Analysing Information Privacy: Netflix's Business Value Chain

This report provides a comprehensive analysis of information privacy within Netflix's business information systems. It identifies and evaluates the characteristics and global significance of information privacy, followed by an analysis of organizational opportunities and challenges that information privacy poses to the media and entertainment sector. The report applies the value chain and virtual value chain frameworks to dissect how value is created and delivered by information privacy within Netflix's business model. Key aspects covered include confidentiality, integrity, availability, and authenticity as characteristics of information privacy, and opportunities such as trust and transparency, platform for action, customer-centricity, and increased customer trust. Challenges explored include embedding data privacy, proliferating devices, increasing maintenance costs, access control difficulties, and gaining visibility into all data. The analysis provides a holistic view of how information privacy impacts Netflix's operations and strategic decisions.

Business Information
Systems

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Identification and evaluation of the characteristics and significance globally of information
privacy..........................................................................................................................................1
TASK 2............................................................................................................................................3
Analysation of organisational opportunities and challenges posed to the selected sector by
information privacy......................................................................................................................3
TASK 3............................................................................................................................................6
Application of the value chain and/or virtual value chain in order to analyse how value is
created and delivered in their business by information privacy..................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business information systems are used to provide information which help companies to
manage their business in effective and efficient manner through computer systems and
technology. Hardware, data, software, people and procedure are some primary components of
business information systems (Chen and Nath, 2018). For the following report, selected company
is Netflix which is a subscription streaming service as well as production company. The
company is founded in 29 August, 1997 by Reed Hastings and Marc Randolph and its
headquarters is in Los Gatos, California, U.S. The company provides its service in all over the
world excluding China, Mainland, Crimea, Russia, Syria as well as North Korea. The report
includes identification and evaluation of the characteristics as well as significance globally of
information privacy. It further includes analysation of organisational opportunities as well as
challenges posed to the chosen sector by information privacy. In addition to this, it also covers
the application of the value chain and/or virtual chain for analysing how value is created as well
as delivered in their business by information privacy.
MAIN BODY
TASK 1
Identification and evaluation of the characteristics and significance globally of information
privacy
Information privacy or data protection describes the relationship in between the
collection as well as dissemination of technology, data, expectation of public towards privacy as
well as the political and legal issues that are surrounding them. Privacy concerns shows where
the personal identifiable information or any other sensitive information is gathered and stored
within digital form (Popovič, Puklavec and Oliveira, 2018). The basic cause of privacy issues is
the non-existent or improper disclosure control. Information privacy includes the processes and
tools that help companies to protect their information in better manner. This provides policy
settings which provides prevention to company from the access of business or their personal
information by unauthorised person from all over the world. As the company is operating their
business in global manner by using technology which makes important to them in order to
protect their information and data from the competitor or unauthorised person in better manner.
Information privacy is a evolving and growing field which includes large area of fields, from
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infrastructure and network for auditing and testing. The main aim of information privacy is to
protects the sensitive information from the several unauthorised activities which covers
modification, inspection, recording as well as any destruction or disruption. It ensure the privacy
and safety of critical data of the company such as financial data, customer account details or
intellectual property. This makes important for the every business to allocate their funds properly
in security in order to ensure that they are ready in order to respond, detect and prevent their
sensitive information and data from the attacks which includes malware, phishing, malicious
insiders, viruses as well as ransomware (Engemann, 2018). The basic elements of information
privacy are integrity, confidentiality as well as availability. The basic characteristics related to
information privacy that help Netflix in order to maintain the privacy of the important
information globally are described below:
Confidentiality- It is basically designed for preventing the unauthorised disclosure of
information. The main purpose of this elements of information privacy is to keep the personal
information secure and private as well as to ensure that it should be accessible and visible only to
those individuals who has rights in order to use it or perform its organisational functions. This
help Netflix to make their all the relevant and important information properly as it also not
allowed unauthorised person to get access on it. This help them to operate their business in
smooth manner by maintaining the information privacy.
Integrity- It is used to provide the protection of data from the unauthorised changes such
as additions, alterations, deletions, etc. This will help in ensure the data in reliable and accurate
manner as well as does not modified wrongly, whether maliciously or accidentally. If the
information of privacy does not integrity in the protection of data, it may affects their all the
business as the unauthorised changes can be caused in their data (Yoo and Jang, 2019). By
maintaining integrity in their information privacy, helps them to operate their business globally
in proper manner.
Availability- This refers to the protection related to the ability of systems in order to
make data and software systems fully available to the user when they need it. The main aim of
the availability in information privacy is to make the technological applications, infrastructure as
well as the data available when it is needed by the companies for their organisational process to
for their customers. This will help Netflix in order to operate their business operation smoothly
by the help of easily accessible in the system through information privacy integrity.
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Authenticity- This focus on the verification of users as well as the input should be
arrived from the trusted source. This will help organisation to followed guarantees in order to
received valid and genuine information and message from a trusted sources with the help of valid
transmission. This will help Netflix to maintain the information privacy by receiving message
from the trusted sources which also helps in operating their global business in smooth manner.
TASK 2
Analysation of organisational opportunities and challenges posed to the selected sector by
information privacy
Information privacy helps company to protect their important information and data in
proper manner as well as make their business operation smoother (Héroux and Fortin, 2018). By
maintaining information privacy companies exploit various opportunities as well as faced many
challenges in order to protect their important information. The organisational opportunities and
challenges posed to Netflix are described below:
Opportunities-
With the help of information privacy, several opportunities are exits in the business
environment which help companies to operate their business in more effective and smoother
manner. The opportunities that are available for Netflix in order to enhance their business
operations are described below:
Trust and Transparency- The information privacy help companies build effective trust
with their potential customers as it provides transparency which helps company to make proper
engagement with their customers in better manner (Daradkeh, 2019). This provides an effective
opportunity to Netflix in order to maintain their trust and transparency in their business in order
to ensure their stakeholders as the data is provided by them is transparent. This will company to
make trustworthy relationship with their stakeholders. This makes company to used email
addresses without any personal information of their business. The information privacy uses
GDPR in order to provide trust and transparency to the companies.
Platform for action- This describes an opportunity for the companies in order to interact
with their potential customers in order to responds their customers as well as the changes within
the data. The information privacy covers different standard which makes management of Netflix
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to take certain additional actions which guides in building an effective platforms in which
necessary changes in the company responds effectively. The basic aim of the organisation is to
create a momentum which helps in managing the platforms in constant and proactive manner.
This will also help company to solve problems related to data breach as well as provides security
to their customers. As it also reduces the risk related to misusing or leaking of conflictual data
related to its customers.
Creates business a truly customer-centric- The information privacy provides new and
great responsibility to the companies in order to increase their customer base. This makes
company to supports rights and interest of customers in order to achieve their goals as well as
embrace their customers in better manner (Paukstadt and Becker, 2021). This creates an effective
opportunity for Netflix to increase the growth of their business by increasing the customers base.
It provides its services in maximum countries excluding certain countries which makes them to
follow all general laws related to GDPR in order to operate their business in smooth manner as
well as increase the customers base also.
Increased customer trust- Information privacy help company to control the privacy and
breach of the customers as well as makes them focus on the rules and regulation regarding the
security of personal data which helps them to increased customers trust towards their business as
well as increase their customer base in effective manner. This will help Netflix which makes
their customers to fell safe and secured related to their data while transacting with them for their
service. This creates an effective opportunity for them in order to build effective trust for their
customers which helps in increasing the goodwill of the organisation in better manner.
Challenges-
There are many challenges in information privacy which has been technology and
entertainment industry (Schwaferts and Baldi, 2018). By the increase of use of personal data,
many issues are creates for the business which creates more risk for the company in order to
make privacy. Some of the challenges that Netflix faced in their business in order to manage
their business operations are described below:
Embedding data privacy- In many businesses, they have only information privacy
tacked on their IT security but its in not enough in order to cover all the parts of the business for
providing privacy. This creates problems for the management of Netflix in order to provide
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proper privacy and security to the all areas of their business in order to operate it is smoother
manner.
Proliferating devices- Due to factors related of Internet of Things makes more difficulty
for the company in order to handle the information privacy within their business in proper
manner. When the company uses more devices within their working area creates more problems
in order to manage the data and information (Truong, 2019). This makes important for the
management of Netflix in order to manage the data privacy and compliance with the help of
effective source, different operating systems as well as multiple apps in order to manage their
business in better manner.
Increasing maintenance costs- It has been describes that the keeping the system secure
of the company and prevent from the information privacy issues makes more costlier and
expensive for them. The costs related to data breach are significant which required company to
invest properly in order to manage it in better manner. This makes Netflix to spend large amount
in information privacy in order to maintain the privacy of their important information in better
manner.
Access control is difficult in many industries- Due to the poorly managed access within
a business environment of the company causes data privacy breaches issues. The processes and
people of the company are too important than an technology as well as it represents as weakest
link within the chain of security and privacy of information within an organisation. This makes
harder for the management of Netflix in order to manage their access as well as secure their
sensitive data or information within their working area.
Getting visibility into all the data- If the organisation does not aware about the nature,
location as well as sensitivity of their information or data are not able in order to keep their right
information secure and private (Oates, Griffiths and McLean, 2022). This makes essential for the
management of Netflix in order to use tools for discovering and classifying their data. This will
ensure them in order to treat their information uniquely as well as protect their sensitive
information from any kind of privacy issues within their organisation.
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TASK 3
Application of the value chain and/or virtual value chain in order to analyse how value is created
and delivered in their business by information privacy
The information system and information technology plays an important role for making
the business successful in today's digital world. Information technology makes challenging the
method in which business in conducted. Value chain covers the different process and activity of
the business for creating the product as well as the service offered by the company. The value
chain of the organisation includes different stages related to the lifecycle of product and service
which includes research, development and sales and each steps are required to complete the
value chain as well as come in between the chain (Gajardo and La Paz, 2019). For increasing the
value of Netflix, its management first need to positioned the market and then create their
customer base effective manner as well as they also need to create the large amount of share for
themselves. This will help them to build good relationship as well as better understanding in
between the customers in order to maximise their profit as well as gain more competitive
advantages within technology and entertainment industry. The primary activities of the company
within its value chain covers inbound logistics, operations, outbound logistics, sales and
marketing along with after sale services. The secondary activities of the company covers
technological development, procurement, human resource management as well as infrastructure.
This makes important for the company to identify and analyse its value chain because it is
essential for evaluating the all the activities that has been conduct by the business in order to
provide the value of their resources. This will help company to improve their business operation
as well as gain various advantages. The development of value chain creates opportunity for the
company in order to enhance their business growth by using different strategy such as product
differentiation as well as cost reduction. This makes company to become reasonable as well as
effective in order to attract more and more customers for their products and service. By using
more innovative strategies and techniques within their business help Netflix to design, research,
develop, market in order to make their service different and unique from their competitors
(Treiblmaier and Beck, 2019). This makes essential for every organisation to create and deliver
the value in order to gain various advantages from the external environment as well as maximise
their profit. In order to create and deliver the value of Netflix by information privacy, the stages
of value chain are described below:
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Identifying the activities of the value chain- This refers to the first and important step
which helps in analysing as well as conducting the value chain of the organisation. This makes
the management of Netflix in order to identified and analysed all the primary and secondary
activities for introducing the service in the market in order to identified their service in the
market as well as increased the value of their product in better manner. The primary activities of
the company includes the inbound and outbound logistics, all the operation and functions of the
organisation, techniques related to marketing and sales of their service as well as all the other
activities that are required in after sales service. In its secondary activities, it includes
procurement related to equipment and raw material, technological development, market research,
infrastructure as well as human resources management.
Determining the value and cost of activities- After analysing the primary and
secondary activities, it makes essential for the company in order to determine all the values and
activities which helps in adding in the process as well as cost which incurred in making the
product more effective for their organisation (Hartley and Sawaya, 2019). This makes
management of Netflix to focus on increasing the satisfaction of their customers in order to
create the value of their organisation by creating the value chain. This stage of value chain is
important for analysing the costs which has been involved in each steps of the business process
that helps in reducing the overall costs of the organisation. By maintaining information privacy
within their business helps them to make value of the organisation as well as decrease the cost
which has been incurred in solving the problem related to privacy issue.
Identifying competitive advantages and opportunities- After proper understanding and
compiling the cost and value, this makes for the company to analyse the all the steps properly in
order to gain competitive advantages. It describes that it is essential and basic aim of the
organisation in order to decrease the overall costs related to business operations and functions
which helps in improving their overall costs. This makes important for the company to analyse
the each and every process properly in order to expenses of the organisation in better manner.
This will also help management of Netflix in order to create and deliver the value of their
business by maintaining information privacy.
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CONCLUSION
From the above mentioned report, it has been concluded that business information system
help company to deliver the required information properly as well as make better decision in
order to make their business operations in better manner. Information privacy is important for
every organisation as it helps in protecting the important and sensitive information of the
company from unauthorised person and changes in better manner. Trust and Transparency,
Platform for action, Creates business a truly customer-centric and Increased customer trust are
some opportunities for the company that are available while maintaining the information privacy
within their organisation. Embedding data privacy, Proliferating devices, Increasing maintenance
costs, Access control is difficult in many industries and Getting visibility into all the data are
some challenges that are faced by the companies in while maintaining the information privacy
within their business organisation. Application of value chain is important for every business in
order to increase the value of their product and service in attract more and more customers
towards their business.
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REFERENCES
Books and Journals:
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adoption in SMEs: Impact of systems use on firm performance. Industrial Management
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Engemann, K.J. ed., 2018. The Routledge Companion to Risk, Crisis and Security in Business.
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and technology in electronic commerce. Electronic Commerce Research and
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technology acceptance and task-technology fit. International Journal of Information
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Paukstadt, U. and Becker, J., 2021. Uncovering the business value of the internet of things in the
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Schwaferts, D. and Baldi, S., 2018. Digital transformation management and digital business
development. In Business Information Systems and Technology 4.0 (pp. 147-159).
Springer, Cham.
Truong, D., 2019. Distrust issues in business-to-business e-procurement decisions. Journal of
Enterprise Information Management.
Oates, B.J., Griffiths, M. and McLean, R., 2022. Researching information systems and
computing. Sage.
Gajardo, P.A. and La Paz, A.I., 2019. Measuring the strategic business and IT alignment in a
digitally revolutionized economy.
Treiblmaier, H. and Beck, R. eds., 2019. Business transformation through blockchain (Vol. 1).
Cham, Switzerland: Palgrave Macmillan.
Hartley, J.L. and Sawaya, W.J., 2019. Tortoise, not the hare: Digital transformation of supply
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