Description of Technology The information systems that Netflix uses to run their business are proprietary software – in other words, most of its technology was built in-house. Since Netflix technology was built in-house, the company can be private about sharing the exact details about how exactly their technology works (McGregor 2005). The essential systems that Netflix uses are the following: supply chain management systems and customer relationships management systems.
Customer Relationship Management Systems Netflix uses customer relationship management (CRM) systems to serve customers more efficiently. CRM systems discover the needs, wants, and behaviors of the customers. This information is then placed in a data …show more content…

In fact, 60% of movies that customers add to their list of movies come from recommendations (McGregor 2005). Netflix also uses electronic catalogues on its website. The catalogue allows customers to quickly search for movies and view movie information on its website (Haag 177). Customers can search for movies by genre, new releases, top 100 or critics’ picks (Netflix 2006). The electronic catalogue makes looking for movies quick and easy.
Supply Chain Management Systems Netflix’s SCM systems are strategic to the company; thus, they are a trade secret (Stevens 2005). However, here are a few general examples illustrating Netflix’ SCM systems in action. As mentioned above, one Netflix’s main SCM systems is Web-based proprietary software that tells the workers where to ship its inventory as soon as it arrives in the warehouse. This is how it works: as soon as a disk comes in, the worker checks to ensure that the right disk is in the right sleeve. Then, the disk’s serial number is scanned. Netflix’s proprietary software then checks many factors, such as the total inventory of the item, its locations, and the movies on customers’ wish lists (Stevens 2005). It then retrieves a name and address of the next person waiting for the DVD, prints out a label, and the disk is dropped back into the mail (Haag 189). Netflix’s SCM system also tracks inventory and determines the fastest route to get the disc into customers’ hands: For