Strategic innovation management at Netflix: a case study

Abstract

Netflix is a company that implemented a disruptive innovation and shocked the business market with its way to create and deliver value to their customers, breaking away with the old way to watch a movie at home. The culture of freedom and responsibility engaged by a radical transparency is committed by the whole company where every kind of employee at all teams share ideas and know everything about the company’s strategy. This research consists of a description and analysis of the strategic approaches used by Netflix that explain its business success and demonstrates the technology and the business development made by one the most important players in the streaming service. It is entirely based on secondary data obtained through an exploratory literature review over the last ten years. The model by which Netflix manages its innovation process is based on agile frameworks who actively engage the developer’s team, team leaders, and top management and have the costumer at the center of the value stream. The internal culture of the firm, based on ample freedom and responsibility, and engaged by a radical transparency, is pursued by the whole company where every kind of employee, in all teams, share ideas and know everything about the company’s strategy. The article explores and emphasizes the main aspects of the company’s strategy to innovation which is based on the development of specific technological approaches based on purpose made algorithms that works to map the streaming user’s preferences. It is coupled with the implementation and constant dissemination of the agile mindset linked with frameworks, methods, and techniques such as Scrum, Kanban, and Agile at Scale, which together enable Netflix to sustain and promote its innovative business process. Netflix approach to innovation has become a model for many other companies over the globe to create an environment focused on customer centricity, elect quality as a statement, and align employees with strategy.