IT Services Management 2806/7806ICT

Due: 21st April (Friday) 11.59pm

Weighting: 20% No word limit

ITIL Spotify Case Assessment

Q1) Identify the main stakeholders of Spotify. What service does the
organisation provide to each of the stakeholders? Total 5 marks
Ans. Spotify is a Swedish audio streaming and media services provider that provides a variety
of services to its stakeholders. Stakeholders are groups or individuals that are directly or
indirectly affected by the actions of an organization. Spotify's stakeholders can be broadly
categorized into six main groups: users, artists, record labels, advertisers, employees, and
shareholders.

1. Users: Spotify's primary stakeholders are its users. The company provides audio
streaming services to its users, allowing them to access millions of songs, podcasts, and
audiobooks. Spotify's user-friendly interface allows users to create playlists, discover
new music, and share music with others. Users can access the platform through a free,
ad-supported version or by paying for a premium subscription. The premium version
offers ad-free listening, offline playback, and higher audio quality. Spotify also offers
student discounts, family plans, and other promotional offers to attract and retain users.

2. Artists: Spotify's success is largely dependent on its relationships with artists. The
company provides artists with a platform to showcase their music to a global audience.
In return, Spotify pays royalties to artists for their streams. Spotify's algorithms also
help artists gain more exposure by featuring their music in playlists and
recommendations. Additionally, Spotify provides tools and resources to help artists
understand their audience, track their streams, and promote their music. Spotify's Artist
Dashboard allows artists to monitor their streams, demographics, and fan engagement.

3. Record Labels: Record labels are another critical stakeholder for Spotify. Spotify
works with record labels to license their music for streaming on the platform. Spotify
pays record labels a portion of its revenue in exchange for the right to stream their
music. Spotify's success is dependent on its ability to secure licensing deals with major
record labels. The company also works with independent labels and artists to offer a
diverse range of music on its platform.
 4. Advertisers: Spotify generates revenue from advertising, making advertisers a critical
stakeholder for the company. Advertisers can reach Spotify's massive user base through
targeted ads based on user demographics, listening habits, and other factors. Advertisers
can also sponsor playlists or podcasts to reach their target audience. In return, Spotify
generates revenue from advertising fees, which allows the company to offer free, ad-
supported listening to users.

5. Employees: Employees are a critical stakeholder for any organization, and Spotify is
no exception. Spotify employs thousands of people worldwide, including engineers,
designers, marketers, and customer service representatives. The company provides its
employees with a variety of benefits, including health insurance, retirement plans, and
flexible working arrangements. Spotify's success is largely dependent on the creativity,
innovation, and hard work of its employees.

6. Shareholders: Shareholders are the owners of Spotify and are a critical stakeholder for
the company. Spotify generates revenue from its premium subscriptions, advertising,
and licensing deals with record labels. The company's success is reflected in its stock
price, which can impact the wealth of its shareholders. Spotify's primary goal is to
increase shareholder value by growing its user base, increasing revenue, and expanding
into new markets.

In conclusion, Spotify's stakeholders include users, artists, record labels, advertisers,

employees, and shareholders. The company provides a variety of services to each stakeholder,
including audio streaming services for users, a platform for artists to showcase their music,
licensing deals with record labels, advertising opportunities for brands, employment
opportunities for workers, and shareholder value for investors. By providing value to each
stakeholder, Spotify has become one of the most successful music streaming companies in the
world.
Q2) Olingo Consulting was contracted by Spotify to improve/manage certain
areas in the organisation. Name and describe the areas. Total 5 Marks

Ans. Olingo Consulting was hired by Spotify to enhance its HR management

practices, improve operational efficiency, and develop a cohesive company
culture. These were three key areas of focus that Olingo Consulting worked on to
ensure the continued success and growth of Spotify.

The first area of focus was HR management, particularly recruitment, talent

management, and employee retention strategies. Olingo Consulting worked with
Spotify to develop a more comprehensive and effective recruitment strategy by
identifying the key competencies required for each role, developing a more
targeted approach to sourcing candidates, and implementing a more efficient
hiring process. By doing this, Spotify aimed to attract and retain top talent, which
is essential for its continued success. Olingo Consulting also worked on
improving talent management practices to help ensure that employees were
motivated, engaged, and continuously developing their skills. This included
developing career paths, providing regular feedback, and implementing learning
and development programs. Finally, Olingo Consulting worked on employee
retention strategies to help reduce turnover rates and increase employee
satisfaction. This included improving the work environment, providing
competitive compensation packages, and enhancing benefits packages.

The second area of focus was operational efficiency. Olingo Consulting worked
with Spotify to optimize its organizational structure, streamline processes, and
identify areas for automation. The goal was to eliminate inefficiencies, reduce
waste, and enhance productivity. Olingo Consulting worked with Spotify to
identify areas of duplication, inefficiency, and waste and developed a plan to
address these issues. This included analyzing the company's workflows and
identifying opportunities for improvement, such as reducing handoffs and
simplifying processes. Olingo Consulting also optimized Spotify's organizational
structure by clarifying roles and responsibilities, improving communication, and
streamlining decision-making processes. Finally, Olingo Consulting worked with
Spotify to identify opportunities for automation, which included automating
repetitive tasks, improving data quality, and leveraging technology to improve
efficiency and productivity.
The third area of focus was culture and values. Olingo Consulting worked with
Spotify to define and communicate its culture and values, creating a more
cohesive and aligned organization. Olingo Consulting worked with Spotify's
leadership team to identify the key values that drive the company, and developed
a plan to communicate these values throughout the organization. This included
developing a communication strategy to ensure that employees understood the
values and how they relate to their work. Olingo Consulting also worked with
Spotify to develop a plan to reinforce these values on an ongoing basis, through
training, recognition programs, and other initiatives. The goal was to create a
culture of trust, collaboration, and innovation that would drive the company's
continued success.

In conclusion, Olingo Consulting played a critical role in enhancing Spotify's HR

management practices, improving its operational efficiency, and developing a
cohesive company culture. By working on these critical areas, Olingo Consulting
was able to help Spotify create a more efficient, engaged, and aligned
organization that is well-positioned for future growth and success.
Q3) What event contributed to the need to employ Olingo Consulting for
managing/improving certain areas? 2 Marks

Ans. The need to employ Olingo Consulting for managing/improving certain

areas in Spotify was triggered by the rapid growth of the organization in 2017.
The company experienced significant expansion and saw teams being scattered
across the globe, leading to the need for company-wide policies and common
ways of working. This expansion also resulted in new compliance requirements
that needed to be met, especially with the pending introduction on the American
stock exchange.

The financial systems (FS) support team at Spotify was one of the departments
that was highly impacted by the regulatory requirements. The team needed to
strike the right balance between control and agility, which was a challenging
task. Furthermore, there was a need to streamline the department's processes,
making them more efficient and effective while ensuring compliance with the
regulatory requirements.

To address these challenges, Spotify contracted Olingo Consulting to support

the FS support team and other teams in the organization. Olingo Consulting
helped the teams achieve continuous improvement activities, which included the
implementation of ITIL processes and the use of Kanban to track and prioritize
different processes carried out by the team. The goal was to ensure that the
teams worked efficiently and effectively while meeting the compliance
requirements. By engaging Olingo Consulting, Spotify was able to manage the
challenges that came with the rapid expansion and growth, and the company
was well-positioned for future growth and success.
Q4) In Q2 you have identified areas that were the focus of the project at
Spotify. These areas had faced several challenges as discussed in the case
study. These challenges were then managed and resolved by Olingo
Consulting. Identify a challenge from each area and describe how it was
resolved. Total 8 marks

Ans.
1. Financial Systems Support (FS) Team:
• Challenge: The FS team was responsible for delivering IT services that
were impacted by regulatory requirements. They had to move from an
on-premise ERP to a mix of various best-in-class cloud ERPs within a
very limited timeframe.
• Resolution: Olingo Consulting acted as Agile coaches and used ITIL,
Kanban, and other Agile methods to guide the FS team. They worked
closely with the team to manage the transition to the new ERPs and
ensure compliance with regulatory requirements.

2. IT Service Management:
• Challenge: Some staff members at Spotify felt that using frameworks
like ITIL slowed them down.
• Resolution: Olingo Consulting demonstrated the value of ITIL to the
staff members and helped them understand that the framework could
actually improve processes and support the organization in achieving
its goals. They delivered formal ITIL training at Spotify, which
increased staff interest in the framework.

3. Agile Methodologies:
• Challenge: As Spotify grew, teams were scattered around the world,
which created challenges in terms of finding a relevant level of steering
and structure while allowing innovation and experimentation.
• Resolution: Olingo Consulting acted as Agile coaches and worked with
other coaches at Spotify to guide each team in the right direction. They
used Agile methods to help teams strike the right balance between
control and agility, ensuring that they could continue to innovate and
experiment while upholding compliance and maintaining efficiency.

4. Management Consulting:
• Challenge: The pending introduction on the American stock exchange
introduced new compliance requirements, and the organization
experienced growth pains.
• Resolution: Olingo Consulting worked with various teams at Spotify
to strike the right balance between control and agility, finding a relevant
 level of steering and structure while allowing innovation and
experimentation. They used Agile and ITIL methods to manage the
workload and ensure compliance with regulatory requirements.
5. Continuous Improvement:

• Challenge: Continuous improvement is a value that is often

easier said than done. Many organizations struggle to identify
areas for improvement and then develop and implement
processes that can lead to measurable results. At Spotify, the
challenge was compounded by the fact that teams were scattered
around the world, which made it difficult to identify common
areas for improvement.

• Resolution: Olingo Consulting worked closely with teams at

Spotify to identify areas for improvement and then develop and
implement processes to address those areas. By using Agile and
ITIL methods, they were able to help teams to continuously
improve their processes, which led to increased efficiency and
better customer service. They also helped to create a common
language and understanding across teams, which made it easier
to identify areas for improvement and then develop and
implement processes to address those areas. This helped Spotify
to maintain its focus on continuous improvement, which is
critical for any organization that wants to remain competitive in
today's fast-paced business environment.

Overall, Olingo Consulting played a crucial role in helping Spotify to

manage and improve key areas of the organization during a time of rapid
growth and change. By using Agile and ITIL methods, they were able to
help teams to be more responsive to changing customer needs and market
trends, while also upholding compliance and maintaining efficiency. They
also helped to create a common language and understanding across teams,
which made it easier for different teams to collaborate effectively. The
work done by Olingo Consulting was instrumental in helping Spotify to
navigate the challenges posed by rapid growth, maintain compliance with
regulatory requirements, and create a foundation for continued success in
the future.