Technological Innovation in Airbnb

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.

Essay 1
Innovation

Essay 2
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
services through mobile applications and websites. Airbnb is considered as an online
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
services of Airbnb are accommodation services for the travelers through websites and
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
as individual connection, community and localization. The company is generating value
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

Essay 3
and cheaper accommodation services as compared to other service providers. As well as, the
company is generating value propositions for hosts through generating income, ease of
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 individuals or 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
affordable and convenient travelling accommodations preference. By providing access to

Essay 4
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
business operations. Thus, the innovation improved the effectiveness of Aribnb’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
innovation is associated to the implementation of novel technologies and new way of
communication channels to communicate with the customers in effective manner. In this

Essay 5
concern, Airbnb is also considering user innovation in its business operations with the
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
individuals and 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.
From the analysis of different types of innovation, it is analyzed Airbnb exemplifies a
combination of different types of innovations such as user innovation and service innovation to

Essay 6
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
potential stakeholders and take an appropriate decision regarding the implementation of
innovation in its business processes, products and services. An appropriate decision of
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

Essay 7
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
digitalization and collaborative forms of innovation. The strengths and weakness of the
technological platform for Airbnb are discussed in the below table:
Strengths Weaknesses
 The company can cover a big market
share with technology.
 Implementation of technology
innovation improved the efficiency of
keeping and analyzing the customer
database in proper manner.
 Decreased the burden of recruiting a
big number of workforces.
 Technological innovation improved the
 Technological innovation has issue of
protecting customer information in
secured manner.
 The jobs are made redundant with
technological implementation.
 Technological implementation
increased the burden of rules and
regulations in the business processes.

Essay 8
way of communication with the
potential customers.
 The company may resolve the issues in
quick manner after technological
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
analyzed that the organizations can commercialize new ideas through implementation of
innovation in business operations. Thus, the organizations can improve the effectiveness of their
products and services among the potential customers through technological innovation.

Essay 9
References
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resilient systems, Ecology and society, 16(1), pp. 37-43.

Essay 10
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