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BM5301I Strategic Information Systems Management

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BM5301I Strategic Information Systems Management

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Course Code: BM5301I
University: Saylor Academy

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Country: United States


Answer the following questions comprehensively.
1.Airbnb has a very different business model from the ordinary hotel business model. Compare Airbnb business model with the ordinary hotel business model and explain in detail why Airbnb business model outperforms the ordinary hotel business model.
2.Does Airbnb disruptive? How should the existing hotels face Airbnb or similar platforms?
3.Discuss the fast-growing phenomena of Airbnb.
4.Airbnb is an example of digital platforms that applying two-side or multi-side networks/markets. Why is some digital two-side networks can grow extremely fast in a relatively short time like Airbnb, Uber, or Grab? Discuss briefly some strategies of two-side markets to grow.
Module Content:

Business Strategy for the Digital World
Business Exploitation of Information and Communication Technology Systems
Information Systems Development Approaches
Disruptive Technologies and Applications
Business IT/IS Alignment
Strategic IS/IM in Context
Global Issues in Information Management
Strategic Knowledge Management
Organizational Change, Culture and Strategic IS/IT Led Change
IS/IT Benefits Management and Realization
Strategic IT/IS Leadership and IT Governance
IT/IS Professionalism, Ethics and Security


Answer 1:
Airbnb has been a real example of digital transformation in the hotel industry, where they operate as a transaction facilitator between the hosts and travelers who are looking mainly for the comfortable accommodation. The revenue model of Airbnb highlights on providing a better technological infrastructure where hosts, and the guests can use it effortlessly to book, and promote the houses of the people (Champs, 2017). The free access to book and list and the properties helps the dedicated following of users and hosts to handle the entry and the barriers of mobility. The company has been able to maximize the transactions by letting the customers easily browse and then set it at no charge through the different listings till there are secured reservations. The hosts and the guests of Airbnb which accepts the transaction charges with additional transaction fee of 6-12% with hosts charges of 3% of transaction fee.
The other hotels also deliver a seamless customer experience which is determined mainly at a reasonable price. Here, the travelers are generally looking for any type of the premium service where they are willing to pay more with a higher expectation. So, they need to focus on the quality of service and technology with self-service (Zervas, Proserpio & Byers, 2017). The hotels have a diversified hospitality where the company manages the franchise and handles the brand portfolio of hotels. The business model is about the quality of service and maintaining the name and the partners they make who help in providing a pre-determined service standards which are more visible for the user base.
Airbnb is able to outperform through the minimum regulations and the controls. The company is able to handle and target a wider range of the customers where it tends to continue for the growth to utilize a larger userbase with international exposure which is found to be more powerful than the other larger group hotels. The importance of Airbnb has been about making sure of the experiences of both customers and hosts where they are making use of IoT, for connecting the home elements to give a sense of personal touch.
Answer 2:
There are certain technologies and services which are found to be holding a ultimate size which includes how Airbnb has been disruptive social business for the people. The services like Airbnb take advantage of the internet powered social phenomenon with dramatic lowering of interaction barriers to point about how the changes are done and how people respond in a disruptive manner. The growth of Airbnb and other similar crowd powered services has a potential to impact the industries which are taken for granted and whether the hotel business or venture capital is set for the transport industries. The company is growing in popularity where the quality of offering is increased as well (Fang, Ye & Law, 2016). They need to focus on addressing a higher value of customers to address a stay at a nicer hotel. The company has been hovering over the other cheaper alternatives as it provides a sense of personal touch to the customers.
Airbnb has been able to save money with unique accommodations with relevancy to the decisions. Hence, according to the survey, the customer experience and engagement came up as a factor that is important for driving the brand growth in the next 3-5 years. With safety in different aspects, all the travelers need to work on handling the leverages easily by hotels who require to work on end-to-end experiences from a flexible check-in time to uninterrupted Wi-Fi setup. The luxury travelers generally focus on the night security where Airbnb are providing some Luxury Retreats with talented people who have a deep experience in it. They have not entered a high-end hotel market where one tends to seek for accommodations of business from Airbnb and seek a business travel and expense management platform (Nesser, Peitz & Stuhler, 2015). The people are involved in innovation, displacing, new values and then setting a transformational methods which are important for refining and optimizing the needs as per the stay. The customers have a unique and personal experience with values, variety, choice and individuality with offering a more personalized and unique service and experience which matches their budget and spending patterns. The hotels are flexible than the other chain hotels when it comes to adaptation of the services and business.
Answer 3:
Airbnb has been the most preferred place for a family or individual while they are going on a travel. There has been a peer-to-peer exchange service for hospitality. The arguments are about connecting hosts who are able to rent out for a private property to the short term sublet. There is a need to understand about the rapid growth with establishing a larger peer-to-peer hospitality service where the business model focus on the hosts and guests exchange housing for money. The hosts and guests can easily find the reviews with social media connections to build trust. With the influx of technology, the users can dictate their experiences which affect the choices of consumers through different online platforms (Park & Allen, 2018). The pricing structure of Airbnb provides a platform with peer-to-peer exchanges that does not have a direct impact on the lodging prices that are being offered by the hosts mainly. Airbnb hosts follow different guidelines which are for setting the prices for individual night or cleaning fees.
The fast-growing phenomenon of Airbnb also highlights on access to data to understand about how the customers are interacting with the platform which was here. It, thereby, enables Airbnb to identify the issues and then solving them quickly and efficiently. The company is also able to provide a better help to its customers by using a chatbot which could help in reducing a larger number of complaints of customer. The key takeaway is customer centricity where the efficiency is offered by the mobile-first approach, improved website or application is a secondary factor to the benefits to the customer. Airbnb is not a distribution platform where it enables the travelers to reimage the way they travel by building a trusted community for people of lists, discovery and booking the unique properties and experiences. They have been joining the platforms with hosts who have the opportunity to put it on a global mapping and the guests at the international and domestic level (Cha, 2018). The goal is to work on the end-to-end travelling platform which has the ability to transform how the people stay when they are travelling through the people-powered hospitality. The focus is on how the hosts can share their passions with leading activities that gives guests a unique access to easily enter into different places and communities. Home sharing has thrived mainly due to the economic opportunity where Airbnb allows to meet the new people and then use the income for pursuing personal passions, start a new business and then giving back to the communities.
Answer 4:
The two-side market is an economic platform with distinct types of the user groups that help in providing a better network benefit. The organization helps in creating a value which is enabling direct interactions in between the distinct types of the affiliated customers. They are for sharing the space with the traditional product and service offerings, where markets include the credit cars and the other operating systems (Choi, Jung, Ryu, Do Kim & Yoon, 2015). Airbnb, Uber have been able to make use of the same with refined network effects which are same sided and has a cross side network benefit as well. The multi-side platform is where the need is to order a match in both parts of platform in an effective manner. The intermediary will lead to minimizing the costs, with avoiding duplication or minimizing the costs of transaction. The changes would not occur till they tend to create value but produce certain value when the users are interconnected through it. The two-sided network requires the buyers and sellers to focus on preferring a larger number of buyers who can easily find the trading partners from the other groups. The users need to focus on different functionality from their common platform where the customers require a unique account, access to the phone-based customer service etc (Guttentag, 2015). The platform managers need to choose the right pricing to charge the groups in a two-sided network which can lead to mistakes as well. The key feature of digital two-sided markets are:

It holds a novel pricing strategy and the business models that it employ.
The competition is about how the users will be paying more to access a bigger network with improving margins as there is a growth in user bases. This will be able to set a network platform apart from traditional manufacturing and service business.

Champs C., (2017). To Airbnb and beyond: Digital transformation in hotels & hospitality., Available at:< https://www.clickz.com/to-airbnb-and-beyond-digital-transformation-in-hotels-hospitality/113872/>
Choi, K. H., Jung, J. H., Ryu, S. Y., Do Kim, S., & Yoon, S. M. (2015). The relationship between Airbnb and the hotel revenue: in the case of Korea. Indian Journal of Science and Technology, 8(26).
Fang, B., Ye, Q., & Law, R. (2016). Effect of sharing economy on tourism industry employment. Annals of Tourism Research, 57(3), 264-267.
Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), 1192-1217.
Neeser, D., Peitz, M., & Stuhler, J. (2015). Does Airbnb hurt hotel business: Evidence from the Nordic countries. University Carlos III de Madrid dissertation.
Park, S. Y., & Allen, J. P. (2018, July). THE HOTEL INDUSTRY VS. ONLINE TRAVEL AGENCIES: FOREVER FOE?. In 2018 Global Marketing Conference at Tokyo (pp. 837-842).
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.

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