Netflix: Innovation for Energy Consumption and Design Thinking Report

This report examines innovation within Netflix, focusing on strategies to reduce energy consumption associated with video streaming. It explores the application of design thinking to address the issue of high-definition video file sizes and their environmental impact. The research outlines potential solutions, including technology to manipulate file sizes without diminishing quality, and discusses the importance of fast integration, prototyping, testing capabilities, and cross-functional management in implementing these innovations. The report emphasizes the need for employee participation and change readiness to ensure successful implementation, and highlights the importance of feedback mechanisms and efficient resource allocation. Ultimately, the analysis aims to provide actionable insights for Netflix to enhance its operational efficiency, reduce its carbon footprint, and maintain a competitive edge in the market.

Running head: INNOVATION IN ORGANIZATIONS
INNOVATION IN ORGANIZATIONS
Name of the student
Name of the university
Author note

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Executive summary
The research aims at identifying the different aspects of an innovation that might be undertaken
by Netflix with the aim of misnaming the rate of energy consumption while streaming videos
online. The design thinking process and the different management operations that might be
considered by the organization is being enumerated in the research. The research also delineated
the manner in which the organization might facilitate the prototyping and testing methods with
the aim of continuing with the efficiency of the innovative process. Therefore, the major purpose
of commencing the research is to outline the probable causes and the steps that might be
undertaken by the organization for enhancing the innovative practice.

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Table of Contents
Introduction......................................................................................................................................3
Design thinking and the innovation.................................................................................................5
Fast integration................................................................................................................................7
Prototyping and testing capabilities.................................................................................................8
Cross functional management..........................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Innovation in NETFLIX
The continuous innovation of in Netflix is observed since its inception in the year 1997.
The different processes that are undertaken by the organization from supplying DVDs at home to
the development of an online platform for streaming videos and movies assisted the venture in
developing the potentials of attracting the attention of the potentials customers. On the other
hand, the personalization of the different offerings has helped the organization in attracting the
attention 0of the trusted and loyal customers towards the product offerings. Initially, the
organization adhered to a rental model of providing entertainment to the different customers. It
has assisted the venture in improving the capabilities of the same in reading the interests of the
viewers.
The utilization of the rental model is known as the Netflix Originals. The rental model is
complimented by a subscriber model which required the customers of the concerned organization
to subscribe to the different channels that are being provided by the organization. The
subscriptions assisted the venture in gathering revenue for directing different operations and
future developments (Rayna & Striukova, 2016). The model is noted as the Netflix Subscriber
model. The development of the concerned organization is again based on the development of the
Netflix Queue which assist the audience in populating and curating a list of movies and shows in
adherence to the interests of the same. The process has helped the organization in relieving the
audience of the stress for choosing what to watch through providing the same with a
recommended list (George & Lin, 2017). The development of the innovations assisted the
venture in developing the capabilities of the same while operating in a highly competitive market
structure.

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Idea for an innovative service
It has been noted that the concerned organization did not take steps relating to the ultra- high
definition video formats which consume more energy. It has affected the capabilities of the
concerned organization in gaining a competitive benefit against YouTube, Amazon Prime and
the like. Therefore, the concerned organization must take steps to develop suitable technologies
for manipulating the file size without diminishing the quality of the video. The diverse range of
propositions that are made by the organization will be enhanced through the utilization of the
innovative technology that would assist the same in reducing the energy consumption while
ensuring the same enhanced format of the files. Nylén and Holmström (2015) opined that the
large size of the files consume more energy which affects the propositions of the venture through
lack of green adherence. The quality of the operations that are undertaken by the organization are
dependent on the smooth functioning of the systems in adherence to the demand of the customers
(Fichman, Dos Santos & Zheng, 2014). Therefore, the concerned organization might take steps
to develop suitable range of processes with the aim of continuing with the efficiency of the green
propositions through reduction in carbon footprints.
Innovation being streamlined with the organization’s current capabilities
The enhanced financial capabilities of the concerned venture will assist the same in
developing the new technology while operating on the developments. On the other hand, the
skilled R&D and IT team of the organization would assist the venture in improving the potentials
of the venture to adhere to the innovative procedure (Hinterhuber & Liozu, 2014). The
enhanced innovativeness of the organization will be reliant on the development of the different
resource and propositions, which will assist the venture in developing the capabilities of the
same. The collaborative functioning of the members in the R&D operations will assist the

5INNOVATION IN ORGANIZATIONS
venture in enhancing the capabilities of the same while operating in different organizational
contexts. The open innovation model that is being followed by the organization and the active
participation of the employees in the change processes will assist the venture in developing the
potentials of adhering to the new innovative idea. Employee participation in the different
activities and the change readiness among the same would assist the venture in implementing the
new innovation in the processes (Wooten & Ulrich, 2017).
Design thinking and the innovation
Figure 1: Design thinking of the innovation
(Source: Joseph Pine II & H. Gilmore, 2014)
The concerned organization, Netflix would take steps to develop suitable understanding
of the needs of the organization in developing technologies for minimizing the rate of energy
consumptions through improvements in the Ultra- high definition files. The developments in the

6INNOVATION IN ORGANIZATIONS
particular type of file structure would assist the venture in minimizing the rate of energy
consumption and thereby diminish the rate of carbon footprints. In this relation, the concerned
organization would take steps to empathize on the problem that is being encountered by the same
(Cavoukian & Castro, 2014). Defining the problem would assist the venture in developing a
clear conception on the needs for a software. The definition of the problems would assist the
venture in developing the potentials of the same in maximizing the rate of collaboration among
the stakeholders. The development of the clear idea will be initiated in the ideation procedure
which will be assisting the venture in developing the capabilities of the same in mainttaini0ing
the efficiency of the operations in adherence to the demand of the customers. The development
of the ideas for designing the new software would be made through brainstorming on the
different alternatives. The prototyping of the idea would assist the venture in developing a rough
copy of the actual software and the manner in which it might assist the operations of the venture
in developing the capabilities of the same.
The testing of the idea will assist the venture in developing the capabilities of the same
through feedbacks from the engineers. The feedbacks will assist the venture in developing the
software in adherence to the concerns that are faced by the venture. The applicability of the idea
will be identified through the testing phase that is undertaken by the same. The different aspects
of change that are undertaken by the organizations has assisted the same in maintaining the
efficiency of the operations in adherence to the demand of the customers (Fernández-Manzano,
P., Neira & Clares-Gavilán, 2016). Therefore, the design thinking potentials of the concerned
organization, Netflix will support the same in improving the operations while reducing the
carbon footprints and their impact on the organizational position in the market.

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Fast integration
The integrated functioning of the workforce will assist Netflix in developing the coherent
processes in adherence to the urgency for the change. The change in the software design will be
aimed at reducing the energy consumption through modifications in the size of the file. The
modification in the size of the le while streaming will assist the venture in developing the
operations of the same while operating in highly competitive market structure of the industry
(Cox Pahnke et al., 2015). The changes in the organizational capabilities will assist the venture
in developing the capabilities of the same in enhancing the rate of operations while operating in
diverse international markets. Netflix might take steps to communicate their vision and idea of
the modifications with the employees and the software engineers which will assist the same in
continuing with the transparency of the operations. The transparency of the operations will assist
the venture in encouraging the active involvement of the stakeholders in the different processes
that pare planned by the venture (Vogel & Fischler-Strasak, 2014). The different aspects of
change that are undertaken by the organization is dependent on the uninterrupted functioning of
the systems in adherence to the demand of the customers. On the other hand, the new idea is
aimed at reducing the energy consumption by a significant level for minimizing the rate of
carbon emissions. The minimization of the rate of carbon emissions by the organization would
assist the same in developing the capabilities of the same while operating on the diverse
modifications on the software (Snyder et al., 2016). Integrated functioning of the management
with the employees will assist the organization in improving the potentials of the same in forging
efficient modifications in the systems.

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Prototyping and testing capabilities
The prototyping and testing capabilities of the organization is based on the efficient
review of the feedbacks that are gathered by the same. The feedbacks will provide the
organization with opportunities for maintaining the efficiency of the operations in adherence to
the demand of the customers. The key changes that are commenced by the organizations are
dependent on the efficiency of the testing and feedback gathering procedures that is implemented
by the same. Bereznoi (2015) opined that the efficiency in the testing and prototyping
capabilities of an organization is reliant on the proactive approach of the employees and the other
stakeholders. The concerned organization, Netflix has taken steps to maximize the engagement
of the employees in the different processes that are planned by the venture. It will ‘assist the
venture in developing a positive relation with the stakeholders. On the other hand, the concerned
organization might take steps to seek feedback from the engineers and the IT relating to the
development of the software in the testing phase.
The feedbacks that will be gathered by the organization through a survey which will be
aimed at the engineers of the venture. The development of the software will be based on the
amount of modifications that the software can implement for reducing the file size. The
reductio0n in the size of the file is the major concern for the concerned organization. Therefore,
the survey that will be conducted by the organization will assist the same in assessing the
capabilities of the software in reducing the size of the file (Boss, Kleer & Vossen, 2017). The
efficiency of the prototyping capabilities will be based on the engagement of proficient engineers
in the processes. On the other hand, the testing capabilities of the organization will e based on
the unbiased feedbacks that will be gathered by the same through the survey after making a pilot
test on the proposition. Therefore, the different changes in the software design will be based on

9INNOVATION IN ORGANIZATIONS
the proactive collaboration and integrated functioning of the workforce with the management.
The different aspects of change that are commenced by the organization is dependent on the
efficient operations of the venture while operating n diverse international markets.
Cross functional management
The cross functional management of an organization is dependent on the smooth
functioning of the systems that are being planned by the organizations through the enhanced
expertise of the different departments. Saunila, Mäkimattila and Salminen (2014) stated that
the cross functional management related operations in an organization assist the same in
enhancing the rate of productivity and the quality of the offerings while adhering to the needs of
the customers. In this relation, Netflix will take steps to allocate different tasks to the
stakeholders through better knowledge on their individual expertise. The effective allocation of
the resources will assist the venture in developing the capabilities of the same while operating in
a multi-dimensional market structure. On the other hand, the allocation of tasks in adherence to
the expertise of the stakeholders will assist the venture in developing the capabilities of the same
while developing the new software (Lyons, 2016). The software related modifications will be
assigned to the specific field engineers and the responses will be collected from the IT managers
of the organization. The knowledge of the field and the different modifications that are
undertaken by the organization for encouraging the involvement of the stakeholders in the
different processes would assist Netflix in enhancing the process flows. The software is aimed at
assisting the organization with the content management and the manner in which the size of the
files might be reduced. The developments in the organizational operations will thereby depend
on the collaborative functioning of the stakeholders from different fields of knowledge.

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Conclusion
Therefore, from the above analysis it might be stated that the different innovations that
are undertaken by the organizations are dependent on the collaborative functioning of the
workforce. In this relation, Netflix might take steps to develop a suitable software with the aim
of minimizing the energy consumptions while streaming ultra- high definition files. The
development of the innovations will be reliant on the active participation of the different
departments. It will ensure the smooth functioning of the innovative processes while operating in
diverse competitive markets.
Future innovations that might affect the innovation of Netflix
The growing rate of data consumption might affect the capabilities of Netflix in the future
years. The innovation that is being undertaken by the organization is dependent on a software
which will ensure the diminishing rate of energy consumption. However, the rowing trend of
data consumption in the years would affect the potentials of the concerned organization in
reducing the rate of energy consumption while streaming.

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References
Bereznoi, A. (2015). Business model innovation in corporate competitive strategy. Problems of
Economic Transition, 57(8), 14-33.
Boss, V., Kleer, R., & Vossen, A. (2017). Walking parallel paths or taking the same road? The
effect of collaborative incentives in innovation contests. International Journal of
Innovation Management, 21(03), 1750024.
Cavoukian, A., & Castro, D. (2014). Big data and innovation, setting the record straight: De-
identification does work. White Paper, Jun, 20.
Cox Pahnke, E., McDonald, R., Wang, D., & Hallen, B. (2015). Exposed: Venture capital,
competitor ties, and entrepreneurial innovation. Academy of Management Journal, 58(5),
1334-1360.
Fernández-Manzano, E. P., Neira, E., & Clares-Gavilán, J. (2016). Data management in
audiovisual business: Netflix as a case study. El profesional de la información
(EPI), 25(4), 568-576.
Fichman, R. G., Dos Santos, B. L., & Zheng, Z. E. (2014). Digital innovation as a fundamental
and powerful concept in the information systems curriculum. MIS quarterly, 38(2).
George, G., & Lin, Y. (2017). Analytics, innovation, and organizational
adaptation. Innovation, 19(1), 16-22.
Hinterhuber, A., & Liozu, S. M. (2014). Is innovation in pricing your next source of competitive
advantage?. Business Horizons, 57(3), 413-423.