Recognizing, Conceptualizing, and Implementing
Caroline Oakes | Sam Zuma | Veronika Makarova
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World’s leading Internet television network with over 62 million members in over 50 countries enjoying more than 100 million hours of TV shows and movies per day
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including original series, documentaries and feature films
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Members can watch as much as they want, anytime, anywhere, on nearly any Internetconnected screen.
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Market Cap – 47.53B yahoo finance Ticker: NFLX $106.9 $0.13 (0.001%)
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Industry: Internet & Catalog Retail
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Country: United States
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CEO: Wilmot Hastings Jr.
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Website: http://www.netflix.com
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Employees: 2,450
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Sales: $5.51 B
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Headquarters: Los Gatos, California
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COMPANY STRATEGY • Internet TV apps • Provide content people love • ISP & MVPD relationships • Video player software • Mail handling operations • Content licensing
ACTITIVITES Key partners:
Value proposition:
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Paramount
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Streaming
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Miramax
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Dvd rental
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Sony
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Entertainment
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Dreamworks
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Convenience
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Timley
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Innovation at internet pace
Key activities:
Key resources:
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Software development
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Marketing strategies
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Customer service
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Technology development
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Technology development •
Licensing
SCOPE & 62 million members in over 50 countries
Current markets
SYSTEMS • Proprietary software - (built in house) – Netflix App – Netflix shopping bot (CRM) – Chaos monkey – Scumbler (sketchy) – Fully Integrated Defense Operation (FIDO) – Netflix open source
TECHNOLOGY High level of technology integration through use of systems such as • Netflix’s data collection and analytics systems • Understood what consumers want • Applied big data to improve their streaming service • Continuously updated in-house developed technology
STAKEHOLD Customers
Studios
Mobile
Internet service providers
Employees
Postal Services
Web Services Providers
Government
DVD stores
STRATEGIES IMPLEMENTED 1) Context Rich Systems: DevOps • FIDO: handles hacking, cracking and general information insecurity in minutes
STRATEGIES IMPLEMENTED 2) Computing everywhere: availability on devices such as smart watches and other mobile devices. •
Fix issues such as the one Netflix faced with streaming on Apple TV
STRATEGIES IMPLEMENTED 3) Personalization Building algorithms to enhance the customer experience Improving calculated decisions (marketing & finance) Rendering data visualization (B2B revenue driver)
DEPARTMENTS •
IT / SECURITY (looking for ways to sustain maintenance)
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MARKETING (assessing market viability)
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PR (communicating to consumers)
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FINANCE (assessing investment)
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R&D (assessing ways to capture more value)
INFLUENCE ON STAKEHOLDERS
• Employees
TREND ADVANTAGES 1) Higher security 1)Faster response, avoids public display of security issues 2)Availability on majority of devices 2)Reach a larger target market, thereby generating more revenue 3) Increased user loyalty and retention rates 3) Develop competitive advantage and stronger value proposition
RISKS 1) Security risk - Could be a target for hackers 2) Omni-channel management – Creating a seamless experience 3) Abuse of privacy and trust 3) Huge short term investment with longer term investment
RISK MITIGATION | SECURITY •
Four key topics to cover when coming up with your security plan: – Risk identification – Damage control – Crisis management – Backup plans
RISK MITIGATION | •
Develop a ‘plan b’ PR plan or campaign to address privacy and monitoring issues
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Shine a positive light on customer-focus
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Actively market the value and experience that Netflix users will recieve
BUDGET Activity
Days to complete
Cost per day
Splash screen
5x
378
= $1’890
App Usage Analytics
15x
378
= $5,670
App Crash Reporting
10x
378
= $3,780
App Performance Management
25x
378
=$9,450
Storing data in a new custom data store
9x
378
= $3,402
Storing data in a new large file store + CDN
15x
378
=$5,670
Advanced querying (more than CRUD)
8x
378
=$3,024
Total app cost estimation: $134,802
BUDGET
BUDGET $50,000 – $200,000 develop in-house data visualization software $100,000-$500,000 - Internal or external recruitment of software engineers $50,000 – $100,000 – Implementing the changes in code / frequent updates
CONCLUSION • Adapting and working with the new trends will keep Netflix ahead of the game and maintain its leadership position as an internet streaming and TV site. • Competitive advantage to stay ahead of competitors such as Apple’s Hula and Amazon Prime • Management of cyber security risks
SOURCES http://whatis.techtarget.com/definition/Chaos-Monkey http://www.attunity.com/learning/articles/netflix-sees-major-success-due-big-data-analytics-programs http://blogs.wsj.com/cio/2015/06/01/how-netflix-manages-security-in-the-age-of-devops/ https://help.netflix.com/en/node/412 http://techblog.netflix.com/2015/05/introducing-fido-automated-security.html http://www.csoonline.com/article/2930357/data-protection/devops-orchestration-tools-represent-a-new-risk-to-theenterprise.html https://netflix.github.io/ https://www.coursehero.com/file/10043003/Netflix-case-notes/ http://www.digitalbusinessmodelguru.com/2013/01/analysis-of-netflix-business-model.html http://ir.netflix.com/long-term-view.cfm http://www.forbes.com/companies/netflix/