This essay discusses the implementation of technological innovation in Airbnb and its impact on the organization's efficiency and customer experience. It also explores different types of innovation and ways to organize and manage innovation.
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Essay1 Innovation
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Essay2 Introduction The aim of this essay is to make understanding about the technological innovation in an organization in attaining the organizational objectives. Technological innovation is helpful for the organization in improving their efficiency of operational activities as well as the products and services in the associated industry. In order to understand the implementation of technological innovation, the essay discusses technological innovation in Airbnb. In addition, the essay is also discusses different types of innovations are helpful for the organizations in implementation of innovation in the business processes. Strategic summary of Airbnb Airbnb is most innovative company, which is operating a global online lodging and hospitality servicesthroughmobileapplicationsandwebsites.Airbnbisconsideredasanonline marketplace that unites the individuals who are looking to rent out their dwellings with the individuals who are searching for accommodation in that environment. At present time, the company is operating its online services in 191 nations and 81,000 cities of the world (Folger, 2019). Airbnb has adopted a unique business strategy towards the lodging services instead of replication of travel sites like Travelocity and Expedia. The individuals can search for their accommodation needs during the travelling and book hotels and other places to stay during the internship programs. In this concern, Airbnb is an online platform, where the individuals can search for accommodation needs and get a better tourism experience. The major products or servicesofAirbnbareaccommodationservicesforthetravelersthroughwebsitesand applications. Therefore, the company performs as a broker by offering entire transactions and communication between the host and guest through web portal. The target market of Airbnb is middle class budget travelers who are searching for spacious and comfortable accommodation during the traveling. In addition, Airbnb require is generating value proposition for the demand (guests) and supply (hosts) of its online platform on three levels such asindividualconnection,communityandlocalization.Thecompanyisgeneratingvalue proposition for the guests through offering convenient booking, large amount of choices, different types of homes, cashless transactions, rating system to allow individuals for feedback
Essay3 and cheaper accommodation services as compared to other service providers. As well as, the companyisgeneratingvaluepropositionsforhoststhroughgeneratingincome,easeof transactions, proper booking management, insurance coverage and analysis of guest ratings (Innovation Tactics, 2019). The company is also generating value propositions for both guests and host through recommending hospitality standards, taking trust and safety seriously and resolving disputes in proper manner. These value proposition and the business strategies are enabling Airbnb in operating its business operation successfully in the competitive environment. Innovativeness in Airbnb The term innovation is a process of offering products and services with new and unique business strategies. It is essential for the organization to implement innovation in their products and services to be competitive in the associated industry. Innovation in products and services provides the organizations an opportunity to expand their business operation in smooth manner and attract the new customers and retail the existing customers for long-term (Baldwin and Von Hippel, 2011). Airbnb is the most innovative company, which is offering its accommodation and travelling services across the world with innovative business strategies. In recent, the company has developed its business model to provide hosts technological tools to run sophisticated and seamless business operations. At present time, the company is considering approx 40$ Airbnb catalogs through Instant Book to allow the individualsor guests to make new check-in automatically and make reservations much as they would a hotel booking via app. In addition, the company has also implemented innovation through expanding into the “Business Travel Ready Listngs” that enabled the company to provide the travelers a guaranteed Wi-Fi, chosen work space and more. In addition, the company is also assisting the travelers to explore the world outside their rentals through websites and applications. The company also launched ‘Trips’ a service to lure the travelers for adventures and local tours in 30 cities and 20 nations across the world. In order to address the humanitarian concerns, the company also launched an innovative “Open Homes” program to allow the hosts to accommodation services to dislodge travelers, immigrants and individuals who are looking shelter after natural disasters. All of the forms of innovation in accommodation and travelling services are playing an essential role in developing the competitive advantages. These innovations enabled Airbnb to offer more affordableandconvenienttravellingaccommodationspreference.Byprovidingaccessto
Essay4 distinguishing local culture and spaces, the company aimed to allow the individuals to “feel at home anywhere in the world” as the innovations have built association with the local hosts and traditions of their destinations. According to Shaughnessy (2016), the organizations can generate value prepositions for their customers through considering the theory of “Disruptive Innovation” in their operational activities. The theory determines that the technological implementation in the business operations enables the organizations to keep the customer data in appropriate manner and provide them expected services. Disruptive innovation in accommodation and travelling services will be helpful for the organizations in satisfying the needs and expectations of the potential stakeholders in appropriate manner. Airbnb enabled to generate value prepositions for both hosts and travelers through implementation of technology or disruptive innovation in its businessoperations.Thus,theinnovationimprovedtheeffectivenessofAribnb’s accommodation services at the global level. In the words of Gunday et al., (2011), innovation is essential for an organization to implement the creativity in the business operations. In order to implement innovation, organizations can consider different types of innovation or theories of innovation such as service innovation, user innovation, business model innovation, social innovation and open innovation in their business operations. The implementation of appropriate innovation enables the organizations to attain the competitive advantages in the associated market and attain the business objectives in most effective manner. In this regard, Ordanini and Parasuraman (2011) stated that service innovation is a process of providing services based on implementation of technology and logical processes. The implementation of technology in the organizational services is beneficial for both service providers and users. The organizations can gain competitive advantages in the associated industry. In this regard, the service innovation is a modern type of innovation, which is implemented by Airbnb in its business operations to offer its accommodation services to the travelers through technology such as websites and applications. User innovation is refers to a process in which the users are involved in innovation cycle. User innovation is a type of socio-technically distributed innovation with a number of degrees such as innovation in services, innovation in technologies and innovation in use. In this concern, the user innovationisassociatedtotheimplementationofnoveltechnologiesandnewwayof communication channels to communicate with the customers in effective manner. In this
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Essay5 concern,Airbnbisalsoconsideringuserinnovationinitsbusinessoperationswiththe technological implementation and improve the customer experience. In the words of Amit and Zott (2012), each organization has a specific business model to generate value for their potential customers. The “business model innovation” refers to changes in the existing business model and development of new business model to satisfy the customer needs in more effective manner as compared to the existing business model. Business Model Innovation is an essential capability of the organizations, who are seeking to force breakout growth, defend against the industry decline and reinvigorate lagging core (Chesbrough, 2010). This model is not considered by the Airbnb to implement the innovation in the products and services as the company is operating its business operation with the existing business model. According to Moore and Westley (2011), social innovation leads to the development, creation, integration and adoption of transformed and innovative systems, concepts and practices that put individualsand planet first to develop a better world. The concept of social innovation determines innovative social practices to meet the social needs in better manner as compared to the existing solutions. Social innovation purposes to online volunteer, distance learning or microcredit. Social innovation is not privilege or prerogative of any legal structure of the organizations (Westley and Antadze, 2010). In social innovation, the solution requires active association of constituents across business, government and nonprofit world. In this concern, Airbnb has not considered social innovation in its business operations to expand the business operations as the company is operating its business operations to gain profits from the world communities. In the words of King and Lakhani (2013), open innovation is an essential type of innovation. The organizations can use open innovation for inflow and outflow of relevant information to boost the internal innovations and increase the market share for exterior exploit of innovations. Open innovation is used to allow the organizations to respire with the external technologies (Dahlander et al., 2008). In this concern, the organizations can use external resources or technologies with application of open innovation. Airbnb is not using open innovation in its business operations as the company has implemented technology in unique manner to provide the accommodation and travelling services to its potential customers. Fromtheanalysisofdifferenttypesofinnovation,itisanalyzedAirbnbexemplifiesa combination of different types of innovations such as user innovation and service innovation to
Essay6 implement innovation in its products and services. These types of innovations has enabled Airbnb to attain the competitive advantaged and develop value propositions for customers. Ways to organize and manage the implementation of innovation Management of innovation is essential for the organization to implement the innovation in effective manner and attain the desired outcomes from the implemented innovations. There are different ways through which the organizations can organize and manage the implementation of innovation in effective manner. The organizations must understand the expectations of the potentialstakeholdersandtakeanappropriatedecisionregardingtheimplementationof innovationinitsbusinessprocesses,productsandservices.Anappropriatedecisionof innovation will enable the organizations to attract the potential stakeholders to be engaged with the organization for further achievements (Boudreau and Lakhani, 2009). Airbnb have proper attention on “making what people want” to cultivate a “sense of belonging” through story sharing on its websites and inviting the users to be engaged with its campaign of logo design. In order to organize innovation in proper manner, Airbnb Company also interacts with local community away from virtual space by partnerships with the regional authorities of Portland and San Francisco to identify the hosts and help them to displace the individuals in emergency events. In the words of Nylen and Holmstrom (2015), the success of implementing innovation depends on trust of the customers regarding the implemented innovation. The organizations can organize and manage the implementation of innovation through generating trust among the potential stakeholders that the implemented innovation is better for them as compared to past products and services. Airbnb is communicating with the travelers as well as hosts to trust them that the implemented technology will be beneficial for both of them. Airbnb is interacting with the hosts to introduce them that the technological implementation will be beneficial for them in generating more revenue from across the world. As well as, the hosts will be able to manage the conflicting situations with help of Airbnb in proper manner. In addition, Airbnb also made efforts to generate value propositions for both hosts and travelers with the implementation of technological innovation. The generating value propositions are helpful for the organization in attracting the new customers as well as retaining the existing customers for long-term. In order to retain the travelers with the implementing innovations, Airbnb is providing different offers, credits and
Essay7 promotional codes for frequent hosts and traveler with use of the implemented technological innovation (Innovation Tactics, 2019). These offers, credits and promotional codes are attracting the customers to be engaged with Airbnb. As well as, as the company is also able in organizing and managing the implemented innovations in proper manner with considering these initiatives. In others words, these efforts or initiatives are facilities Airbnb in achieving the strategic innovation outcomes. Thus, Airbnb has made appropriate efforts to organize, manage and achieve the strategic outcomes of technological innovations in the business operations. Strengths and weakness From the analysis of different theories of innovation, I have analyzed technological innovation is essential in the organizations to improve their internal skills and capabilities to attain the existing opportunities in the external market. At present time, the technology in business operations is increasing rapidly and improving the effectiveness of the business procedures. I have observed that the technological innovation in lodging industry has improved the customer experience in big manner and enabled the organization to serve better services. However, there are several strengths and weaknesses of technological innovation for the organizations that can influence to organizational performance in big manner (Baden-Fuller and Haefliger, 2013). In this regard, it is essential for the organizations to have better understanding on these strengths and weaknesses of technological innovation for successful engagement with the process of implementation digitalizationandcollaborativeformsofinnovation.Thestrengthsandweaknessofthe technological platform for Airbnb are discussed in the below table: StrengthsWeaknesses The company can cover a big market share with technology. Implementationoftechnology innovation improved the efficiency of keepingandanalyzingthecustomer database in proper manner. Decreased the burden of recruiting a big number of workforces. Technological innovation improved the Technological innovation has issue of protectingcustomerinformationin secured manner. Thejobsaremaderedundantwith technological implementation. Technologicalimplementation increasedtheburdenofrulesand regulations in the business processes.
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Essay8 wayofcommunicationwiththe potential customers. The company may resolve the issues in quickmanneraftertechnological innovation in business operations. From the above table it is analyzed that the weaknesses of technological innovation are less effective for the organizations as compared to strengths. In this concern, the technological innovation of Airbnb is beneficial in attaining the opportunities in the external market as the technological innovation will enable the company in improving quality of its products and services to improve the customer experience while getting the accommodation and travelling services. Conclusion From the above discussion, it can be concluded that innovation has been played an essential role in achieving the business objectives in more effective manner. The technological innovation has improved the organizational efficiency to satisfy the customers in better manner. It is also analyzedthattheorganizationscancommercializenewideasthroughimplementationof innovation in business operations. Thus, the organizations can improve the effectiveness of their products and services among the potential customers through technological innovation.
Essay9 References Amit, R., and Zott, C. (2012) Could your company benefit from a new business model? Consider these six questions,MIT Sloan Review,53, pp. 41-49. Baden-Fuller, C., and Haefliger, S. (2013) Business models and technological innovation,Long range planning,46(6), pp. 419-426. Baldwin, C., and Von Hippel, E. (2011) Modeling a paradigm shift: From producer innovation to user and open collaborative innovation,Organization Science,22(6), pp. 1399-1417. Boudreau,K.,andLakhani,K.(2009)Howtomanageoutsideinnovation,MITSloan management review,50(4), pp. 69-71. Chesbrough, H. (2010). Business model innovation: opportunities and barriers,Long range planning,43(2-3), pp. 354-363. Dahlander,L.,Frederiksen,L.,andRullani,F.(2008)Onlinecommunitiesandopen innovation,Industry and innovation,15(2), pp. 115-123. Folger,J.(2019)Airbnb:AdvantagesandDisadvantages.[Online].Availableat: https://www.investopedia.com/articles/personal-finance/032814/pros-and-cons-using-airbnb.asp (Accessed: 14 May 2019). Gunday, G., Ulusoy, G., Kilic, K., and Alpkan, L. (2011) Effects of innovation types on firm performance,International Journal of production economics,133(2), pp. 662-676. InnovationTactics(2019)BusinessModelCanvasAirbnb.[Online].Availableat: https://www.innovationtactics.com/business-model-canvas-airbnb/ (Accessed: 14 May 2019). King, A., and Lakhani, K. R. (2013) Using open innovation to identify the best ideas,MIT Sloan management review,55(1), pp. 41-43. Moore, M. L., and Westley, F. (2011) Surmountable chasms: networks and social innovation for resilient systems,Ecology and society,16(1), pp. 37-43.
Essay10 Nylen, D., and Holmstrom, J. (2015) Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation,Business Horizons,58(1), pp. 57-67. Ordanini, A., and Parasuraman, A. (2011) Service innovation viewed through a service-dominant logic lens: a conceptual framework and empirical analysis,Journal of Service Research,14(1), pp. 3-23. Shaughnessy,H.(2016)Harnessingplatform-basedbusinessmodelstopowerdisruptive innovation,Strategy & Leadership,44(5), pp. 6-14. Westley, F., and Antadze, N. (2010) Making a difference: Strategies for scaling social innovation for greater impact,Innovation Journal,15(2), pp. 23-27.