MIS500 Analyse Of Gabor George Burt Statement On Innovation: Netflix Assessment Answer

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Question :

Subject Code and TitleMIS500 Foundations of Information Systems
AssessmentResearch report
Length1000 words +/- 10%
Learning OutcomesThe Subject Learning Outcomes demonstrated by successful completion of the task below include:
a) Critically analyse the key information systems concepts and technologies in the context of contemporary businesses and organisations.
Total Marks100 marks

Task Summary

This assessment task requires you to research and write a 1000 words report on ONE of the topics provided. These topics are related to the key information systems concepts and technologies evident in the context of contemporary businesses and organisations.


The purpose of this assignment is to develop your ability to understand the use of information systems technologies and concepts such as innovation, digital disruption, cultural impact and new business models in the contemporary workplace.

Task Instructions

  1. Please read the attached MIS500_Assessment 1_List of Topics.
  2. Choose ONE (1) of the three (3) topics.
  3. Read and research widely on the chosen topic area.
  4. Write a 1000 words research report on the chosen topic based on the review of relevant literature and examples.
  5. The report should include an introduction, body and conclusion with references to support the ideas.
  6. Please refer to the assessment rubric to ensure you address all the assessment criteria.
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Answer :



This assignment is intended to analyse the statement of Gabor George Burt regarding innovation with the help of digital disruption. Every type of digital innovation affects the behaviours and expectation of the customers which ultimately affects the value proposition of the existing services and goods. Therefore, during digital innovation, digital disruption mainly occurs. For investigating the above-mentioned facts, Netflix has been selected which is belonging to the entertainment industry. The reason behind considering Netflix in this context is Netflix has a good focus on digital disruption.


Digital disruption creates digital transformation by changing the model of business along with the digital technology. The rapid increase of mobile technology for work and personal use has created the consumerisation of IT (information technology) that increases the chances of digital disruption. Digital disruption mainly changes the needs of the customers and then working with the tide that fulfils the emerging needs so that it can keep the existing customers happy (Bughin, 2017).Digital disruption mainly happens after digital innovation such as machine learning, big data and IoT that creates more value for the customers. After the happening of the digital innovation, customers’ behaviours and expectations are mainly evolved because new technology makes them using new technology which increases their expectation from an organisation that uses the technology (Hogarth, 2017). Along with that, digital innovation also changes the behaviour of customers and makes them accustomed to using new technology (Gilbert, 2015). Every customer wanted to use new technology because it helps them in getting more values which ultimately causes the digital disruption. 

Netflix has followed the subscription economy business model which has disrupted within the entertainment and media industries (Oxford college of marketing, 2020). This digital disruption has changes how content can be accessed by the customers as well as monetised by the advertisers. Innovation is new idea, new imagination or creative thoughts development by researcher. As argued by Karimi & Walter (2015), innovation is also observed as gaining a solution to address the need of existing market or meet the requirements of new market or achieve unarticulated need. Therefore, for developing innovation, it is important to develop a better product, technology or processes. This fact can be analysed with the help of the statement of George Burt who have demonstrated that innovations are mainly conducted with the help of bold along with the new combination of existing components. Innovations are mainly conducted for the betterment of the products and processes that are mainly conducted by developing a new combination by including the new function with the existing function of products and services (Skog, Wimelius& Sandberg, 2018). Despite the development of a completely new type of innovation, it is more effective in developing innovation by including a new combination of already existing combination.

It has been observed that Netflix wasstarted its business by renting DVDs through the mail. They had brick and mortar movie hiring shop. Previously, Netflix had postal businesses. During that time, they had invented various innovative options for them like express post. The intention of the organisation has made them an organisation that follows digital disruption. After that, when online streaming was developed by the researcher then Netflix has Netflix has started using the technology and knock out competitors with innovative strategy due to the wider selection, along with low costs and convenient approach (Møller et al. 2017). From the above-mentioned facts, it can be said Netflix has mainly created digital disruption by first generating the digital innovation for creating a different value for the customers and then they have changed the expectation and behaviour of the customers (Utesheva, Simpson & Cecez-Kecmanovic, 2016). During the innovation, Netflix has created digital innovation by using the rise of online streaming, implementing the subscription model and developing different unique contents. All of these components are the existing components but the combination of this component is new that has created innovation. Other companies might have applied this innovation but Netflix has performed the innovation before them. From this fact, the statement of Gabor George Burt can be explained (Thirgood& Johal, 2017). This is because, according to Burt, meaningful innovation is nothing but the combination of already existing components. On the other hand, from the innovation of Netflix, it has been observed that the organisation has developed the innovation with the help of already existing components.

The innovation of Netflix is digital disruption because it makes several customers in accessing and using the technology. According to Christensen, Raynor & McDonald (2015), all innovations are not disruptive, yet they can be revolutionary. Innovation can be called disruptive innovation when it can completely change the market. According to the theory of disruptive innovation, innovation can be called as the disruptive innovation because it disrupts the existing market along with network and generates an entirely new market. In that case, the innovation of Netflix is disruptive because it has completely changed the model of watching entertainment content. In the present time, streaming services attract several subscribers towards it because of the key selling points about the service. The subscribing models that are followed by Netflix are not only affordable to the customers but it also allows the customers in watching the content what they want without developing a new plan or schedule. In that case, Netflix has developed disruptive innovation by creating a new market foothold. There was not any organisation previously that directly offers services by following the subscription model. 


From the above description, it can be concluded that digital disruption has become very common in the present time. For theachievement of the competitive advantage, innovation has become highly important. In this present era, innovation does not need to be acompletely different innovation. This is because; innovation can be developed by combining different existing components. Netflix is one of the innovative companies that haveimplemented digital disruption in theirorganisation by inventing subscription model to the customers. Their innovation is a digital disruption becauseit has changed theexpectation and behaviour of customers.