Category: Innovation

How should hotels respond to the sharing economy?

Posted by MIT Sloan Executive Education - 1 month and 6 days ago

The sharing economy—also known as the collaborative consumption or the peer economy—is disrupting many industries. The sharing economy is one where participants share products or services—such as cars or spare rooms—instead of individual ownership. 

Airbnb is the one of the pioneers of the sharing economy and seems to be a major disruptor in the traditional hotel/hospitality market. (Incidentally, one of the founders of Airbnb was a student of Nelson Repenning, Professor of System Dynamics and Organization Studies at MIT Sloan; Repenning mentions this in his innovation@workTM webinar, “Useful Does Not Always Mean Used”.) Airbnb rents lodgings in more than 34,000 cities in 190 countries and has served more than 17,000,000 guests. What was once thought of as a place to find vacation housing is now frequently used by business travelers as well; as of late July 2014, the company saw 10% of its revenue from business travelers.

One would think the hotel industry would be up in arms, worried, and reacting the way the taxi cab industry is to Uber and Lyft. According to Fast Company, however, the hotel industry is not overly concerned—or so they claim. The magazine quotes Hilton Worldwide EVP Jeff Diskin as saying he “loves what Airbnb is doing … [offering a more] home-like experience.”

It appears the actual revenue impact is minimal; one recent research report found that “every 1% increase in listings [on Airbnb] in a given market would result in a 0.05% decrease in quarterly hotel revenues.” While the revenue Airbnb is siphoning from hotels is having minimal impact, its rapid growth is still worth watching. As noted in Fast Company, “At the current rate of expansion, Airbnb … will soon surpass the InterContinental Group and Hilton Worldwide as the world’s largest hotel chain.”

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The real challenge for self-driving cars

Posted by MIT Sloan Executive Education - 2 months and 25 days ago

It’s a given that almost all new technologies foster some unintended consequences. Take mobile phones: what was once viewed as revolutionary is now something ubiquitous. But the ubiquity of mobile phones has resulted in 1.3 million vehicle crashes in 2011—a full 23% of auto collisions that year involved cell phones. Despite the large number of incidents, the laws around texting while driving vary widely. Thirteen states— Washington, D.C., Puerto Rico, Guam, and the U.S. Virgin Islands—all ban drivers from using mobile phones while driving. Forty-four states, Washington, D.C., Puerto Rico, Guam, and the U.S. Virgin Islands all ban text messaging while driving.

It makes one wonder how the U.S.—either federally or state-by-state—or any government for that matter, will determine how to react to the emergence of commercially available self-driving autonomous cars. What was once viewed as “science fiction” is soon to be a reality on the roads. As Erik Brynjolfsson, Professor of Information Technology at MIT Sloan School of Management, told the Wall Street Journal, “About 10 years ago, I was teaching a class at MIT. One of the topics of discussion was what machines can do and what machines can’t do. One of my examples of things that machines can’t do was drive a car.” Fast-forward to 2012, when Brynjolfsson was able to take a test drive in a fully automated Google car. And, Google’s not the only innovator working on self-driving cars—Nissan has committed to having commercially viable autonomous drive vehicles on the road by 2020. So, it’s not a matter of if, but when.


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Are the courts stifling innovation?

Posted by MIT Sloan Executive Education - 3 months and 1 day ago

For seven straight years, Fortune has named Apple as the World’s Most Admired Company. The magazine wrote the following about why Apple is held in such high esteem:

“The iconic tech company known for the iPhone and other stylish and user-friendly products is back in the top spot on this year’s list, for the seventh year in a row. Apple, the most valuable brand on the planet according to Interbrand, brought in $171 billion in revenues in FY2014 and is flush with cash, but fan boys and girls (not to mention the market) are getting antsy to see its next big product. Bets are on a smartwatch or AppleTV, but the company is also reportedly turning its attention to cars and medical devices.”

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Can the cab industry innovate?

Posted by MIT Sloan Executive Education - 3 months and 9 days ago

Those of us who work and/or live in Cambridge are quite familiar with the controversies stirred up by the wildly successful business, Uber Technologies, Inc. Uber considers itself a technology company, offering a mobile app that connects riders with drivers. The company has taken an innovative approach to making it easier to get from one point to another, eliminating the need to hail a cab on the street.

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It’s time to rethink wages

Posted by MIT Sloan Executive Education - 3 months and 17 days ago

For the last year or so, there’s been a significant amount of news coverage around the wages paid to low-income earners, such as those working at fast food outlets and in retail stores. There have been public protests, calls for boycotts, and legislation to raise the minimum wage in some states.

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MIT Sloan Executive Education partners with Haiti

Posted by MIT Sloan Executive Education - 4 months and 2 days ago

Strong leadership and innovation are ideals and skills that should not be limited to the business world. In fact, one could make a strong argument that innovation is needed more in non-profit and government organizations than in corporations. Of course, we’d argue that innovation is needed everywhere. And, that nearly every kind of organization can benefit from it.

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The digital business transformation imperative

Posted by MIT Sloan Executive Education - 4 months and 7 days ago

“What exactly does a digital business transformation mean?” asked Michael Krigsman, CEO of Asuret, Inc., and moderator of the "CIO, CMO, CDO Perspectives on Digital Transformation" panel at The 2014 MIT Sloan CIO Symposium.

Each of the panelists—F. Thaddeus Arroyo, CIO of AT&T Services, Inc.; Robert Tas, CMO & SVP of Pegasystems; Tanya Cordrey, Chief Digital Officer (CDO) of Guardian News and Media; and George Westerman, Research Scientist at the MIT Center for Digital Business—had his or her own take on the digital transformation facing most businesses today. 

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