Information Communication Technology (ICT) Application in Airbnb

Question: Use organization AirBnB, Research and report on their deployment of ICT in a managerial capacity and identify the business case for that deployment. Describe how the use of information communication technology can impact business models and the direction of the organization? Answer: Introduction: Airbnb came was founded in year 2008 for the purpose of rent out lodging facility. At present the company has its presence over 192 countries around the world. It has its headquarters in San Francisco, California. Applying ICT in Airbnb: A. ICT application in managerial capacity: ICT or Information and Communication Technology is the key to the operation and functioning of the Airbnb. It has proved to bring huge success for the company in just five years of its inception. Through the application of Information and Communication the company has place a platform which is more like a social website that allows guests and hosts to interact on lodging facility. That is the web portal and recently added mobile application allows the guests to enquire about the lodging facility. In return the host would offer details along with images, videos and price for stay using the online service portal. The web portal therefore offers a secure lodging facility for the guest with the already registered host along with the customer reviews. On the other hand the interest of the host is also taken care of by offering them 24 hour customer support system so that the miscreants guests can be dealt with immediate effect. B. The use of information communication technology impact on business models: The use of information communication technology can impact business models by bringing in action the new idea of dealing with the clients and making profits thereafter from the business deals. The business models that have come into existence with the information communication technology in action for Airbnb include the followings. Bricks and clicks business: The application of bricks and click business model has been developed through the information communication technology as the services of selecting and booking a lodging facility is done online and the guests have to take the advantage of the facility by physically moving to that place. Franchisee business: The company has opened its franchisee business in various countries through which the business portal in different countries help them manage for the lodging facility through the local entrepreneurs. Fee in, Free out business model: Airbnb charges the hosts of around 6%-12% of the commission from their earnings. This way they offer fee in service from the hosts and free out service for the guests. C. Applying information technology to leverage information: The application of information technology to leverage information has resulted in enhancing business competitiveness. The companys policy of sharing the host information with the guest and vice versa has resulted in bringing out more acceptance between the two parties but it has resulted in increasing issues and problems for the company itself. The company has to face various charges of guests making burglary in hosts place. On the other hand the hosts are not giving the appropriate response or promised service or logistics facility to the guest. The result is that this platform of lodging has been facing serious competition from various other websites such as craigslist, local mind and others which suggest their different logistics places. Although the advancement in the technology has resulted in the rise of this business the same has created close competitors for it. This has led the company to move on active growth plan through which it is making its new office in different place s around the world including Australia, Europe, North America and now planning to enter Asian markets. Thus the global level operations have become the key for the sustenance of this business which is completely dependent on information communication technology. At present the company is getting 75% of its earning from outside United States which is a good example of the ICT strategy and application in practice. D. Synthesizing an Enterprise Information System has to offer: An Enterprise Information System applied in Airbnb has to offer a more thorough platform in the operation in following ways. Increasing centralized functioning: Through online medium and 24 hour support system, Airbnb is able to increase its centralized functioning through which the global guests can interact with global hosts for lodging facility. The mobile application which supports chart and image sharing has helped in bringing the two parties closer. Also the back support system available round the clock also helps in assisting the customer in entering in business deals. Achieving high quality performance: The improved website functions and mobile applications through Android and IOS the company has been able to reach closer to its customers. Thus the 24 hour customer support system helps the company to achieve customer satisfaction. Also the sharing image facility and the customer reviews on various lodging places helps in offering high quality performance to the guest search for lodging facility. Fulfilling large organizational needs: The organizational needs of growing is been achieved through the Enterprise Information System in application. It has helped the large organizations to enter into partnership and join ventures with global hosts so that the global guests can be provided with a proper lodging facility. E. Diagnosis of organizational issues and application of strategies by Airbnb: The various organizational issues that the Airbnb is facing in the present day context include the followings. Guests making burglary and loss of property. Hosts not dealing well with the guests. The guests are not leaving the place of hosts for many days. Indecent acts taking place under cover of offering lodging facility. However the appropriate strategies are being applied to get the required outcomes which include the followings. Government issued identity cards are made a must during deal finalization and even travelling. Airbnb suggests the hosts to buy traveller insurance to safeguard their interest from losses during to guests. Airbnb provides 24 hour support to both guests and hosts. The company offers loss assistance to the hosts. Conclusion: In the end, Airbnb has been making a consistent growth and development in business from past five years. The company has been able to achieve the unexpected growth targets which have helped it develop in 192 countries around the world. 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