Disruptive changes in manufacturing, brought by developing countries competition and lasting economic crisis, require Europe’s small and medium enterprises (SMEs) to pursue radical business model change. Innovation, intended as the ability to adapt and change, putting creativity at work to overcome any obstacle, is the only way to be competitive in present economic circumstances. Innovation is a sequence of failures. But what happens when this sequence of failures lasts only a few days, or even few hours? Advanced Manufacturing and networks of intelligent devices, enabling on-demand and on-site production with reduced waste made this possible. This thesis shows how a SME located in Turin, LMA Aerospace, is facing the crucial challenge of innovation.