HCAD 600 Innovation

Peer #1
Disruptive innovation is often developed by new firms, creating new markets and displacing old ones. It does not have to be a new product, better than the old one, but rather a product that creates a new market that destabilize the other companies ( Rackic, 2020). One example of disruptive innovation is Airbnb. Airbnb was founded in 2008, providing accessing to lodging accommodations through individuals renting a room, house, or apartment. It allows customer to find rooms or places available even in areas where hotels are totally booked, or in areas where hotels are not available. Airbnb offers listings in 191 countries, and its total number of listings—4 million-—is higher than the top five major hotel brands combined. Airbnb pushed the hotel industry to lower their rates and keep competitive prices, avoiding the increase of rates in peak seasons or events (conferences, sports events, concerts, etc.). Another advantage of Airbnb is that the customer can search for just a room, house, or apartment and other amenities like privacy, kitchen, pool, and many others (Gerdeman, 2018).

Breakthrough innovation is the creation of new ideas/products in the organization to create a new market or improve an existing one. Individual’s creativity is needed to create the new products and push things to the next level. Breakthrough innovation can not be accomplished in every organization, but it is necessary for organizations to survive in today’s world. Organizations need to plan accordingly, do market research, and hear customers to come up with innovative ideas to improve a service or develop a better one. Breakthrough innovation can bring growth opportunities to business (Zhu, 2019). Osborne’s computer is a clear example where breakthrough innovation was not accomplished by the organization (History Computer n.d.)
References:
Gerdeman D. (2018, February 27) The Airbnb effect: cheaper rooms for travelers, less revenue for hotels. Forbes. Retrieved from: https://www.forbes.com/sites/hbsworkingknowledge/2018/02/27/the-airbnb-effect-cheaper-rooms-for-travelers-less-revenue-for-hotels/?sh=51578711d672
Rakic, K. (2020). Breakthrough and disruptive innovation: a theoretical reflection. Journal of Technology Management