Continuing from last week, you will finalize your presentation to the CEO of your selected organization. As a reminder, you have been hired as a consultant by an organization that is similar to Gap, Inc. (large retail chain) or Netflix (online e-commerce business). The CEO of your selected organization explains that they would like to know if information technology can help the company to increase its competitiveness in their industry, as well as how their competitors leverage big data analytics, cloud computing, and artificial intelligence for strategic advantage and to drive business value.
Utilizing the above scenario, you will continue working on the presentation you began in Week 2 by adding Part 2, which should be approximately 4–7 slides. In addition to the slide content, you should also include text in the speaker notes section of each slide that would serve as the script you would use to deliver this presentation to a group of people. Your speaker notes should include your rationale and assumptions that pertain to each slide. For Part 2, you also need to have a minimum of 3–4 citations and references to support your direction (for a total of 6–8 for the entire presentation). Note: You may elect to include additional slides as part of an appendix if you have information you might reasonably assume that a CEO or upper management might want. It is not required that you do so.
Part 2: How IT Can Optimize the Organization’s Competitive Advantage
- Explain, in general terms, how IS and IT can be used to increase an organization’s competitive advantage within its industry. (1–2 slides)
- Based on your evaluation in Part 1, propose how your selected organization might optimize its competitive advantage using IS/IT. Specifically:
- What existing strengths could the organization capitalize on to increase its competitive advantage? (1 slide)
- How might the organization address its weaknesses or opportunities for growth and create competitive advantage through the use of IT/IS, specifically big data analytics, cloud computing, and artificial intelligence? (1–2 slides)
- To further support your response, provide one or more examples of other organizations within the industry that saw an increase in their competitive advantage through use of one or more of those systems/technologies. (1–2 slides)
Part 1: The Role of Information Systems in the Organization’s Strategy
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Company Overview – Netflix
Netflix is a subscription-based entertainment and streaming service platform that lets members watch and enjoy TV Shows and movies via the internet. Netflix offers a few activities for leisure time, not only video streaming but also video gaming plus other sources of entertainment. The company originated in California, United States in 1998 as a subscription based, mail-order DVD service until its switch to a streaming service in 2007(Smith, A. , 2023). Netflix is today one of the most recognized platforms in the world.
Through the years Netflix transformed its company from a DVD rental company for movies and TV Shows into an internet-based platform for streaming. Even though there are many similar companies in todays world Netflix continues to be one of the most popular and customer favorite.
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Netflix IS & IT
The main technology Netflix uses is the Java programing language, which is a high-level programing language very popular for its scalability and portability. The Java programing language helps develop the company’s backend system. However, Java is not the only programing system used by Netflix, the company also uses JavaScript and Python. These last two help in programing for data analysis, scientific computing, web development that allows for the creation of interactive web applications (Possamai, 2023).
Netflix, as an internet-based company, relies on the use of information systems and technology. The company’s programmers and developers are constantly improving their system for better security and customer experience.
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Netflix IS & IT
For this company, the AI system for example is a crucial tool in keeping track of the flow of information. This is the system that Netflix uses to provide movies and TV shows suggestions in predetermined moments and based on their search and watch activities (Simplilearn, 2023). AI technology captures the customer’s viewing habits by compiling a wide range of suggestions keeping the customer always interested and coming back every time.
In addition to Java, JavaScript and Python Netflix also takes advantage of other technologies such as AI, Data Science and ML, these last two allow customer personalization and tailored movies recommendations.
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Porter’s Five Force Analysis
Threat of New Entrants :Weak – Due to moderate cost of doing business. High cost of reaching critical mass of network effect and, high supply chain costs.
Bargaining Power of Suppliers: Weak – Due large number and high differentiation of content producers. High switching costs for content producers.
Bargaining power of Buyers: Moderate – Due to Subscribers; moderate price sensitivity and small size of individual subscribers.
Threat of Substitutes: Moderate – Due to moderate costs of switching to substitutes. Moderate availability of substitutes and subscribers’ moderate propensity to substitute.
Rivalry Among Existing Competitors: Moderate – Due to High differentiation of content. Low differentiation of streaming services and subscribers’ moderate switching costs.
In the online streaming world, the industry is highly competitive which makes it hard for companies like Netflix to stay successful. This industry depends on highly develop information systems and technology to help them to be in constant growth.
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Strengths and Weaknesses
Like any company Netflix has strengths and weaknesses that challenge the company daily to never stop improving as stated(The Strategy Story, 2024).
STRENGTHS
Innovative Technology: Netflix continuously invest in developing new technologies.
User-Friendly Interface: The platform is easy to navigate and use.
Data-Driven approach: Netflix uses data analytics to track preferences and user behavior to provide personalized recommendations.
Netflix has many traits that make it a strong company and given the fact that it’s a fully online company it depends on a great technological strategy for its success. However, the company depends on other companies and systems to support their business.
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Strengths and Weaknesses
Netflix also faces technological challenges control by outside factors as stated(Williams, 2023).
WEAKNESSES
Lack of Own data center: Netflix obtain most of their programing from cloud computing through Amazon Web Services.
Low Control of Mobile App Availability and Accessibility: Netflix depends on app store services such as Apple’s App Store and Google Play Store for customers to find it.
Low control over internet connection speeds: Netflix depend on internet providers which determine the throttling policies and speed for streaming services, without internet this platform wouldn’t work.
Netflix has many traits that make it a strong company and given the fact that it’s a fully online company it depends on a great technological strategy for its success. However, the company depends on other companies and systems to support their business.
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Part 2: How IT Can Optimize the Organization’s Competitive Advantage
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References
Smith, A. (2023). Netflix history, founding & popular shows | study.com. https://study.com/academy/lesson/netflix-history-founding-facts-created.html
Possamai, M. (2023, February 17). What technologies are used at Netflix?. Medium. https://medium.com/codex/what-technologies-are-used-at-netflix-70bf6166be8e
Simplilearn. (2023, November 7). Netflix recommendations: How netflix uses AI, Data Science, and ML: Simplilearn. Simplilearn.com. https://www.simplilearn.com/how-netflix-uses-ai-data-science-and-ml-article
The Strategy Story. (2024, January 18). Netflix SWOT analysis – the strategy story. The Strategy Story – Simplifying Business Strategies. https://thestrategystory.com/blog/netflix-swot-analysis/
Williams, A. (2023, December 2). Netflix SWOT Analysis & Recommendations. Panmore Institute. https://panmore.com/netflix-swot-analysis-recommendations-case-study
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References
Brown, L. (2023, December 6). Netflix Five Forces Analysis & Recommendations (Porter’s model). Panmore Institute. https://panmore.com/netflix-five-forces-analysis-recommendations-porters-case-study
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