Discussion

Consider a movie-streaming service like Netflix. On the 0-8 stages of process knowledge where would you categorize this kind of business?

1. Your answer should be supported by a post of 200-250 words. Provide clear justifications for your responses.
2. Post at least two responses to other students’ posts (each minimum 50 words)

Then reply to those res

first response:

I would categorize Netflix to be in stage 6 of process knowledge as the article refers to it as “Changeable procedures to compensate for environmental conditions and/or other contingencies that arise”. As it states in a service process “If the customer needs X, do A”, which I believe Netflix, a data-driven company, currently does today.

Netflix does need licenses from studios, but they don’t just pick movies and television shows at random. As of July 2018, Netflix has 130 Million users worldwide. Having this large user base allows Netflix to gather a tremendous amount of data to understand any contingencies or external factors regarding their customers. With this data, Netflix can make better decisions and ultimately make users happier with their service.

Netflix can track just about all aspects of the customer to predict what program to launch or re-launch such as:

• When you pause, rewind, or fast forward
• Where, how and what time you watch content
• Browsing, searching and scrolling behavior

Netflix can drill down and understand what percentage of customers watched entire episodes and what the other percentage was doing during that paused time gap of the program. They can gather this data and see user trends to understand engagement at a deep level. If Netflix saw that 70% of users watched all seasons available of a cancelled show, that may provoke some interest in restarting the series.

This type of in depth analysis and preciseness of changeable procedures based on user data is why they should be classified in stage 6.

References:

1. https://neilpatel.com/blog/how-netflix-uses-analytics/ (Links to an external site.)Links to an external site.
2. (Links to an external site.)Links to an external site.Designing, Managing, and Improving Operations, by Roy Shapiro

second response :

Good evening everyone,

Now that it has been in business for almost twenty-one years, Netflix Inc. has been able to expand its business to reach over one-hundred ninety countries around the world. Using their globalization strategy, global expansion named the primary factor behind the success of the company. Even having certain restrictions and challenges to overcome through expanding to other countries, Netflix has still exceeded the number of subscribers of other pure streaming services combined. Today, its international revenues exceed its domestic.

According to our assigned reading by Roy D. Shapiro, Ramchandran Jaikumar and Roger Bohn are experts who founded the 0-8 stages of process knowledge. I believe Netflix falls under Stage 6; “Changeable produces to compensate for environmental conditions and/or other contingencies that arise” (Shapiro, 2013). It “reflects the ability to control secondary variables and to adjust the recipe for uncontrollable contingencies” (Shapiro, 2013). For service processes, the company meets with the needs of the customer by acting on a specific process to achieve that need; process innovation. Being that it serves several different countries, Netflix applies deep customer insight to all markets that they enter and uses all knowledge acquired through their customer-centric model of operations from the US to attract a vast range of customer segments. Netflix “had gained expertise in the content people prefer, the marketing they respond to…” (Brennan, 2013). Netflix stands firm on having knowledge about developing country-specific to achieve success; expanding across understanding different cultures, politics, technical, etc. to fulfill the requirements/needs of that country.

Additional Resources:

https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years