NetflixPart5v3

Table of Contents
Introduction 4
Netflix 4
Analysis 4
Industry Segment 4
Products & Services 4
Market 5
Penetration of DVD Players 5
Digitization of Content 6
Organizational Structure 6
Five Forces Analysis 7
Value Chain 8
Balanced Scorecard 10
Software portfolio 10
Internal application for accurately predicting DVD demand 10
DVD Recognition System 11
Netflix Mobile – Redesigning the Netflix Mobile Site 11
Mobile Streaming 11
Portfolio Rationale 11
Software Engineering Process 11
Requirements 13
Problem Statement 13
Business Case 13
Use Cases 14
Use Case Events 14
Non-Functional Requirements 17
Acceptance Plan 18
Project Planning 19
Release Plan 19
Iteration Plan for 1st release 20
Risk Plan 21
Project Schedule 21
Analysis 22
Domain Analysis 22
Problem Analysis 23
Solution Analysis 23

Introduction
This document will outline the business structure and competitive strategy Netflix, Inc., an online DVD rental and steaming company. Analytical business tools such as the five forces analysis and balanced scorecard will give an in depth look Netflix’s position in its value chain.
Netflix
Netflix is a service offering online flat rate DVD and Blue-Ray rental-by-mail and VC-1 Video Streaming in the United States. Established in 1997 and headquartered in Los Gatos, California, it has amassed a collection of 100,000 titles and approximately 10 million subscribers. The company has more than 55 million discs and, on average, ships 1.9 million DVDs to customers each day.

Customers pay a monthly fee allowing them to have a set amount of DVDs out at a time, prices ranging from $4.99 to $16.99. The customer creates a list of the movies they wish to receive by going to the online website and creating what is called a “queue”. Netflix then distributes the movies to the customers from one of their 50 regional warehouses using the United State Postal Service priority mail. The DVDs are delivered directly to the customer’s home in an envelope slightly larger than the DVD itself. There is no due date or late fees and once the customer returns the movie the next movie on their list is shipped to them.
Analysis
Industry Segment
Netflix is part of the Entertainment Industry, in particular the distribution segment. The video distribution industry includes cable and satellite providers, DVD rental companies, retail stores, online streaming websites, video downloads such as iTunes, and illegal sources such as pirated copies. While DVD sales decreased in 2008 by 19% to $14.5 billion, rental revenues held steady at $7.5 billion1.
Products & Services
Netflix offers two forms of video viewing: DVD delivery and online streaming. Up until recently, any film available for purchasing in the stores was also available for rental, and only a limited number of movies are available through online streaming. Now through an agreement with Warner Brothers, Netflix must wait until 4 weeks after the release of a film to DVD before they can rent it to their customers.

Market
Penetration of DVD Players
As sale of DVD players increase, DVD rentals will increase as seen in this comparison of DVD hardware sales versus DVD sales over the past 8 years:

http://www.digitalentertainmentinfo.com
The slow decline in DVD players is due to the penetration of DVD players in US households. As more families buy DVD players there are fewer families who need to buy them. However the decline in DVD sales is due to the increase in options such as streaming and downloadable movies. The chart below compares the sales of various media types over the past decade. Netflix originally was a DVD-by-mail only service, but wisely introduced streaming videos which have been steadily increasing in popularity over the past few years. Netflix also offers Blu-ray Disc rental at the fee of an additional $1/month. Interest in Blu-rays will increase as the penetration of Blu-ray players in the market increases, and are less likely to be substituted by online streaming due to the difference in quality.

http://www.digitalentertainmentinfo.com
Digitization of Content
Netflix offers internet video streaming ("Watch Instantly") to eligible subscribers, enabling the viewing of films directly on a PC or TV at home. At present, internet video streaming comes free with Netflix's regular subscription service2. Interest in digital content is driven by increases in internet access penetration and streaming devices. Devices such as Xbox360, Playstation, Blu-ray players, Boxee, and Windows Media Center all have the capability of interfacing with Netflix to stream videos directly to you TV or PC.
Organizational Structure
Netflix maintains a fairly flat organizational structure. A flat structure is one that has few or no intervening levels between managers and staff. This is usually used in start-up companies than transitions into some other type as the organization grows, however has still worked for Netflix. Below is a chart of the hierarchy of management which operates Netflix:

http://www.cogmap.com/chart/netflix
One thing that lacks in Netflix’s organizational structure is a Chief Information Officer. This could be rendering to the technological developments that would help improve Netflix and make their business more efficient.
Five Forces Analysis
Buyers: Netflix deals directly with their customers through their website to provide services and deliveries of films via USPS. Due to high availability of substitute products, buyer power is high. Also, due to the plethora of other activities available to the consumer, Netflix must fight to keep buyers attention. This again means higher buyer power. Another reason buyer power is ultimately high is that switching costs are virtually non-existent. Since Netflix pioneered the online rental system their brand identity is very influential, thus hurting buyer power. All these facts overshadow the fact that buyer power is lowered by their low purchasing volume.
Suppliers: There are three main suppliers to Netflix:
Movie distributors: Major Hollywood distribution companies
Payment Services: Master Card, American Express, Visa, and Discover
Delivery Services: United States Postal Service
Supplier power is high because there is only a limited number film distribution companies. Switching costs would be low which would mean supplier power is lowered. Since Netflix is a big volume buyer they would have power over the supplier. Overall, Supplier power would be relatively low.
New Entrants: While entering the DVD delivery business would be quite easy in respects to regulations, it would be difficult to get through the reputation Netflix has built for itself. This would mean that the power of any new Entrants would be relatively low but could easily change.
Substitutes: There are a few substitutes to using Netflix:
DVD Rental: Blockbuster (which has both brick and mortar locations as well as an online distribution component), local video stores, etc…
Streaming Services: Free sites (Hulu), video pirating,
TV: Pay-per-View, Cable providers, Satellite providers
In reality any activity that keeps users away from the TV could be considered a substitute (reading, playing outside, etc…). This means there are many substitutes the threat from these substitutes is one of the biggest forces Netflix must face.
Rivalry: Netflix competes with various online content distribution companies as well as brick and mortar locations. Companies like Blockbuster and Hollywood Video are already heavily entrenched in this field and are strong competitors who don’t want to give up market share. Since Netflix itself is a relatively new entrant, the other companies are going to fight hard to keep any existing market share. Also, the Industry is being redefined with the relatively recent introduction of online rentals and streaming capabilities. This means that there is the potential for market expansion which means there is a lot of competition. Also, Netflix ability to differentiate itself in this field will be a key to gaining market share in the future.
Value Chain
Netflix is part of the distribution value chain of the entertainment industry. Competitors include retail stores, online stores, cable companies, and satellite providers. Many of the players in this chain are vertically integrated conglomerates whose interests to protect their market share and revenues might come into conflict with Netflix. This has came into play recently where Netflix has been forced to install a waiting period of 4 weeks on new releases, allowing retail stores to have 4 weeks to sell DVDs (a place where film makers are losing their money due to rentals companies such as Netflix).
Distribution will be the segment most dramatically affected by the tectonics of the upcoming technological changes. As seen already in the decrease in DVD sales in the past few years. Netflix must shift its target service from DVD delivery to streaming or Blu-ray Disc in order to keep up with the market.

Inbound logistics. The only outside material that Netflix needs are movie and TV discs, and envelopes to ship the discs in. Warehouse equipment and machines must be purchased initially, and will require yearly maintenance.
Production. R & D will continually try to improve the Recommendation algorithm, by offering prizes to outside research groups as well as fund internal development. Getting the product ready for customers involves matching up their requested disc with a properly addressed envelope, and sending that package to USPS for shipping.
Outbound logistics. Inventory management will be complicated, but the sorting machines and continuously updated “outbound” disc list will be able to keep track of all discs. Users will interface with Netflix through the website, and add to or remove from their disc queue electronically. The USPS will fulfill the order delivery.
Sales & marketing. A combination of online advertisements, television commercials, and billboards will make up the sales and marketing.
Customer Service. Netflix will employ a first-class customer service team, comprised of Issue Resolution Specialists who are trained to hold the customer in the highest regard, ensuring their happiness. Netflix will also offer a comprehensive FAQ online along with live chat support through the website. Around-the-clock live customer support though a toll free phone number will also be available.
Balanced Scorecard

Theme: Operating Efficiency
Objectives
Measures
Targets
Initiatives
Financial
Profitability
Fewer DVDs
Faster ship time
Increased Revenue
More Customers
Market Value
# of new Memberships
DVD bills
10% growth per year
Optimize shipping routes
Optimize turnaround time
Customer
DVD arrives quickly
Prices stay low
# of customers
USPS shipping reports
1st in industry
98% satisfaction
Quality management
USPS discount program
Internal
Fast DVD turnaround time
Better shipping trend recognition
Avg. time DVD spent in warehouse
Between 0 and 3 days
Better determine how many DVDs to purchase
Learning
Train factory workers
Improve shipping algorithm
% workers trained
Shipping report
Revenue report
100% trained by end of year
Improved shipping costs
Factory worker training program
Invest in CompSci R&D

Software portfolio
Internal application for accurately predicting DVD demand
Improving the prediction of DVD demand could reduce cost by insuring Netflix doesn’t overstock DVDs. It would also improve customer satisfaction by insuring DVDs aren’t under stocked, causing customers to wait days to weeks for their DVDs to be mailed to them. The system would take in multiple factors including previous data from Netflix databases and data about the movie sales.
DVD Recognition System
Currently Netflix employs approximately 2000 people throughout their warehouses. The employees remove the disc from the sleeve, check for scratches, confirm the title, and put it back in the sleeve. Employees are said to check up to 100 movies a minute. By automating this service through disc scanning technology we can eliminate the need for up to 2000 employees. The process would remove the disc from the sleeve, check for scratches and confirm the title by scanning both sides of the disk at the same time than put it back in the sleeve. Picture recognition technology would compare the scan of the cover of the disc to the title it is suppose to be.
Netflix Mobile – Redesigning the Netflix Mobile Site
Currently Netflix lacks a usable mobile site which could increase sales by spreading the market into smart phone users. The current site requires the user to zoom in on the page to view anything, making it difficult to use. The mobile site would have nearly all the features the website, condensed into a more mobile-like format.
Mobile Streaming
While the contract with XBox360 currently prevents Netflix from contracting to stream to mobile devices such as the iPhone, it is in the near future. The contract with Xbox360 ends in June 2010, which would be the perfect time to launch Netflix mobile streaming technology.
Portfolio Rationale
These various project ideas all aim to improve the Netflix business by increasing its value. Each idea tries to address a different segment of the Netflix enterprise, from internal operations optimizations to end-user experience.
Software Engineering Process
The application we plan to develop further is Netflix Mobile. Below is the spider diagram for the Agile versus Structured attributes of the project.

Factor
Justification
Size
The application will closely follow the structure of the existing website, and assuming Netflix uses a web service to call their database or utilizes stored procedures, a majority of the programming will be done on the front end of the mobile application. These alleviates a lot of extra work, so it is assumed that one lead and perhaps two programmers would be sufficient in completing this project.
Criticality
In the event that the mobile site fails or errors, the only affect should be on the user experience. No one will be harmed in the event this software fails.
Dynamism
Because the Netflix website has changed little over the past few years, it is assumed that changes to the mobile site will also be minimal.
Personnel
Half of the personnel on this project should be experienced with making changes to requirements if necessary as to alleviate excessive communication with management. Others should be familiar enough in order to comprehend the requirements and produce a functional product.
Culture
A chaotic atmosphere would allow personnel to be more creative and more technologically up to date when it comes to available languages and tools for creating the mobile site.

Requirements
Problem Statement
Business Case
Use Cases
Use cases will be captured by use case diagrams and scenarios
User Stories
User stories will not be used since this is an Agile work product and our requirements are primarily plan-driven
Non functional requirements
Non functional requirements will be described in a structured manner
Acceptance Plan
Domain, Problem & Solution Analysis
Class models and sequence diagrams
Architecture & Design
System Architecture
Target Environment
Subsystem Model
User Interface
Design
Project Management
Project Schedule, Release Plan, Iteration Plan, Risk Plan
Requirements
Both the functional and non-functional requirements for our Netflix Mobile application will be outlined in this section. They will be derived from various work-products, including storyboards, the problem statement, the business case, use cases, user scenarios, non-functional requirements, and an acceptance plan.
Problem Statement
Demand has escalated the past few years to be able to access information anytime anywhere. With the advancement of smart phones and release of the iPhone, companies have been focusing on creating mobile applications that allow their customers to access services and information on the go. Netflix has fallen behind that revolution which may be hindering their customer activity and public interest. While customers are able to access the Netflix website via their mobile web browser, the layout is not user friendly and requires too much zooming to see the content of the pages. Netflix is looking for a way to bridge that gap between themselves and their mobile users, giving them access to the essential features available on their website.
Business Case
The costs of creating a mobile website would be minimal due to the availability of backend resources, including user and movie databases. By using the same web service which connects the current website with existing databases, we are able to greatly simplify the software engineering process.
Netflix plans to create a mobile application in order to achieve the following objectives:
Come up to speed with user interest in mobile applications
Compete with industry rivals who have already taken initiative in mobile sites and iPhone applications
Increase user activity
Attract interest of mobile web users
Retain current users by making services more accessible
Provide a foundation upon which mobile streaming can later be implemented
Use Cases
Log On (User logs into the system)
Log Off (User logs out of the system)
View Queue (User is presented with their current title queue)
Add to Queue (User adds selected title to their queue)
Remove from Queue (User removes selected title from their queue)
Search (User searches title database by Movies, TV Shows, Actors, or Directors)
Browse (User browses title database by New Releases, A-Z, Top Rated, Most Popular, or Recommended)
View Title Details (User views title details, including User Rating, Rotten Tomatoes, MPAA Rating, Synopsis, Genre, Release Year, Length, and “Add to Queue”)
Use Case Events
Use Case Name:
Log On
Summary:
A User logs on to the system by supplying their E-Mail address and their password. The system verifies their log on information and responds by allowing access to the system.
Basic Flow
1. The system prompts the User to Log On
2. The User supplies their E-Mail and Password
3. The system verifies the logon information
4. The system allows access to the system
5. Use Case ends

Actor
User
Input Data
E-Mail address, Password
Output Data
None
Alternative Flow(s):
3. If the system cannot verify the logon information, the system returns to step 1 of Basic Flow
Invariants
None
Pre-Conditions
Logged off of system
Post-Conditions
Logged on to system
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
Log Off
Summary:
A User logs off the system, and no longer has access to the system.
Basic Flow
1. The User requests to Log Off
2. System prompts User to verify log off.
3. Access is blocked to the system
4. Use Case ends
Actor
User
Input Data
None
Output Data
None
Alternative Flow(s):
2. If the User selects “Cancel”, Use Case ends.
Invariants
None
Pre-Conditions
Logged on to system
Post-Conditions
Logged off of system
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
View Queue
Summary:
A user would like to view their queue. The system responds with a list of the titles in their queue.
Basic Flow
1. The user requests to view their queue.
2. The system displays the user’s queue of titles.
Actor
User
Input Data
None
Output Data
User’s Queue (Title, Picture of cover) sorted by position in queue.
Alternative Flow(s):
2. If the user has no movies in their queue, the system displays a message.
Invariants
User is logged in.
Pre-Conditions
None
Post-Conditions
None
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
Add to Queue
Summary:
A user would like to add a title to their queue.
Basic Flow
1. The user selects a title to add to their queue.
2. The system adds the title to the user’s queue.
Actor
User
Input Data
Title the user wishes to add
Output Data
None
Alternative Flow(s):
2. If the system is unable to add the title to the user’s queue, an error message is displayed.
Invariants
User is logged in.
Pre-Conditions
None
Post-Conditions
The title is added to the user’s queue.
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
Remove from Queue
Summary:
A user would like remove a title from their queue.
Basic Flow
1. The user selects a title to remove from their queue.
2. The system prompts the user to remove the title.
3. The system removes the title from the user’s queue.
Actor
User
Input Data
Title the user wishes to remove
Output Data
None
Alternative Flow(s):
2. If the user selects “cancel”, the user is returned to their queue and Use Case ends.
3. If the system is unable to remove the title from the user’s queue, an error message is displayed.
Invariants
User is logged in.
Pre-Conditions
None
Post-Conditions
The title is removed from the user’s queue
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
Search
Summary:
A user searches through the movie catalog for either Movies, TV Shows, Actors, or Directors
Basic Flow
1. The user selects “search”
2. The user enters and submits their query
3. The system displays relevant results to the user, after searching the query against Movies, TV Shows, Actors, and Directors
Actor
User
Input Data
Search query
Output Data
List of relevant search results
Alternative Flow(s):
3. If no relevant results, system informs user that query found no results
4. The system allows the user to enter and submit another search term
Invariants
The user is logged in
Pre-Conditions
The user is on the main screen
Post-Conditions
None
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
Browse
Summary:
A user browses through the movie catalog either by New Releases, A-Z, Top Rated, Most Popular, or Recommended
Basic Flow
1. The user selects “browse”
2. The user selects the category they want to browse by
3. The system displays relevant results to the user.
Actor
User
Input Data
Browse type
Output Data
List of relevant browse results
Alternative Flow(s):
3. If no relevant results (such as no Recommended titles), the system informs the user that nothing was found.
4. The system allows the user to select another category to browse by
Invariants
The user is logged in
Pre-Conditions
The user is on the main screen
Post-Conditions
None
Extension Points:
None
Business Rules:
None
Notes:
None

Use Case Name:
View Title Details
Summary:
A user selects a title and is shown relevant details and options for that title.
Basic Flow
1. The user selects the title they are interested in
2. The system displays the title details to the user.
Actor
User
Input Data
Title that user is interested in
Output Data
Title details
Alternative Flow(s): none Invariants
The user is logged in
Pre-Conditions
The user has gotten to a list of titles either by searching or browsing
Post-Conditions
None
Extension Points:
None
Business Rules:
None
Notes:
None

Non-Functional Requirements
Reliability:
The site should be able to run, maintenance free, for two weeks after the release of any major DVD to accommodate increased user demand.
The system should be available at least 98% of the time (over a one month period) as to meet customer demand and keep with industry standards.
Security:
Security certificates issued to the mobile device should expire after 1 day.
The System should allow the user the option to save their username and password to speed login on future visits.
The mobile site will ask the user to redirect to the main Netflix site to access administrative features (to prevent unauthorized account tampering).
Performance:
During non-peak (no major DVD release during the past two weeks) usage, the site should take no longer than 5 seconds to load any page on a 56kbps connection to keep with industry standards.
During peak (major DVD release during the past two weeks) usage, the site should take no longer than 7 seconds to load any page on a 56kbps connection to keep with industry standards. Standards:
The mobile site must render and function correctly on WAP 2.0 compatible browsers to allow for greater than 95% compatibility on mobile devices.
The site should employ SSL encryption to protect user privacy to keep with industry standards.
Look and Feel:
A search bar should always appear at the top of a page.
A link to the “Browse DVDs” page, a link to the “Movies You’ll Love” page and a link to the “Your Queue” page should be available at the bottom of each page for quick access to common Netflix functionality.
Acceptance Plan
The System shall be deemed complete when the following conditions are met:
The system successfully completes all Use Cases (both basic and alternative flows).
Test: Run each Use Case and verify the result.
The system should be available at least 98% of the time (over a one month period) as to meet customer demand and keep with industry standards.
Test: Allow Netflix employees to utilize the site for one month.
The site should be able to run, maintenance free, for two weeks after the release of any major DVD to accommodate increased user demand.
Test: Simulate a 100,000 concurrent user load over a two week period.
Security certificates issued to the mobile device should expire after 24 hours.
Test: Attempt to access the site 25 hours after logging in (do not auto-login).
The System should allow the user the option to save their username and password to speed login on future visits.
Test: First, Have a user log in and select option to save username and password. Log out and close the browser application. Finally, attempt to visit the site and see if the user was logged in.
The mobile site will ask the user to redirect to the main Netflix site and re-login to access administrative features (to prevent unauthorized account tampering).
Test: Have user attempt to access their account settings from the mobile site.
During non-peak (no major DVD release during the past two weeks) usage, the site should take no longer than 5 seconds to load any page on a 56kbps connection to keep with industry standards.
Test: Simulate 50,000 concurrent users and measure load time on a 56kbps connection.
During peak (major DVD release during the past two weeks) usage, the site should take no longer than 7 seconds to load any page on a 56kbps connection to keep with industry standards.
Test: Simulate 100,000 concurrent users and measure load time on a 56kbps connection.
The mobile site must render and function correctly on WAP 2.0 compatible browsers to allow for greater than 95% compatibility on mobile devices.
Test: Load site from 5 different WAP 2.0 compatible devices. Attempt to complete all use cases. Look for visual and operational anomalies.
The site should employ SSL encryption to protect user privacy.
Test: Verify SSL certificate received by a test device.
A search bar should always appear at the top of a page.
Test: Run through all use cases and verify search bar placement.
A link to the “Browse DVDs” page, a link to the “Movies You’ll Love” page and a link to the “Your Queue” page should be available at the bottom of each page for quick access to common Netflix functionality.
Test: Run through all use cases and verify link placement.
In the event that a test fails, the problem should be resolved within 10 business days. This software is guaranteed to be free from defects for 3 months after completion has been verified. Any reported defects will be addressed within 14 business days.
Project Planning
Release Plan
1st Release – By Use Case
1st Iteration
Log On (User logs into the system)
Log Off (User logs out of the system)
2nd Iteration
Search (User searches title database by Movies, TV Shows, Actors, or Directors)
Browse (User browses title database by New Releases, A-Z, Top Rated, Most Popular, or Recommended)
View Title Details (User views title details, including User Rating, Rotten Tomatoes, MPAA Rating, Synopsis, Genre, Release Year, Length, and “Add to Queue”)
2nd Release – By Use Case
1st Iteration
View Queue (User is presented with their current title queue)
Add to Queue (User adds selected title to their queue)
Remove from Queue (User removes selected title from their queue)
Iteration Plan for 1st release
User stories are chosen for the 1st Iteration, which include:
1. The user wants to log into the system. Without logging into the system the product will have no functionality. (1)
2. The user wants the system to save their login information. This is for convenience of the user. The user should have the option to not save the information. (1)
3. The user wants the system to be easy to log out of. (1)
These user stories are translated and broken down into two programming tasks:
1. Implement a user sign-in that checks the given credentials against the Netflix User Database. If the credentials match a user in the database, load the system with global data and user-specific data. The sign-in logic should include options to save user logon credentials for future sessions, via cookies. (2)
2. Implement user log-out that logs the current user out of the system. (1)
User stories are chose for the 2nd Iteration, which include:
1. The user wants to search for a specific movie or TV show. This is an integral part of the program. (1)
2. The user wants to search for a specific actor or director. The search will give the user a list of titles the actor has been in, or the director has directed. (2)
3. The user wants to browse through new releases. This way the user can lazily look for something to rent without knowing ahead of time what they want. (2)
4. The user wants to browse through titles alphabetically. Similar to browsing by new release, this will help the user find a specific title. (1)
5. The user wants to browse through titles by rating or popularity. The user can see what their peers are watching and enjoying. (2)
6. The user wants to browse through the titles by recommendation. A big part of Netflix is its recommendation engine, and this needs to be a part of the system. (3)
7. The user wants to view details about a movie or TV show. These details should include ratings (both entertainment ratings and MPAA ratings), release date, genre, and a synopsis. (2)
These user stories are translated and broken down into programming tasks:
1. Implement a search mechanism to simultaneously search a single string against the Netflix Title Database by Movie Title, TV Show, Actor, and Director. The search request will call Netflix’s backend Search API which returns a list of Titles that match any of the given criteria. (2)
2. Implement a browse mechanism that hooks into the Netflix Title Database and makes appropriate calls based on the type of browse being used by the user. If a user is browsing by Top Rated, Browse should search the database for top rated movies and display those in decreasing order. (2)
3. Implement a “details” screen that displays information relevant to the most recently selected title. This screen will make calls to various systems, including the RottenTomatoes API, MPAA Movie Database, IMDB, and the Netflix Title Database. (3)
Risk Plan
Schedule
There is a 30% chance error in the schedule for the project. This could tie up resources, ultimately impacting other projects and increasing costs.
Indicators for this risk would be iterations not meeting the deadlines set by the project timeline.
The mitigation for this risk is to implement portions of the project incrementally through iterations, and push for completion by these dates. If an iteration is projected to exceed the deadline we will consider the cost of adding resources such as personnel, training, and technologies which would speed up the development process. Ultimately if the project exceeds the projected timeline such that outsourcing becomes a better choice financially, the remainder of the project shall be outsourced.
Requirements Creep
Requirements are estimated to creep by up to 1% per month. This could extend the project timeline, complicate project requirements, and increase costs.
An indicator of requirements creep is the addition of new use cases and non-functional requirements.
The mitigation for this risk is to implement the new requirements if they do not impact the budget, or to deny them if they do.
Specification breakdown
The risk of misread, misinterpreted or under defined specifications is 5%.
An indicator of this is acceptance test failure and disagreements among developers, Project Manager’s and the business analysts.
The mitigation for this risk is to provide several documents which outline the specifications and requirements for the project, including the functional and non-functional requirements, and have the documents approved by the Project Manager, the business analysts, and lead architect. The requirements will be reviewed and verified after each iteration to insure they are still being met throughout the development of the project.
Project Schedule

Analysis
Analyzing the enterprise domain, along with the problem and solution, allow us to identify key areas of improvement.
Domain Analysis
The domain analysis is an extension of the enterprise analysis from Part 1. This will further develop the scope of the domain, indentifying competitors and their related software systems, as well as shedding light on areas of business that can be improved.

This domain model illustrates a high level view of the typical interaction of a customer with their Netflix account. A customer uses a computer to access netflix.com which then allows them to manage their account settings, add DVD’s to their Queue, and view streaming video via their instant que.
Problem Analysis
The problem analysis will identify where in the Netflix enterprise improvements can be made to grow the business. There is currently a problem with user-experience, specifically at the Netflix-user interface. Users are becoming more mobile and are not always tied to a computer with a fully-featured web browser, and Netflix should address this issue. Netflix offers no other way for users to access their account than through their main website.

With the introduction of smart phone devices customers are now able to access the internet on the go. Unfortunately many of these smart phones are either unable to render full HTML or are plagued with inefficient UI’s which make it very difficult to access and use the main Netflix website. This effectively means that they are not able to access the full Netflix experience on the go (shown above by a missing link between the smart phone and Netflix website objects).
Solution Analysis
The solution analysis gives an interface-level description of what the system will do to address the problem identified in the Problem Analysis. Netflix Mobile will be a mobile-web-browser-based site that mimics the functionality of the fully-featured Netflix website, but is targeted for the user on the go.

The proposed solution is to create a component in the form of either a mobile application or a mobile formatted website. This will allow customers to have access to the full features of their Netflix accounts when a traditional computing environment is not present.