How Netflix Uses Information Technology

Companies are always looking for new ways to satisfy the ever-increasing consumer demand. Businesses can use information systems and technology to collect data about customers and use it to their benefit.

For example, Netflix uses information technology to make numerous decisions about consumers. The company collects data based on what users have watched in the past, and what their personal television preferences are. This data allows Netflix to provide each user with a personalized list of suggested shows and movies that correspond to their individual preferences. Netflix also uses this information to make decisions about various developments such as what content they should invest in, and whether or not they should produce an original series.

All of this information allows Netflix to cater to the consumers and keep them coming back to the website. Around 70% of the choices that viewers make are based on what is suggested to them by Netflix 1Alara Erturk mentions in her blog that the convenience of the service gives Netflix a competitive advantage compared to other companies in the industry 2.

Information systems like the ones used by Netflix are being used by companies to collect data and statistics that can be used to further satisfy consumer demand and create a competitive advantage that will set them apart from the competition.

 

1: Ladurantaye, Steve, and Chris Berube. “How Netflix Knows What You Want to Watch before You Do.” The Globe and Mail. N.p., 05 Mar. 2013. Web. 16 Nov. 2013. <http://www.theglobeandmail.com/technology/digital-culture/how-netflix-knows-what-you-want-to-watch-before-you-do/article9332929/>.

2: Erturk, Alara. “Netflix Knows How To Research.” Web log post. UBC Blogs. N.p., 16 Nov. 2013. Web. 16 Nov. 2013. <https://blogs.ubc.ca/alaraerturk/>.

Figure 1: http://cdn.slashgear.com/wp-content/uploads/2012/09/netflix_android_phone_update-251×500.jpg

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