HULU: Digital Transformation

1. Change Analysis Proposal:

1.1.Introduction:

1.1.1. History of the Company:

HULU is a platform for online streaming, allowing you to stream TV shows and movies online. The participation of different people founded the platform, but Kilar was selected as chief executive officer, and hence the company was founded in 2007 by Jason Kilar. Its headquarters are in Los Angeles, California, and the United States. HULU partnered with companies over the year, including the Walt Disney Company, BBC, and Spotify (Moore, 2019).

1.1.2. Size of the company:

Hulu has come a long way and has become a big streaming platform. It currently has 39.4 million subscribers and 100 million users. Hulu has a huge annual revenue of 2.7 Billion dollars from the advertisement. The platform’s growth is also quite impressive, as it has added 37.5 Viewers between 2018 and 2020, as shown in the figure below (Dean, 2018):

Hulu has a 20% share of the US-based subscription market and has 34% market share of the multichannel video programming distributors sector. The retention rate of the company is 67%. The total revenue of Hulu in 2019 was 9.6 billion dollars, which can be considered exponential growth compared to the previous year. The growth of Hulu from 2019 to 2022 is shown in the figure below (Curry, 2021):

1.1.3. Core Services of the Company:

Hulu has offered different subscription plans to the users that include Basic Hulu, Hulu (No Ads), Hulu (Ads) + Live TV, Hulu (No Ads) + Live TV. Hulu also offers different add-ons that allow users access to premium channels like HBO Max, Showtime, Cinemax, Starz, and more (Cohen, 2023).

1.1.4. The sector of operation of the company:

The company many operates in the Entertainment industry and is one of the largest streaming platforms, giving tough competition to Netflix. The main sector of operation is entertainment, but it also operates in the advertisement business as it has an add-based revenue system. The add-based revenue system allows companies to work with and collaborate with different companies. It is mainly operated in the United States and is unavailable outside the USA (Lovely, 2023).

1.2.Areas of the organization impacted by digital disruption:

The era of digitalization is impacting every sector of life, and hence business techniques and methodologies are also impacted by it. Using digital tools has made many complex processes easier, making it easier for companies to understand and fulfil customers’ demands. Hence, the expectations of consumers from companies have increased, resulting in a sense of competition between companies. The only way to do this is to adopt digital tools, and as a result, it created digital disruptions, and Hulu has also been affected by digital disruption.

1.2.1. Recommendation System:

Digital tools allow companies to understand the behaviour of the users, and hence streaming platforms can use such tools to give more customized experiences to customers. The Customers expect that the platform should recommend the content they like, and hence they get a more personalized experience. As a result, most of the streaming platforms started using AI algorithms to meet customers’ expectations. Hulu also used the technology, but instead of using AI algorithms, they preferred the data provided by the consumers, and hence they introduced a more enhanced recommendation system (McClinton, 2020). The recommendation system allowed them to collect user data, observe what they are watching, and how much time they spent on specific content (Granados, 2022).

1.2.2. Advertisement Method:

Hulu’s add-based revenue model allows them to provide subscriptions at a lesser price than the other platforms. The companies want to advertise their products through Hulu’s platform, and they will only pay the platform if they observe some rate of return for these advertisements. It shows that companies want more than just displaying their ads to every Hulu subscriber. Hence, Hulu launched the proprietary pixel on websites, allowing them to track users who checked the products but didn’t buy them. Through this data, the company can understand the advertisement’s effectiveness and help the advertiser make the necessary ad changes to get more conversion rates (Plesser, 2020).

1.3.The digital transformation objectives:

The company’s vision is to excel in the entertainment industry and to become the best streaming platform following its business model. The add-based revenue model has supported them for a long time, and they are investing in other techniques to improve them and to use the smart way instead of simply displaying the ads. Hence, their objective is to separate their advertisement business or bypass it to keep the revenue from advertisement without disturbing the consumers. The other objective that the company should accomplish is to add a more customized and user-friendly experience. Digital transformation can allow the company to optimize the system, and hence the company should ensure the optimization of search and recommendation engines as part of their digital transformation. These digital objectives have the potential to increase revenue as well as the popularity of the platform among people.

2. Task 2: Data and Decision Process:

Digital tools have made it very easy to collect feedback from customers. This data can be used to analyze the market situation, customer demands, and brand position. This knowledge affects the decision process of the companies. It allows them to make decisions more smartly, and such decisions have fewer and more calculated risks compared to the old business decision-making methods. The data is directly linked with the decision processes, and decisions based on the insights always have a better rate of returns. These decision processes need market research; hence, Hulu must understand the market trends.

2.1.Techniques and Technologies for the market research:

Market research is necessary, and every company is pursuing it to understand which products and services are being appreciated by the consumers. Market research allows the company to invest in the right direction and get the best product design and content. Market research is not difficult with the help of the right digital tools. These digitals helps you collect the consumer insights through which you fully understand the situation and you can use these insights to make the decisions with calculated risks. The hyperawareness is directly linked with market research and you can use this to make informed decisions.

2.2.Hyperawareness and Informed decision making:

2.2.1. Social media monitoring:

People from all demographics use social media platforms most, and everyone is linked through social media. Hence, it is the best way for different companies to promote their companies. The same platform can be used to understand the trend of the market. Hulu can upload the trailer and small portions of its content on social media. The number of likes, shares and comments can help Hulu understand which genre is most watched by the users.

Moreover, they can also understand which kind of content is famous in different regions so that they can automate the recommendation system accordingly. Hulu currently has two million followers on Facebook, and many users can be targeted to understand market trends (Clampitt, et al., 2021). Hulu needs to integrate a few social media monitoring tools to extract the correct user data. Some social media tools that Hulu can use are given below:

2.2.1.1.Talkwalker:

It is a social media monitoring tool that can monitor most platforms. It has several filters to find the required topic and information. It can easily help you analyze the comments, your impression among people,, and the popularity of your content (Cooper, 2019).

2.2.1.2.Tweepsmap:

It is a social media tool that can monitor how much your content’s news is scattered worldwide. It monitors the tweets and hashtags being used about your content (Cooper, 2019).

2.2.2. Search Engine Data and Analytics:

The streaming platforms are currently using AI tools to optimize the recommendation engine,, but Hulu chose a different approach and also considered the human created selection. The company can use the searches done on search engine to fully understand each user and hence can analyze their most searched content. It will indicate the content viewers are eager to watch without having that content in the recommendation. They can also shortlist the content type or genre in which audience are currently more interested. By adding the human created search along with the AI tools they can recommend better content as compared to their competitors which can help the company to win the loyalty of the viewers (Hinkle, 2021).

2.3.Digital Systems to Make Fast Decisions:

The fast decisions are necessary as the era of digitalization has made every thing faster, consumers also expect fast results from the companies. In the entertainment world, the viewers have some expectations from the content creators. After the launch of the trailers, the content creators have to accept the criticism done by viewers and fastly alter all the changes.These decisions can only be done if you have the analyzed the data correctly. Moreover, the fast decision making can also be customized to personal level in such a manner that the platform broadcasts the content according to the routine of the person. The technologies that can be used for the fast decisions are discussed below:

2.3.1. Streaming Analytics tools:

The streaming analytics tools collects the data in real time while the viewer is using your platform and allows you to understand the routine of the viewer. The streaming analytics tools can easily help you recommend the right content at right time to increase the viewer engagement on the platform. These tools helps you take the fast decision as they process the real time data and has potential to automate suggestions and recommended content. The streaming analytics tools that should be used bu Hulu are given below:

2.3.1.1. Apache Flink:

The Apache flink is a good analytics tool for the Hulu that can assist them in fast decision making as it can potentially analyse more than a a million events in a small span of milliseconds. Moreover, it can quickly analyse the data and send it to different places or platforms with the help of nodes (Memgraph, 2023).

3. Task 3: Implementing Digital Culture:

The digital transformation demands a digital culture and there are different methods to implement the digital culture out of which few are discussed below:

3.1.Digital skills development program:

Implementing a digital skill development program for all employees can help install a technologically proficient culture at Hulu. In this program, the employees will be able to learn new competencies and expertise, which can increase their knowledge about the digital environment and help them easily adopt new computer technologies. This program will include various topics to help employees learn about e-marketing, data mining, cloud technology, IT security, etc. These programs will be personalized and customized according to the requirements of each department within Hulu, e.g., customer service, marketing, production, and operations. Different on-the-job and off-the-job training with virtual lectures will be provided to the employees to make this developmental program more effective so that the employee can access this program from anywhere. So, even at home, they will have complete access to this program (Martin, 2020).

To encourage employees’ engagement in this program, I would suggest providing them with certifications on completing this program, which can motivate them to participate more. This will help the employees learn something new and help Hulu pull in outstanding performers. Furthermore, I would suggest creating an innovative centre like a lab with all new software and hardware technologies where employees can test the new internet technologies and their innovative ideas. Implementing these strategies will help foster a culture of ingeniousness and ongoing improvement.

3.2.Collaborative technology:

Different collaborative tools like Microsoft Teams and Google Meet can be used to encourage collaboration. It will allow employees to share their ideas and creativity easily. Hulu can also embrace remote work in employees through these collaborative tools and technology. It can also lead to employee freedom and a balance between work and life, saving lots of costs for Hulu. Hulu can also create a virtual workspace with all the tools required for effective communication and collaboration. In this way, employees will have all the tools they need to work effectively and more efficiently (Martin, 2020).

3.3.Data-informed decision-making:

Another approach Hulu can use to have a technology-savvy culture is data-driven decision-making. This approach includes making informed decisions by utilizing data. We can use various platforms like social media apps, customer reviews, and Market surveys to gather data. Based on the data collected, we can tailor the products and services according to the needs and wants of our customers. The data we have gathered can also help us analyze the performance of any digital modernization programs Hulu has started. This also helps in understating future trends based on the consumers’ behaviour and recent trends in the market. In this way, Hulu can develop different strategies that can help target its potential customers and stay ahead of its competitors (Martin, 2020).

3.4.Cultivate a growth-oriented mindset:

Another technique that Hulu can use to enable digital transformation culture is encouraging a growth mindset, which means you can learn abilities through hard work and commitment. It is not just some traits present in a person. Hulu’s organizational culture can grow more and more toward digital transformation if it encourages a growth mindset. To implement a growth culture Hulu can create a culture of experimentation in which the employees can test and try new things without the fear of failing, and even if they fail in this way, they will be able to learn from their mistakes. They can provide Hulu with many innovative ideas supporting a digital transformation. Rewarding employees with new and innovative ideas can also be a good technique to develop a culture of innovation within Hulu. The employees will also be encouraged to participate more and think outside the box (Martin, 2020).

4. Task 4: Collaborative Team Leadership:

I would recommend such Digital leadership styles that will encourage teamwork and collaboration within the company. For Hulu, I think the most effective and appropriate styles will be transformational leadership and Servant leadership style.

4.1.Transformational leadership style:

Transformational leadership style refers to a type of administration or guidance that helps individuals and team to attain their goals by endorsing advancement and progress, which can lead to individuals and team members being more creative and innovative and they will be willing to take risks and will have a better decision-making capability; as a result, their performance will increase.

For Hulu to drive digital transformation, transformational leadership is extremely important. It includes creating a clear vision for digitization and communicating this vision to the employees of the different departments, so they get to know the organization’s goals and establish some strategies for accomplishing this vision. This can encourage and motivate employees, leading to organizational innovation (ParthaNaskar, 2015).

4.2.Servant Leadership:

It is a leadership style that involves placing the needs of other employees, customers, and stakeholders above your own. In this type, the leader will work alongside the employee to achieve the organization’s goals, encouraging teamwork and collaboration.

For Hulu, servant leadership is important as it will create a sense of collaboration between different departments at Hulu. The employees and workers will feel valued when Hulu puts their interests and needs and by providing them with their necessities above everyone else. This leadership style also encourages emphatic listening, which means listening to what the employees have to say, their ideas etc., which can create a team-oriented work environment at Hulu (ParthaNaskar, 2015).

References:

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