Netflix’s meteoric rise has been powered by its combination of big data and big ideas, a willingness to disrupt itself, and an organizational culture that is designed to support its strategic goals. Here are three key lessons from the streaming giant that can help other business leaders.
Big Data + Big Ideas = Transformational Results
Netflix has shown that big data is powerful, but big data plus big ideas is transformational.
Technology matters most when it is in the service of a compelling strategy.
The company has vast amounts of data on the viewing habits of its 125 million subscribers, from which movies and TV shows they liked or disliked to how long they watched an individual episode or how much they binged a new series.
This powerful data system creates a rich system that influences the movies and shows members see, based in part on which shows they’ve liked in the past what other subscribers see and like.
Strategy is Culture, Culture is Strategy.
Behind this remarkable trajectory is a strong focus on people and culture.
The company uses sharp language in its manifesto of principles, policies, and practices, which emphasizes rewarding those who take risks and make tough decisions without agonizing.
Disrupt Yourself to Stay Ahead
If you aim to disrupt an industry, you must be willing to disrupt yourself.
Netflix has upended the traditional entertainment industry, not only by introducing its own original content, but also by changing the way we watch movies and TV shows.
However, the company isn’t resting on its laurels — it’s constantly innovating and iterating on its product offerings.
Netflix knows that disruption requires constant change, which means being willing to disrupt yourself — no matter how successful you are.
Disrupting the Industry
Netflix began as a simple innovation – offering DVD rentals by mail with no late fees.
This soon developed into a full-fledged digital streaming platform, but Netflix didn’t stop there.
The company now spends $12 billion annually on programming and has upended industry norms – from pilot episodes to binge-watching to niche programming – through its commitment to technology-fueled taste clusters.
