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Module Name Leading Through Digital Disruption

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Assessment Title Netflix Digital disruption Consultancy Report

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Table of Contents
Introduction.................................................................................................................................................3
Task 1: Case for Change Analysis...............................................................................................................3
1.1 Netflix Background...........................................................................................................................3
‌1.2 Technological Opportunities..............................................................................................................3
1.3 Digital change objectives...................................................................................................................4
Task 2: Gain Digital Agility........................................................................................................................5
2.1 Insights about competitors.................................................................................................................5
Hyperawareness...................................................................................................................................5
Informed Decision Making..................................................................................................................6
Fast Execution.....................................................................................................................................6
2.2 Innovative technologies for fast decision making..............................................................................7
Real-Time Analytics and AI................................................................................................................7
Edge Computing..................................................................................................................................7
Blockchain for Smart Contracts...........................................................................................................8
Task 3: Steer collaboration to create a Digital Culture................................................................................9
3.1 Collaboration Tools...........................................................................................................................9
Slack....................................................................................................................................................9
Trello...................................................................................................................................................9
Google Workspace............................................................................................................................10
3.2 Collaborative Decision-Making Platforms.......................................................................................10
Embrace Continuous Learning and Development..............................................................................10
Promote Cross-Functional Collaboration and Ideation......................................................................10
Cultivate a Customer-Centric Mindset...............................................................................................11
Task 4: Adapting Different Leadership Styles...........................................................................................11
4.1 Digital Leadership...........................................................................................................................11
Visionary Leadership.........................................................................................................................12
Coaching Leadership.........................................................................................................................12
4.2 Grow model.....................................................................................................................................12
Goal Setting.......................................................................................................................................12

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 Reality Checking...............................................................................................................................12
Options Generation............................................................................................................................13
Way Forward.....................................................................................................................................13
References.................................................................................................................................................14

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Introduction

In the era of digital disruption, leading through technological transformation is imperative for
companies to thrive amidst relentless innovation (Frankenberger et al., 2020). This report aims to
critically analyze Netflix and recommend changes to the organization to stay competitive in the
market of continuous digital innovation. For this purpose, it delves into Netflix's current
standing, technological opportunities, digital change objectives, and proposes strategies
leveraging the Digital Business Agility model, innovative technologies, collaboration tools,
leadership styles like visionary and coaching, and the GROW model..

Task 1: Case for Change Analysis

1.1 Netflix Background

Founded in 1997 by Reed Hastings and Marc Randolph, Netflix, Inc. stands as a pioneering force
in the digital streaming landscape, headquartered in Los Gatos, California. With a market
capitalization of around $254.67 billion and annual revenue of $33.72 billion, Netflix dominates
the entertainment industry by offering an extensive library of movies, series, and documentaries
through its on-demand streaming platform ‌ (Netflix, 2024). Renowned for its original content,
Netflix revolutionized entertainment consumption by transitioning from DVD rentals to online
streaming. Netflix’s global presence and diverse content offerings cement Netflix's status as a
leading global entertainment platform accessible to millions worldwide (‌Netflix, 2023).

‌1.2 Technological Opportunities

To maintain its competitive edge in the dynamic streaming market, Netflix should strategically
focus on key technological opportunities. Firstly, enhancing Personalization and
Recommendation Algorithms through advanced machine learning can refine content suggestions
based on real-time context, mood, and current events, boosting engagement and retention (Kamal
and Himel, 2023). Secondly, investing in Interactive and Immersive Content like interactive
storytelling formats and VR/AR experiences can redefine user engagement, offering novel ways
to experience entertainment (Baikulova and Suderevskaia, 2019). Furthermore, on account of the
fact that Kiran showed (2023) that prioritizing Global Expansion and Localization by uploading

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local content and improving localization efforts, the platform (Netflix) would click with all the
various audiences globally. Through grabbing local favor and taking advantage of technology,
Netflix can position itself as a supplier with in-depth knowledge of regional nuance, providing
personalized and immersive experience for the subscribers. Hence, makes subscribers engrossed
and loyal.

1.3 Digital change objectives

In order to improve customer satisfaction level, to make process easy and to achieve revenue
goal, Netflix aims to bring digital change goals relevant to strategic goal of the company which
is regarding technology based opportunities. According to Gangadharan et al. (2024) who state
that they utilize `Personalization and Recommendation Algorithms' based on machine learning to
analyze data of real time so that only those contents that increase engagement and retention are
recommended. Statistics reveal that personalized recommendations can lead to a 30% increase in
user engagement and a 20% rise in customer retention (Abbas, 2022). Additionally, investments
in Interactive and Immersive Content, including VR/AR experiences, aim to redefine user
engagement, offering novel entertainment experiences. Moreover, Ylijoki (2019) analyzed that
prioritizing Global Expansion and Localization initiatives, supported by data-driven insights, can
enable Netflix to resonate with diverse audiences worldwide. With 167 million subscribers
globally, these digital transformations aim to solidify Netflix's position as a leading
entertainment provider, fostering loyalty and generating higher revenues in an increasingly
competitive streaming landscape (Themarcomavenue.com, 2023).

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Task 2: Gain Digital Agility

2.1 Insights about competitors

Netflix can leverage techniques from the Digital Business Agility (DBA) model to navigate
market changes and also to capture insights about its competitors effectively.

Hyperawareness: According to Guadiana (2020) Netflix should cultivate a heightened

awareness of its business environment. By continuously monitoring real-time data, trends, and
customer behavior, it can stay attuned to market shifts. For instance, following a social media
attack on one of its brands, Nestlé created the Digital Acceleration Team (DAT) to monitor
social media. Through DAT, Nestlé has improved consumer communication to create more

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relevant brand engagements that lead to brand advocacy (Singh and Salunkhe, 2022). Goyal et
al. (2020) stated that Netflix may need to apply advanced analytics and AI in order to have
foresights into the popularity of content such as movies. Also, Netflix can construct a complete
apprehension of its competitive arena by unremittingly tracking competitor’s activities, the
mentality of consumers and the climax of public opinion. Considering this fact that Manole
(2022) says exploiting advanced analytics tools and social listening platforms allows Netflix to
follow patterns from competitors, their new products and customers’ feedback in real-time.
Netflix can conduct competitive analysis through publicly available channels such as
performance metrics, social media engagement, and consumer reviews. This allows for the
identification of potential threats or opportunities well ahead of time, making it possible for the
company to respond proactively.

Informed Decision Making: The basis of Netflix’s success is predictive and this is mainly
based on data. It can effectively respond to threats and see opportunities by incorporating
informed decision-making as part of it, as stated in Pearlson et al. (2024). According to Stoldt
(2021) access to enterprise-wide data is critical for agile decision-making. The free flow of
information enables Netflix to make informed choices promptly. Shifting to a cloud-based
infrastructure provides real-time data access for better planning. Furthermore, Mukhtarov (2023)
evaluated that Netflix's data-driven approach to decision-making extends to competitor analysis
as well. By aggregating data from diverse sources such as market research reports, industry
publications, and competitor websites, Netflix can gain valuable insights into competitor
positioning, pricing strategies, and product features.

Fast Execution: Netflix must act swiftly on insights. Agility lies in executing strategies
promptly. As the digital landscape evolves, Netflix should adapt its content offerings, pricing
models, and distribution channels. Fast execution ensures it stays ahead of competitors and
aligns with evolving customer needs (Pratama and Narimawati, 2023; Kübler, Seifert and
Kandziora, 2021). Additionally, Netflix's ability to swiftly respond to competitive dynamics is
paramount in the rapidly evolving streaming market. By fostering a culture of agility and
innovation, Netflix can capitalize on competitive insights to iterate and refine its offerings. For
example, if a competitor introduces a new content genre or distribution channel, Netflix can
evaluate its relevance to its target audience and adjust its content acquisition and distribution

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strategies accordingly (Azra, 2023). Moreover, leveraging its scalable cloud infrastructure and
agile development processes, Netflix can expedite the implementation of strategic initiatives,
ensuring timely responses to competitive threats and market opportunities (Akter et al., 2022).

2.2 Innovative technologies for fast decision making

Netflix can adopt innovative technologies to facilitate fast decision-making and adaptability in
response to market changes. Here are three recommendations:

Real-Time Analytics and AI: Leveraging real-time analytics and AI allows Netflix to
continuously track viewer behavior, content preferences, and market trends (Ahmed and
Abdulkareem, 2023). Thus Manole (2022) asserts, Netflix by accessing data streams in real-time
can exactly understand the maturing of content genres, predict audience interests and get a sense
of the strategies of their competitors early enough. AI algorithms can do automated data
processing including predicting insights which can be executed by Netflix in time, enabling them
to form ultimately effective decisions. The AI-based suggestion systems extends the average
duration of stay on the application and even increases the user engagement and retention by
suggesting content that is relatable and personalized to the audiences in the present moment
(Rane, 2023). The power of real time analytics and AI is exploited by Netflix and this ensures
that they remain unrivaled in dynamic streaming market and quickly adapt to the changes
necessitated by consumers (Subramaniam, 2022).

Edge Computing: Edge computing technology integration helps to Netflix process data near
source limitedly that is leading to decrement of latency and in turn swift decision making takes
place (Douch et al., 2022). The edge servers where Netflix can deploys edge and content delivery
networks around user devices and content improvement can be easily done, recommendation
personalization, and in real-time streaming quality consideration (Taha and Ali, 2023). Sensor
functionalities of the edge AI are at the base of efficient content adaptation in the Netflix
platform with edging the user experiences. The widespread use of decentralized data processing
centers in turn makes the service more scalable, reliable and adaptive, thus giving Netflix the
ability to make instant decisions and also respond to the changing market environment in a very

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prompt manner, still achieving for the users a smooth experience globally (Aheleroff et al.,
2021).

Blockchain for Smart Contracts: Netflix can make use of blockchain technology by
simplifying the decision making involving licensing agreements, royalty payments or production
and delivery of its content (Vergne, 2020). Smart contract encoded on the blockchain which
AUTOMATES contract implementation is a breakthrough in business transactions as it makes
them transparent, efficient and fully trusted. An indeclinable record kept on the blockchain
serves as a safeguard against tampering. Thus, Netflix can not only securely trace content rights,
viewer data, and revenue sharing arrangements but also provide evidence in the event of a
content-related dispute (Banerjee et al., 2020). Decentralized Content Verification Mechanisms
of blockchain technology enable users to own their content. This, in turn, of copyright issues,
improves content authenticity by eradicating initial disputes, if not completely, it raises the
threshold level in real disputes. Through implementation of a blockchain-based architecture for
its smart contracts, Netflix allows to smooth decision-making workflows and to get rid of the
transactions seamlessness, quickly responding business changes, while keeping the trust to its
ecosystem partners (Verma, Singla and Mittal, 2024).

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Task 3: Steer collaboration to create a Digital Culture

3.1 Collaboration Tools

Slack: On top of its instant messaging, file sharing, and collaboration options, Slack also features
real-time communication that helps teams to work effectively together (Adams, 2022). Netflix
can develop corresponding channels for its separate products or departments where inhouse
employees can support each other by exchanging ideas, offer feedback, and participate in
dialogue related to the decision processes. Leaders can use this channel to grasp the attention of
employees' contributions, come up with solutions appropriate for such situations and attend any
issues that may arise (Donthu and Gustafsson, 2020).

Trello: Trello is a visual collaboration tool that enables teams to organize tasks, projects, and
workflows using customizable boards (Peña et al., 2021). Netflix can use Trello boards to outline
decision-making processes, assign tasks, and track progress in real-time. Team members can

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contribute by adding comments, attaching files, and updating task statuses, providing leaders
with visibility into individual contributions and overall project dynamics (Hidalgo, 2019).

Google Workspace: Google Workspace offers a suite of productivity tools, including Google
Docs, Sheets, and Slides, for collaborative document editing, spreadsheet analysis, and
presentation creation (Lake, 2022). Netflix can leverage Google Docs to create shared documents
where team members can collaboratively brainstorm ideas, draft proposals, and document
decision-making outcomes. With real-time editing and commenting features, leaders can monitor
document revisions, track feedback, and ensure alignment across teams (Ku and Lupton, 2022).

3.2 Collaborative Decision-Making Platforms

Embrace Continuous Learning and Development: Netflix can promote a culture of

continuous learning and development by providing employees with access to relevant training
programs, workshops, and resources focused on digital literacy, emerging technologies, and
industry trends (Nicolaou, 2021). By investing in employee skill development, Netflix empowers
team members to adapt to technological advancements, experiment with innovative ideas, and
stay abreast of evolving customer needs. This culture of learning encourages creativity, fosters
innovation, and cultivates a workforce equipped to drive digital transformation across the
organization (Mier and Kohli, 2021).

Promote Cross-Functional Collaboration and Ideation: Netflix can encourage cross-

functional collaboration and ideation by fostering open communication channels,
interdisciplinary teamwork, and idea-sharing platforms. By bringing together diverse
perspectives, skills, and expertise from across different departments, Netflix creates
opportunities for collaborative problem-solving, brainstorming, and innovation (Ambar, 2023).
Team members are empowered to exchange ideas, challenge conventional thinking, and explore
new approaches to enhance customer experiences and drive business growth. This collaborative
culture fuels innovation, accelerates product development cycles, and strengthens customer
relationships by delivering solutions that resonate with evolving market demands (Fernandez,
2023).

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Cultivate a Customer-Centric Mindset: Netflix can instill a customer-centric mindset by
prioritizing empathy, listening to customer feedback, and proactively addressing customer needs
and pain points. By leveraging data analytics, user research, and customer insights, Netflix gains
a deep understanding of customer preferences, behaviors, and expectations (Shields, 2024).
Team members are encouraged to empathize with customers, anticipate their evolving needs, and
innovate solutions that delight and engage. This customer-centric approach drives product
innovation, enhances user experiences, and fosters long-term customer loyalty and advocacy. By
aligning organizational goals and initiatives with customer-centric values, Netflix strengthens
relationships, builds trust, and positions itself as a leader in the digital streaming industry
(Rajaram, 2023).

Task 4: Adapting Different Leadership Styles

4.1 Digital Leadership

In the context of Netflix's digital transformation, two key Goleman leadership styles stand out:
visionary leadership and coaching leadership.

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Visionary Leadership: Netflix would benefit from leaders who can articulate a clear vision of
the company's digital future. Visionary leaders inspire and motivate employees by outlining a
compelling future state and explaining how each individual contributes to achieving it (Deliu,
2019). In Netflix's case, a visionary leader could paint a picture of the company's digital
landscape, emphasizing innovation, customer-centricity, and adaptability. This style fosters
enthusiasm and commitment among employees, crucial for navigating the complexities of digital
transformation (Daraojimba et al., 2023).

Coaching Leadership: As Netflix undergoes digital transformation, leaders need to cultivate a

culture of continuous learning and skill development. As stated by Trenerry et al., (2021)
Coaching leaders provide guidance, support, and feedback to help employees develop their
capabilities and adapt to changing digital environments. With coaching leadership, Netflix can
empower its workforce to embrace new technologies, learn digital skills, and contribute
creatively to the company's evolving digital strategy. This approach fosters agility and resilience,
enabling Netflix to stay ahead in a rapidly changing digital landscape.

4.2 Grow model

Implementing the visionary and coaching leadership styles at Netflix can be effectively executed
using the GROW model:

Goal Setting: Leaders should begin by establishing clear goals aligned with Netflix's digital
transformation objectives. For visionary leadership, the goal could be to articulate a compelling
digital vision that inspires and motivates employees (Khoiri, 2020). For coaching leadership, the
goal could focus on fostering a culture of continuous learning and skill development (Ellinger
and Ellinger, 2021).

Reality Checking: Leaders need to assess the current reality of Netflix's digital capabilities,
challenges, and employee skill sets. This involves understanding the existing infrastructure,
digital competencies, and potential barriers to transformation. Honest evaluation allows leaders
to identify areas for improvement and address any gaps hindering progress (Warner and Wäger,
2019).

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Options Generation: Leaders should encourage collaboration and innovation to explore various
options for achieving digital transformation goals. For visionary leadership, this may involve
brainstorming sessions to generate creative ideas aligned with the digital vision. For coaching
leadership, leaders can facilitate discussions on skill enhancement opportunities, training
programs, and resources available to support employee development (Guinan, Parise and
Langowitz, 2019).

Way Forward: Leaders must define concrete action plans and timelines to implement the
chosen strategies. This involves assigning responsibilities, allocating resources, and establishing
milestones to track progress effectively. Additionally, leaders should provide ongoing support,
feedback, and coaching to ensure alignment with the digital transformation agenda (Hirschi,
Shockley and Zacher, 2019).

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