Introduction of IT Service Management in Netflix

The business companies and sectors are embracing the essence of information technology in different processes and procedures of their business. The role of information technology even becomes crucial for companies, which work on technological basis like their work process and services are managed by using IT software and hardware. Such companies have to manage their IT services with a proper strategy and planning, so when companies try to design, manage, deliver as well as improve their relevant business activities of information technology, this strategic approach is called IT Service Management (ITSM). All kind of discrete actions and activities are involved in ITSM like managing services, change, assets and knowledge, etc. It is important to understand that there are various things are involved in an IT service. For instance, if a company is providing its service with the help of information technology, then they will have to adopt a proper approach to manage its IT service. They will have to decide that which information will be designed and provided to users, and how its security measures will be taken to make sure that data is safe and secure. The company will have to develop a proper IT infrastructure with the help of hardware and software components so that things can be done accordingly (Rouse, 2019).

In this paper, the focus will be given to ITSM in Netflix what relevant procedures are important in ITSM and how Netflix is handling it with so much success over the years. The success and performance with regards to ITSM has been significant by Netflix, because when they came into their business, there was no considerable business model for them to follow. They developed a great ITSM system, which handled their IT products and services with great effect, and users were able to experience those great services. It is said that Netflix is an important case study to follow in ITSM field, because they have been able to achieve, what no one else could do in their respective business market. The company developed its ITSM framework with their own experiences. For instance, they developed a service through IT, and when they found that there are issues, they tried to find solutions, because there was no reference for them regarding those issues. So, they kept working hard, and were able to find solutions for their ITSM. One good example of their work is that they need to have good bandwidth and buffering speed for seamless experience of their customers, but it is not easy to do with variety of internet service providers (ISP) around the world. So, they came up with a solution, where they provided hardware and storage to be installed on local level by ISPs (West, 2018)

Understanding Service Management Practice

It is important to understand that ITSM has great potential in so many ways like it can really add great value to a business by enhancing its efficiency of information technology. The ITSM framework comes with various objectives and metrics, which need to be kept in mind while implementing this framework in the business processes of a company. The first major objective of ITSM is to align IT with the business objectives so that all stakeholders can understand the role of IT in business success. Moreover, when a business is dealing in services based on information technology, then objective of ITSM is to comply with the business operations requirements. It means that ITSM will play its part in developing processes, which are crucial to keep things on right track, and business does not face any issues or interruptions due to ITSM. It is also vital to realize that ITSM is a strategic framework, which is essential to drive and sustain operational excellence. This is how ITSM creates value for an organization by maximizing its performance on all fronts. It means that ITSM is an important framework to align with actual business so that final services provide to users are error free (Brooks, 2006)

It is a well known fact that information technology is quickly becoming integral for every industry and its business so it is crucial for business companies to incorporate IT in a manner, which not only boosts their overall business, but it gives them competitive edge over competitors. A business based on IT can have several needs; and those needs can only be fulfilled with the help of ITSM. The IT services have a lifecycle, which needs to be managed properly, and great thing about ITSM is that it developed a business structure around these services, which caters all the needs and requirements. ITSM practices are critical for a business to deliver its IT services with great quality and efficiency so that users can get a quality experience. Every IT service business firm should understand what ITSM practices can do for them. The change management, quality management, software management as well as information security management is some of the important aspects handled with the help of ITSM practices. It is important to keep in mind that sometimes organizations are not able to differentiate between ITIL and ITSM. ITIL is a different concept than ITSM, and both should never be confused with each other. In addition to that companies should understand that there are different ITSM frameworks available for implementation so they can choose one, which is suitable for them (White, 2019). Some of the major ITMS frameworks are given below:

MOF (Microsoft Operations Framework)

ISO/IEC 20000

FitSM

IT Infrastructure Library 4 (ITIL 4)

COBIT (Control Objectives for information and Related Technologies)

Business Process Framework (eTOM)

TOGAF (The Open Group Architecture Framwork) (White, 2019)

The companies should also understand that which ITSM practices are best to follow so that things can stay in right direction, otherwise whole IT infrastructure can face several issues, consequently giving a poor experience to customers. The role of ITSM is crucial in satisfying the needs of customers by offering state of the art services. There are few practices, which should be followed by IT companies to come up with great IT performance. Whatever ITSM framework is applied, certain practices are critical for all frameworks. The first important practice is to keep coming with improvements. The IT system should be analyzed and realigned on constant basis so that issues are identified and resolved accordingly. The other important practice is safety of information. The user IDs, sensitive information, passwords, etc should be kept safe from any internal and external vulnerability. Moreover, a structured workflow should be used to deal with incidents. This practice is one of the most critical ones, because when there is a structured workflow, it allows following a universal pattern by all stakeholders, when an IT incident happens. It also enables companies to record and track data regarding incidents. In addition to that another vital ITSM practice is being proactive, rather reacting to situations, and it is also crucial to integrate more rather aligning with business. If these practices are followed by organizations while handling ITSM, then they can get best possible results and outcomes (Millier, 2016)

Analyzing Practical Case of Netflix in relation to ITSM Practices

Netflix has been one of the most popular streaming platforms around the world. It came up with new success patterns in its industry, because the company was able to take the lead in so many ways. The technology of television has been so popular for decades, and it was important to come up with an alternative due to increased role of internet and information technology. Reed Hastings was the founder of this company, who started this digital company in 1997, and since then it has been leading the competition with a significant distance to its competitors. There have been different stories roaming around that why Reed Hastings created this company. But fact of the matter is that whatever the reason was, Netflix was a great idea, and it continues to enjoy success (Castillo, 2017). It is important to analyze that how Netflix was able to achieve so much success, and answer can be found by analyzing their ITSM practices, which they followed with so much perfection over the years. It is never an easy task for any digital company to always keep doing things right, but Netflix has sustained their success by extreme hard work and their willingness to learn from mistakes. Netflix realized the importance of ITSM because their services are IT based, and they could have never succeeded without a proper framework and practices of ITSM.

It was mentioned earlier that keeping information safe for IT services is an important practice with regards to ITSM. It is important to have a look at Netflix that how they performed such practices with great efficacy. It has been observed that IT process of automation has been leveraged by Netflix so that they are able to keep privacy at its highest standards. The company has been facing major threat from outside because they handle millions of customer accounts with their billing information as well. If someone would be able to break their security protocols and access this sensitive data and information, then situation can get worst for them. They used great practices with the help of ITSM to make sure that they have a secure IT system. The company has developed a great IT system, which has various layers of security to protect information. The company has its own cyber security system, which keeps an eye on the platform for 24/7, and if any changes are observed, then adequate actions are taken on immediate basis. They have developed a great work flow to deal with variety of issues with customer accounts. So, when their system detects that any problem has happened to any account, it follows a given work flow and issue is handled accordingly. This IT process with automation is integrated in a way that it keeps a constant check on their IT system. These kinds of measures taken by Netflix in managing their ITSM framework has allowed them to gain the trust of users, and they have been able to provide a great experience (Ayehu Inc., 2015)

The Services Creating Business Value of IT Service Management in Netflix

        In 2014 Netflix revealed 5.5 billion dollars income and as of October 2015 Netflix has 69 million supporters around the world. After its most recent extension a week ago, Netflix is presently accessible in 190 nations. The quantity of supporters will, beyond question, increment. Most as of late, Netflix instructs us that not all development originates from thoughts at no other time tended to. The organization has now discharged a few honors winning arrangement delivered in-house and accessible just through their spilling administration. The possibility of a compensation channel (or for this situation, administration) making their very own unique substance isn't new. Its level expense model enabled supporters of lease a specific measure of motion picture dependent on their membership bundle, and so as to get new films endorsers was required to send the ones they have back to Netflix. The most significant piece of the Netflix's example of overcoming adversity is that when Randolph and Hasting began Netflix, DVDs were as of late brought into market and market was ruled by VHS so rather than VHS Randolph and Hasting construct their domain on DVDs. Since DVDs immediately overwhelmed the market, it demonstrates the significance of perceiving the computerized patterns and how innovation changes the purchaser propensities. At the point when Netflix propelled its web media gushing administration, it was nothing unexpected since the across the board utilization of web gravely upset the conventional TV systems (Chopra & Veeraiyan, 2017)

    Distinguish the administrations individuals look for on your site the most, and afterward organize those contributions on your site. You don't need to make a huge difference on the double. Rack up one achievement, and you'll have a simpler time picking up purchase in for your next task. Manufacture a stage that matches existing pursuit propensities. Your landing page ought to be instinctive to explore and look from, similar to Google. Enable individuals to set their very own inclinations for things like themes and administrations they are keen on, ways they need to get alarms, and how they can spare record data.

The Netflix Model of IT Service Management in Netflix

    Since the start of Netflix, they have been gathering information and making calculations that have enabled their administration to naturally adjust to the person. They propose motion pictures and projects that will speak to the end-client, in light of that client's past commitment. Netflix gives a customized motion picture choice and enables the choice to make various watcher profiles. These highlights make it a simple application to explore, as clients are more averse to contribute time looking for explicit substance. There is a decent shot that Netflix discovered it for them, and will have given the client the fundamental connections so they can start observing quickly (Fernández-Manzano, Neira & Clares-Gavilán, 2016)

The post-system periods of IT Service Management in Netflix

    There's never again a manual or an instructional class that discloses to you how to maintain the IT that the business needs. A gathering of system specialists including Barclay Rae, the active CEO of the itSMF, said precisely this during a discussion at SITS18. The specialists concurred that while there are valuable pointers and ways to deal with is found in all the perceived best practice structures, actually organizations should carefully choose the counsel that works for them and dispose of the direction that doesn't. This guidance shows that we are entering a post-system period in which their significance is radically diminished. The void this leaves might overwhelm for a few. It does, in any case, mean putting less cash and time in learning systems and the related preparing. These assets could be reassigned to IT experts who would then be able to source their own innovation and apparatuses and at last build up their own answers. It won't be at the degree of Netflix, however it shouldn't be.

    Indeed, we will consistently need reference instruments and preparing to create aptitudes and make shared comprehension. Be that as it may, when digging into the obscure, there is no direction. Returning by and by to the Netflix model, Dave clarified that the activity of his group is to convey one administration: the video watching background for the client. Had they been influenced by customary IT administration the executives figuring, they would manage many 'administrations'. Unburdened by this reasoning and phrasing, Netflix has a laser-center around client experience that all organizations are taking a stab at. It conveys one administration. What's more, to do this well means getting rid of the possibility that there's one arrangement (Elswah, 2016)

Development of Service Management in Practice of IT Service Management in Netflix

    Digitization influenced each organization. This fast development of digitization got numerous organizations ill-equipped and constrained them to carefully change themselves. To have the option to comprehend what is computerized change, we should comprehend the idea of business change. Organizations advance, they grow new items and administrations, objectives and association change. A fruitful business recognizes that market does not remain consistent and develops with the market, arrive at new clients and improve its items (Frey, 2015)

Netflix as a Problematic Pioneer of IT Service Management in Netflix

        For an organization development isn't sufficient, it is likewise imperative to react to computerized interruption properly. The term advanced disturbance is generally abused, it is utilized to characterize any advanced innovation, and additionally it is mistaken for problematic innovation. The last is utilized for new innovation that difficulties old innovation. Quickly changing computerized innovation breeds new plans of action and difficulties the current items and administrations. This change is characterized as computerized disturbance. For instance internet based life is a computerized interruption for the media area. Because of online life promoting efforts, TV systems need to modify its notice costs to rival internet based life.

        While advanced interruption is a test for the related division, it is frequently an open door for different segments. In the event that we take a gander at the internet based life and media part connection, web-based social networking gravely disturbed the media division; yet in addition online life gives a significant chance to little and medium organizations. For instance, how would you comprehend the transfer speed/buffering issue when your administration depends on an elusive: the Internet Service Provider? On account of Netflix, the arrangement was to give each major ISP in the domains it works devoted capacity and equipment to introduce locally. Truly, this implies Netflix's very own equipment is running at an ISP close you (Gomez-Uribe & Hunt, 2015). Netflix approaches assets which most organizations can just dream of. It's additionally in an undeniably progressively sensational position that most associations since its necessities are so outrageous. However the standard – the requirement for every business to locate its own answers for its own innovation issues – is currently shared by each administration the executives’ proficient.

What Netflix needs to do?

        Netflix ought to scarcely lie on its shrubs, however: with new spilling video and online rental administrations springing up all over and link stations and suppliers making always convincing video-gushing applications (Time Warner, Cablevision, and HBO Go to give some examples), the scene will just get more unpleasant. It's a great opportunity to support and comprehend a few issues, before another person does. Fix search, perusing, and discoverability. The stupefied UI that you'll discover on Netflix's iPad, computer game reassure, and cell phone applications has practically none of the adaptability (or DVD the board) you'll find on Netflix's Web webpage. Perusing by title, which is the manner by which search is practiced on Netflix's applications right now, is preposterous. In addition to the fact that we need to include executive, cast, and other ability search modes, yet the entire site should feel increasingly like IMDB- - or, similar to the as of late propelled Fanhattan (Kosiarz, 2018)

Here are three exercises for Netflix that can be connected to neighborhood government offices:

Huge information is ground-breaking; however enormous information in addition to huge thoughts is transformational.

Technology matters most when it is in the administration of a convincing technique.

Discover how your constituents associate with you online to streamline their experience.

        The connection to your natives to administrations that is applicable to them. For example, let individuals self-select on the off chance that they are a neighborhood entrepreneur, at that point show subjects most business clients commonly are searching for. Recognize how your constituents associate with your site. Do you they naturally go to the hunt line or go directly to the office page that offers the administrations? Are a few administrations increasingly well known relying upon the season, similar to expense season or the weeks paving the way to a race? (Frey, 2015). It is safe to say that you are keeping a procedure more intricate than it should be, simply because this is how it generally has been finished. Netflix disturbed the motion picture industry. Throughout the most recent two decades, it has since upset itself in administration of its central goal. Netflix started with an entirely straightforward advancement—squashing Blockbuster by transportation DVDs via mail and annulling late expenses. It at that point progressed from mailing substance to spilling motion pictures and TV indicates carefully. Today, Netflix is most vital as a maker of substance; it will spend an amazing $12 billion this year alone on programming (Kosiarz, 2018)

Implementing Service Management in Practice of IT Service Management in Netflix

        When reevaluating advanced administration conveyance, present new highlights or administrations in stages. Along these lines you can test it with staff and constituents and incorporate enhancements with normal updates (find out about light-footed advancement). Work with sellers who give amazing items and backing, and actualize those items so that their effect is irrefutable. It's significant during this procedure to keep up correspondence with everybody, supporters and depreciators the same. When building your answers in-house, recognize the business procedure of your most significant administrations and spotlight on carefully changing them. This can help diminish costs and quicken the conveyance of new arrangements. When actualized, see approaches to duplicate the procedure crosswise over different administrations. This will enable organizations to change the execution and alter their frameworks without tremendous effect. To ensure your way of life mirrors the general methodology of improving administration conveyance, take a gander at your key players:

IT Department:

    On the off chance that you are redesigning your site, this could mean a discount substitution of existing advancements. Intently working together with IT in a light-footed way will limit any framework detours and smooth the way to a fruitful site.

Human Resource:

    Human Resource knows about inner ability or can recognize ability holes to guarantee that the site improvement is completely staffed.

Advertising and Communications:

    This group is vital to conveying new innovations and by and large technique to both interior and outside clients.

Organization Stakeholders:

    To guarantee appropriation, office staff must be guaranteed the quest for new innovations will support their constituents. What's more, the most ideal approach to do that is to tune in to what their torment focus is. The objective is a blend of human development with trend setting innovation.

Client Service:

    When constituents connect with an inquiry or grievance, they're not really inspired by what an administration rep needs to do to take care of business. They simply need their issue settled. Consider you can make client administration reps more joyful and progressively viable.

Constituents:

Identify who you are meaning to help carefully. Constituent inquiries will help control which administrations are the most testing to access, and client testing will guarantee you're addressing their needs (Muzumdar, 2014)

Increasing present expectations For Government Technology of IT Service Management in Netflix 

    Urban areas have a one of a kind chance to join the prescribed procedures of private part administration conveyance with developing needs over the whole constituent base. Innovation keeps on turning into a progressively regular piece of everybody's lives, conveying advantageous and lower-cost choices that didn't exist previously. Private division trend-setters like Netflix have had the assets to analysis and higher hazard resilience if their first attempt didn't satisfy. As opposed to committing expensive errors, the open part can profit by applying the accepted procedures that private segment monsters have effectively tried in the field. Urban communities can convey better administration to constituents, and free up assets to explain higher worth difficulties (Turner, 2018)

Conclusion on IT Service Management in Netflix

    After analyzing ITSM in general, and with regards to Netflix in particular, it can be said that ITSM framework and practice are crucial for a business like Netflix. So, companies dealing in IT service delivery should follow the model of Netflix that how they achieved so much success over the years. Netflix adopted best practices related to ITSM and made sure that their IT system is monitored and revamped on constant basis. They gave special focus to security of their IT service to ensure that information and data is kept safe from any threats of breach or leakage. The company has adopted IT process with automation, which has streamlines so many aspects of their IT system. It can be concluded in the end that all the success enjoyed by Netflix is based on their great handling of IT service management, and if they continue to do so, they are going to dominate their industry in the future as well.

 References of IT Service Management in Netflix

Ayehu Inc. (2015). How Netflix Leverages IT Process Automation to Protect Its Information . Retrieved August 30, 2019, from https://ayehu.com/how-netflix-leverages-it-process-automation-to-protect-its-information/

Brooks, P. (2006). Metrics for IT Service Management (illustrated Edition ed.). Van Haren.

Castillo, M. (2017). Reed Hastings’ story about the founding of Netflix has changed several times. Retrieved August 30, 2019, from https://www.cnbc.com/2017/05/23/netflix-ceo-reed-hastings-on-how-the-company-was-born.html

Chopra, S., & Veeraiyan, M. (2017). Movie Rental Business: Blockbuster, Netflix, and Redbox. Kellogg School Of Management Cases, 1(1), 1-21. doi: 10.1108/case.kellogg.2016.000220

Elswah, M. (2016). Netflix vs. Illegal Downloading: Digital Movie Piracy in Egypt. SSRN Electronic Journal. doi: 10.2139/ssrn.2882715

Engel, L. (2014). Netflix, une révolution ?. Esprit, Octobre(10), 133. doi: 10.3917/espri.1410.0133

Fernández-Manzano, E., Neira, E., & Clares-Gavilán, J. (2016). Data management in audiovisual business: Netflix as a case study. El Profesional De La Información, 25(4), 568. doi: 10.3145/epi.2016.jul.06

Frey, M. (2015). Netflix Crit in the Twenty-First Century. Film Criticism, 40(1). doi: 10.3998/fc.13761232.0040.111

Frey, M. (2015). Netflix Crit in the Twenty-First Century. Film Criticism, 40(1). doi: 10.3998/fc.13761232.0040.111

Gomez-Uribe, C., & Hunt, N. (2015). The Netflix Recommender System. ACM Transactions On Management Information Systems, 6(4), 1-19. doi: 10.1145/2843948

Kosiarz, M. (2018). The specificity of online entertainment services. Case study: Netflix. Kognitywistyka I Media W Edukacji, 28(2), 79-98. doi: 10.15804/kimwe2018207

Millier, D. (2016). 6 IT Service Management Best Practices. Retrieved August 30, 2019, from https://www.uzado.com/blog/6-it-service-management-best-practices

Muzumdar, P. (2014). From Streaming Vendor to Production House: Netflix SWOT Analysis. SSRN Electronic Journal. doi: 10.2139/ssrn.2377151

Rouse, M. (2019). ITSM (IT Service Management). Retrieved August 29, 2019, from https://searchitoperations.techtarget.com/definition/ITSM

Turner, G. (2018). Netflix and the Reconfiguration of the Australian Television Market. Media Industries Journal, 5(2). doi: 10.3998/mij.15031809.0005.208

West, J. (2018). What every IT professional can learn from the Netflix experience. Retrieved August 29, 2019, from https://www.servicedeskshow.com/industry-news/what-every-it-professional-can-learn-from-the-netflix-experience/

White, S. K. (2019). What is ITSM? Managing IT to serve business needs. Retrieved August 30, 2019, from https://www.cio.com/article/3228122/what-is-itsm-managing-it-to-serve-business-needs.html