Technology Strategic Alignment Model Case Study

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Netflix uses Information technology as catalyst to meet the business strategies and goals of the company. The effectiveness of Netflix is largely dependent on the alignment of information technology innovation with business value that has direct impact on market share, customer relationship and employees. In order to be the leading movie streaming company – Netflix has to maintain its strong customer relationship and product quality.

Figure 1: Technology Strategic Alignment Model (Henderson, J. C., & Venkatraman, N., 1993).

The Technology strategic Alignment Model by Henderson, J. C., & Venkatraman, N., 1993 (Figure 1) analyzes the functional integration and implementation of business strategy with adequate
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The role of executive management provides technology vision that would best support the chosen business strategy. The Information Systems Manager is responsible for implementation of the required IS infrastructure that is aligned with the IT vision (Scope, competencies and governance) with efficient and effective design. In 2011 with the help of in-house developer Netflix developed their own PaaS (Platform-as-a-Service) using Apache Tomcat and Cassandra as a backend, and IaaS (Infrastructure-as-a-Service) which mainly focused on data scalability. 90% of data are cloud based and 10% are in a small data center established in 2008. Data centers mainly take care of US-based DVD business and some of the corporate IT. Cloud is now the main streaming source for data. The performance criteria are based on technology leadership, often utilizing a benchmarking approach to assess the position of firm in the IT …show more content…
In 2007 after introducing streaming, Netflix found that the predicted ratings weren’t actually of great use, so they introduce Recommendation Algorithm based on what members played, searched for, or rated, as well as the time, date, device, browsing or scrolling behavior. Algorithm works on assumption of viewing pattern and behavior of users and results in deriving preferences. (Source: http://techblog.netflix.com/, Netflix, Inc.)
Netflix uses big data for analysis and predictive algorithms to provide the best experience to members. First, Netflix launched Netflix prize in 2007, which focus on recommendations and personalized movie and TV show recommendations that are tailored to each member's tastes. Second, streaming quality of experience (QoE) refers to the user experience once the member hits play on Netflix. In a nutshell, similar viewing patterns represent similar user tastes gives members more personalized recommendation experience. (Netflix, Inc.

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