Managing Innovation in Business Assignment - Netflix, Inc

MANAGING
INNOVATION IN
BUSINESS

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Future of Entertainment Industry in 2020 and Beyond..........................................................4
TASK 2............................................................................................................................................6
Netflix's Innovation Requirements in 2020 and Beyond........................................................6
TASK 3............................................................................................................................................9
Future Innovation Capabilities of Netflix...............................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

EXECUTIVE SUMMARY
Innovation is the root cause of growth in present times. It concerns with modification of a
company's offerings to enhance its suitability as well as importance in the marketplace. The
report below is based on Netflix, Inc. which is one of the biggest names of entertainment
industry. It revolves around implementation of change in the organisation. The previous report
upon which this is based on covered the aspects of introduction of change in the organisation.
For this purpose, Netflix U was introduced which allowed the users to shape up their content on
the basis of multiple choices.
The following report cover the aspects of implementation of change in Netflix. For this
purpose, the future of industry was predicted in the year 2020 and beyond. Through analysis, it
was determined that companies like HULU, HBO and Amazon are few of the prime companies
that are likely to bring innovation in their processes. It would have their impacts on the industry
as well as innovations on the company.
Further, the report aims at the innovation requirements of Netflix in 2020 and after that.
There were many notable changes that fulfilled the requirements of innovation in Netflix. For
this purpose, the changes that were noted were effective filtration of the content as well as
interactive content which is similar to the innovation in previous report. Another change that
could effectively judge the innovation requirements was Language Modulator.
Another agenda of this report was to develop a road map to effectively implement the
change in the company. The change which the company seemed fit to go forward with was
Language Modulator. The road map covered the stages from suggestion of this innovation up to
its application in the organisation. It addressed its feasibility, cost as well as approval processes
which is necessary to implement this change in Netflix.

INTRODUCTION
Innovation in a business organisation is aimed at adding worth to its offerings. The
agenda of introducing innovation is to make their services and products more useful for
customers in the market (Biemans, 2018). The following report is based on Netflix, Inc.; an
entertainment industry company headquartered in Los Gatos, California. The purpose of the
report is to establish this innovation in the organisation successfully. To achieve this, future of
entertainment industry in 2020 and beyond is briefly discussed, along with innovation
requirements of Netflix in 2020 and in the future. The report also focuses on building future
innovation capabilities of the company by development of a road map which would describe the
overall process of their innovation. This road map would determine each stage which would help
Netflix implement innovation in their firm to ensure its future growth and sustainability.
TASK 1
Future of Entertainment Industry in 2020 and Beyond
As one of the biggest industries, Entertainment industry is subjected to a lot of
innovations in recent years. With various companies like Amazon, Hulu and recently HBO, the
streaming video on-demand facet of this industry has taken a huge leap lately. With advanced
technologies used in Visual Effects (VFX) and animations, the content developed by these
companies focus on spectacular visuals and compelling stories that engage more viewers towards
their matter. Entertainment Industry is currently ruling in terms of revenue and is likely to do so
in future. The Over-The-Top streaming services of the U.S. are likely to enhance its business and
grow up to $30.6 billion till 2022, almost $25 billion of which is likely to be generated by
Streaming Video on Demand (SVoD) segments of the entertainment industry (PwC Report: OTT
Video Streaming Steams Ahead In 2017 With $20.1 Billion In Revenue, 2018.). With impressive
internet facilities and high-quality streaming, the industry is likely to stay on the top of the
mountain in 2020 and beyond.
Technology also plays a vital role in enhancing the importance of this industry. With rise
in access to smartphones and smart televisions, content development has reached to a new
benchmark where it enhances the visual and audio experience of their viewers worldwide.
Automation and Artificial Intelligence is continuously penetrating the industry and its operations
which help the companies create technologically advanced and innovative contents.