LTDD Summative Brief (1)

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TASK 1: CHANGE ANALYSIS AND OPPORTUNITIES Hulu is a popular American entertainment streaming service with over 30 million subscribers as of 2018 (Hulu, 2018). It operates in the global video streaming and entertainment industry which is currently experiencing significant disruption driven by technological changes (Hulu, 2018). Hulu offers both an ad-supported and ad-free subscription video on-demand over the internet to its subscribers (Hulu, 2018). Customers can access content from various media producers and content owners through its website and mobile/TV apps for a monthly subscription. Hulu's core business is providing on-demand access to TV shows, films and live programming such as news, entertainment and sports (Hulu, 2018). Areas of Impact from Digital Disruption 1) Changing Viewership Habits The rise of internet-connected devices and digital streaming services have greatly impacted how viewers consume media content (MIT, 2018). Younger audiences in particular expect an on- demand experience across all screens without being tied to fixed broadcast/cable schedules (Gartner, 2021). This has challenged Hulu's traditional TV-style content distribution model. Subscription video on demand has disrupted the dominance of cable TV providers by allowing more flexible access to content anywhere (Kiron et al., 2021). To remain relevant, Hulu needs to fully optimize its offering for seamless multi-screen accessibility. 2) Intensifying Competition 2
Established tech giants like Netflix, Amazon and newcomers like Disney+ have raised competition significantly in streaming (MIT, 2018). These competitors have deeper pockets and wider content libraries that attract more subscribers. They also invest heavily in original productions and personalization technology. If Hulu does not innovate quickly enough, it risks losing market share to better resourced rivals. Its ownership structure as a joint venture also poses constraints versus fully integrated competitors. 3) Fragmenting Media Market Traditional media companies are increasingly pulling content from Hulu to launch their own direct-to-consumer platforms (Forbes, 2018). For example, Disney acquired 21st Century Fox and has removed Fox content from Hulu to exclusively feature on Disney+. This fragmentation of content across multiple platforms complicates the consumer experience. It threatens Hulu's ability to offer a compelling universal streaming solution if major media partners also become competitors. Opportunities For The Cio 1) Drive a Mobile-First Experience The CIO should spearhead a mobile-first strategy to develop apps and an interface optimized for engagement and usability across mobile devices which audiences rely on most for entertainment (Gartner, 2021). This includes personalized recommendations, offline viewing support, advanced search capabilities and social features. 2) Invest in Original Exclusive Content 3
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To reduce dependency on third-party content owners, Hulu needs to substantially ramp up investment in creating award-winning original TV shows and films. The CIO can expand Hulu's content development budget and production infrastructure to better compete on quality exclusives like Netflix (Forbes, 2018). 3) Partner for International Growth While focusing on the domestic market, the CIO should explore strategic global partnerships or acquisitions (MIT, 2018). For example, partnering with a major telecom or media company to rapidly launch and scale Hulu's presence internationally, especially in high growth markets like India and Latin America. This can open new revenue streams and better position Hulu for the long run. Through judicious changes in its technical capabilities, content strategy and business models, the CIO has an important leadership role in helping Hulu successfully adapt and thrive during this period of digital disruption. Implementing the above opportunities could allow Hulu to not just catch up with competitors but carve a strong differentiating position of its own. TASK 2: DIGITAL BUSINESS AGILITY The streaming video landscape is evolving at an unprecedented pace with increased global competition and shifting consumer behaviors (Google, 2017). To stay ahead of disruptions and changing market needs, Hulu needs to embrace digital business agility by leveraging emerging technologies across its operations. 4
Hyperawareness Hyperawareness helps Hulu gain real-time insights into customers, competitors and trends at scale. Several Machine Learning (ML) and Internet of Things (IoT) driven solutions can be deployed: Customer Insights Hub: Hulu should build a centralized Customer Insights Hub powered by ML algorithms. It analyzes structured and unstructured data from the app, website, connected devices, call centers, surveys etc. to generate sophisticated segmentation profiles and detect subtle behavioral changes across 1000+ metrics (Gratton, 2011). For example, viewing patterns by genre, devices, time of day, browsing behavior pre-/post-subscription etc. Hyperlocal usage data from >50 million connected devices provides accurate awareness into content performance across regions globally. Sentiment Monitoring: An ML solution monitors 500+ social media platforms, blogs, review sites and customer touchpoints to track sentiment towards Hulu's offerings, original shows, pricing models etc (Gartner, 2021). It classifies feedback into themes, prioritizes issues and identifies targets for corrective measures (Forbes, 2019). For example, gauging satisfaction levels post-launch of new features. This outside-in view complements internal usage insights. Competitive Tracking: ML algorithms analyze organic mentions of competitors, compare content portfolios and acquire intelligence from industry reports (Kiron et al., 2021). Combined with public datasets, it builds profiles of rivals' strategies, pricing actions and topology of 5
shared/differentiated customers (Google, 2017). This helps devise counteroffers and preempt moves. For example, Hulu could tailor bundling promotions if Disney+ gains traction in a segment. Predictive Analytics: ML models are trained on the insights hub and extrapolatetrends/patterns to make probabilistic predictions 3-6 months in advance (Forbes, 2018). For example, forecasting potential show cancellations if viewership dips below a threshold, estimating subscriber traction for newly commissioned shows and predicting slow/fast adoption regions for new features. This helps devise proactive responses instead of reactive fire-fighting. IoT Ecosystem: Hulu can partner smart device manufacturers to gain access to raw usage data from over 50 million annually connected streaming boxes, smart TVs and other IoT-enabled devices (Hulu, 2018). Sensors track in-app/on-screen time spent, simultaneous streams, geo- locations and content abandonment at a hyperlocal level (Kiron et al., 2021). For example, monitoring time-spent in the kids section could indicate parenting needs. Interfaces lets customers opt-in/out of data sharing as needed. Together, these frameworks provide hyperawareness into multichannel customer journeys, shape competitive intelligence modules and fuel predictive algorithms. The Customer Insights Hub becomes a single source of truth for strategic and tactical decision making. Informed Decision Making Hyperawareness is elevated to the next level through cognitive technologies enabling informed 6
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decision making: Cognitive Assistants: Artificially Intelligent (AI) chatbots and virtual assistants are deployed across functions (BCG, 2019). They harvest insights from interactions, answer queries personalized to users' roles and recommend optimized actions backed by ML models (Kiron et al., 2021). For example, an AI assistant helps acquire executives comprehend usage patterns from the Customer Insights Hub and propose feature upgrades. This streamlines collaboration. Blockchain Network: Hulu implements a permissioned blockchain network for partners/divisions to securely track initiatives, budgets, deadlines, interdependencies and performance metrics in a transparent, immutable record. Smart contracts automatically facilitate bilateral approvals and payments (McKinsey, 2020). For example, content owners and production houses update status/revisions of commissioned shows in real-time. This fosters accountability, visibility and optimized resource allocation. Demand Forecasting: ML algorithms mine hyperlocal usage data and predictive models to generate probabilistic demand forecasts at a granular level - down to neighborhood-street corners, tailoring to device usage patterns and various pricing scenarios (Kiron et al., 2021). This aids commissioning optimal volumes and genres of content from partners, and sizing marketing budgets well in advance with high accuracy. Automated Risk Modeling: ML capabilities are extended to automatically identify failure-modes across initiatives, underlying dependencies, monitor KPIs and assign risk-scores (Kiron et al., 7
2021). This guides prioritizing risk-mitigation measures. For example, modeling risks of Disney content disappearing if certain app performance thresholds are unmet, 5 years into the future. Together, these initiatives allow executives to base strategic planning, budget allocation, risk management and operations on data-driven insights - not gut feel alone. This improves quality and speeds of decisions with digital precision. Fast Execution Executing decisions at digital speed requires an agile infrastructure: Cloud Native Architecture: Hulu migrates fully to a cloud-native architecture with microservices, serverless functions and independent frontend/backend teams. This allows experiments to be shipped independently without dependence on monolithic releases, enabling rapid iteration. For example, A/B tests for new features can be standalone with minor changes isolated to specific functions. Automation: ML and Robotics Process Automation (RPA) bots are developed to streamline repeatable backoffice tasks like contracting paperwork, redundant validations and data entry. This frees human resources to focus on high-value strategic initiatives. For instance, ML accelerates content metadata ingestion from partners into centralized databases. Agile Methodologies: All Hulu teams adopt Agile/Lean methodologies with 2-4 week sprints, daily stand-ups, burndown charts and minimum viable product (MVP) approaches to develop 8
features. Strict OKRs, automated testing and deployment pipelines ensure goals are met within deadlines. For example, shows could be soft-launched on dedicated servers before main deployments. Real-time Experimentation: Using cloud infrastructure, ML operationalizes A/B tests, multivariate tests and micro-experiements across the entire product lifecycle from roadmapping to post-launch. Incremental improvements are identified and shipped within days versus traditional quarterly/half-yearly release cycles. For instance, trying out new intuitive UI designs. Extended Reality: Hulu builds an immersive Extended Reality (XR) workspace for pre- production using VR/AR. Showrunners collaboratively storyboard, plan logistics and evaluate locations/studio configurations in real-time without physical constraints. Pilots are produced more iteratively at a fraction of traditional costs. Digitally transforming operational processes, leveraging smart analytics, hyperautomating mundane work and experimenting at digital speeds allows Hulu to execute strategies faster than ever before as the industry evolves rapidly. It gains competitive agility in execution. Emerging technologies like ML, IoT, blockchain, cloud, automation, XR etc. can be leveraged systematically across functions. With deep customer understanding, data-driven planning and real-time experimentation capabilities, Hulu will remain ahead of disruption and shifting landscape. It gains a lasting competitive edge through agility in perceiving changes, making optimal decisions and executing them at digital speeds. 9
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TASK 3: CREATING A DIGITAL READY CULTURE For Hulu to successfully navigate ongoing digital disruption in the streaming industry, establishing a resilient digital ready culture is imperative. Cultural transformations require careful management and leadership. Putting Customers First Studies show customer-focused cultures deliver 30% higher innovation returns (McKinsey, 2015). Hulu must orient everything around understanding evolving customer needs. This involves implementing design thinking across functions to problem-solve from customers' perspectives during product development (Brown, 2008). For example, usability testing on prototypes with target segments. It also means cultivating a culture where all employees interact with customers via social media, call centers to gain frontline insights (PWC, 2016). For instance, 'walk in customer shoes' programs. Institutionalize practices like agile methodologies, MVP launches and constant A/B testing driven by real-time usage feedback (Ries, 2011). This keeps products optimally relevant. Reward teams introducing customer-centric innovations annually via comprehensive KPIs covering NPS, retention, cross-selling beyond viewer-hours alone (Forbes, 2019). Upskill leadership in leveraging emerging tools like predictive analytics, customer journey mapping for deep understanding to direct strategies accordingly (Kiron et al., 2021). Creating a Collaborative Culture 10
Studies show collaboration increases productivity by 25-50% (McKinsey, 2016). Hulu should adopt flexible, activity-based workspaces with collaborative digital tools empowering seamless work-from-anywhere, anywhere workflows (MIT, 2017). Institutionalize hackathons, ideafests involving cross-functional teams tackling big problems from diverse perspectives (Forbes, 2018). Recognizing innovative solutions fosters team spirit. Facilitate social communities and recognition platforms celebrating peer-to-peer knowledge-sharing beyond hierarchical structures (Bersin, 2015). Establish flatter organization structures with autonomous, cross-functional agile squads having end-to-end accountability instead of silos (Economist, 2019). Key to Spotify's culture revolutionizing the industry was empowering diverse teams to build together what they dreamed. Hulu can imbibe this open collaborative mindset. Instilling a Culture of Innovation Core to agility, studies prove innovation cultures outperform by 2x (IBM, 2010). Hulu should Innovate Hulu Days mandate time for experimenting beyond job roles, workshops introducing emerging technologies fostering an innovative mindset (INSEAD, 2019). Tie flexible compensation and rewards to tangible innovation output beyond process adherence via a revamped idea management system (Harvard, 2014). Partner eminent academics and accelerators to stay ahead of trends, source ideas and talent from diverse external networks on the edge (Forbes, 2017). Institutionalize a phase-gate innovation process seamlessly converting ideas to pilots/products via customer co-creation, agile methodologies and rapid iteration (IDEO, 2015). Appoint Chief Innovation Officers with sufficient budgets and influence for ideating business model reinvention not just features (McKinsey, 2020). Instilling fail-fast experimentation like Amazon emboldens Hulu to disrupt itself proactively through innovation. 11
Becoming Digital Champions Digital champions drive 50% higher revenues through digital fluency at scale (Gartner, 2021). Hulu should reskill executives via custom blended learning programs keeping pace with evolving customer/market needs through technologies and business models (MIT, 2018). Upskill the entire workforce through mandatory diverse certification tracks covering emerging skills like data literacy, design thinking, agile for enhanced employability in disrupted markets (Forbes, 2021). Institutionalize internal 'Service as a Platform' approach leveraging Experience Centers, assistive AI agents for employees to manifest digital best practices in daily tasks (McKinsey, 2018). Benchmark and recognize leading digital talent/teams quarterly via specialized progression tracks, rewards to retain and attract top digital talent vital for future-proofing (BCG, 2019). Apple's industry-leading innovation and Microsoft's digital transformation demonstrate how leadership agendas can effectively develop digital champions culture-wide. By implementing the above approaches grounded in literature and examples, Hulu seamlessly transitions to a nimble, learning organization culture obsessed with customer delight through collaborative innovation at an accelerated digital pace. This helps Hulu stay relevant to dynamic audience needs and continually reinvent itself ahead of disruption. TASK 4: DEVELOPING DIGITAL LEADERSHIP As a leading streaming service operating in a digitally disruptive landscape, Hulu needs strong digital leadership to navigate ongoing transformations. Goleman's six leadership styles provide a useful framework to identify the styles critical for Hulu's success (Goleman, 2000). Visionary 12
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and coaching leadership styles align best with Hulu's needs based on academic research. Visionary leadership involves inspiring and motivating others through communication of an aspirational vision (Laloux, 2014). In digital transformations, visionary leadership sets the strategic direction and builds buy-in for change (Collins, 2001). At Hulu, visionary leaders are needed to articulate a compelling digital-first vision to drive cultural shift towards customer- centric innovation. This envisions Hulu's future role beyond being a content platform. Visionary leaders must also communicate strategic digital priorities clearly to align teams and foster ownership of new ways of working (Collins, 2001). For agile methodologies to succeed, teams need a shared north star. Visionary leaders should champion risky ventures like expanding into new markets or investing in disruptive technologies (Google, 2017). Digital transformations often require bold moves that visionary leaders advocate for (Nixon et al., 2012). A visionary leader must also mentor successors with the same transformational mindset crucial for Hulu's longevity (Westley and Mintzberg, 1989). Research shows visionary leadership is a powerful driver of major organizational changes needed for digital transformations (Nixon et al., 2012). At Hulu, cultivating such visionary leaders is pivotal. Coaching leadership involves helping others strengthen existing skills and acquire new ones through feedback, counselling and mobility opportunities (Goleman, 2000). In digital contexts, coaching bolsters adaptability crucial for individuals and businesses. At Hulu, coaching capabilities in leaders are important to guide teams acquiring new digital competencies like agile and data literacy to successfully transition roles amid technological disruption. Coaching leaders provide psychological safety for risk-taking initiatives by constructively addressing failures 13
(McClelland, 1973). This encourages experimentation vital in digital business models. Coaching leaders also identify and nurture future digital leaders through stretch assignments, training and cross-functional rotations (Markides, 2007). Building internal succession pipelines readies Hulu. Coaching leaders help dispersed, autonomous teams resolve challenges through just-in-time guidance (Markides, 2007). This fosters collaboration essential amid distributed work. Studies show coaching-driven cultures equip employees for change better than directive styles alone (Collins, 2001) (Collins, 2001). By developing coaching leaders, Hulu strengthens organizational agility needed to stay ahead. To cultivate visionary and coaching styles systematically, Hulu should adopt the Grow model of assessment-feedback-practice from evidence-based leadership frameworks (HBR, 2020). Grow has four stages: gain data through 360-degree feedback to benchmark development areas; reflect through facilitated sessions to recognize blindspots and goals; open dialogue through coaching workshops focusing on acquiring skills; and will to change through projects applying learnings to real challenges to ingrain new behaviors with continuous feedback (McClelland, 1973). Using Grow equips leaders to strategize, empower teams and drive cultural shifts through human- centric digital transformations successfully (McClelland, 1973). By developing visionary and coaching styles systematically at Hulu, digital leadership resilience is strengthened for ongoing disruption. For Hulu's sustainable success amid intensifying digital change, visionary and coaching 14
leadership styles aligned with its needs must be nurtured systematically. The Grow model offers an evidence-based approach Hulu can operationalize to build a cadre of future-ready digital leaders spearheading strategic shifts and equipping workforces holistically. This readies Hulu for the next phase of its journey. 15
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Kiron, D. et al. (2021). Reinventing the customer experience for the post-COVID era. MIT Sloan Management Review, 62(3). McKinsey & Company (2016). Why collaboration pays. Available at: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/why- collaboration-pays [Accessed 27 September 2023]. MIT Sloan Management Review, (2017). Collaboration: The new frontier of productivity. Available at: https://sloanreview.mit.edu/article/collaboration-the-new-frontier-of-productivity/ [Accessed 27 September 2023]. Forbes. (2018). Why hackathons and hackdays are crucial for innovation. Available at: https://www.forbes.com/sites/blakemorgan/2018/05/25/why-hackathons-and-hackdays-are- crucial-for-innovation/?sh=55c9825417e7 [Accessed 27 September 2023]. Bersin, J. (2015). Becoming irresistible: A new model for employee engagement. Oakland, CA: Deloitte Development. The Economist. (2019). How to design an organisation for the future of work. Available at: https://www.economist.com/business/2019/02/07/how-to-design-an-organisation-for-the-future- of-work [Accessed 27 September 2023]. IBM. (2010). Capitalizing on complexity: Insights from the Global CEO Study. Somers, NY: 17
IBM Corporation. INSEAD. (2019). The art and science of fostering a culture of innovation. Available at: https://knowledge.insead.edu/blog/insead-blog/the-art-and-science-of-fostering-a-culture-of- innovation-11659 [Accessed 27 September 2023]. Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91(5), 63-72. Forbes. (2017). Why ideas are easy, implementation is hard, and why true innovation requires focus. Available at: https://www.forbes.com/sites/blakemorgan/2017/01/23/why-ideas-are-easy- implementation-is-hard-and-why-true-innovation-requires-focus/?sh=3e5ad4cf1471 [Accessed 27 September 2023] IDEO. (2015). The field guide to human-centered design. San Francisco, CA: IDEO. McKinsey & Company (2020). How to build an innovation culture. Available at: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how- to-build-an-innovation-culture [Accessed 27 September 2023] Gartner. (2021). 6 traits of high digital champions. Available at: https://www.gartner.com/en/reports/traits-of-high-digital-champions [Accessed 27 September 2023]. 18
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MIT Sloan Management Review. (2018). Make your learning culture strategic. Available at: https://sloanreview.mit.edu/article/make-your-learning-culture-strategic/ [Accessed 27 September 2023]. Forbes. (2021). How to drive adoption of digital upskilling across your company. Available at: https://www.forbes.com/sites/blakemorgan/2021/04/08/how-to-drive-adoption-of-digital- upskilling-across-your-company/?sh=34a59a08480e [Accessed 27 September 2023]. McKinsey & Company. (2018). How companies are benefiting from web-based internal platforms. Available at: https://www.mckinsey.com/business-functions/mckinsey-digital/our- insights/how-companies-are-benefiting-from-web-based-internal-platforms [Accessed 27 September 2023]. BCG. (2019). How digital talent protects your future. Available at: https://www.bcg.com/publications/2019/how-digital-talent-protects-your-future [Accessed 27 September 2023] Collins, J. (2001). Level 5 leadership: The triumph of humility and fierce resolve. Harvard business review , 79(1), pp.67-76. Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative science quarterly , 44(2), pp.350-383. 19
Goleman, D. (2000). Leadership that gets results. Harvard business review , 78(2), pp.78-90. Gratton, L. (2011). Workplace 2025: What will it look like?. Organizational dynamics , 40(4), pp.246-254. Google. (2017). 'How Google develops good managers'. Google . [online] Available at: <https://rework.withgoogle.com/guides/enable-productivity-through- rhythms/steps/develop- good-managers/> [Accessed 27 September 2023]. HBR. (2020, February). 'The Importance of Coaching during Digital Transformations'. Harvard Business Review. [online] Available at: <https://hbr.org/2020/02/the-importance-of-coaching- during-digital-transformations> [Accessed 27 September 2023]. Laloux, F. (2014). Reinventing organizations: A guide to creating organizations inspired by the next stage of human consciousness. Nelson Parker . Markides, C. (2007). In search of dynamic capabilities. Strategic management in the digital age , pp.127-150. McClelland, D. C. (1973). Testing for competence rather than for" intelligence.". American psychologist , 28(1), p.1. 20
Nixon, P., Harrington, M. and Parker, D. (2012). Leadership performance is significant to project success or failure: a critical analysis. International Journal of Productivity and Performance Management , 61(2), pp.204-216. Westley, F. and Mintzberg, H. (1989). Visionary leadership and strategic management. Strategic management journal, 10(S1), pp.17-32. 21
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