BBBA 4973 DATA DRIVEN BUSINESS

INDIVIDUAL ASSIGNMENT

NAME: MONIZHA A/P SELVAN

ID NUMBER: BBA 1909-1442

LECTURER NAME: MR. PRITCHARD MUZANARWO

DATE OF SUBMISSION: 31ST DECEMBER 30, 2021

1. Identity the three use cases (Decisions) of where they are using data. Identify how this
has enhanced the decision making for example; by commenting on the actual product, new
product and the impact on sales.

Netflix can keep track of user completion rates for popular shows like Arrested Development.
Assume the data indicates that 70% of viewers watched the show from season one to season
three. The next step for Netflix will be to determine the cut-off point for 30% of users. The
Netflix team will look into why people didn't finish the show, including the time gap between
episodes and the show's overall engagement. They'll conduct an in-depth analysis of the show's
overall engagement once they have all of the data. They take into account how often viewers
pause, rewind, and fast forward, as well as what time of day people prefer to watch Netflix
shows. Furthermore, the date on which customers watched a show or movie, as well as the
device on which they watched Netflix. Aside from that, the show's ratings and audience
browsing and scrolling behavior.

If 70% of those who finished the show watched it all at once, there's a good chance they'll watch
the new season as well, so Netflix will order another season.

Netflix can use these analytics to determine how many satisfied users are likely to continue
subscribing to its services. One of the ways it does so is through post play, a feature that allows
the next episode of a TV show to play automatically unless the user opts out.

When watching a movie, Netflix will show viewers movie recommendations as soon as the
credits roll. The goal is to get people to press the play button right there on the screen.

Secondly, the recommendation of algorithm. When a new Netflix user signs up, they provide
information such as the types of movies they enjoy watching and the genres they enjoy. They
also give ratings to some of the films they've already seen.

Netflix requires users to provide this information so that they can understand their preferences
and make appropriate recommendations for TV shows and movies. Netflix is well aware that if
subscribers run out of movies and TV shows, they will eventually cancel their subscription. To
avoid this, the company has invested heavily in an accurate algorithm that provides people with
recommendations for what they can watch. The algorithm has proven to be successful, with
statistics indicating that suggestions account for 75% of the platform's viewing activity. Netflix's
most valuable asset is its recommendation algorithm, which is constantly being improved by a
team of over 800 developers.

Thirdly, the thumbs up and down rating system. Netflix also introduced a new rating system in
April of 2017. Viewers used to rate movies and TV shows on a scale of 1 to 5 before this system
was introduced. The new system was implemented after the product team conducted research
that revealed that users preferred a thumbs up or down system to a number-based rating system.

According to a letter sent to shareholders, the thumbs-up rating system received twice as many
ratings as the previous model, and the company was able to provide viewers with a better
experience with the new model in place.

2. Identity the key tools/ technologies (example data base/ data analysis they are using and
in what aspects they are using them

 Netflix gathers, stores, and processes massive amounts of data using data processing
software and traditional business intelligence tools like Hadoop and Teradata, as well as
its own open-source solutions like Lipstick and Genie. These platforms have an impact
on the content it produces and promotes to viewers.
 Netflix does not use a Hadoop data warehouse based in a data centre. To store and
process a rapidly growing data set, it uses Amazon's S3 storage service, which enables it
to spin up multiple Hadoop clusters for different workloads that access the same data. It
utilizes Hive for ad hoc queries and analytics and Pig for ETL (extract, transform, load)
and algorithms within the Hadoop ecosystem.
 It then developed its own Genie project to aid in the handling of ever-increasingly
massive data volumes as it scales. Whatever the case may be, there is no doubt that
Netflix places a high value on having a large amount of data and the capability of
processing this data to ensure that it knows exactly what its customers want.
 The outcome has been nothing short of spectacular. Netflix has been able to maintain a
high level of engagement with its original content, with 90 percent of Netflix users
engaging with it.
3. Identify and explain 4 success factor of data driven approach and or still facing in
implementing in data driven model

Netflix has long been proud of the quantitative approach it takes to providing a world-class
experience to its customers. The results of the big data strategy are impressive. Netflix’s 120
million subscribers watch over 140 million hours of video every day on over 450 million
different devices. The Netflix analytics software and recommendation engine are central to the
platform's effectiveness. In the words of Joris Evers, Netflix Director of Global
Communications, “there are 33 million different versions of Netflix”.

Netflix's core competency in data science enables user behavior-based personalization of the
streaming experience. Netflix categorizes and tags content to gain a more nuanced understanding
of consumer preferences. Netflix has over 1,000 tag types that categories content by genre, time
period, plot conclusiveness, mood, and so on. These tags help to define micro-genres, which, by
2014, had already reached 76,897. Netflix can better serve customers by using content micro-
classification in conjunction with a proprietary recommendation engine. About 75 percent – 80
percent of viewer activity is influenced by the recommendation algorithm. The true north of the
Netflix big data strategy is the philosophy of best serving specific audiences rather than “being
all things to all people,” a mantra of old broadcast TV shows. Using data, Netflix has been able
to implement their philosophy for each user, demonstrating to traditionalists that combining data
with creative intuition can result in superior performance.

Another significant benefit that data provides is better creative decisions. Metrics such as
completion rate, stop and start time, time of day, and viewing behavior (e.g., pause, fast forward,
rewind, and so on) help Netflix make better content decisions. When Netflix decided to renew
Arrested Development, they looked at how many users finished the series through Season 3. This
assisted producers in determining not only whether or not to greenlight additional runs, but also
what particularly resonated with audiences based on audience behavior while watching specific
episodes. The classic example of Netflix’s prowess was House of Cards, which rose out of a
confluence of data on the popularity of the British version of the show, fans of British House of
Cards who also watched a lot of movies that involved Kevin Spacey or were directed by David
Fincher those who watched David Fincher movies over indexed on completion in a single sitting.
Success rates for Netflix shows are 80 percent vs. an average of 35 percent for traditional TV
shows. Netflix has set the industry standard in terms of data and creative talent. HBR researchers
have shown that a data-driven approach to a creative endeavour, like producing TV shows, has
led to greater product variety for audiences. Netflix's defensible moat grows in tandem with its
subscriber base. The sheer volume of data is a competitive advantage in and of itself. Some
observers note that it took 6 years before Netflix reached the point they had enough data to help
create shows from scratch. In greenlighting Orange is the New Black, Netflix had already
determined the likelihood of success based on viewership data of women-led TV shows and Jenji
Johan’s hit show Weeds Netflix knew exactly which subscribers would be interested, reducing
the creative risk of the new show. Of course, analytics do not solely influence creative decisions;
Netflix still works with production studios and creative staff to bring shows to life. Netflix, on
the other hand, pioneered the art/science approach to data in entertainment.