Intro to Business Quiz 4

Business Model

how an organization plans to create and capture value

Business Model Aspects

• customers you aim to serve

• value proposition

• ways in which you will generate revenue

• types of costs you will incur

• resources and capabilities you’ll need to operate the business effectively

Business Model Innovation

creating an entirely new business model rather than a new product or service

Subscription model

a business model in which customers pay a recutting fee for ongoing access to a product or service

Algorithm

a set of step-by-step rules for making a decision or solving a problem, often using data as input

Personalized Recommendations

companies use algorithms to analyze data and recommend products/services to customers based on their…

• demographic characteristics

• past consumption habits

• other attributes and behaviors

Content Creation Using Data Analytics

the process by which Netflix creates new shows and movies by analyzing large amounts of its proprietary data about its subscribers and their past viewing habits

Artificial Intelligence

technology that enables computers and machines to simulate human learning, comprehension, problem solving, creativity, and autonomy

Machine Learning

involves creating models by training an algorithm to make predictions or decisions based on data

Machine Learning Analogy

you teach a child to identify a car admits many toys in a toy box by identifying and pointing out the characteristics of a car. The child then uses that data to analyze all the toys and identify the car

Deep Learning

involves automated analysis and predictions; does not require human intervention

Deep Learning Analogy

you teach a child to identify a car admits many toys in a toy box by showing the child many photos labeled either “car” or “not car”. The child then figures out on their own how to distinguish cars from other toys

Generative AI

refers to deep learning models that can create complex original content in response to a user’s prompt/request

Organizational Culture

consists of the often taken-for-granted assumptions, beliefs, and values of an organization that shape and influence employee behavior

Freedom and Responsibility of Netflix Culture

Freedom: removing controls and rules, and thereby providing employees with more autonomy

Responsibility: holding them accountable for results and for doing the right thing with that freedom

Three Core Principles of Netflix Culture

1. Talent Density

2. Radical Candor

3. Removal of Controls

Benefits of a Good Culture

1. Attract great talent

2. Engaged and Productive employees

3. Lower employee turnover

4. High customer satisfaction

5. Stronger brand equity

6. More Innovation