Milan coach Sinisa Mihajlovic was upbeat despite watching his team suffer defeat in his first derby in charge of the club.
The Rossoneri failed to convert a number of goal-scoring opportunities in the first half and conceded in the second after allowing Internazionale's Fredy Guarin to reach the edge of the penalty box with relative ease.
It's the second defeat of the season for Milan but the 46-year-old is optimistic ahead of Saturday's home game against Palermo.
"My players have to stay calm and continue working like this," Mihajlovic told reporters.
"We will move on with confidence trying to do what we have always done and trying to make improvements.
"Bacca didn't play as well as the others and putting Balotelli on with three forwards would have opened us up to a few more risks, so I decided to act accordingly, but it doesn't mean that all three cannot play together.
"When we win we do so together, and when we lose we do so together. Both De Jong and Montolivo are two very important players, but different players, and today I wanted more quality in midfield.
"The whole team played well today, even the midfield. Honda worked really hard today, but perhaps could have done more in attack.
"Let's not forget that we're missing Menez. If he had been available, we could have played with him in the team and been even more attacking in our approach. Balotelli, Bacca and Luiz Adriano can play together, but it's hard to do that in a match against Inter.
"I won't change our formation, we may have an alternative one, but seeing as we're missing Menez and Niang, players who would allow us to change formation, we will stick with this one [4-3-1-2]. If a team is playing well, it's pointless changing the formation.
"My ways can appear direct but I always say what I think, I am happy with this performance. Playing in front of 70 thousand people is different to playing against Empoli and I am happy to have seen the spirit again that I want.
"The players should be happy with how they played, we're clearly disappointed about the result, but they should be proud because they did all that they could. This is the type of team that I like to see."
