Selling glass in Murano is a business that is laced with inherent obstacles. First, there is the problem of location. From the late 1200's, when Venice outlawed the use of glass furnaces within the city walls, the island at the edge of the Adriatic has been home to the glass blowers. Next, there's the problem of transportation to the remote island. By the local water bus the trip to Murano can take upwards of a half hour on a crowded boat. It is not an ideal journey. Finally, there is the issue of the product. Most tourists do not want to transport delicate glass items home in their suitcases. And unless a person collects glass items, it might be seen as a more practical and functional item rather than a luxury item to buy on vacation.

Faced with these challenges, the proprietors of the island have used their creativity to develop a flexible business model; a model that changes and grows over the years to keep their enterprise viable. The one constant is that it is based on cross-business alliance to make the company thrive.

The one constant is that it is based on cross-business alliance to make the company thrive.

First, to address the problem of location, Murano artists make their glass readily visible and available to Venetian business. If it's dining, sleeping or shopping, Murano glass surrounds visitors, subtly creating a need and desire for the glass. Next, to alleviate the transportation issue, Murano glass cooperatives partner with upscale hotels. They offer easy transportation with water taxis that would usually cost $100. Instead they offer the shorter 15 minute ride "complimentary" to bring the potential customers to the glass. The ride is more pleasant and it sets a better scene for the customer. Winding through the narrow canals, past historical Venetian palaces is breathtaking.

Finally, once the customers are on-site, they are treated to an educational demonstration by master craftsmen thereby educating the consumer on the various levels of artistry and quality that make up a glass product. When all this is set in motion, the personal guide that is assigned to each and every group that visits, switches from tour guide to salesman in a flawless move that leaves the customer asking: "How will I get this home?" They cover this concern with free shipping and insurance built into their flexible pricing structure.

How can this example help your business? The key is innovation. According to the recent 2005 HRI/AMA Quest for Innovation Study, the number one reason to pursue innovation is to respond to the demands of customers. The actions that leaders take can either support innovation or derail it. In the case study, the glass companies work to innovate, to re-create their business to make it viable. Here are several things leaders need to do within an organization to create the same dynamic:

• Develop an innovation strategy- a plan for how you will innovate, include the use of business models as a part of the strategy.
• Make customers an integral part of the innovation process; make doing business with you easy from the customer's point of view.
• Build a culture where innovation is visibly rewarded.
• Coach leaders to be "innovation leaders."

(Donna Dennis, is one of the authors of the HRI/AMA Quest for Innovation study. The study can be found on the Leadership Solutions web-site.)

Donna Dennis
Telephone: 609-497-1997
donna@leadership-solutions.info