lOMoARcPSD| 49670689
SUCCESSFUL DIGITAL TRANSFORMATION GROUP 2 1. NETFLIX
Figure: Netflix at a Glance - Source:XTB
Netflix (NASDAQ: NFLX) is the world's largest streaming service provider with over
193 million subscribers. The company serves its content in 190 countries. Netflix serves
a diverse subscriber base across the globe. Its global popularity is driven by original
content, which continues to attract new subscribers, and technological innovation. The
company's profits have increased sharply in recent years, with operating margins
increasing from 10% in 2018 to 13% in 2019. At the end of the first quarter of 2020,
the company's operating margins increased to 16.6% and then to 22% in the second
quarter, indicating that the company's profits have grown very rapidly in a short period of time.
Digital Transformation Approach: lOMoARcPSD| 49670689
Figure: Netflix's journey of innovation - Source: Netflix
Personalizing the User Experience:
Netflix uses analytics on user behavior data to create a personalized recommendation
system. Netflix doesn’t use a traditional data center-based Hadoop data warehouse. To
allow the company to store and process the massive data sets it collects from its
customers, Netflix uses Amazon’s S3, which allows it to spin up multiple Hadoop
clusters for different workloads to access the same data. Within the Hadoop ecosystem,
the company uses Hive for ad-hoc analytics and Pig for ETL (extract, transform, load)
and algorithms. Netflix later created its own Genie project to help it handle the growing
volume of data as it scales. About 75% of user activity on Netflix is driven by this
system. This recommendation system is based on data analysis from hundreds of
millions of users, helping Netflix better understand their preferences and habits. [2]
Rose. (2023, September 19)
Using advanced technology: lOMoARcPSD| 49670689
Netflix has invested heavily in cloud computing and data analytics. Working with
Amazon Web Services, Netflix can quickly deploy thousands of servers and terabytes
of storage in a short time. Netflix collects data from over 200 million subscribers and
deploys data analytics models to discover customer behavior and purchasing patterns.
It then uses the collected information to recommend movies and TV shows based on
subscriber preferences. Some of the data processing software and business tools used
by Netflix are Hadoop and Teradata, and the company also uses its own open source
solutions such as Lipstick and Genie. This allows them to process and analyze huge
amounts of data efficiently. [3] Admin. (2021, May 18)
They also use artificial intelligence (AI) to improve the user experience, from content
recommendations to video quality optimization. With the data they have collected from
their users, they use it to create programs that are tailored to each user's insights. [2]
Rose. (2023, September 19) Content strategy:
Figure: Netflix Original Movies - Source: Netflix
Netflix is not only a content distribution platform but also a major content producer.
They have invested in the production of original movies and TV shows, which helps
attract and retain users. This strategy helps Netflix differentiate itself from its
competitors and provide exclusive content to its users. [3] Admin (2021, May 18) lOMoARcPSD| 49670689 2. TESLA
Tesla, founded in 2003 by Elon Musk, is an American electric vehicle (EV) and clean
energy company. Tesla is renowned for its innovative electric vehicles, energy storage
solutions, and renewable energy products. Tesla was a monumental example of digital
transformation due to Elon Musk’s unconventional ideas, which were motivated by the
primary goal of proving that electric cars are superior to gasoline-powered vehicles in
terms of both appearance and performance. (Trường, 2024)
● Key Factors Contributing to Tesla's Digital Transformation Success:
Visionary Leadership: Elon Musk's unwavering belief, unique innovation in electric
vehicles, and ability to inspire teams to achieve ambitious goals are invaluable.
Technological Innovation: Tesla's focus on cutting-edge technologies like AI, big
data, blockchain, cloud, and autonomous driving positioned them as a leader in the EV market.
- Lithium-ion batteries: Tesla has significantly improved lithium-ion battery
technology, increasing energy density and reducing costs, helping to increase the
driving range of electric vehicles. (Vũ, 2024)
Figure: Lithium ion batteries used in Tesla - Source: MSG Equipment
- Autopilot self-driving system: Tesla is one of the pioneers in developing
selfdriving systems, using sensors, cameras and artificial intelligence to help cars
drive themselves. (Nguyễn, 2023) lOMoARcPSD| 49670689
Figure: Autopilot and Full Self-Driving of TESLA - Source: Tesla
- Solar batteries: Tesla produces highly efficient solar panels and Powerwall
energy storage systems, helping users to produce and consume clean energy themselves. (Slocable, 2021)
Data-Driven Approach: The company's extensive data collection and analysis enabled
them to improve products, services, and customer experiences. (Mastering Data Analytics, 2024)
Figure: BIG Data in Tesla - Source: Digital Data Design Institute at Harvard lOMoARcPSD| 49670689
- Vehicle Data: Tesla collects a large amount of data from vehicle sensors,
including speed, acceleration, location, battery health, and even how the driver interacts with the vehicle.
- Supercharger Data: Data on charging time, power consumption, technical
errors, etc. helps Tesla optimize the Supercharger system and improve the user experience.
- Mobile App Data: Tesla not only provides data to users, but also collects data
on app usage behavior, driving habits, and customer feedback.
Figure: Tesla mobile app - Source: Electrek
Customer-Centric Focus: Tesla's commitment to understanding and addressing
customer needs through feedback and data analysis helped them build a loyal customer base. (Sefamedia, 2023) 3. LEGO
LEGO is a Danish toy company that has been a staple of childhood play since its
founding in 1932. Known for its iconic interlocking plastic bricks, LEGO has built a
strong brand around creativity, imagination, and hands-on learning. The company
embraced the digital-first mindset as soon as they observed the early success of other companies. lOMoARcPSD| 49670689
Figure : LEGO’s logo - Source: LEGO
Problem Identification and Current Situation
● When the patent protection for the iconic LEGO brick expired in 1988, the
LEGO Group faced considerable competition in the market as newcomers with
similar products entered the market.
● Product Overload: The increase in the number of SKUs to 14,000 led to
complexity in production and supply chain, making it difficult for LEGO to control costs.
● Recognizing the issues in the supply chain, the management of the LEGO Group
quickly redesigned the company's technology infrastructure.
Technology Transformation
● Establishing a New Technology Platform: The adoption of SAP and the
development of LEGO Enterprise were significant steps in optimizing business
processes. This allowed LEGO to manage information and processes more effectively.
● Upgrading Technology Infrastructure: LEGO implemented necessary
changes in technology infrastructure to respond quickly to market demands. lOMoARcPSD| 49670689
Enhancing Collaboration and Information Sharing
● Breaking Down Internal Barriers: Eliminating barriers between departments fostered collaboration and information sharing, thereby improving decisionmaking processes.
Figure: Eliminating barriers between departments -Source :DANVIET
● New Team Structure: Rearranging the company into three main groups
(operations, marketing, business activation) enhanced efficiency and minimized gaps in coordination. Continuous Innovation
● In 2016, when the Enterprise platform had reached its growth limit, LEGO
recognized the need to change the system to meet digital demands, including
continuous and flexible operations. Consequently, they developed the
Engagement platform, connecting core functions with microservices, enabling
global teams to develop new features and applications. 4. CONCLUSION
A successful digital transformation of a business is often associated with possessing
outstanding characteristics such as: a clear vision and strong leadership, a corporate
culture that encourages innovation and adaptation, strong investment in modern
technology, a focus on customer experience, effective data management, and a capable
human resource team. In addition, continuous measurement and evaluation are also
important factors to ensure that the digital transformation process is always on track
and achieves the desired results. lOMoARcPSD| 49670689 REFERENCES
[1]Trường, M. X. (2024, March 20). Successful digital transformation case studies: 8 best examples. Magenest.
https://magenest.com/en/successful-digital-
transformationcase-studies/ [2]
Rose. (2023, September 19). KỲ Tích dữ liệu: Netflix và Thành Công Cá
NhânHóa. Hocmarketing.org - Kiến thức & Giải trí. https://hocmarketing.org/ky-tich-
dulieu-netflix-va-thanh-cong-ca-nhan-hoa-4473 [3]
Admin. (2021, May 18). Netflix: Tầm nhìn chuyển đổi Cho Tương Lai: Grow.VN
growth ha. Grow.VN - Growth hacking Việt Nam. https://grow.vn/netflix-tam-nhin/ [4]
Vũ, L. (2024, September 7). Công Nghệ Pin mới: “viên đạn bạc” của tesla.
VnEconomy.https://vneconomy.vn/automotive/cong-nghe-pin-moi-vien-dan-bac- cuatesla.htm
[5] Nguyễn, N. (2023, September 12). Tesla “định nghĩa” Lại công Nghệ Xe tự Lái
Với Công Nghệ Trí Tuệ Nhân Tạo. VnEconomy.
https://vneconomy.vn/automotive/tesla-dinh-nghia-lai-cong-nghe-xe-tu-lai-voi-
congnghe-tri-tue-nhan-tao.htm
[6] slocable. (2021, January 9). Tesla’s mass production of solar cars: A new energypath from roof to Car Roof.
https://www.slocable.com.cn/.
https://www.slocable.com.cn/vi/news/teslas-mass-production-of-solar-cars-a-
newenergy-path-from-roof-to-car-roof/
[7] Mastering Data Analytics. (2024, May 10). Tesla: Nâng Tầm Ngành công NghiệpÔ
TÔ nhờ business intelligence. https://mastering-da.com/tesla-nang-tam-
nganhcong-nghiep-o-to-nho-business-
intelligence/#:~:text=a%2C%20Ph%C3%A2n%20t
%C3%ADch%20d%E1%BB%AF%20li%E1%BB%87u,vi%20ho%E1%BA%A1t
%20%C4%91%E1%BB%99ng%20c%E1%BB%A7a%20xe.
[8] Sefamedia. (2023, May 30). Tesla - Câu Chuyện Khẳng định Giá Trị Khác BiệtCủa
Khách Hàng. SEFA Media. https://sefamedia.vn/tesla-cau-chuyen-khang-dinhgia-
tri-khac-biet-cua-khach-hang/