BUSINESS MODEL INNOVATION OF VIDIO.COM TO COMPETE IN ONLINE VIDEO INDUSTRY THE FINAL PROJECT IFNU BIMA FATKHAN NIM: 29316419 Master Business Administration Program School of Business and Management Institut Teknologi Bandung 2019BUSINESS MODEL INNOVATION TO COMPETE IN ONLINE VIDEO INDUSTRY IFNU BIMA FATKHAN NIM: 29316419 Date of Passing of Final Test ( ) Date of Graduation Ceremony ( ) Magister Program, Bandung Institute of Technology, 2019 Final Project Counselor: Yulianto Suharto, S.Si, Apt, MBA, MSc, PhDe, CBAP® ABSTRACT In an era of disruptive technology and break-neck innovation pace. competition becomes fiercer, focusing only on product innovation is not enough anymore. Nowadays everybody can copy everybody’s product in an even shorter period of time. The ability to find other areas of innovation on top of superior product performance is becoming increasingly more crucial in today's environment. Innovation is becoming more and more important for companies around the world. Technological advancement make any product become easy to replicate. this leads to product performance based competitive advantage last shorter and shorter. So, companies need to accelerate their innovation pace and expand innovation beyond product performance. Business Model Innovation provide framework for company to look innovation beyond product performance. Areas such as organizational design, user experience, profit model, brand and others are important to explore to increase competitive advantage beyond product performance This final assignment is focusing on mapping current Business Model at Vidio.com, analysing competitor Business Model then finding more Business Model area to improve Vidio.com competitive advantage. The initiative to innovate beyond product performance ‘was started in early 2019 and this research is meant to help accelerate the ini The research has resulted in clear mapping of current business model, competitive analysis and recommendation of what business model innovation vidio.com can commit to in coming years. Good execution on the recommendation hopefully help vidio.com on achieving its goal as leading online video in Indonesia. In the long term, this research will add new competency for vidio.com to clearly visualize its business model innovation so the innovation pace can be accelerated. Keyword: Business Model Innovation, Business Model, Online Video. Subscription, Preminm Content, 10 Types of InnovationINOVASI MODEL BISNIS VIDIO.COM DALAM BERKOMPETISI DI INDUSTRI VIDIO DARING IFNU BIMA FATKHAN NIM: 20316419 Date of Passing of Final Test ( i Date of Graduation Ceremony ( ) Magister Program, Bandung Institute of Technology, 2019 Final Project Counselor: Yulianto Suharto, S.Si, Apt, MBA, MSc, PhDe, CBAP® ABSTRAK Di era disrupsi teknologi dan kecepatan inovasi yang tinggi, kompetisi menjadi scmakin ketat, inovasi yang hanya berfokus pada kualitas produk sudah tidak mencukupi lagi. Sekarang ini, semua orang bisa menira produk apapun dalam waktu yang semakin singket, Kemampuan untuk berinovasi di area selain kualitas produk menjadi sangat krusial Inovasi menjadi semakin penting untuk perusehaan di seluruh dunia, Perkembangan teknologi yang sangat pesat membuat semua produk semakin mudsh ditiru, hal ini menyebabkan keunggulan berbasis kualitas produk menjadi semakin scbentar saja. Jadi, perusahaan perlu mempercepat kemampuan berinovasi dan memperlebar area inovasi di luar keunggulan kualitas produk: Inovasi Model Bisnis menyediakan cara kerja untuk perusahaan agar bisa mencmukan inovasi di luar keunggulan produk. Area seperti struktur organisasi, pengalaman pelanggan, eara mendapatkan profit, merek dagang dan lainnya menjadi penting untuk diteliti agar meningkatkan keunggulan kompetitif di Tuar kualitas produk. Penelitian ini berfokus untuk memetakan model bisnis sekarang dari vidio.com, menganalisis bisnis model kompetitor dan mencmukan lebih banyak inovasi model bisnis untuk meningkatkan Keunggulan kompetitif vidio.com. Inisiatif untuk berinovasi di luar kualitas produk sudah dimulai awal 2019 dan penelitian ini ditujukan untuk membantu inisiatif tersebut agar lebih cepat lagi. Penelitian ini menghasilkan pemetaan yang jelas tentang bisnis model vidio.com sekarang, analisis kompetitor dan rekomendasi apa saja inovasi model bisnis yang bisa dilakukan vidio.com dalam beberapa tahun ke depan. Eksckusi yang baik terhadap relomendasi dari penclitian ini diharapkan bisa membantu vidio.com mencapai tujuan bisnis sebagai penyedia layanan video daring terdepan. Dalam jangka waktu lebih panjang, penelitian ini bisa menambah kemampuan organisasi vidio.com dalam memvisualisasikan inovasi model bisnis schingga kecepatan berinovasi menjadi lebih tingg Kata Kunci: Inovasi Model Bisnis, Model Bisnis, Video Daring, Layanan Berlangganan, Konten Premium, 10 tipe inovasi[BUSINESS MODEL. INNOVATION OF VIDIO.COM TO COMPETE IN ONLINE VIDEO INDUSTRY SCHOOL OF BUSINESS MANAGEMENT BANDUNG INSTITUTE OF TECHNOLOGY Vinal Projet Comer costes ustio07ACKNOWLEDGEMENT Alhamdu lillahi rabbil ‘alamin, I express my gratitude to Allah SWT. for the blessing of time, ability, health. opportunity and mercy to finish this final project to complete my study at the School of Business and Management. Bandung Institute of Technology. I wonld like to express my sincere gratitude to my advisor Bapak Yulianto Suharto for the continuons support of my final project, for his patience, auidance, immense knowledge and understanding about my difficult situation at the start of this final project. His guidance helped me in all the time of research and writing of this final project. I could not have imagined having a better advisor and mentor for my Master study Besides my advisor, I would like to thank the staff of SBM ITB for keeping faith on me and allow me to excuse mistakes I made during my final project period. I thank my fellow BLEMBA 21 for wonderful time I had during the study, crunchy humour and very colorful relationship. I hope this relationship will last forever. The stimulating discussions, for the sleepless nights we were working together before deadlines, and for all the fun we have had in the last two years. Last but not the least, I would like to thank my family: my lovely wife dian, kids afni & faiz, parents and to my brothers and sisters for supporting me spiritually throughout writing this final project and my life in general. Ifnu Bima FatkhanTABLE OF CONTENTS ABSTRACT ABSTRAK ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF APPENDICES CHAPTER 1. INTRODUCTION 1.1 Company Overview 1.2 Background 1.3 Business Issue 14 Research Objective and Problem Statement 1.5 Research Methodolo; 1.6 Research Limitation (CHAPTER 2. BUSINESS ISSUE EXPLORATION 2.1 Conceptual Framework 2.2 Analysis of Current Business Model 2.2.1 10 Types of Innovation 2.2.2 Vidio.com Current Business based on Innovation Assessment 3 Competitor Analysis 3.1 Netflix Innovation Assessment 2 Tix Innovation Assessment 4 HOOQ Innovation Assessment 5 MAXStream Innovation Assessment Convergent Thinking Using Innovation Tactics Cards Ansoff Matrix 3. 3.3 Viu Innovation Assessment 3 3 CHAPTER 3. BUSINESS SOLUTION 3.1 Business Strategy Formulation 3.2 Business Model Generated 3.2.1 Profit Model 3.2.2 Network 3.2.3 Structure 37 37 40 40 490 Al2.5 Product Performance 3.2.6 Product System 2.7 Service 3.2.8 Channel 3.2.9 Brand 3.2.10 Customer Engagement 3.3 Business Model Selected 3.4 Business Model Dropped 3.5 Business Model Innovation Result 3.6 Competitive Advantage and Differentiation CHAPTER 4. CONCLUSION AND RECOMMENDATION 4.1 Conclusion and Recommendation 4.2 Implementation Plan 43 Implementation Timeline REFERENCES APPENDICES A. Abbreviation, B. Innovation Tactic Cards C. Additional Innovation Tactic Cards D. 10 Types of Innovation Workshop Participants E. Question List F. Questionnaire ResultLIST OF FIGURES Figure 1: Indonesia Internet Connection Speed Figure 2: Internet Connection Speed in Indonesia as of March 2019 Figure 3: Paid subscriber growth in Southeast Asia between 2016 - 2017 Figure 4. Movie Ticket Sales Tren from 2015 to 2019 (est) Figure 5. Conceptual Framework Figure 6. 10 Types of Innovation Framework Figure 7. Innovation Tactic Cards Figure 8. Innovation Assessment for Vidio.com Figure 9. Innovation Assessment for Netflix Figure 10. Innovation Figure 11. Innovation Assessment for Viu Figure 12, Innovation Assessment for HOOQ Figure 13. HOOQ partnership with Grab Figure 14, Innovation Assessment of MAXStream Figure 15. Innovation Assessment Recap of 6 Online Video Players Figure 16, Innovation Assessment Proportion of 6 Online Video Players Figure 17. The Ansoff Matrix Framework ssessment for Iflix 20 21 26 28 29 31 33 34 35 36 37 38 39) 40LIST OF TABLES Table 1. Vidio.com Premier content type: Live Streaming and VOD. Table 2. Vidio.com Competitive Analysis Table 3. Business Model Innovation Approval rate based on Vidio.com user survey Table 4. Innovation Ideas implementation assigned to Team Table 5. Innovation Ideas implementation status as of November 2019LIST OF APPENDICES A. Abbreviation B, Innovation Tactic Cards C. Additional Innovation Tactic Cards D. 10 Types if Innovation Workshop Participants E. Question List F. Questionnaire Result 10CHAPTER 1. INTRODUCTION 1.1 Company Overview ‘Vidio.com is one of the leading online video service companies in Indonesia. Founded in October, Ist 2014 as wholly owned subsidiary of KMK Online, a holding company that is part of Elang Mahkota Teknologi (EMTK) conglomerate. In 2019. EMTK sold Vidio.com to its subsidiary, Surya Citra Media (SCMA). a holding company that own SCTV and Indosiar (SCM Investor Release, 2019). During initial years, vidio.com has two strategies: the first strategy is to livestream National TV online, so the viewer can watch their favorite program anywhere. Second strategy is to give SCTV and Indosiar content a second live in online video service. This strategy paid off since it generates huge number of traffic from user that miss the aired program in both TV then go to Vidio.com to watch it later. Since 2015, Vidio.com focused their effort to source high quality curated content from ‘trusted partner. Emtek group portfolio such as SCTV. Indosiar. Liputan6.com, bola.com. Kapanlagi and so on. The strategy was quite successful, Vidio.com was able to differentiate itself away from Youtube and has its own market. At this period, Ads was Vidio.com main revenue generator. 2018 marks new milestone for Vidio.com. During Asian Games Jakarta 2018. Vidio.com receive huge number of user and branding awareness, since it stream the event non stop. The successful event propel Vidio.com as household name among internet user in Indonesia. 30 nillion active users watch video and livestreaming during this month, End year of 2018, Vidio.com launch the Vidio Premier. a premium offering of contents such as BeIN English Premier League, TSB UEFA Champions League and wide range of asian movies collection. Vidio.com Premier has 2 types of content: Live Streaming and Video On ‘Demand (VOD). Both types breakdown can be found in below Table 1. uVidio.com starts 2019 with huge statement with the launch of its original content, Girl in The City. 2019 is first year where Vidio.com set goals of number subscriber, this is a new ‘business model after only focusing on advertisement since the beginning of its existence in 2014, In short, in 2019 Vidio.com has two business models: Ads and Subscription. Ads business model is generating revenue from advertisement sales. Ads can be placed at the beginning of the show (pre-roll). during the show (mid-roll), and end of show (post-roll) Table 1. Vidio.com Premier content type: Live Streaming and VOD. Premiere Type Premiere Premiere Content Content Category Live Streaming Sport © BeIN channels airing Barclays 31 Channels Premier League © TSB channels airing UEFA Champions League, UEFA Europa League, BWF Badminton Super Series * NBA TV airing NBA match from regular series to playoff and grand final Drama © TVNkorean drama channel ‘© Zeebioskop indian drama channel Kids © Zoomoo channel for english kids program © Horee channel indonesian kids program and local content Lifestyle © Fashion TV channels show many programs related to fashion world fordifferent segment News Channel News Asia news channel covering Asia, especially South East Asia and Singapore Euro news air news from Europe Video on Demand (vob) Movies Popular indonesian movie such as Laskar Pelangi, Petualangan Sherina, AADC. Arisan ete Korean movies Japan anime movies Popular indonesian movie Drama Series Original SCTV series such as Dilema Cinta, Dua Dunia Salma, 1 Atap 3 Cinta, ete Original Series: Girls in The City Sinetron: pencari tuhan, orang ketiga, cinta suci ete Sport Liga 1 highlight NBA score and highlight 1.2 Background Disruption has come to TV, in the last 10 years online streaming service has grown into disrupting force to TV industry. More and more households have broadband access, Telkom Indihome customer grow 45.1% year on year and expected to reach 7m customers by the end of 2019. Intemet speed also increase significantly thanks to 4G connection in the last 3 years. Below graph shows intemet connection trend increase sharply:Historical Data API 200 tore Jan 2015 ut 2085 49 2018 Ju 2016 Jan 2017 Figure 1: Indonesia Internet Connection Speed (source: https:/tradingeconomics.com) Internet speed keep increasing, by July 2019 Intemet speed reach 11Mbps on mobile and 19Mbps on fixed broadband shown on Figure 2 below € Indonesia July 2019 sll Mobile = Fixed Broadband Tn ih WR ite Figure 2: Internet Connection Speed in Indonesia as of March 2019 (Source: hitps://speedtest.net) TV industry see this trend as a serious threat to their business. But instead of being negative about this disruption, TV companies embrace these changes by launching their own Online 4Video services. Ads revenue growth is in decline and ability to capture this new market will strengthen their future growth. Otherwise, new companies focusing on Online Video will come and disrupt TV companies However, there are big differences in the way content delivered fiom TV Broadcasting and Internet Streaming. The first big difference is the two way interaction that enable new business model: subscription. The second big difference is personalization ability of internet technology. Instead of relying on Ads revenue. Online Video can provide premium content and charge users to watch it. Users are willing to pay if provided with better quality content and superior service such as personalization and watch content anywhere customers want: Handphone, Smart TV, computer desktop and other connected devices. Subscription business model is the future of Online Video Industry and to some extend TV Industry. The ability of capturing subscription user will be the biggest competitive advantage between Online Video players. Vidio.com started to launch subscription business model at the end of 2018, the user growth was encouraging. Now they need to grow the user faster since the market is ripe for hyper growth and competitors also accelerate their market penetration. Online Video watcher in indonesia was 6,9 million in 2016 and will be doubled to 12.1 million in 2019. It will be more than triple to 22.1 million watcher in 2022. The online video watcher is aligned with number of paid watchers in South East Asia, it tripled in only a year during 2017.490 = Tx cambodia Ts — Indonesia = aos : Malaysia | 20 — nites e™ —Singapore 5 100 —Thailand 0 etna 0 aie a2t6 asset aet7 ast Figure 3: Paid subscriber growth in Southeast Asin between 2016 - 2017. (source: broadbanctvnews.com) Even though the growth is encouraging. but the proportion of paid watcher is still very low, around 1.2% of overall watcher. The low number of paid watchers is attributed piracy problem, either because the content is only available in piracy website or low awareness of paying official content. Paying for content, even though is still a big problem, but there is a positive trend. Number of tickets sold in theatres increased rapidly in the last S years. Bekraf estimate that in 2019, there will be 60 million tickets sold at theaters, 15° increase compared to 2018 (Aria, P.. 2019), 16‘soto om _ ws | E E eoo Figure 4. Movie Ticket Sales Tren from 2015 to 2019 (est) (Source: https:/www.databoks.co.id) Vidio.com is developed to capture this emerging market of online video streaming. In longer term, Vidio.com is expected to generate topline growth for Surya Citra Media (SCMA). Facing this high expectation, there is an urgency for Vidio.com to innovate in every area. This research is helping Vidio.com find those innovations that will give impact to Vidio.com business goal in the coming year. 1.3 Business Issue Vidio.com being part of Surya Citra Media (SCMA), are expected to deliver top line growth in coming years. Analyst estimate Vidio. com can contribute 35% of 2018 SCMA revenue, or around Rp. 1.8T. Selling subscription for Rp. 50.000 per month, Vidio.com need to acquire 3 million monthly subscription to achieve those targets (Prayoga, I. T.. 2019). Proportion of subscriber to overall watcher is low, some estimate around 1.2%. Piracy and availability of content is a big challenge. if the content is not available from legal sources than the only way users get it is through piracy. There are also huge gap to match between watcher that willing to pay and content they love (willing to buy). Acquiring 3 millions monthly subscription is a moonshot, while positive sign is there, ‘Vidio.com need to innovate on many areas to overcome challenges lies ahead. Reaching 3 millions monthly paid subscription target is the business issue this research trying to address. 71.4 Research Objective and Problem Statement The objective of this research is to generate new business model for Vidio.com to grow its, subscriber fast in hyper growth and hyper competitive market. Addressing business issue mentioned in previous section, there are two problem statements need to be answered as a result of this research: 1. How to find more business model to convert free users to paid users so Vidio.com can generate new revenue faster? What kind of content and user experience Vidio.com need to deliver to match with user segment that is willing to pay for its service? One particular challenge that this research will not address is how to combat piracy. In an ideal world, to combat piracy means providing whole catalog of content in reasonable price so watcher have option to get content legally instead of going to piracy websites. 15 Research Methodology This research is using qualitative methodology. Primary data is gathered in a workshop session with intemal team using 10 Types of Innovation framework and a survey to ‘Vidio.com user to validate Business Model Innovation generated in the workshop. The intemal team consists of cross function people from different department: business development, marketing, content, product and engineering. Cross function attendance is important to get 360 degrees view of company. The workshop session using 10 Types of Innovation framework is intended to generate new business models relevant to Vidio.com. Generating as many as possible is important to see the bigger opportunity to grow the business. This is part of convergent thinking that focus on creativity and ability to think out of the b x when faced with a big challenge Affer generating many business model, prioritize it based on possible impact to business is an important step to narrow it to a handful of items. Focus is the key here, since a company cannot spread its resources chasing multiple goals and strategy. This is part of divergent thinking to prioritize and focus on highest impact strategy using limited resource a company has. 18Ansoff Matrix is a framework used to narrow generated business model based on 4 quadrants: Market Penetration Strategy. Market Development Strategy, Product Development Strategy and Diversification Strategy. Based on business issue stated in previous chapter. ‘Market Penetration Strategy quadrant is the right strategy for Vidio.com. Only business mode! fall into Market Penetration Strategy will be selected as solution to business issues. Secondary data is gathered from various sources: academics book. published journal. industry research paper and online websites. 1.6 Research Limitation There are 5 possible limitations in this research: 1 ‘The result of this research is a suggestion instead of the actual business model strategy of Vidio.com. The actual strategy can be differ from what summarized in this research, one of the biggest factors of this is the participant of this research are staff and middle management instead of C-level team. The primary data is gathered from a workshop with intemal team of Vidio.com. Other primary data is gathered through survey to validate the business model innovation gathered during workshop with internal team. The data gathered to give context during the workshop is from third party instead of first party. There are assumptions made to define business goals, the goals were based on comments and press release of Vidio.com and SCMA management during public exposure or financial report document. No further research on financial or budgeting analysis of how much it may cost ‘Vidio.com to implement those suggestions, The business model might not be feasible to implement because of financial or resource constraint that Vidio.com has. ‘No further research on the business impact or outeome of business model innovation implementation. This kind of research actually important from the perspective of cost and benefit analysis. Even though the business model is feasible from budgeting but it may not resulting in meaningful business impact, so from cost and benefit analysis it is not feasible. Nevertheless, this research will have an impact on people participating in the 10 types of innovation workshop and the top management. Participants will lear new knowledge that innovation can happen anywhere, not only in product offering. The skill of convergent and 19divergent thinking is essential to generate and prioritize ideas, this will further spur innovation process inside Vidio.com in the future. For top management, they can use the results of this research to align their strategy. If the results differ a lot from actual strategy. there is a sign of misalignment between top management and people in the field. Alignment is important in execution phase, since every innovation ideas will start giving value to the company once the idea become reality.CHAPTER 2. BUSINESS ISSUE EXPLORATION 2.1 Conceptual Framework The following diagram defines the conceptual framework used in this final project to analyze current business issue, generate new business model, select the best business model and create a plan to implement it. Figure 5. Conceptual Framework for Business Issue Exploration and Proposed Solution. Current business model analysis is done by having intemal team workshop and deep interview with company executives. Workshop is using innovation tactics cards, this step is part of convergent thinking where team working together to generate new business model. In the workshop, participants will continue to perform divergent thinking using Ansoff Matrix to select the best business model. Divergent process is important so Vidio.com can 21concentrate on the right amount of strategy to avoid spreading resources too thin between too many initiatives. 2.2 Analysis of Current Business Model 2.2.1 10 Types of Innovation 10 types of innovation is selected as a framework to assess and improve Vidio.com business model. 10 types of innovation was developed by team at Doblin, a strategy and innovation consulting firm from US. cr) crieuaron orem ltl Trin Sic Agwentot et Petraes Sr prt ant Set Recto Briar Sramiyerctony — Rvem it comactons wim Puc ont or fet pice a on rae Catan Earn ‘hestecraierche —ipecrncbassty ——Caadaranan pace otengsaregenors's—Dise Facons Sono ne as Ssomesasguses juste Figure 6. 10 Types of Innovation Framework (source: https://doblin.convten-types) The 10 Types framework is structured into three color-coded categories. The types on the left side of the framework are the most intemally focused and distant from customers: as you move toward the right side, the types become increasingly apparent and obvious to end users. To use a theatrical metaphor. the left of the framework is backstage: the right is onstage. Assessing company using 10 Types of Innovation framework sometimes not an easy task because of the high level nature of those types. Doblin then create Innovation Tactics to provide better set of building blocks. It comes in the form of cards to make it easy to use ina collaborative session. Innovation Tactic Cards contains of 112 independent cards that innovator can choose from. Based on feedback from team at Vidio.com, 7 tactics that relevant to technology and video online industry was added. There are three ways of engaging with Innovation Tactics: 1. Anchor and Extend2. Add and Substitute 3. Array at Random (Kelley et al, 2019). In this research, Add and Substitute way is selected because it is easier to use and more suitable to business case. Figure 7. Innovation Tactic Cards (Source: Kelley et al: 2019). See Appendix B to see details of those 112 cards available in Innovation Tactic Cards. See also Appendix C to see details of 7 additional Innovation Tactic Cards. Innovation Assessment to Vidio.com and its competitor will be done using all 119 Innovation Tactic Cards. 2.2.2 Vidio.com Current Business based on Innovation Assessment Vidio.com was founded in 2014 as part of KMK Online, a digital arm of EMTEK group. When it started, Ads-Supported profit model was selected since it is aligned with group wide ‘business model. Subscription business model was launched in 2018 to capture market opportunity where Indonesians are familiar with online payment and paid for content. The content strategy was User Generated Content (UGC), user was invited to create short video and upload it to Vidio.com. The strategy was successfully attract hundreds of thousands of creators, but unfortunately it is hard to maintain the level of quality. Brand were reluctant to advertise since the video quality was low. To overcome this problem. Vidio.com collaborate with trusted content creator within EMTEK group such as SCTV, Indosiar andKLY to provide high quality content. The strategy was paid off and Vidio.com Ads-Supported business thrived. Other type of content Vidio.com provide was Live TV. Live TV was there since the beginning and it was very successful, Vidio.com is top of mind for users who want to watch TV online. Innovation Assessment: Yidior Live TV and High Quality Curated Content Aa pac ——e TTypes KMK Online is very strong in technology competency. They adopt eXtreme Programming (XP) methodology to ensure high quality software delivery. Product team also adopt the same culture to make it compatible with engineering team. This agile product development culture is an Organizational Design innovation that gives Vidio.com competitive advantage over its competitors. Vidio.com able to deliver Superior Product with latest technology. Integrated Offering to be able to play video on all channel: desktop web, mobile web, Android, iOS, Android TV, Samsung Tizen TV and LG WebOS TV is result of high competency on technology. In total, Vidio.com currently employ 7 Types of Innovations and 9 Innovation Tactics to compete in highly competitive Video Online industry. 242.3 Competitor Analysis We will analyze 5 online video subscription provider operating in Indonesia. One of them are global players, three of them are regional players and the last of them is local player. 6 criteria to evaluate between player is selected. The criteria were carefully selected to reflect competitive advantage and market segmentation these players have. Table 2. Vidio.com Competitive Analysis Criteria | Yidtior | NETFLIX | flix HeOe@ | Aviu | e-— Business | ads Subseigion | Ads subscription | Ads Subscription Mode! | Subscription Subserition Subscription Contest [tive Tv yoo LieTv yoo yop a strategy | LiveFoottall | ongnalsenes | VoD Sony onguat series | VoD yoo Onsinat Movies | oninal series | Wamertros | Asian Movies | ovininal Series Sinton Disney ‘Asin Drama Orisinal Series Indonesian Moues Content USD S15b ‘USD $5m m asia 70 titles and 900 Bodget episodes evsinal series Number of [soma@atr | isom over 122 [28m over 22 apps | som Mat subscribers counties comnts Reveme USD SEB KS905m (Rp 2018 Len Tavestor (| Fully Owned ty | Public Compeay [usp ssooai | sonyPitues | Fully owned by | Telkomsel Investment |'suya Gira findraised — | WarnerBros__| PCCW group round Media = (SCTV nd Indosiar Raised USD parent company) s95m2.3.1 Netflix Innovation Assessment Netflix is an exceptional company. many laud it as one of the most innovative companies in the world. They made breakthroughs in many innovation areas. Most notably its foray to TV Series Original Content that cement its reputation as Free TV disruptor. But not many knows that Netflix innovate in so many areas in significant ways. In HR and Organizational Design, Netflix is known for redefining HR with its slogan "Act in Netflix's best interests", Reed Hastis Offic . Netflix founder and Patty McCord, Chief Talent r, wrote 126 pages of Netflix company culture known as "Freedom & Responsibility", this document become viral and lauded as one of the most important documents ever to come out of Silicon Valley. Inside the Freedom & Responsibility documents, there are a lot of unconventional HR practices, such as : © Unlimited time off © Hiring team like a pro sports team that focus on talent instead of process © High aligned, loosely coupled. Align in goals and strategy. loosely in how the goal or strategy implemented, minimal cross functional meetings ‘© Pay employee top of market value with no fixed budget © Compensation is not coupled with company performance © CEO or receptionist get same health benefit. a $10k per year © No job security, economic security for employees is based on skills and reputation. This innovative Organizational Design is the foundation of what Netflix able to do. Putting the best talent in the world in every part of its organization is central to Netilix success Wetflix. 2018).Innovation Assessment. WETFLIK Original Content and Personalization seruratin Sewanee tte Hy ea ee conmoaon Figure 9. Innovation Assessment for Netflix In Technology. Netflix voted as no. 1 technology company to work for (Linkedin, 2018). It beats giant tech companies such as Google. Apple, Microsoft and Facebook. Ability to attract the best tech talent what makes Netflix deliver the best Offering, the product performance is second to none and the product system is very complete. Netflix tech talent also innovate in other types, such as accurate Predictive Analytics on what content its users like to watch Predictive Analytics gives Netflix confidence to take huge risks. such as buying the most expensive TV Series in House of Cards. Netilix pay $100m for 26 episodes of House of Cards in one deal Netflix also innovate in Experience type. Again, its competency in technology enable Netflix deliver the best experience. Personalisation is bread and butter of Netflix competitive advantage. It famously held a 3 years long recommendation algorithm competition with $1m prize, this both signal its focus on personalisation as well as company branding to attract the best talent to work for them. In 2016, Netflix stop doing personalisation based on demography, but instead, create at least 1300 different "Taste communities" to segment its users based on their tastes, habits and interests. This innovation enable Netflix tailor its service accurately to its 150m subscriber over 93 countries. company for tech workers and the best content company for content creator. It has two offices, tech office in Silicon Valley andcontent office in Hollywood. Ted Sarandos is Netflix's Chief of Content Officer heading the Hollywood office. Ted and his team shock Hollywood and beat them in their own game. Netilix's Original Movie has won 29 Oscars, one of them, "Roma", won 9 Oscars in 2019. The Freedom & Responsibility culture plays a part in this effort, where Netflix announce to the content creator community that they have a cool $6b budget to spend each year. Ted and his team act similar to Venture Capital that ready to invest millions in selected content creator project. Full freedom on how content creator use the money and put their idealism in their project. This was never heard in Hollywood history. where usually content creator must follow market taste or TV ratings rather than their idealism. As a result, the best content creator is lining up to work for or create project for Netflix. 2.3.2 Iflix Innovation Assessment Iflix is founded by Patrick Grove and Mark Britt in 2014. Patrick Grove is internet wiz that successfully took, not one, but five companies from startup to Initial Public Offering (IPO). His business strategy is simple: look what works in the West and bring it to East. He loves emerging markets, he gets it, and it is in his DNA. This translate into Iflix, where he wants to create Netflix for the East. Naturally Iflix started with subscription only. provide high quality content and from early start, create Original Content, just like Netflix. It works for certain level. but then they realize the market is very different between the West and the East. So they innovate in Profit Model and introduce Ad-Supported content. 28Innovation Assessment: TIX Hyperlocal Content and Regional Expansion ‘seer Bit covecurarion Pmt Figure 10. Innovation Assessment for [flix Iflix very aggressive on regional expansion where in a very short period of time they operated in 22 countries across Asia, the Middle East and Africa. Collaboration with different partner is one of their innovation strategies. They partnering with major movie studios such as Disney, MGM, Paramount, Wamer Bros, Fox and Starz to license their content. MGM even positioning itself as a strategic investor in Iflix by licensing its 20,000 movies and television episodes to Iflix. Telco companies also play a big part in Iflix’s partnership strategy, many of its presence in different countries marked with joint venture with telco companies. For example, Iflix Arabia is a joint venture between Iilix and Zain. [flix also partnering with celebrities to be ambassadors and shareholders. It happens in Thailand, Philippine, Myanmar and Pakistan. Iflix content strategy evolve overtime and adjust to the East market and start to differ from Netilix. For example, Iflix enter Sport category and stream sporting event live, whereas Netilix is mostly video on demand and no live event. In Malaysia, Iflix partnering with Football Malaysia LLP to develop and produce a live event for Liga Super. Piala Malaysia on dedicated "Football Malaysia on Iflix” channel 29These innovations prove to be successful, [flix subscriber grows to 25m over 22 countries. Investment round also prove to be successful, where to date, Iflix raised more than $300m worth of funding. 2.3.3 Vin Innovation Assessment Viv is part of a big Telecommunication and Media conglomerate, Pacific Century CyberWorks Limited (PCCW) based in Hong Kong. PCCW is majority owner of Hong Kong Telecom (HKT) Limited and owner of PCCW Media. So PCCW have footprint both in Telecommunication and Media industry. Vin is fully owned by PCCW Media as part of its media portfolio that include Free TV, Pay TV. Music Digital Streaming and Online Video service (OTT), Innovation Assessment: (3) ViU Korean Drama and Regional Expansion Me Segetet scoot trader ngs and ete “ Cont mt at topeerer cowmounanion creme eae Figure 11. Innovation Assessment for Vin Viu unique approach to focus on Korean Drama and Asian Content has paid off. From PCCW 2018 annual financial report, Viu has 30m~ monthly active users, a 89% growth compared to the previous year. Viu revenue reach HK$909m in 2018, an increase of 27% compared to 2017. The increase attributed to Business Model Innovation where Viu innovate with Ad-Supported Profit Model in Configuration type. For Viu case, Business Model Innovation has led to improved business performance that directly affect financial goal. This is the kind of example that amplify the importance to innovate on the business model, not only on product offering. As many times 30proved, innovation on product offering is not enough, the company needs to expand its innovation to improve its business foundation and to improve user experience while using the product. Of all regional competitor, Viu is the biggest spender on producing original content. Over 70 titles and 900 series episodes produced in the last 5 years, that was more than one original titles per month. The economics of original content need more time to prove its worth, since Viu cost of sale is quite high. Viu record EBITDA loss of HKS336m in 2018, a 44% increase of 2017, much bigger than revenue growth of 27%, Vin subscription revenue is flat, a miniscule 0.3% increase compared to 2017. This indicates huge challenge on Subscription Profit Model across Asia. More innovation needed to convince user to subscribe, several tactics is suitable for this, namely: Freemium in Profit Model and Try Before You Buy in Service. 2.3.4 HOOQ Innovation Assessment HOOQ was founded in 2015 as joint venture between 3 biz companies: Sony Pictures, Wamer Bros and Singtel. Since the start, HOOQ has huge collection of hollywood content, more than 35,000 hours of it. The spirit of collaboration run deep in HOOQ DNA. it immediately use collaboration as its main strategy. In 2016, a year after its founded, HOOQ already collaborate with all Indonesia major telco company, such as Telkomsel, Indosat, Smartiren and Tri. 31Innovation Assessment HEO® Strong Partnership and Hollywood Content connauRarion ore rE rome hme mt aa reer eee Figure 12. Innovation Assessment for HOOQ In 2019, HOO expand its collaboration with other internet players, most notably with Grab. HOOQ make its content available for Grab user within Grap apps benefiting both parties. Grab trying to improve engagement in their application so their user will stay longer and HOOQ trying to increase their user. HOW TO USE ‘VIDEO’ SERVICE IN GRAB APP. Open the Grab app and Early users will be asked User can then enjoy a click the "Video" tiie to for their consent to access _ wide selection of HOOQ's access various HOOQ's various HOO's video local Original blockbuster video collection collection ‘movie collections and TV series directly from the Grab appFigure 13. HOOQ partnership with Grab (source: Grab Mobile Application) On Product Offering, HOOQ once only offer the service through Android and iOS mobile Apps. Soon they realize that only half of users coming to the App Store and Google Play end up installing the apps. So they create mobile web and desktop web version for user who does not willing to install apps on their mobile phone. Competency Center with product and engineering competency enable them to add more product offering, without those competency it is hard for them to innovate on product offering, HOOQ employ only one type of Profit Model: Subscription. As discussed in the previous chapter, Vin was able to grow their business using Ads-Supported Profit Model innovation. So, HOOQ is currently missing those opportunities by only focusing on Subscription. 2.3.5 MAXStream Innovation Assessment MAXStream is an online video service fully owned by Telkomsel. It leverage on Telkomsel 150m+ strong paid subscriber, especially leveraging on payment and data package infrastructure, Telkomsel subscribers can easily subscribe MAXStream using both prepaid and postpaid payment method. MAXStream innovation strategy is unique compared to other Online Video player, it starts with existing paid user instead of content. It really strong on Configuration where all four types checked. It outsource product development to vendor to get to cut time to market. But this has consequences where Product Offering is quite weak, they do not have complete product system and building that from vendor will increase their cost significantly. Since they start with no content, they employ Coopetition business model to get content from, their competitors such as HOOQ and Vin. This align with outsourcing business model where it will cut time to market significantly.Innovation Assessment QJssman Vertical integration with Telkomsel and Cooperate with Competitor ‘hpi wo er Figure 14. Innovation Assessment of MAXStream These strategies will pay off for certain level, if Telkomsel wants MAXStream to be profitable and valuable business, not just supporting role for their main business. They need to invest in Offering and Experience type. The enabler for that is to have in-house team working on Product development so they can have better product offering and be flexible on deliverin \ser experience. 2.4 Convergent Thinking Using Innovation Tactics Cards Looking into competitive analysis, especially Netilix's, Vidio.com need to add more innovation to compete against them. Convergent Thinking is a simple framework to generate ‘more innovative ideas from cross functional teams within the organization, this in tum will be beneficial to add Vidio.com’s competitive advantages. Currently, Vidio.com employ 9 tactics over 7 types of innovation. Compared to Netflix's 13 tactics over 7 types, there are more rooms for Vidio.com to innovate, There are a total of 112 tactics to choose from. Experience type of innovation is definitely area Vidio.com need badly to innovate, while Product Offering is area need strengthening since in term of Product Performance or features Vidio.com still need to catch up. 34Configuration is where Vidio.com quite strong, but adding more partnership especially with Telco companies can strengthen this area. In the US, there is an interesting trend where Teleo acquire media company, for example AT&T acquire WamerMedia that inchide HBO and ‘Wamer Bros. Comcast acquire Sky and NBCUniversal. So globally. media and telco merge because of intemet. Toston Aassament 6 Wao Ora eyes 8 Types over 20 Tactics and 47 Tactics Employed ree. noone —e Sec . Pree bas ‘Persenaaion x 8 Types Saat —— om orweet Figure 15. Innovation Assessment Recap of 6 Online Video Players Regional and local competitor employ between 6-7 tactics. They will not stand still, they will innovate and employ more tactics in the future. The key is the speed of innovation, who can add more innovation in their strategy can emerge as winner. Most of Online Video player operating in Indonesia is part of a bigger business that leverage on their assets, either media company that leverage on their content or telco company leverage on their infrastructures: intemet network, payment and paid user subscription base. Configuration Innovation Type is very dominant as depicted in Figure 12.Figure 16. Innovation Assessment Proportion of 6 Online Video Players While innovation can be in any type, but emphasis to Offering and Experience is important since both type is harder to copy compared to Configuration. Winning the customer, in the long term, is more defensible competitive advantage than configuring intemal system. 2.5 Divergent Thinking Using Ansoff Matrix Employing innovation tactics as many as possible is important. But, one cannot employ new innovation tactics for the sake of numbers. Employing more tactics that one can manage can bbe backfired, the result is spreading resources very thin in many initiatives where each every initiative is half baked so nothing works. Ansoff Matrix is good framework to categorize new business model generated using divergent thinking into 4 quadrants: 1 2. 3. 4. Diversification Strategy to launch new product in new market Market Penetration Strategy to gain more market share for existing products . Market Development Strategy to launch existing product in new market Product Development Strategy to launch new product in existing market 36THE ANSOFF MATRIX PRODUCTS EXISTING New MARKETS New Figure 17. The Ansoff Matrix Framework (souree: smartinsight com) Quadrant 2 is more suitable for business case stated in this research since Vidio.com trying to gain more market share in subscription business. It competes with global, regional and local playersCHAPTER 3. BUSINESS SOLUTION Online Video is the future of entertainment. The industry growth is phenomenal, intemet connection is getting faster and cheaper. online video watcher grow faster and willingness to pay is evident. The challenge lies in converting watchers into paid subscribers. The current conversion rate of around 1.2% is quite low. Some factors contribute to this condition: piracy is still rampant and matching users willing to pay with content they willing to buy is hard. Facing with encouraging trend but also a huge challenge and fierce competition, Vidio.com need to innovate in different front to keep up with competitors. Employing seven types of innovation and nine tactics is a good start. Looking deeper into each type. Vidio.com still have plenty of room to add or subtract its tactics. Netflix as front runner in online video industry not only employ more tactic but also go deep on each tactic to keep their competitive advantage high. Speed of innovation is the key here, not keeping up to speed means left behind, standing still means inevitable failure in the face of competition 3.1 Business Strategy Formulation A 10 type of innovation workshop was held at Vidio.com office. A cross functional teams from Marketing, Business Development, Product and Engineering was attending the workshop. The goal of the workshop was to find innovation tactics to help Vidio.com competing in online video industry. The researcher open the workshop with presentation of current Vidio.com business model situation. Important metrics for Vidio.com is presented to give context on how current business doing. Next, the researcher present what shareholder is expecting Vidio.com to contribute to the overall group performance. Obviously, the expectation is very high, to keep up with expectations, Vidio.com need to innovate in any possible area, The innovation culture and competency need to run deep inside Vidio.com DNA. The most important message the researcher try to convey is that, product innovation is not enough, it is easy to copy and hard to defend in a long period of time. Vidio.com need to innovate fast in other areas to keep up with competitors. Innovation is as structured process, every person and organization can develop innovation culture. 3820 people attended the workshop actively contribute to the goal of finding new innovation tactics for Vidio.com. See Appendix D for a list of workshop participants. They divided into 5 teams with 4 persons each team. The team arrangement intended to encourage cross functional team having diverse discussion about different types of innovation. Figure 18. Selecting new innovation tactics (source: 10 types of innovation workshop at Vidio.com) The innovation tactic cards evidently a handy tool to spark creativity and expand team horizon on 119 possible innovations Vidio.com can embark on. Each participant also expand their ideas on areas outside their usual scope, for example, Product team leam about marketing tactics, or Business Development team leam about product offering tactics. This creates cross pollination between team on otherwise siloed organization structure. Each team did really well evaluating all 119 innovation tactic cards (112 existing cards, and 7 additional cards). Many new ideas floating and discussed between team members. Team members pick one innovation tactic card, discuss it with other members then find a use case that relevant to Vidio.com. If a relevant use case found, they wrote the innovation tactic down. in post it notes with relevant use case bellow it. Once the team done evaluating 119 cards, 39they vote the best innovation tactics suitable for Vidio.com based on Ansoff Matrix”s Market Penetration Strategy quadrant. Figure 19. Potential new innovation tactics (source: 10 types of innovation workshop at Vidio.com) ‘Team select a spokesperson to present their selected innovation tactics to others. This session is a good way to spread ideas to others, many questions from the audience also asked to sharpen the ideas. For the spokesperson, this is a good exercise to improve their public speaking and articulate ideas others can easily understand. Figure 20. Presenting potential new innovation tactics (source: 10 types of innovation workshop at Vidio.com) One board created to collect all innovation tactics generated from each team. In total, there were 21 innovation tactics generated. 8 out of those 21 innovation tactics were existing innovation tactic listed in innovation assessment discussed in chapter 2.2. The team generated 13 new tactics as potential innovation that will help Vidio.com achieve its goal. 40As mentioned, eight existing tactics was selected again because it is still very relevant and team find more use case of these existing tactics to deepen its effectiveness. For example, in Collaboration tactics, team add more use case of collaborating with Telco company that potentially can increase the number of subscribers by two orders of magnitude (more than 100x). Team drop one existing innovation tactic, which was Ads-Supported Business Model. 3.2 Business Model Generated 21 generated innovation tactics are listed in this chapter. It covers all of ten types, so team had done a good job on divergence thinking and being creative on imagining what is possible. Bellow are those 21 business model generated, 3.2.1 Profit Model Profit Model is the way companies make money. Doblin team identify there are a total of twenty one different ways a company can make money. they can choose to use only one way or choose to use multiple ways. So, there are many different ways to make money to select from. Vidio.com currently have two ways of making money: selling Ads and get subscription money from user. ‘Team identify there are potentially three other ways to make money: 1. Subscription customer subscribe by paying a fixed amount of money every month to access paid content Bundled Pricing with teleo where data package with free access to Vidio.com is sold together 3. Licensing give permission to other OTT to monetize our content 4, Microtransaction buy / rent a movie per episode to push the price down. Team also identify that current Profit Model is not preferable: Ads-Supported. Ads is generally annoying since it use a traditional interrupt user experience. Removing it will make the experience much better, this way the user will be happier. Network innovations provide a way for companies to take advantage of other companies’ processes, technologies. offerings. channels and brands -- pretty much any and every alcomponent of a business. These innovations mean a company can capitalize on its own strengths while hamessing the capability and assets of others. Team select 3 network type innovations tactics: 1. Alliance with foreign OTT looking to enter Indonesia Market 2. Collaboration a Telco: XL, 3, Smartfren, Indosat and Telkomsel. Use their distribution channel to acquire paying subscriber Go-Jek, supplying content for their apps. Leveraging on tens of millions of their mobile apps user Production House: Sinemart. Screenplay, VIP. EIP. Collaborate on producing ‘Vidio.com original contents Youtuber: Ria Ricis, etc. To republish their content to Vidio.com to get more revenue Aatist, Sports Club and Athlete Wallet and ecommerce: Bukalapak, JD.ID. Blibli, CodaPay. ete. To help sell subscription package. 3. Open Innovation collaboration with independent movie producers 3.2.3 Structure Structure innovations are focused on organizing company assets: capital, hard assets, human or intangible assets such as brand equity -- in unique ways that create value. They can include everything fom superior company culture, talent management to ingenious configuration of heavy capital equipment. The innovations tactics can happen in Human Resource, R&D or IT departments. Ideally, such innovations also help attract talent to the organization by creating supremely productive working environments or fostering a level of performance that competitors can't match, Team select two structure type innovation tacties: 1. Incentive System to give performance bonus and reward for new ideas that are implemented Corporate University stated with bootcamp for each division to improve competency. a23.2.4 Process Process innovations involve the activities and operations that produce and enterprise’s primary offerings. Innovation here require dramatic change from “business as usual” that enables the company to use unique capabilities, function efficiently, adapt quickly, and build market-leading margins. Process innovation often form the core competency of the company, and sometimes include patented or proprietary technology that form competitive advantage for years or even decades, Ideally, process innovations are “special secret sauce” company use that competitors simply can’t replicate. Team select one process type innovation tactic: Installed Base, where commercial team is opening partnership with EOM to install Vidio.com apps on their device, big EOM such as Samsung, Xiaomi, Vivo and Oppo are the prime targets. 3.2.5 Product Performance Product Performance innovation address the value, features and quality of a company’s offering. This type of innovation involves both entirely new products as well as updates and line extensions that add substantial value. Too often, people mistake Product Performance for the sum of innovation. Product Performance certainly important, but it is always worth remembering that it is only one of The 10 Types of Innovation, and it is offen the easiest for competitors to copy. Product Performance innovations that deliver long-term competitive advantage are the exception rather than rule. Most of attendees of the workshop was from Product team, so understandably, 7 tactics generated for Product Performance innovation: 1. Performance Simplification develop better player to make it smooth and no buffering while watching video 2. Modular System a, CMS content management system that easy to use b, Recommendation Engine . Chat or Quiz 4. Transcoding System 3. Superior Product stable website even in high load, never going down4. Engaging Functionality add mention to live chat 5. Added Functionality ability for Transcoding system to insert add in live stream. This capability will increase ads inventory so Vidio.com can sell more ads to brands 6. Customization a. Customized category channels where user can select what category they favorited b. Create playlists of video user like cc. Create watch list of videos they want to watch in the future d. Recommend video based on history and interest 7. Feature Aggregation create a scenario when user can use several features at the same time, for example polling system where user can also play quiz. Have a chat with other user, give comment and reaction. 3.2.6 Product System Product System innovations are rooted in how individual products and services connect or bundle together to create robust and scalable system. This is fostered through interoperability, modularity, integration, and other ways of creating valuable connections between otherwise distinct and disparate offerings. Product System innovations help build ecosystems that captive and delight customers and defend against competitor. Team only able to identify one Product System innovation that relevant to Vidio.com: Product Bundling. Vidio.com bundled to teleo product, for example when customers buy data package they will also get Vidio.com subscription as complementary. The data package also have cheaper data rate for Vidio.com, a normal data package typically cost Rp. 10.000, but Vidio.com bundling, for example, cost only Rp. 3.000. 3.2.7 Service Service innovations ensure and enhance the utility. performance and apparent value of an offering. They make a product easier to ty. use and enjoy: they reveal features and functionality customer might otherwise overlook: and they fix problems and smooth rough patches in the customer journey. Done well, they elevate even bland and average products into compelling experiences that customers come back for again and again. a4Team identify three Service innovations that can help Vidio.com smooth rough edges and makes user coming back again and again: 1. Loyalty Programs this business model selected by most of our participants, it common strategy to retain users, There are several ways to engage users with Loyalty Programs tactic in Vidio.com: a. Gamification of user behaviour, for example, give points for: watching video until finish, watching all episodes in a series. watch ads without pressing skip button, buying subscription package. ete. b. Leaderboard for top points eamer ¢. Referral code to get DANA cashback d. Eam points for users that provide data usage / screen time more than certain threshold @. Use badge for top points earner £ Redeem points into free Premier package Personalized Service use artificial intelligence and machine leaming to generate user preferred content ‘Value Alignment align Vidio.com value to user value, Vidio.com will provide things that customers love and customer will be very loyal and paid for our service. 3.2.8 Channel Channel innovation encompass all the ways that can connect the company's offering and its customers. While ecommerce and digital channel such as ewallet has emerged as a dominant force in recent years, traditional brick and mortar channels such as physical store. public space and malls are still important -- particularly when it comes to creating immersive experiences. Skilled innovators in this type often find multiple but complementary ways to bring their products and services to customers. Their goal is to ensure that users can buy what they want, when and how they want it, with minimal friction and cost and maximum delight. Three Channel innovations are relevant to Vidio.com, here are they: 1. Referral allow our user to invite their friends to join Vidio.com and buy premier package in exchange for monetary rewards or DANA cashback. This will open a new channel of acquisition that proved to be cheaper than if spent budget on ads. 452. Experience Center partnership with transportation, hotel and public space company to present Vidio.com to their customer: a. PT KAI provide entertainment in their coach to their passenger b. Garuda Indonesia, Lion Air or Air Asia use Vidio.com as their in-flight entertainment system ¢. Cafes and Restaurant provide “Nonton Bareng” program using Vidio.com for Football Clubs fans or Badminton Fans 3. Pop Up Presence supply Vidio.com in Grab, GoCar or Taxi for their passenger 3.2.9 Brand Brand innovations help to ensure that customers and users recognize. remember, and prefer Vidio.com offéring to competitors. Great brand distill a “promise” that attract users and convey a distinct identity. Great brand typically a result of carefully crafted strategies that are implemented across many touchpoints between company and its customers, including communications, advertisements, service interactions, channel environments, and how the compan 's employee or partner conduct. Brand innovation can transform commodities into premium product and confer meaning. intent and value to the company’s offerings. ‘Team identify that these three Brand innovations relevant to Vidio.com: 1. Whimsy & Personalit copyright and design to have character of kids, adults, sports, etc, that depict Vidio.com as “human” that has personality. There are two personalities as part of Vidio.com brand book: Vido and Vidi. These two personalities represent two dominant persona of Vidio.com users. Vido is male, love sports, prefer outdoor activity and watch lots of sport live streaming. Vidi is female, love drama or sinetron, watch lots of VoD. Co-Branding as part of larger organization, Vidio.com can leverage on existing brand that already string in the market. For example co branding with SCTV and Indosiar as official live streaming of their content 3. Content Marketing there is no better marketing strategy than producing viral content consistently. This innovation is both resulting in better business performance as well as brand equity. 463.2.10 Customer Engagement Customer Engagement innovations are all about understanding the user aspirations, and using those insights to develop meaningful connections between the company and its users. Great Customer Engagement innovations provide broad avenues for exploration, and help people find ways to make parts of their lives more memorable, fulfilling, delightful ~ even magical. Team identify only two Customer Engagement innovations that are relevant to Vidio.com 1. Status and Recognition aligned with gamification and loyalty program. Vidio.com can provide Status and Recognition for top users that use our platform. It can be a material rewards such as free subscription or immaterial rewards such personalized thank you message to them with users. Since Curation curated message that personalized is a way to eng Vidio.com is a digital platform. this information is actually available and can be leveraged to provide an engaging experience to its users. 3.3 Business Model Selected Based on Ansoff Matrix quadrant 1: Market Penetration, team collectively select below 12 tactics out of 21 generated as selected business model proposed as high level Vidio.com strategy:Figure 21. Generated potential new innovation tactics (Source: 10 types of innovation workshop at Vidio.com) 1. Configuration Profit Model - Subscrip' Profit Model - Bundled Pricing Network - Collaboration Structure - Open Innovation Offering Product Per mance - Performance Simplification Product Performance - Superior Product Product Performance - Added Functionality Product Performance - Customization 3. Experience Service - Loyalty Program Service - Experience Center Brand - Co-Branding Brand - Whimsy and Personality 48The selection process is part of the Divergent Thinking that prioritize small number of elements that have highest impact over problem faced. These 12 innovation tactics was selected to focus Vidio.com effort to the ideas that may result in the highest impact to its ‘business goals, 3.4 Business Model Dropped ‘User Generated Content tactics fiom Process type is not selected. The content quality is very low, it full of pirated content and brand does not willing to advertise or associated with these dodgy content. Integrated Offering tactic was employed to give freedom choice to Vidio.com user what device they want to use to watch Vidio.com. Whether it is a Desktop PC, Mobile Phone, Smart TV or Android TV Box. But it was realized this is not something that can be used as a competitive advantage, but rather a prerequisite Try Before You Buy tactics dropped because this Experience type is being abused. Everytime there is big match coming. the number of Trial user increase hugely while paying user only increase partly, and conversion from Trial user to Paid user were less than 5%. This is a strong indicator that it is being abused. Once Free Trial is dropped. the number of paid users were surged 3.5 Business Model Innovation Result Based on Business Model Selected in chapter 3.3, bellow is 10 types of innovation diagram to visualize business model innovation result from 10 types of innovation workshop. 49| Innovation Result Vidio Live TV and High Quality Curated Content eer Fratet bee 90 com seein (Fan ape Sone a ee Sel aaa sew Seen egy, ayn, moves enc crue weigh sate Seen cr cranre stamens ints coca 7 Segrenrce sew | eee Sete Tre Sy mtr ten xieemee Seamtancicon tact Sxaees ‘AL, Garuda Indonesia, Grab, (Ge Branting vido + SCTV. or Visio + Gimmie ctibonson | agimaasntanensranmen Stop Su tmacn Tosessn 6 Types ance soeaatonscee Se bine covmaueTon om rence Figure 22. Generated potential new innovation tacties (Source: 10 types of innovation workshop at Vidio.com) If above diagram compared with Figure 8. Innovation Assessment for Vidio.com, there is decline on types used, from 7 to 6 and increase in number of tactics from 9 to 12. Process type and Product System is no longer selected, while Brand is added. User Generated Content, Integrated Offering and Try Before You Buy tactics is also no longer selected, while Bundled Pricing, Open Innovation, Loyslty Program, Experience Center, Whimsy & Personality and Co-Branding are added. Team are doing well on adding more use case to existing tactics. Most notably Collaboration tactics where team identity more party Vidio.com potentially can collaborate with. 3.6 Competitive Advantage and Differentiation Based on the innovation result, it will give Vidio competitive advantage in terms of product performance against our competitors. Vidio.com will deliver the best product performance since itis a big part of user experience while watching video online. Collaboration with Telco company will have the biggest impact on solving business problem of having millions of subscribers. Bundled Pricing and automatically subscribe teleo customer as Vidio.com subscriber is the best scheme to achieve that. But once usersubscribed, the real challenge of keeping them subscribed is even harder. Content will play a pivotal role to keep subscribers happy and visit Vidio.com everyday The differentiation will come from Brand innovation type where Vidio.com plan to develop a personality into the produet. Referring to Vidio.com brand book, there are two personalities: Vidi and Vido. Where Vidi is female character that love to watch movies, series and korean drama. Vido is male character that focus on Sports. Leveraging on this brand asset and incorporate it to the product is powerful combination to ever increasing competitive advantage. 51(CHAPTER 4. CONCLUSION AND RECOMMENDATION 4.1 Conclusion and Recommendation This research is to address two critical business goals that will define the future of the company: ability to rollout Vidio.com to millions of users and convert them to paying users through subscription service. Facing disruption, the only way to survive is to leam how to disrupt yourself before others disrupt you (Christensen, 1997). Innovation is the core of disruption. Intemalize innovation as competency and as culture is the way to go for any company facing imminent disruption ahead, failed to do so will increase the risk of being irrelevant and eventually out of business. The workshop provided ideas that Vidio.com can implement to accelerate its business. The workshop also improve team understanding on how to come up with innovation. Starting with setting goals, generate ideas, evaluate the ideas and prioritize it based on its impact to current business model. This is a simple framework every company can follow, but a discipline to execute it across organization is the key to getting value out of it 2 innovations was generated from the workshop which Vidio.com can focus on 2019. These innovations will help Vidio.com improve its business execution. The 12 innovations was coming from internal team inside Vidio.com. A further research was conducted to validate its value to Vidio.com user. A survey to 120 Vidio.com users indicate that these innovations are valuable. See appendix E for question list and Appendix F for the questionnaire result. The score of 3.297 (out of maximum 4) from Vidio.com user is evident that the innovations generated has high approval rate. 3 of the top rated are from Offering type of innovation, this show that product innovation is still regarded as the most important. ‘Table 3. Business Model Innovation Approval rate based on Vidio.com user survey [No [Business Model Innovation [Approval Rate 11 [Performance Simplification: smooth player no buffering 3.73 [2 Superior Product: reliable, never go down 3.683 |Customization: category. playlist. movies to watch, continne lwatching. watch later 3.68 I+ [Open Tanovation to collaborate with content producer (Sinemart, SScreenPlay, drm, KLY). independent content creator (Youtuber) and independent movie producer 3.50 [Subscription business model 3.40) Is |Experience Center parmership with KAI. Garuda Indonesia, Blue [Bird, and Bus AKAP for in flight / in car / in train entertainment 3.38 7 |Co Branding Vidio + SCTV, Vidio + Indosiar on broadcasting service, or co branding with Bukalapak, Shopee, Lazada, Teleo, etc on lproviding them content 3.29) 8 [Whimsy & Personality copyright and design to have character of kids. ladults, sports lover, drama lover. ete that depict Vidio as “Human” that Ihas personality 31 I> [Bundled Pricing with telco where data package with fiee access to | Vidio.com is sold together 3.10] 10 {Loyalty Program gamification based on screen time, leaderboard, user board, points, redeem points 3.05 11 [Added Functionality: Transcoding capability to do Ads Insertion in Live Steaming 297 12. [Collaboration with Telco, ecommerce. gojek ete to supply them lcontent 2.61 [Total 3.297] 4.2 Implementation Plan Idea without execution is nothing. This is million dollars phrase. The implementation plan follows 10 types of innovation groups: Configuration, Offering and Experience. Implementation of ideas fall into Configuration group will be done by Business Development ‘Team and Content Team. Business Development Team will focus on collaboration with third party such as telco, ecommerce and other. Content team will focus on how to get more varied content from different creator: production houses, independent movie makers and youtubers. Product and Engineering team really focus on Offering to make Vidio.com as product has the best user experience and the highestquality. Marketing focus on branding and communicate Vidio.com to our users leveraging on relationship with TV such as SCTV and Indosiar. Table 4. Innovation Ideas implementation assigned to Team Team Innovation Ideas Content Collaboration with content producer such as Sinemart, ScreenPlay, dr.m, KLY Collaboration with independent content creator such as Youtuber Open Innovation to collaborate with independent movie producer Business Development & Commercial Subscription business model Bundled Pricing with teleo where data package with free access to ‘Vidio.com is sold together Collaboration with Telco, ecommerce, gojek ete to supply them content Experience Center partnership with KAL Garuda Indonesia, Blue Bird, and Bus AKAP for in flight / in car / in train entertainment Product and Engineering Superior Product: reliable, never go down Performance Simplification: smooth player no buffering Customization: category. playlist, movies to watch, continue watching, watch later Added Functionality: Transcoding capability to do Ads Insertion in Live Streaming Loyalty Program gamification based on screen time, leaderboard, user ‘board, points, redeem points Marketing Whimsy & Personality copyright and design to have character of kids, adults, sports lover, drama lover, ete that depict Vidio as “Human” that hhas personality Co Branding Vidio + SCTV. Vidio + Indosiar on broadcasting service. or co branding with Bukalapak, Shopee, Lazada, Teleo, ete on providing them content 4.3 Implementation Timeline Timeline of this research was intended to be 2019 timeframe, most of innovation ideas timeline perfectly fall into this timeline. Only several ideas that will start QI next year. Some other ideas already started when this research concluded and will continue until the end of 2019.Bellow gantt chart explain each ideas implementation timeline. Peers seer Figure 23. Gantt chart implementation of Innovation Tactics Several innovations are already implemented during this research, some other is still in progress and the rest is planned in 2020. Below is the implementation status for each innovation as of November 2019. Table 5. Innovation Ideas implementation status as of November 2019 [No [Business Model Innovation implementation status 1 /Subseription business model {100% Implemented. Vidio.com has 2 |subscription package: © Gold © Platinum 2 [Bundled Pricing with telco where data [On progress. Vidio.com has Bundled Pricing lpackage with free access to Vidio.com |with Telkomsel MAXStream. Other telco is is sold together lon progress. 3 [Collaboration with Telco, ecommerce, [On progress. Vidio.com voucher is available lgojek etc to supply them content in all ecommerce. All Telco apps has | Vidio.com content: © Telkomsel Maxstream © Indosat MyM3 © Hutchinson 3 Bima+ [4 ]Open Innovation to collaborate with _ | Vidio.com collaborate with SinemArt to content producer (SinemArt, produce 2 original Series: Gir] in The City ‘ScreenPlay, dr.m, KLY), independent and I Love You Baby. Vidio.com also content creator (Youtuber) and (Collaborate with StarVision to product Heart independent movie producer original series [Performance Simplification: smooth [On progress. This is a continuous effort. lplayer no buffering 6 |Superior Product: reliable. never 20 [On progress. This is a continuous effort. down, 17 |Customization: category, playlist, | Vidio.com launch continue watching feature movies to watch, continue watching, on September, 2019. Other customizable [watch later feature is in progress[Added Functionality: Transcoding leapability to do Ads Insertion in Live Streaming [This innovation is planned next year. Experience Center partnership with |KAIL, Garuda Indonesia, Blue Bird. and [Bus AKAP for in flight / in ear / in train entertainment [This innovation is planned next year. ho [Loyalty Program gamification based lon screen time. leaderboard. user board, points, redeem points [This innovation is planned next year a Co Branding Vidio + SCTV. Vidio + Hindosiar on broadcasting service, or co lbranding with Bukalapak. Shopee. [Lazada, Telco, ete on providing them Jcontent (On November 2019, Vidio.com provide lvoting capability to support Panasonic Gobel | Awards aired live on SCTV. [Whimsy & Personality copyright and |design to have character of kids, adults, sports lover. drama lover. etc that depict [Vidio as “Human” that has personality | Vidio.com start to inject personality in communication with its user. especially on error message. Below is an example of communication with personality when page huser access is not found. a Oops! Implementation and execution is everything. One thing that is apparent on this research is that ideas can come from any place, with the right tools and mindset, good ideas come in tens or maybe hundreds. The challenge is selecting and prioritize those ideas so it can significantly improve business results. Setting the business goals is also essential to evaluate the impact of the ideas and prioritize it accordingly. Pursuing ideas just for the sake of “that idea sounds great” will cause more severe problem where resources deployed on something that might tum out not delivering any business impact. In the wake of disruptive era, having good product is not enough, more innovation in different areas is needed to maintain competitive advantage in the market. 10 types ofinnovation framework provides comprehensive way to foster innovation culture as shown in this research.REFERENCES Andini, F. N. Perubahan Gaya Menonton TV Pada Generasi Muda di Era Konvergensi ‘Media. Depok: Universitas Indonesia, 2014. Aria, P.. 2019. Bekraf Targetkan 60 Juta Penonton Bioskop Tahun ini. 25 Mei. Available from [Accessed on 7 July 2019] . Broadband TV News Correspondent. 2018. SVOD Subscribers reach 1.8 million in South East Asia. ul January, Available from https://www.broadbandtvnews conv/2018/01/1 1/svod-subscribers-reach-1-8-million-in-south- eastrasia/ [Accessed on 4 July 2019] Chowdurry, M., 2017. Online Entertainment and Media Outlook, PWC. Christensen, C. M, 1997. The Innovator’s Dilemma. Harper Business Essential, Hanlon, A., 2018. The Ansoff Model. Using The Ansoff Matrix to Identify Growth Opportunity. Available fom [Accessed on 2 August 2019] Kelley et al. Ten types of Innovation. New Jersey: John Willey and Son, 2019 Prayoga, I. T., 2019. Equity Research Surya Citra Media. Danareksa, 14 March 2019. Qolbi. N. & Rahmawati, W.. 2019. Telkom (TLKM) optimistis pendapatan IndiHome tumbuh double digit, begini strateginya. Agustus 2019. Available from hitps://investasi kontan.co.id/news/telkom-tikm-optimistis-pendapatan-indihome-tumbuh-dou ble-digit-begini-strateginya [Accessed on 31 August 2019 J. Santika, Eka et al., 2016. [Update] Kilas Balik Layanan Streaming Video On Demand di Indonesia Sepanjang «2016. December 2016. Available. from https: //id techinasia.com/layanan-streaming-video-on-demand-indonesia-2016 [Accessed on 1st July 2019].Samtani, K. & Jindal, G., 2018. Entertainment Goes Online. BCG. Saputra, B. D. & CNBC Indonesia. 2018. Berebut Pelanggan Streaming Film. 21 December. Available from https/ivww.enbeindonesia.com/fintech/20181221161345-39-47509 /berebut-pelanggan-strea ming-film [Accessed on 4 July 2019] . SCM Investor Release. PT Surya Citra Media tbk. August 2019. Speed Test Intelligent. 2019. Speed Test Global Index. Available from itps:/Awnow.speedtest.net/global-index/indonesia [Accessed on Ist September 2019] Trading © Economics. 2017. Indonesia Intemet Speed. Available from \s://tradingeconomics.convindonesia/intemet-speed [Accessed on Ist September 2019]. 39APPENDICES Abbreviation FTA TV stand for Free To Air Television, it is TV broadcast service unencrypted where everyone with proper receiver can view the TV content. Indonesian national TV such as SCTV, RCTI, Indosiar, ANTV and so on is fall into this FTA TV category. In this research FTA TV term is usded to identify all of those TV Station. Pay TV is subscription based TV Services, where customers need to pay certain amount of money to view the TV content. Some Pay TV using satellite technology such as Indovision or encrypted terrestrial digital television such as NexMedia. There are Pay TV services that are bundled together with intemet connection using high speed optical cable such as MNC Play and Indihome. OTT stands for Over The Top, it is a term used by the media industry to refer to content providers that distribute content through streaming over the intemet directly to consumers. OTT considered disruptive by TV Industry because its ability to reach consumers directly and its ability to deliver non linier experience. Free TV have fixed schedule that deliver the same content at the same time to millions user while OTT is very personalized experience where each user can what whatever they want anytime and anywhere as long as there is reliable internet connection. UGC stands for User Generated Content, it is term to refer content that generated by user of a service, in this research context, UGC refer to video content that generated and uploaded by users for other users to enjoy. Websites such as YouTube, Instagram, Facebook and TikTok is primary example of services that rely on UGC content. Ads or advertisements is a marketing communication to sell a product or service. Ads can also refer to a business model to display marketing content to user in exchange of free service provided by a media company. FTA TV is using ads business model to earn revenue, they design their content to have regular intervals to show their user Ads commercial in exchange of free service they provide to users. 60Subscription is a business model in which users pay a recurring price at regular intervals for access to a product or service. Pay TV is one of those services that using subscription business model, usually their user pay a fixed price every month to get access to their content. B. Innovation Tactic Cards Configuration - Profit Mode! Premium Price at a higher margin than competitors. usually for a superior product. offering. experience, service or brand. Cost Leadership ‘Keep variable costs low and sell high volumes at low prices. Scaled Transactions Maximize margins by pursuing high volume, large scale transactions when unit costs are relatively fixed. Microtransactions Sell many items for as little as a dollar—or even, only one cent—to drive impulse purchases at volume. Forced Scarcity Limit the supply of offerings available, by quantit time frame or access, to drive up demand and/or prices. ‘Subscription Create predictable cash flows by charging customers up font (a one time or recurring fee) to have access to the prodnct/ service over time. Membership Charge a time-based payment to permit access to locations, offerings, or services that non-members don't have. Installed Base Offer a "core" product for slim margins (or even a loss) to drive demand and loyalty: then realize profit on additional products and services. User-Defined tnvite customers to set a price they wish to pay. Freemium Offer basic services for free, while charging a premium for advanced or special features. Flexible Pricing ‘Vary prices for an offering based on demand. Float Receive payment prior to building the offering—and use the cash to eam interest prior to making margins. Financing Capture revenue not directly fiom the sale of a product, but from structured payment plans and after-sale interest. Ad-Supported Provide content/services for free to one party while selling listeners, viewers or "eyeballs to another party. Licensing Grant permission to some other group or individnal to use your offering in a defined way for a specified payment. Metered Use Allow customers to pay for only what they use. Bundled Pricing Sell in a single transaction two or more items that could be sold as standalone offerings. Disagerogate Pricing Allow eustomers to buy 61‘Switchboard Connect multiple sellers with multiple buyers: the more buyers and sellers who join. the more valuable the switchboard. Auction Allow a market—and its users—to set the price for goods and services. exactly—and only—what they want. Risk Sharing ‘Waive standard fees/costs if certain metrics aren't achieved, but receive outsize gains when they are. Configuration - Network Merger/Acquisition Combine two or more entities to gain access to capabilities and assets. Consolidation Acquire multiple companies in the same market or complementary markets. Open Innovation Obtain access to processes or patents from other companies to leverage, extend, and build on expertise and/or do the same with internal IP and processes, Secondary Markets Connect waste streams. by-products, or other alternative offerings to those who want them. Supply Chain Integration Coordinate and integrate information and/or processes across a company or functions of the supply chain. Complementary Partnering Leverage assets by sharing them with ‘companies that serve similar markets but offer different products and services. Alliances Share risks and revenues to jointly improve individual competitive advantage. Franchising License business principles, processes, and brand to paying partners. Coopetition Join forces with someone who would normally be your competitor to achieve a common goal. Collaboration Partner with others for mutual benefit. Configuration - Structure Organizational Design ‘Make form follow function and align infrastructure with core qualities and business processes. Incentive Systems Offer rewards (financial or non-financial) to provide motivation for a particular course of action. IT Integration Integrate technolog Competency Center resources and applications. Corporate University Provide job-specific or company-specific training for managers, Decentralized Management Distribute decision-making governance closer to the customer or other key business interfaces. Knowledge Management Share relevant information internally to reduce redundancy and improve job e2Cluster resources, practices and expertise into support centers that increase efficiency and effectiveness across the broader organization. Outsourcing Assign responsibility for developing or maintaining a system to a vendor. performance. Asset Standardization Reduce operating costs and increase connectivity and modularity by standardizing your assets. Configuration - Process Process Standardization Use common products, processes, procedures, and policies to reduce complexity, costs, and errors. Localization Adapt an offering, process, or experience to target a culture or region. Process Efficiency Create or produce more while using fewer resources—measured in materials, energy consumption or time. Flexible Manufacturing Use a production system that can rapidly react to changes and still operate efficientiy. Process Automation Apply tools and infrastructure to manage routine activities in order to free up employees. Crowdsourcing Outsource repetitive or challenging work to a large group of semi-organized individuals. ‘On-Demand Production Produce items after an order has been received to avoid carrying costs of inventory. Lean Production Reduce waste and cost in your ‘manufacturing process and other operations. Logisties Systems ‘Manage the flow of goods, information and other resources between the point of origin and the point of use. Strategic Design Employ a purposeful approach that manifests itself consistently across offerings. brands, and experiences. Intellectual Property Protect an idea that has commercial value—such as a recipe or industrial process—with legal tools like patents. User Generated Put your users to work in creating and curating content that powers your offerings. Predictive Analytics ‘Model past performance data and predict future outcomes to design and price offerings accordingly. Offering - Product Performance ‘Superior Product Develop an offering of exceptional design, quality. and/or experience. Ease of Use Make your product simple, intuitive and comfortable to use. Engaging Functionality Environmental Sensitivity Provide offerings that do no harm—or relatively less harm—to the environment. Environmental Sensitivity Provide offerings that do no harm—or relatively less harm—to the environment. 63Provide an unexpected or newsworthy experiential component that elevates the customer interaction. Safety Increase the customer's level of confidence and security. Feature Aggregation Combine existing features found across offerings into a single offering. Added Functionality Add new functionality to an existing offering, ‘Added Functionality Add new functionality to an existing offering. Performance Simplification Omit superfluous details, features, and interactions to reduce complexity. Conservation Design your product so that customers can reduce their use of energy or materials. Customization Enable altering of the product or service to suit individual requirements or specifications. Focus Design an offering specifically for a particular audience at the expense of others. Styling Impart a style. fashion or image. Offering - Product System Complements Sell additional related or ancillary products or services to a customer. Extensions/Plug-ins Allow first- or third-party additions that add functionality. Product Bundling Offer several products for sale as one combined product. Modular Systems Provide a set of individual components that can be used independently, but gain utility when combined. Product/Service Platforms Develop systems that connect with other, partner products and services to create a holistic offering. Integrated Oftering Combine otherwise discrete components into a complete experience. Experience - Service ‘Try Before You Buy Let customers test and experience an offering before investing in it Guarantee Remove customer risk of lost money or time stemming from product failure or purchase error Loyalty Programs ‘Supplementary Service Offer ancillary services that fit with your offering ‘Superior Service Provide service(s) of higher quality. efficacy. or with a better experience than any competitor. 64Provide benefits and/or discounts to frequent and high-value customers. ‘Added Value Include an additional service/function as part of the base price. Concierge Provide premium service by taking on tasks for which customers don't have time. Total Experience Management Provide thoughtful, holistic management of the consumer experience across an offering’s lifecycle. Personalized Service Use the customer's own information to provide perfectly calibrated service. User Communities / Support Systems Provide a communal resource for product/service support, use and extension. Lease or Loan Let customers pay over time to lower upfiont costs. Self-Service Provide users with control over activities that would otherwise require an intermediary to complete. Experience - Channel Diversification Add and expand into new or different channels. Flagship Store Create a store to showcase quintessential brand and product attributes. Go Direct Skip traditional retail channels and connect directly with customers, Non-Traditional Channels Employ novel and relevant avenues to reach ‘customers, Pop-up Presence Create a noteworthy but temporary environment to showcase and/or sell offerings. Indirect Distribution Use others as resellers who take ownership over delivering the offering to the final user. Multi-Level Marketing. Sell bulk or packaged goods to an affiliated but independent sales force that turns around and sells it for you. Cross-selling Place products, services, or information that will enhance an experience in situations where customers are likely to want to access them. On-Demand Deliver goods in real-time whenever or wherever they are desired, Context Specific Offer timely access to goods that are appropriate for a specific location, occasion, or situation. Experience Center Create a space that encourages your customers to interact with your offerings—but purchase them through a different (and often lower-cost) channel. Experience - Brand Co-Branding Combine brands to mutually reinforce key Component Branding Brand an integral component to make a 65attributes or enhance the credibility of an offering. Brand Leverage end" your credibility and allow others to use your name—thus extending your brand! reach. Private Label Provide goods made by others under your company's brand. Brand Extension Offer a new product or service under the umbrella of an existing brand, final offering appear more valuable. Transparency Let customers see into your operations and participate with your brand and offerings. Values Alignment Make your brand stand for a big idea or a set of values and express them consistently in all aspects of your company. Certification Develop a brand or mark that signifies and ensures certain characteristics in third-party offerings. Experience - Customer Engagement Process Automation Remove the burden of repetitive tasks from the user to simplify life and make new experiences seem magical. Experience Simplification Reduce complexity and focus on delivering specific experiences exceptionally well. Curation Use a distinet point of view to separate the proverbial wheat from the chafi—and in the process create a strong identity for yourself and your followers. Experience Enabling Extend the realm of what's possible to offer a previously improbable experience Mastery Help customers to obtain great skill or deep knowledge of some activity or subject. Autonomy and Authority Grant users the power to use your offzrings to shape their own experience. Community and Belonging Facilitate visceral connections to make people feel they are part of a group or ‘movement. Personalization Alter a standard offering to allow the projection of the customer's identity. Whimsy and Personality ‘Humanize your offering with small flourishes of on-brand . on-message ways of seeming alive. Status and Recognition Offer cues that infer meaning, allowing vusers—and those who interact with them—to develop and nurture aspects of their identity. 66C. Additional Innovation Tactic Cards Based on feedback from team at Vidio.com, additional 7 tactics that relevant to technology and video online industry was added. Configuration - Process Original Content ‘Unique content that never been produced before in any medium. Most of the time the original content is produced in-house and it requires certain competency and process to produce it. Exclusive Content ‘When something is exclusive, not everyone can have it. by nature. people want what they can’t have. This psychological phenomenon is very powerful since scarcity principle says that the more tare or unattainable something is the more valuable it is. Anti Piracy Task Force Piracy is crippling content industry. Music, movies, TV. Sport live match and many more lost billions of dollars per year from illegal content download. Experience - Channel Referral / Member get Member Referral is a method of promoting produets or services to new customers through word of mouth. Financial benefit of bringing new customers often used to make referral program viral. Experience - Brand Content Marketing Create useful content to answer customer inquiries. Rather than focusing on hard-sell, the content seeks to inform and enlighten. The aim is to have honest and authentics relationship with brand audience. Brand Storytelling Telling story about who the brand are and what they stand for. It is about communicating the brand core value and what they represent. Catchy Slogan Catchy slogans can differentiate brand and make it memorable. The catchy slogan contains key benefit. brand differentiation. emotional impact and bring nostalgic feeling to the audience. orD. 10 Types of Innovation Workshop Participants The workshop was held at Vidio.com office on May. 24th 2019 with 20 participants listed in below table. No [Name Team 1|Fievielia Sugita [Business Development 2|Hangga Product Marketing 3|Fathiyah Allissah [ER 4|Geraldine [Marketing 3]Uttara Marketing 6[Talitha Amalia Zafira [UX Research 7|Steven Cokro UX Research, 8 [Dwi Puspitasari [Data Analytics 9] Asti Ayuningtyas [Product Manager 10[Ratih Pulkeria Product Manager 11] Yohanes Liberto [Product Manager 12|Fenika Sutojo Product Manager 13] Angga Aditya [Product Manager 14|Shelawati Wahono ER 15[Ramadhan Putra [Product Manager 16]Rizky Putra Product Manager 17] Nadya Putri [Product Manager 18|Bobby Reinaldo [Data Analytics 19] igri Hidayat Product Manager 20/Letitia [Product Manager 68E. Question List This is an anonymous Survey, no Personal Identification Data is collected, so your privacy is protected Vidio.com is an online video streaming website. Vidio.com is the biggest local and regional online video streaming site in Indonesia, it's only second to Youtube. Vidio.com offer varied content such as National TV Streaming, Sinetron, FTV, News, Music Video and much more. With a big number of users, Vidio.com launch premium service to satisfy user that want higher quality content. The service is called Vidio Premier. It offers Sport premium content such as NBA, Liga 1, UEFA Champions League, La Liga and Serie A. Vidio Premier also offer Original Series such as Heart and I Love You Baby. Movies and Series is another big category offered by Vidio Premier such as Indonesian, Hollywood, Bollywood and Asian movies. Korean drama is also available at Vidio Premier. In this past year, Vidio Premier is growing rapidly. Many new innovations in different areas moving forward is needed to grow it even more. A workshop with teams at Vidio.com was held to generate innovation ideas. We would like to know whether these innovation is resonated to our user as great ideas or not, So please help us filling this short questionnaire so we can have a better understanding of the ideas. o.com is building relationship with big content producer, youtuber, independent content creator or independent movie so their movie or TV Series is available at Vidio.com. Do you think this collaboration will improve Vidio.com content quality? A. Yes, the more the memrier B. Yes, but it may not give significant impact C. No, Vidio.com should focus on current content D. No, Just focus on sport 2. Vidio Premier is premium service that provides high quality content such as indonesian movie, sinetron, FTV, hollywood, korean and Bollywood as well as tons of sporting events such as the UEFA Champions League and La Liga. Vidio Premier is paid service where user required to pay as low as Rp. 10.000. Is it better to pay for legal high quality content with tons of benefits than free but limited content? A. Acree, it is valne for money and I’m feeling good by consuming legal content B. Acree, but the price is too expensive 9C. Disagree, T would rather see ads and pay nothing D. Disagree, I prefer download pirated content. 3. Vidio is planning to sell Vidio Premier package bundled with telco data package. So you will get triple benefit when buy data package: get the data package itself. free Vidio Premier and free quota when accessing Vidio.com. Do you think this promo is interesting? A. Yes, take my money! B. Yes, but I'm not watching any movie or sport anyway C. No, I'll watch something else instead D. No, I’m not interested in watching any video 4. Vidio.com is planning to partnership with popular Apps you often use, such as ecommerce. DANA, gojek or grab. Would you rather see Vidio.com content in those apps? A. Yes, it would be awesome shopping while watching movie B. Yes, but I prefer to watch it in vidio.com apps instead C. No, Lonly want to do one thing in certain apps D. No, Does not make any sense 5. Vidio.com is planning to offer its service in more places, anywhere you go for example: watch movie or sports match while you flying in airlines, while you in taxi, while traveling with bus or while you staying in a hotel. Do you think this offering is much better than existing service? A. Yes, Vidio.com is much better than existing service B. Yes, But usually I don’t watch anything while traveling C. No. in flight entertainment is much better D. No, I'll just go to sleep 6. Engineering team at Vidio.com is trying to improve its service quality at the highest level. One of the areas where we focus is on reliability, we try hard to make Vidio.com service always available 247, never go down. Do you consider reliability as important factor when visiting online streaming website? A. Yes, going down is big no no B. Yes, but I'm ok when it is going down once in a while, I'll come back later C. No, 'll do something else if it is down D. No, I don’t even watch anything online 7. User experience is the most important things Vidio.com team focusing right now. We consider cut buffering time as a top priority to improve user experience. Do you think buffering is annoying and Vidio.com need to really focus on it A. Yes, Iwill just leave after 3 seconds B. Yes, But Ill wait, Ihave time and I'm a patient person C. No, I can wait forever D. No. I’m not watching anything online 708. Vidio.com is adding more personalized feature every release, so you can organize things you want to watch easily. Feature such as playlist, movies to watch. continue watching and watching while offline (download first). Do you think personalized feature as mentioned above will improve your watching experience? A. Agree, it will make my life easier B. Agree, but I'll just watch anything showing in homepage C. Disagree. I'll just search for whatever I want to watch D. Completely disagree, it is useless feature 9. Advertisement is one of Vidio.com business models, for free content Vidio.com show ads before playing the content. Right now the ads is separated from the content it self, it sometimes does not looks smooth. Do you think improving the ads to looks smooth and integrated with the content is a good idea? A. Yes, it will improve the watching experience a lot B. Yes, but it might confuse user between the actual content or ads C. No, better to keep spareting ads and content D. No, I don't like ads, I prefer to pay for the content rather than see ads 10. To improve user loyalty. Vidio.com planning to develop loyalty program where we give points when user visit Vidio.com. For example, when user watch a movie until finish, or when user finish all episode in a TV Series. There will be a leader board to show who is the get the highest point. User can then redeem points to interesting offering such as DANA balance or Bukalapak voucher. Do you think loyalty points is interesting to have at vidio.com? A. Yes, bring it on! B. Yes, but loyalty points is gimmick not that important for me C. No, I'm fine without loyalty points D. No, Loyalty point is useless LL. Injecting personality to a product is become tren recently, product such as Apple Siri. Microsoft Cortana, Amazon Alexa or Google Echo is a prime example of this trend. If Vidio.com design its product around a cool personality that will give wanm feeling impression for its user, do you think it will improve user experience when using vidio.com? A. Yes, product with personality is awesome B. Yes, but current experience is good enough for me, fancy things like personality is too much (Iebay!) C. No, [like simple clean formal experience No, it does not make sense to give a human personality to a product 12, Vidio.com is part of larger group, Surya Citra Media, that also own national TV station such as SCTV and Indosiar. We also have a close relationship with DANA and Bukalapak. Having all these relationships, do you think Co-Branding with them will help improve Vidio.com presence in our user mind? A. Yes, Co-Branding is awesome, 1 + 1 will be more than 2 1B. Yes, but better for Vidio.com to have its own independent brand C. No, It will make user confused of what vidio.com is D. No. Co-Branding is never works, it is a bad idea 2F. Questionnaire Result A. Responder Demographic Data 1 3 Age Count of Age Responden 245 Gender Count of Gender Responden Female EducationCount of Education Respondence High Sehot Under graduates 4. Occupation Count of Occupation Respondence Studant Enteprocune Employee 5. ResidentialCount of Residential Respondence B. Questionnaire results and Vidio.com approval rate to each question [Question Vidio.com is building relationship with big content producer, youtuber, independent content creator or independent movie so their movie or TV [Series is available at Vidiocom. Do you think this collaboration will improve Vidio.com content quality? INo, Just focus on sport No, Vidio.com should focus on current content Yes, but it may not give significant impact Yes, the more the merrier Vidio Premier is premium service that provides high quality content such las indonesian movie, singtron, FTV, hollywood, korean and Bollywood as }well as tons of sporting events such as the UEFA Champions League land La Liga. Vidio Premier is paid service where user required to pay as. low as Rp. 10.000. Is it better to pay for legal hich quality content with tons of benefits than free but limited content? Disagree, | prefer download pirated content Disagree, | would rather see ads and pay nothing [Agree, but the pce is too expensive [Aaree, it is value for money and I'm feeling good by consuming legal content[Approval Rate | 3.4] \Vidio is planning to sell Vidio Premier package bundled with telco data package So you will get triple benefit when buy date package: get the| data package itself, free Vidio Premier and free quota when accessing Vidio.com. Do you think this promo is interesting? No, 'm not interested in watching any video 5 | No, Ill watch something else instead 34] ag| Yes, but 'm not watching any movie or sport anyway 25] 75 Yes, take my money! 56 224] [Approval Rate | 31 \Vidio.com is planning to partnership with popular Apps you often use, Isuch as e-commerce, DANA, Go-jek or Grab. Would you rather see Vidio. com content in those apps? No, Does not make any sense 16| 16] No, | only want to do one thing in certain apps 44) 88 Yes, but | prefer to watch itin vidio.com apps instead 31 93] Yes, it would be awesome shopping while watching movie 29) 118 Approval Rate | 261 \Vidio.com is planning to offer its service in more places, anywhere you| 190 for example: watch movie or sports match while you flying in airines, while you in taxi, while traveling with bus or while you staying in a hotel Do you think this offering is much better than existing service? No, 1iljust go to sleep 3 3| INo, in fight entertainment is much better 12 2a Yes, But usually | don't watch anything while traveling a1 123 Yes, Vidio.com is much better than existing service e4| 256 Approval Rate | 3.38] [Engineering team at Vidio.com is trying to improve its service quality at the highest level. One of the areas where we focus is on reliability, we try| hard to make Vidio.com service always available 247, never go down. Do| lyou consider reliability as important factor when visiting online streaming website? No, I don't even watch anything online 2 2| 76No, rll do something else if it is down 5] 1q Yes, but fm ok when it is going dawn once in @ while, Fiicome back later] 23 eg] Yes, going down is big no no 90| 360] JApproval Rate | 3.69] User experience is the most important things Vidio com team focusing ight now. We consider cut buffering time as a top prionty to improve user| lexperionce. Do you think buffering is annoying and Vidio.com need to really focus on it? No, Tm not watehing anything online 2 2| No, | can wait forever | | Yes, But Il wait, Ihave time and I'm a patient person 27| at Yes, | wall just leave after 3 seconds a 364 JApproval Rate | 3.73] Vidio com is adding more personalized feature every release, so you can’ lorganize things you want to watch easily. Feature such as playlist movies to watch, continue watching and watching while offline (dowmload first). Do you think personalized feature as mentioned above will improve lyour watching experience? Completely disagree, itis useless feature 1 1 Disagree, I'l just search for whatever | want to watch 10 20] [Agree, but Illjust watch anything showing in homepage 15 45] [Agree, it will make my life easier 24] 376] JApproval Rate | 3.69] JAdvertisement is one of Vidio.com business models, for free content lVidio.com show ads before playing the content. Right now the ads is: Jseparated from the content it self, it sometimes does not looks smoath. Do you think improving the ads to looks smooth and integrated with the Jcontent is a good idea? No, | don't like ads, | prefer to pay for the content rather than see ads 10| 1q No, better to keep spareting ads and content 29| 2| 59 Yes, but it might confuse user between the actual content or ads 26| 3] 108| Yes, it will improve the watching experiance a lot 45| 4] 180] JApproval Rate | 2.97]10 [To improve user loyalty, Vidio com planning to develop loyalty program where we give points when user visit Vidio. com. For example, when user| jwatch @ movie until finish, or when user finish all episode in a TV Series. There will be a leader board to show who is the get the highest point lUser can then redeem points to interesting offering such 2s DANA| balance or Bukalapak voucher. Do you think loyalty points is interesting to have at vidio com? INo, Loyalty point is useless 13 a] 43] No, I'm fine without loyalty points 18 2| 36 Yes, but loyalty points is gimmick not that important for me 29) 3] 117] Yes, bing it ont 50] 4] 200] [Approval Rete | 3.05] 11 injecting personality to a product is become tren recently, product such las Apple Sin, Microsoft Cortana, Amazon Alexa or Google Echo is a lprime example of this trend. If Vidio.com design its product around a cool personality that will give warm feeling impression for its user, do you think it will improve user experience when using vidio com? No, it does not make sense to give a human personality to a product 2 i] 2 INo, | like simple clean formal expenence 34) 2| 69 Yes, but current expenence is good enough for me, fancy things like personality is too much (lebay!) 25) 3] 79| Yes, product with personality is awesome 58 4] 232| Approval Rate | 3.17 12 |Vidio.com is part of larger group, Surya Citra Media, that also own!| national TV station such as SCTV and Indosiar. We also have a close relationship with DANA and Bukalepak. Having all these relationships, do you think Co-Branding with them will help improve Vidio.com presence in lour user mind? No, Co-Branding is never works, itis @ bad idea 3 a| 3 No, it will make user confused of what vidio.com is 15| 2| 39] Yes, but better for Vidio.com to have its own independent brand 46 3] 138] Yes, Co-Branding is awesome, 1 + 1 will be more than 2 56 4] 224] lApproval Rate | 3.29] Total Approval Rats 3.39] 8