Propose a new digital service for a real-world organisation (3000 words).
Select and introduce a real-world organisation of your choice. Briefly reflect on the business-to-consumer (B2C) services the organisation currently offers.
Discuss a new digital service that could be offered by this organisation. This can be via a digital transformation of an existing service or offering a digital service that would be new to this organisation. Carefully justify the need for and added value of this new digital service.
Explain how this new digital service leverages one (or more) of the technologies discussed in the module (e.g., AI, multi-sided platforms, APIs). Demonstrate an adequate understanding of these technologies.
Discuss the key steps in deploying this digital service by referring to a relevant implementation lifecycle model discussed in the module.
Lifecycle of a digital service
Critically discuss the risks involved with offering this digital service. Develop and justify mitigations for the top two risks
(Use academic references) (Use theories from Digital Business Service module)
I already written some so please use this to continue the rest of the essay:
Introduction
In the ever-evolving landscape of digital music streaming, Spotify is a powerhouse redefining how music is consumed, shared, and discovered globally. It is able to adapt to technical advancements and the constant shift in consumer preferences, which will allow it to maintain its position and competitive advantage within the industry. Even with the digital music industry becoming increasingly competitive, with platforms like Apple Music and Amazon Music seeking to captivate audiences through unique features and content, Spotify can sustain its market leadership and continue to grow its user base. It must innovate continuously, exploring new services that enrich the user experience, support artists, and integrate cutting-edge technologies. This proposal aims to introduce a series of innovative services that Spotify could implement.
These services are designed to solidify user engagement and satisfaction and to open new revenue streams and strategic opportunities. From live interactive sessions to educational platforms for aspiring artists, each service is crafted to align with Spotify’s mission of unlocking the potential of human creativity by allowing a million creative artists to live off their art and billions of fans the opportunity to enjoy and be inspired by it. By embracing these new service ideas, Spotify can enhance its value proposition to both artists and listeners, thereby reinforcing its role as a pivotal player in the global music industry.
Spotify Background
Spotify is a digital music streaming platform founded in 2008 by Daniel Ek and Martin Lorentzon (Spotify Newsroom About, 2024). It has over 615 million active users, including 239 million subscribers across 180 markets worldwide (Spotify Newsroom About, 2024). The platform streams music as well as podcasts and videos, offering diverse services on a single medium (). It has over 100 million tracks, six million podcast titles, and 350,000 audiobooks (Spotify Newsroom About, 2024). Users can stream music for free with ads or upgrade to Spotify Premium, but regardless of subscription, listeners can build their collection of music and podcasts whilst getting recommendations based on their taste (Spotify Support, n.d.). It primarily generates revenue from its subscriptions and advertising from non-subscribed listeners (The Strategy Story, 2023).
Spotify’s success stems from its user-centric approach (Portman, 2019). It provides a seamless and personalised user experience that caters to a broad demographic, from casual listeners to avid music lovers (Portman, 2019). When Spotify shifted its focus to offer more playlist personalisation in 2016, it attracted hundreds of thousands of new monthly listeners (Connor, 2023). Beyond that, it also offers artists and song recommendations within playlists created by listeners (Connor, 2023). Further, users can also make playlist blends with friends and families and enjoy the Spotify curated fun playlists such as ‘Discover Weekly’, ‘Your Top Songs’, and Your *insert year* Wrapped (Portman, 2019).
Furthermore, Spotify has cultivated a robust brand identity and community-focused platform. It strategically collaborates with artists and record labels, not merely as a distributor of music but as a partner in the creative process (Jimmhouseyy, 2023). Spotify aims to unlock the potential of human creativity by providing millions of artists the opportunity to live off their work and fans the opportunity to enjoy and be inspired by these creators (Spotify Manifesto, n.d.). Thus, it is imperative for Spotify to continue its user-centric structure and approach whilst being innovative with its constant digital services.
Justification for a new digital service
Although Spotify continues to dominate the global music streaming landscape, it faces the perpetual challenge of innovating its service offerings to maintain its competitive advantage and meet evolving consumer demands. Competitors like Apple Music, Amazon Music, and YouTube Music not only provide similar music and podcast streaming services but also incorporate unique features to distinguish themselves within a saturated market (The Strategy Story, 2023). In this competitive landscape, differentiation becomes critical for keeping the current and attracting potential users. To achieve this, Spotify must look beyond merely expanding its existing library of songs and podcasts and explore a new avenue to engage with its current and new audience in new and interactive ways. Thus, the next step for Spotify within the market is to propose the ‘Spotify Collaborative Studio’.
The ‘Spotify Collaborative Studio’ allows users to create music and collaborate in real time directly within Spotify. This revolutionises how users interact with the platform by transforming the passive listening experience into an active creative platform. The Studio would serve as a digital audio workstation integrated directly within the app, allowing users to create, edit, and arrange music. This digital service would have real-time collaboration where individuals can create music with their friends or connect with suggested users worldwide through Spotify’s existing song and recommendation algorithm. Such a service would uniquely position Spotify at the intersection of music streaming and digital content creation, catering to a growing demographic of music enthusiasts who are interested in not only listening to music but also creating it. This demographic would include amateur musicians, producers, and everyone else who wants to experiment with music creation as a form of entertainment or personal expression.
The need for such a digital transformation is underscored by the rising popularity of digital tools for music production. Firstly, there is a significant rise in digital tools like AI for music production, with platforms like Soundtrap and BandLab gaining popularity for their user-friendly interfaces and collaborative features (Frampton, 2023; Knapp, 2023). By incorporating similar features, Spotify can significantly enhance user engagement. This integration would also increase the amount of time users spend within the app, transitioning passive listening to active creation and interaction. Such a service is similar to TikTok’s editing feature where users can edit videos directly within the app (Knapp, 2023). This shift not only aligns with the evolving digital landscape but also builds Spotify’s competitive advantage as a leader in digital innovation in the audio streaming industry. Furthermore, integrating such a service on Spotify’s platform could serve multiple strategic objectives. It would enhance Spotify’s value proposition by offering an all-in-one platform supporting music consumption and creation. Additionally, it would create new pathways for user-generated content, which could be monetised or used to discover new artists, further enriching Spotify’s services.
Technology and service design
Implementation strategy
Risk analysis and mitigation
Conclusion
