Business Information System - A Case Study on Netflix

This presentation discusses the implementation of Business Information System (BIS) in Netflix through gamification. It covers the value chain model, information strategy, and marketing activities that create positive outcomes. The case study focuses on the entertainment and media sector, specifically on Netflix, an American subscription streaming production and service company. The presentation does not mention any course code or college/university.

BUSINESS
INFORMATION SYSTEM

TABLE OF CONTENT
• INTRODUCTION
• TASK 1- CEO
• TASK 2- CIO
• TASK 3- BUSINESS ANALYST
• TASK 4- PROJECT MANAGER
• TASK 5- DIRECTOR OF MARKETING
• CONCLUSION
• REFERENCES

INTRODUCTION
• Business information system refers to providing information that an organization utilizes in
order to manage themselves effectively and in complete efficient manner with the help of
utilizing advanced technology and computer system.
• The basic components that are involved within the business information systems involves
software, hardware, procedures that connects with design, development and the
documentation, people, etc.
• This presentation will illustrate the aspects by choosing media and entertainment as an
industry sector in which Netflix company will be chosen which is an American subscription
streaming production and service company.

TASK 1- CEO
Sector
The sector that is being chosen by the group is entertainment and media rather than
transportation and financial services because specifically this sector has wider in scope along with
cover complete information regarding all the sectors. In order to evaluate the dynamics of media and
entertainment sector, it has been evaluated that the Netflix identify these aspects with the help of
porter's five force analysis according to which:
1. Bargaining power of buyers: The dynamics within this sector allows the consumers to have
high level of bargaining power over the services. The revenue and sales generated by the firm is
dependent upon subscribers which are located in diversified regions all across the globe.
2. Bargaining power of suppliers: The suppliers of the Netflix also hold high bargaining
power as they have high influence on pricing strategies. Netflix is competing against
traditional media distributor and hence have to show greater flexibility in agreements.

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3. Threat of substitute products: This element has moderate
level of risk in industry as they have threat from services
which offer rental services or similar kind of products
through online streaming.
4. Threat of new entrants: The already presence of new
entrants becomes a threat which help the firm to become
well-established and profitable. Hence, the threat of new
entrants is moderate for Netflix.
5. Competitive rivalry: Netflix faces intense level of
competitive rivalry as they have pressure to retain their
consumers through offering them affordable prices.

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Business
The name of the business is called Netflix which derives as the combination of words
such as the “Net” explains the internet and “Flix” states for the word movie.
Strategic position
Strategic position has been explained with the help of analysing Porter's generic
strategies according to which there are certain strategies according to which a cost reduction
strategy is one in which firm achieves dominance over their competitors. Next is product
differentiation strategy under which firm create unique goods and services within same
industry by changing design, brand image or incrementing new and advanced technology.
Another is the focus strategy according to which company targets a specific buyer group,
product line segment or even geographic market.

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The diagram states that Netflix focuses towards
differentiation, cost leadership and niche markets. The company offers
high quality diversified products at lower costs. Thus, they keep
focusing towards maximizing the competitive advantages of high
operational efficiencies and cost-effectiveness of information
technologies. Moreover, it requires aggressive marketing to expand
their multinational streaming operations.
• Products and services
Netflix is subscription based streaming service which allows
their members to watch TV shows and movies without any kind of
commercials. Downloading facilities are also available. They have
unique offerings as they provide huge selection of shows and film
along with high quality and an easy to navigate interface. The things
are highly supportive to any device which has the internet connection
along with providing downloading facilities as well to watch movies
or TV shows later as well.

TASK 2- CIO
Information strategy
Netflix's generic strategy is the cost leadership which provides competitive advantages with the
help of minimize the costs along with selling prices. This strategy assist in preparing business models
competitiveness which are based upon low costs and corresponding ability to sell services at affordable
prices. With the help of this, the company acquires more consumers in contrast to focusing on specific
market segmentation. The approach taken by the Netflix relies upon the company value chain and
business model which helps a lot in order to satisfy consumers through personalized customizations.
• In order to highlight the modified strategic grid in order to identify the usage of chosen game i.e. Spin
and Win, it has been evaluated from the above represented diagram that initially Netflix relies on
among the Factory quadrant according to which they are highly dependent upon cost effective and
highly reliable over IT operational support in order to run smoothly.

CONTD.
• Although, IT impacts less over the company core
strategies. But after introducing the game within the
system, the Netflix comes under the Strategic area
of quadrant under which the company will be highly
affected through the impacts of IT on core
operations along with it also plays significant role in
impacting the company core strategies as well.
Hence, after introducing BIS into the business the
company shift from Factory to Strategic quadrant
which is highly beneficial for their future success.

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Information requirements
An information system is based upon the five major and essential
components in order to perform input, process, output, feedback and
control.
In order to introduce the gamification in the Netflix which is Spin and Win,
the Hardware that are being utilized are supercomputers, servers, mainframe
computers, personal computers, workstations, mobile devices, key board,
pointing devices and scanners. In context of Software the system software
will be applied which helps into operating the game in diversified devices
such as Windows and iOS which appropriately manages the hardware
operations. Another component is Database which is a place where data is
collected and can be retrieved by querying one or more specific areas.

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Information strategy objectives
• To enhance revenue for expansion and growth of business.
• To increase 20% net profit with the usage of gamification to attract more consumers towards the Netflix.
• To understand that the set objectives are achievable in limited time duration or not.
• To measure the final outcome from introducing business information technology into system over sales
volume and profitability of the firm.
• To strengthen customer satisfaction level by delivering quality services in order to build strong brand image
of the Netflix by the end of this financial year.

TASK 3- BUSINESS ANALYST
Analysis over value creation through Value Chain model
• Netflix streaming value chain analysis is a part of huge value system within this specific industry which includes
company suppliers as well as distribution channels. The value chain model consists of primary and supportive activities.
In context of primary activities:
• Inbound logistics: This activity is associated with receiving, storing and dissemination of inputs that are being gathered
through the gamification technique. It can involve storing customer information.
• Operations: In this context, the company requires huge customer quantitative data to serve the purpose of introduction of
business information system into Netflix.
In accordance with illustrating supportive activities, it has been evaluated that:
• Firm infrastructure: In order to enhance the services with the usage of BIS in context of gamification there are certain
resources that are being required such as specific departments that are related with the legal services, general
management, quality management and planning along with finance departments. For example, in order to discuss over the
given gamification, appropriate finance and planning is greatly required at corporate level while accounting, quality and
gal issues are being managed at the business unit level. This requires tangible infrastructure as well as financial
requirements of the business idea.

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Analysis over value elements
In the domain of the well described strategy, there are majorly three types of strategy which includes:
• Business strategy: This illustrates and completely focused towards the way through which the customers
will going to experience the business after introducing the new and advanced business information system
within the business operations. It is basically provided relevant idea about how Netflix will approach the
market and the place for play and win the game. Senior managers are responsible to create gamification
business strategy, executives are accountable for architect practices related to propose Spin and Win game
along with discover tools that can be applied within the business.
• Operational strategy: This is primarily concerned with accurately translating the consumer centric
business strategy into a cohesive and actionable implementation plan. It requires strategies that are going to
help the Netflix to implement the plan of gamification of Spin and Win game into actions which requires
talented and skilled people in order to create team with communicating appropriately with exact leadership
for directions.

TASK 4- PROJECT MANAGER
Balanced Score Card

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TASK 5- DIRECTOR OF MARKETING
Evaluation of the ways about gamification of marketing activities that will create and deliver
positive marketing, promotion and sales outcome
Gamification marketing is a method through which the company involves into the
incorporating gaming elements into the non-gaming context in order to improve engagement level of
customers and encourage them to take specific actions through the usage of the game. It enables the
Netflix to tap over the basic instincts for humans in order to play and has proven to be a method for
marketers in order to provide real value to their users and assist in getting positive digital experiences
along with having the benefit of building great brand image within the society. It also assists in creating
awareness, consumer loyalty along with profitability of the firm. With the help of introducing Spin and
Win game by Netflix, the company improves their customer engagement because recent time requires
certain modifications in order to alter forms of traditional online advertising facilities. Gamification is a
unique way to keep the consumers brain engrossed and appeal in order to people's love of rewards,
levelling up along with competition. This activity also assist the Netflix in order to maintain effective
customer relationships need to be mutually beneficial among the brand and their customers.

CONTD.
The ways through which gamification entered into the CRM system along with certain
recommendations that employees use in CRM to get better engaged with their customers in long term
Encouraging employees in order to adopt new and advanced changes or new technology can be
challenging for any establishment and so for Netflix as well. Thus, the company invest into specific
customer relationship management practices in order to meet all the requirements. This activity helps the
firm to provide better services to their consumers and develop appropriate customer relationship along with
getting 360 degree view of the consumer relationship. Sometimes it takes huge amount of time to adopt
CRM because changing behavior is tough, sales person feels that it is an additional task and no immediate
rewards gathered to use the product. With the help of introducing gamification, the CRM using sales
activities that influence the customer behavior, minimize efforts in publishing, tracking and processing
incentive plans, enhance competition, showcase monotony, etc.

CONCLUSION
• From the above display, it has been concluded that Business information system greatly
assist in ease down the procedure of decision-making and also simplifies the process of
delivering required information along with provide complete assistance in taking better and
effective decisions on instant basis. Within the above presented study, it has been evaluated
that the advanced technology effectively implemented into the gamification of the business
of Netflix which help to communicate better among the employer, employees as well as with
their customers. Furthermore, the role-played by each individual also shows their specific
part and duty in order to promote the game which help in order to attract more and more
customers towards the website of Netflix and support them to use their services which
automatically enhances employees performance level through provide appropriate
motivation to them.

REFERENCES
• Nalchigar, S. and Yu, E., 2020. Designing business analytics solutions. Business &
Information Systems Engineering, 62(1), pp.61-75.
• Tworek, K., 2018. Reliability of information systems in organization in the context of
banking sector: Empirical study from Poland. Cogent Business & Management, 5(1),
p.1522752.
• Koivisto, J. and Hamari, J., 2019. The rise of motivational information systems: A review of
gamification research. International Journal of Information Management, 45, pp.191-210.
• Benitez, J., Ray, G. and Henseler, J., 2018. Impact of information technology infrastructure
flexibility on mergers and acquisitions. MIS quarterly, 42(1), pp.25-44.