, Family Bankers possess a very deep knowledge of the local market and their clients’ needs; but they also demonstrate a certain level of expertise in the product itself that bring them closer to asset managers per se. A very close relationship exists between the asset management unit based in Dublin and the distributors. Consistent with its technology-driven and client-centric philosophy, MAML has bespoke services (Connect and Learn® and MedRadar®) to provide to MIFL

distributors’ final investors regular training on investment strategies, product investment updates, etc., in the Dublin offices or through video-conferencing. They also provide insights to the Irish-based teams about their experience. All sessions are video-recorded and made available to the staff and distributors via the Virtual Library.

(3) Human capital

In terms of human capital, the leadership capabilities of the top management are a very strong asset. This represents a good example of transformational leadership with the individuals in charge constantly stimulating and sharing the company’s vision, instilling a supportive innovation-driven culture, organising a framework favouring team reflection and nurturing a creative self-efficacy. The people interviewed that were not part of the top management had a positive reaction to leadership and a positive attitude towards providing inputs into the in-house processes under copyright.

MAML demonstrates also a strong emphasis on managing its employees and address the pertaining issues in terms of ‘Human Capital Management’ (HCM) and Talent Management instead of Human Resources Management (HRM). The company applies HCM practices and policies in order to increase its innovation capability. The senior management plays a central role in nurturing tacit knowledge which is understood as “personal, context specific and hard to formalise; (….) it gets embedded into our corporate memory through collaboration and learning by doing” (quote from 2013 Financial Statement).

The IC foci and design of MAML are geared towards open innovation that consists in tapping into and exploiting technological knowledge available outside the firm’s area of expertise or R&D structure. It represents a solid competitive advantage accruing to companies that do not rely exclusively on in-house approaches to innovation (Whelan 2013). MAML refers to this in terms of ‘crowdsourcing’ that is a type of incremental innovation; it consists of the use of external resources in order to start or strengthen existing assets in a cost-effective manner.

3.2 The KM practices view: identified supporting knowledge management practices