Netflix Company Overview

Overview

Founded in 1997 by Reed Hastings and Marc Randolph, Netflix, Inc. is a well-known

American entertainment corporation that specializes in DVD mail-order and streaming media.

With its headquarters located in Los Gatos, California, Netflix started out as a DVD rental

service before growing into a prominent force in the streaming market by providing a huge

selection of movies, TV shows, and documentaries in a variety of languages and genres. As a top

entertainment corporation, Netflix depends on an advanced ERP (Enterprise Resource Planning)

system to effectively manage its intricate operations. Although Netflix does not make available

to the public all the specifics of its ERP system, it is known that the company uses a combination

of third-party ERP components and custom-built solutions to manage a variety of business

activities effectively (Fu, 2024). With the help of Netflix's ERP system, various organizational

tasks may be automated and integrated, giving administration of the company's finances, human

resources, supply chain, and customer relations all on one platform.

Products and Services Offered by Netflix

Netflix offers streaming services that let users view a huge selection of TV series, films,

documentaries, and more on gadgets with an internet connection. Under the Netflix Originals

umbrella, the firm creates unique material (Adama,. 2024). Notable programs like "Stranger

Things," "The Crown," and "Money Heist" are among the many original films and

documentaries that it has produced. Furthermore, Netflix provides physical DVDs and Blu-ray

discs for rent to its clients in the United States through its DVD rental services.

Business Market Position

Prime Video, Disney+, Hulu, and HBO Max (Gadatsch, 2023). With more than 200 million users

worldwide, the business is among the biggest streaming services in terms of users. Netflix has a

strong market position in large part due to its global reach and investment in original content.

Target Demographics

Netflix caters to a wide range of age groups, cultural backgrounds, and personal interests.

Its varied content library offers genres ranging from action and drama to humor and

documentaries, appealing to kids, teens, adults, and elders. As part of its global strategy, Netflix

creates and acquires content in a variety of languages to appeal to viewers throughout the world

and appeal to international markets.

Organizational Culture and Core Values

Netflix's key values include: judgement, communication, curiosity, courage, passion,

selflessness, innovation, inclusivity, integrity, and impact - are what shape the company's culture.

The organization places a strong emphasis on accountability and freedom, pushing staff members

to take initiative and own their job. Netflix encourages experimentation and risk-taking among

its staff members, fostering a culture of creativity and innovation (Eklund, 2023). To make sure

that staff members are informed and supportive of the organization's objectives, the corporation

also values openness and transparency in communication.

ERP System at Netflix

ERP System and Components

Netflix uses both third-party and custom-built ERP components to manage a range of

business activities. Among the essential elements of Netflix's ERP system could be: Accounting,

reporting, budgeting, and financial transactions are all managed by financial management.
Payroll, talent management, and personnel data are all under the control of human capital

management (HCM). material management oversees the creation, distribution, and acquisition of

material. SCM, or supply chain management, streamlines the delivery of both digital and

physical material. CRM, or customer relationship management, improves subscription

management and customer care.

Netflix's ERP system is essential to effectively managing a range of corporate operations.

All financial transactions are handled by it in financial management, which also supports

financial reporting and analysis to give insights into the performance and health of the business's

finances and guarantees correct accounting and compliance with legal requirements (Oliveira et

al,.2023). It makes forecasting and budgeting easier, assisting Netflix in efficiently allocating

resources and planning. It also monitors financial performance against budgets to support well-

informed decision-making. To guarantee precise and timely revenue management, the ERP

system also oversees revenue recognition, subscription billing, and payment processing.

The ERP system keeps thorough personnel records for human capital management

(HCM), which include personal data, work descriptions, performance reviews, and pay

information. It guarantees accurate and prompt payments to employees by automating payroll

processing and benefits administration (Trung, 2023). Moreover, it helps Netflix recruit and

retain top personnel by supporting talent acquisition, onboarding, training, and development.

The ERP system tracks licensing agreements, royalties, and content availability while

managing the procurement and licensing of material from studios, production firms, and

individual producers. It oversees the planning, scheduling, resource allocation, budgeting, and

post-production aspects of the creation of unique content. Additionally, the technology

streaming availability and quality.

In terms of supply chain management (SCM), the ERP system works with content

delivery networks (CDNs) to maximize streaming performance while managing the digital

supply chain to guarantee the smooth delivery of streaming content to millions of users globally.

It manages order processing, inventory control, and logistics for DVD rentals to guarantee

prompt delivery and returns of tangible media.

In order to provide a uniform picture of client interactions and preferences, the ERP

system handles subscriber accounts in customer relationship management (CRM), including

subscription plans, billing, and renewals. In order to maintain high levels of customer satisfaction

and quickly handle concerns, it provides customer service operations for Netflix. The ERP

system lets Netflix's recommendation engine run on customer data, which allows it to tailor

content recommendations based on viewing preferences and history, improving the user

experience all around.

Support for Supply Chain Management (SCM)

By maximizing the distribution of both digital and physical media, Netflix's ERP system

aids in SCM. The system guarantees the smooth delivery of digital content to millions of

subscribers across the globe. To provide excellent streaming experiences, this involves

controlling server loads, data storage, and content delivery networks (CDNs). The ERP system

oversees inventory, order processing, and logistics for DVD rentals, making ensuring that actual

media is delivered and returned on time.

With regard to digital content, the ERP system controls data storage, server loads, and

content delivery networks (CDNs) to provide uninterrupted streaming experiences for

subscribers. This involves distributing content as efficiently as possible to minimize latency and

improve streaming quality. Additionally, the ERP system facilitates rights management,

encryption, and content encoding, guaranteeing the efficient and safe delivery of digital

information (Dibra & Braholli, 2024).

Media Distribution in Physical Form

The ERP system oversees logistics, order processing, and inventory for its DVD rental

service. It manages consumer orders, arranges shipping and returns, and keeps track of the

availability of DVDs and Blu-rays. In order to maintain excellent service levels and customer

satisfaction, the system makes sure that tangible media is delivered to clients quickly and

effectively.

Customer relationship management (CRM) assistance

By combining customer data to offer a consistent view across all interactions, Netflix's

ERP system improves CRM. With the help of this connection, Netflix is able to effectively

manage member accounts, recommend material based on viewing history, and customize user

experiences. In order to maintain high levels of customer satisfaction and help resolve issues

quickly, the system also supports customer service activities.

Netflix's ITSM Framework

ITSM Framework: Elements and Characteristics

For its IT Service Management (ITSM), Netflix uses the ITIL (Information Technology

Infrastructure Library) framework. A crucial element of Netflix's ITSM architecture is its Service
Strategy, which entails coordinating IT services with consumer demands and corporate

objectives. The goal of service design is to provide dependable and scalable IT services. The

management of IT service changes with the least amount of disturbance is the responsibility of

service transition. Service operation makes ensuring that IT services run smoothly and

dependably every day. Last but not least, Continuous Service Improvement, or CSI, is the

process of routinely assessing and enhancing IT services by using feedback and performance

indicators.

Link Between ITSM and ERP at Netflix:

Supporting and Integrating Business Processes

Netflix's ERP and ITSM connectivity ensures data consistency and real-time visibility

across all operations, providing comprehensive support for business processes. With this

integration, Netflix may improve overall productivity by streamlining workflows, automating

repetitive tasks, and more (Au-Yong-Oliveira et al., 2020). For example, incident management

procedures in ITSM assist in quickly resolving problems with ERP systems, reducing downtime

and guaranteeing seamless operations. ERP upgrades and adjustments are coordinated via ITSM

change management procedures, which guarantee smooth transitions and uphold system stability.

Increasing Business Performance and Achievement

At Netflix, coordinating ERP and ITSM initiatives improves operational effectiveness,

enhances decision-making with real-time data and analytics, and increases customer happiness

through dependable, high-quality service delivery (Smith, 2015). By providing a smooth and

delightful user experience, the integration guarantees Netflix's ability to keep its competitive

advantage in the streaming market. Furthermore, by integrating ERP and ITSM, Netflix is able to

preserve sensitive data, keep its systems secure, and comply with legal requirements.
 Conclusion

By utilizing ERP and ITSM frameworks well, Netflix is able to guarantee the

dependability, security, and usefulness of its systems, which in turn promotes commercial

success and efficiency. The capacity of Netflix to meet the demands of its broad client base and

maintain its dominating market position is facilitated by the smooth operations across supply

chain management and customer relationship management that are enabled by the integration of

these systems (Gadatsch, 2023). With cutting-edge technology, smart business planning, and a

dedication to quality and innovation, Netflix is able to survive and grow in the highly

competitive streaming market.

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