Our world is changing at a very rapid pace. Just imagine a time-traveler from the 20th century visiting us in 2019: that traveler would probably find today’s world confusing. It’s a new world. We now consume services that 100 years ago were merely science-fiction. And in this world shaped by technology and innovation business models are changing too.
Business models – old and new
Old sales and advertising methods, like door-to-door sales and post advertisements, get little return on investment nowadays. To sell products, it’s no longer enough to be “loud”. To sell your products in this “digital” world, you have to think outside the box, differentiate yourself from your competitors and adapt to the needs of your audience.
So what can IT companies do to sell their products?! Success stories are a good starting point when seeking this advice. So let’s take a look at a modern company, that has defied traditional business models to be successful: Netflix. Are there any lessons that an IT company can learn from the success of Netflix? Of course.
Photo via quickmeme.com
Netflix: from renting DVDs to becoming a meme
Netflix is a great example of an agile company that has shifted its business model several times while growing steadily. But let’s have a look at how it started:
Back in 1998, Netflix started out as a company that rented DVDs by mail. A smart and innovative approach, considering the times. Just a year later, the company changed its pay-for-use model into a subscription model – a step that has proven successful, since the subscription model is used until this day.
Nearly a decade later, Netflix embraced digital transformation and became a streaming service, in a natural step to be in sync with market demand and technological innovations. Today, Netflix has earned worldwide popularity and the name itself has unwillingly entered our vocabulary with the help of memes and internet slang.
But why is it so popular?
Netflix has based their business decisions on market realities (digital transformation), answering to consumers’ needs while leaving their competition behind.
Accessibility and affordability
The service is already available in many countries at an affordable price. Since all you need is an internet connection and a love for entertainment, the potential market is huge.
Netflix allows you to create your own TV channel – you can choose what and where you want to watch – either in the comfort of your own home or “on the go” on a mobile device.
Quality content and personalization
Netflix gives you a wide range of high-quality content to choose from, as well as an algorithm that offers recommendations tailored to each user’s interests.
Photo via memeguy.com
What can IT companies learn from Netflix?
From a business perspective, there are many lessons to be learned from this success story. Here are the main takeaways that can be helpful to an IT company:
1. You don’t have to be the best, you have to be the best for your audience.
Netflix isn’t about showing all the latest Oscar-winning movies or all the most popular TV shows. Instead, it offers high-quality content that can be enjoyed in the comfort of your own home. By choosing this approach, Netflix manages to respond perfectly to the entertainment needs of young busy adults today, with a comfortable and accessible solution.
2. Don’t be afraid to challenge the status quo.
Netflix has been innovative right from the start, by choosing a new approach to renting out DVDs. They were not afraid to change their business model and they’ve always adapted to the changes in the market – both from a technical and a user-experience perspective.
3. Offer a great experience.
Netflix is all about entertainment and free time. It’s about its users and their experience. What do Netflix users want? Affordable entertainment with no hassle, when and where they want it. And by building a relationship with its users through tailored recommendations, Netflix enhances the users’ experience.
4. Offer a complete experience.
TV shows, movies, documentaries. Comedy, drama, thrillers. Blockbusters and independent movies. While Netflix cannot include all the movies out there, it does a good job of covering all the needs of its users.
How Syneto has embraced the “Netflix model”
At Syneto, we appreciate this business model and we would love to become the Netflix of IT infrastructure.
That is why:
- We don’t want to be the best of the best, we want to be the best for our audience – that of SMBs and owners of small and medium datacenters.
- We embrace innovative technologies and innovative people. We have embraced hyperconvergence and are doing our best to make it available it to a wider audience
- We are constantly striving to improve our products and to offer the best possible experience for our customers. From finding the best engineering solutions to offering prompt support for our customers – we strive to offer a good experience.
- We offer an integrated solution, the HYPERSeries, that unifies virtualisation, storage, backup, restore and disaster recovery services in a single point of management.