Anthem Data Breach

Computer crime, also known as cyber crime, is one of the fastest growing segments of crime in the world. Global cyber crime costs approximately 100 billion dollars every year and affects about 556 million people. The medical field has the highest percentage of security breaches with 38.9% and business is the next highest at 35.1%. (Go Gulf, 2015) These crimes may range from illegally copying software to stealing millions of consumers’ personal information for financial gain. An organization is always at risk for cyber crime and must work diligently to ensure that their cyber security is a top priority. Security accounts for approximately 6 to 8% of the IT budget for companies in the US. (O’Brien & Marakas, 2011)

In February 2015, personal account information was stolen from approximately 80 million customers of Anthem, one of the country’s largest health insurers. This personal information included names, birthdays, Social Security numbers, mailing addresses, e-mail addresses, income data, and employment information; no medical or credit card information was accessed. According to Anthem president and CEO Joseph Swedish, it was a complex cyber attack originating from an external source. Security experts involved in the investigation of the incident state that the attack looks very similar to other attacks launched by a Chinese cyber espionage group known as “Deep Panda.” This name was given to the group by the security firm, Crowdstrike. The following graphic, the ScanBox Framework, was created by Crowdstrike and illustrates servers and tools that have been used in the past by “Deep Panda” in several other cyber attacks. (Krebs, 2015)

After learning of the security breach, Anthem contacted the FBI and hired a security company to evaluate all aspects of their security. The company then contacted their customers and set up a website to provide them with more information. (Weise, 2015) This attack ranks among the largest in recent cyber attacks. (Mathews & Yadron, 2015)

There are several points to consider regarding Anthem’s failure to protect this information. Two of the preventative steps of a data breach are to continuously monitor for the leakage or loss of sensitive information and to periodically test and check information security controls. (US Department of Education, 2012) A federal agency known as the Office of Personnel Management’s Office of Inspector General (OIG) performs audits on various health insurers that provide health plans to federal employees. Less than a month following the attack, the OIG stated that Anthem refused to allow the agency to perform “standard vulnerability scan and configuration compliance tests” on their systems. Anthem also denied a similar request in 2013. In both instances, the company stated that ‘company policy’ was the reason for the refusal. (McGee, 2015) It is interesting to note that the investigation of the security breach revealed that the hackers may have begun accessing Anthem data as early as nine months prior to the company’s report of the attack. (Krebs, 2015) In addition, Anthem’s data was not encrypted. Encryption of data is an important method used in cyber security. This method uses mathematical algorithms to transform digital data into scrambled codes. Although the law does not require companies to use encryption with critical data, it should have been an additional step utilized by Anthem to protect their system. (Kern, 2015) (O’Brien & Marakas, 2011)

Although there were steps that Anthem did not take to prevent the attacks, the company did respond correctly by notifying the affected customers quickly. Federal law requires healthcare companies to inform consumers if they have a data breach involving personal information, but they have up to 60 days after discovery of the attack to do so. (Mathews & Yadron, 2015) A website was created to educate their customers and they offered those affected free credit monitoring and theft identity protection services. They also contacted the FBI immediately and hired an independent security monitoring company to evaluate their system. It is important to act swiftly in this situation because hackers are able to destroy evidence once they are aware they are under investigation. (Weise, 2015)

The financial consequences of the data breach may reach more than 100 million dollars. Anthem’s cyberinsurance policy covered losses up to 100 million; however, with 80 million affected customers, the amount necessary for notification procedures may have exceeded this amount. (Osborne, 2015) In addition, this amount does not include the losses incurred by the affected customers that may consequently become victims of identity theft.

Cyber crime statistics and trends. (2015). Go Gulf. Retrieved April 17, 2015 from http://www.go-gulf.com/blog/cyber-crime/

Kern, C. (2015, Feb 20). Anthem breach leads to push for encryption legislation. Health IT Outcomes. Retrieved from www.healthitoutcomes.com

Krebs, B. (2015, Feb 9).Anthem breach may have started in April 2014.Krebs on Security. Retrieved April 17, 2015 from www.krebsonsecurity.com

Mathews, A & Yadron, D. (2015, Feb 14). Heatlh insurer Anthem hit by hackers.Wall Street Journal.Retrieved April 18, 2015 from www.wsj.com

McGee, M. (2015, March 4). Anthem refuses full IT security audit. Gov Info Security. Retrieved from www.govinfosecurity.com

O’Brien, J. & Marakas, G. (2011). Management Information Systems. New York, NY: McGraw-Hill Companies

Osborne, C. (2015, Feb 12). Cost of Anthem’s data breach likely to exceed $100 million. CNET. Retrieved from www.cnet.com

U.S. Department of Education: Privacy Technical Assistance Center. (2012). Data Breach Response Checklist (PTAC-CL). Retrieved April 17, 2015 from www.ptac.ed.gov

Weise, E. (2015, Feb 5). Massive breach at health care company Anthem Inc. USA Today. Retrieved from www.usatoday.com

IT Strategies for Transnational Organizations

As businesses become more globalized, and companies start branches in international markets, the need grows for developing and employing IT strategies for transnational organizations. Multinational enterprises constantly seek business solutions to the impacts of a saturated domestic market, slowed domestic market growth, increased labor costs, and shortage of specialized labor (Chen, 2005). Transnational Organization Strategy is a management approach wherein a business integrates its global business activities through cooperation between headquarters and international operations (Linton, 2015). In this system, centralized resources, such as global information systems, are key to help support this very strategy. It systems allow a company to deliver consistent information services to all locations, with higher levels of collaboration, all the while allowing the individual locations enough flexibility to adapt to their local market conditions.

Business and Information System (IS) executives need to be competent enough to analyze a global strategy from at least five levels: global, regional, national, company, and individual (Chen, 2005). There are a number of advantages to employing these types of strategies. Transnational organizations work with service providers that have the ability to provide global IT and networking services. This proves to be advantageous, for, working with a single provider reduces the cost, as well as the complexity, of managing various providers from the numerous locations. A single network unit is able to offer the same standard of services, and communication resource to each area, while allowing the central operating team to switch resource levels based on demand. The operations team is also able to provide IT resources new locations quickly and efficiently, without having the need to set up and connect to a new network infrastructure.

The Internet accessibility is perhaps the biggest challenge faced by companies these days. For instance, a company from the U.S. will have a difficult time corresponding with its foreign branches where a telephone network is not a viable option. Therefore, the idea is to have a global network of networks to smoothly communicate with one another. For example, OASIS has done a great deal to create interoperable industry specifications based on public standards, such as the XML and SGML. The global telecommunication industry is another key player in the movement of global information systems. There are four key players: communication providers, distribution providers, content providers, and tools providers. Communication providers include local phone, cellular phone, and other wireless service providers. Distribution providers include broadcast, Internet service providers, and long-distance phone service. Networking devices, such as routers and Ethernet cards, are considered communication hardware, while tools providers are manufacturers and suppliers of these products.

One major example of companies that successfully utilize transnational IT strategies is Citibank. The company employs over 250,000 employees in over 100 countries. Their e-business initiative to empower local, regional, and global customers to conduct transactions online is an excellent example of the use of information systems and technology to support international business strategy. Strategic alignment is a pivotal part of ensuring that adequate information systems structure is designed to support an international strategy. If not careful, IT may miss this target, unless it relies on the supply of accurate information. Therefore, transnational organizations must constantly evaluate their strategies of IT against its business strategy and structure.

                                                                                 Citibank

Moreover, organizations that adopt a transnational IT strategy may improve the efficiency of their supply chain operations by extending the network to authorized suppliers, distributors, and business partners over secure connections (Linton, 2015). In the event of a problem in the supply chain, the availability of global networked resources allows the organizations to bring together other suppliers, in an effort to avoid disruptions to operations.

In conclusion, the importance of strategies to support transnational IT operations may not be overstated. With the advent of globalization, companies may benefit greatly from developing strategies that not only support operations at home, but abroad as well. “Instead of having independent IS units, or even a centralized IS operation directed from its headquarters, a transnational business tries to develop an integrated and cooperative worldwide hardware, software, and Internet-based architecture for its IT platform”(O’Brien & Marakas, 2011) These strategies are not only important for a company’s local operations, but more so for beyond borders as well.

Basu, C. (n.d.). What Is a Transnational Business Strategy? Retrieved April 10, 2015, from http://smallbusiness.chron.com/transnational-business-strategy-20950.html

Linton, I. (n.d.). Transnational IT Operations as a Strategy. Retrieved April 10, 2015, from http://yourbusiness.azcentral.com/transnational-operations-strategy-4238.html

Brien, J., & Marakas, G. (2011). Management information systems (10th ed.). New York: McGraw-Hill/Irwin.

Mobile Marketing

A business model is simply a method of doing business. Online businesses have the same goal as any other business, which is to make money. There are several different types of online business models. For example, the ecommerce site makes money by selling products. Other online models include blogs, which make money by running ads alongside the blog entries, information sites, and sites which sell the services of a company or individual. (Ward, n.d.) Although these companies are built as online businesses, studies now indicate that mobile websites and mobile apps will be a critical component for continued success of not only online businesses but also other businesses as well.

According to recent studies, consumers use their smartphones while making purchasing decisions. Smartphones are utilized by 50% of consumers on the way to make a purchase, and used by 60% while in the store. In addition, 39% of consumers’ decisions not to buy are influenced by smartphones. If a business owner chooses to not recognize the importance of mobile websites and/or mobile apps, their business will suffer. Mobile searches result in follow-up actions, such as a purchase or a visit to the store, 74% of the time. Also, if a consumer visits a company’s website and it is not mobile-friendly, 48% of these consumers feel as if the company doesn’t care about their business. (Marino, 2015)

Studies also indicate that the majority of global internet traffic will be from mobile devices rather than desktop computers within the next five years. It is predicted that a majority of 57% of internet traffic will be from mobile devices by the year 2018.  Business owners of today should consider this information and incorporate mobile marketing into their small business model. (Clinch, 2014)

(Boyle, 2014)

Mobile apps may be beneficial for any business, but especially for an online business. An online business depends solely upon their website for revenue. A website that is not optimized for mobile usage will no longer be a viable option for businesses.  Even websites that still look professional on a mobile device will not function as well as a site designed for mobile use. For example, larger buttons, increased spacing between elements, and quick load times are all aspects of a mobile site that are not present in a traditional website. (Torkildson, 2014)

Mobile marketing can be done through mobile websites or mobile apps. When a company is determining which option to utilize, there are several things to consider. They will need to evaluate their customer demographics, the purpose of their mobile promotion, and their available budget.  To make an informed decision, the company must also recognize the difference between each option.  A mobile website is similar to any other site except it is designed for small, mobile devices and touchscreens. The mobile site can display text, content, data, and images.

On the other hand, mobile apps are applications that are installed on the device. They may pull data from a website, or be designed to function independently without an internet connection. Mobile apps provide an opportunity for a business to interact with their customers in real-time. The use of mobile apps by businesses continues to increase. Many are used to place orders or generate loyalty cards or coupons. There are some that use the consumer’s location to recommend restaurants or shops in the vicinity. (Brindley, n.d.) Although their use is increasing, developing applications may be expensive and time-consuming. Apps are best if the ultimate goal of the business is to provide a function, such as bar code scanning, uploading pictures, etc. Examples include Amazon’s price check app and the Ikea catalog app. (Torkildson, 2014)

(Torkildson, 2014)

Although there are advantages to apps, it appears that businesses interested in marketing may be better suited to a mobile website which displays information in the most user-friendly format. Mobile websites are accessible instantly without having to download an application. They are compatible on different devices, rather than having to be developed for specific systems like apps. Mobile sites are easy to find and can be updated quickly. Their sustainability is definitely greater than apps, which some studies show have shelf-lives of less than 30 days. (Summerfield, n.d.)  Regardless of whether a company decides to opt for a mobile website or an app, it is definitely in their best interest to choose one of the two.

References 

Boyle, C. (2014, January 22). Why 2014 is 'tipping point' for Internet. CNBC. Retrieved from http://www.cnbc.com/id/101353869

Brindley, R. (n.d.). 7 ways mobile apps will boost your business. Social Media Business Boosters. Accessed March 21, 2015 at http://www.socialmediabusinessboosters.com/7-ways-mobile-apps-will-boost-business/

Clinch, M. (2014, June 11). Mobile web traffic to overtake PC by 2018: Study. CNBC. Retrieved from http://www.cnbc.com/id/101749845l

Marino, A. (2015, February 26). New Infographic: The Importance of Mobile Marketing for Small Business. PRNewswire. Retrieved from http://www.prnewswire.com/news-releases/new-infographic-the-importance-of-mobile-marketing-for-small-business-300041680.html

Summerfield, J. (n.d.). Mobile Website vs. Mobile App (Application): Which is Best for Your Organization? Human Service Solutions. Retrieved from http://hswsolutions.com/services/mobile-web-development/mobile-website-vs-apps/

Torkildson, A. (2014, January 22). Mobile App vs Mobile Website – Which is right for your business? Entrepreneur 101. Retrieved from http://www.searchenginejournal.com/mobile-app-vs-mobile-website-right-business/85887/

Varshneya, R. (2013, September 9). 4 reasons your business needs a mobile app. Entrepreneur. Retrieved from http://www.entrepreneur.com/article/228240

Ward, S. (n.d.). 7 Online Business Models. About Money. Accessed March 21, 2015 at www.sbinfocanada.about.com

E-Business as a Tool for Competition

With the advent of technology, e-business has become a crucial part of an organization’s ability to successfully gain and maintain its competitive advantage in a fast-changing world of information systems. By virtue of the Internet and various other networks, companies are able to use information technologies to support e-commerce, enterprise communications, and collaboration. One of the most implemented systems within an organization are cross-functional enterprise systems, which allow companies to utilize IT to share information and improve on efficiency and effectiveness, which are of utmost importance to their customers and help bring forth a major competitive advantage. This process typically involved installing more cross-functional client/server applications, such as PeopleSoft and Oracle, in an effort to support integrated units of business processes involved in the general operations of a business. One example of the implementation of this system is PeopleSoft’s Human Capital Management (HCM) 9.2 model, which delivers a set of human resources functionality, enabling companies to proactively manage HR operations, increase productivity, accelerate business performance, and lower ownership costs (Snider, 2013). These types of systems are beneficial for organizations, and the implementation of which provides them a competitive edge, since they help companies improve the vital business processes all across the enterprise, thus leading to improved work effectiveness, time saving, greater efficiency of organizational costs, and significant cost-saving.

Online transaction processing systems play a pivotal role in areas of web-enabled businesses, where many firms use the Internet to tie them electronically to their customers or suppliers for online transaction processing. Through these real-time systems, companies may gain a competitive advantage by providing superior customer service to customers, as well as other trading partners. This is a major tool for businesses in general, as customers essentially render a business a success or a failure in the long run. One major example of this type of a system is the implementation of Computerized Provider Order Entry (CPOE) to support decision-making processes. The safe use of medications is an important area of concern for health care providers. In order to reduce the occurrence of medication-related errors, the Institute of Medicine recommends implementing health information technologies in conjunction with other process improvements (AHRQ, 2014). In essence, CPOE is an application that allows providers to enter medical records into a computer system that is located within inpatient or ambulatory setting. This method replaces more traditional methods of placing medication orders, such as written paper prescriptions, verbal (in person or via telephone), and fax. In turn, this process has an impact on safety, by ensuring that orders are legible and accurate.

In addition, enterprise collaboration systems (ECS) are cross-functional information systems that enhance communication, coordination, as well as collaboration among members of business teams and group works. In essence, information technologies provide us tools to better communicate in a business setting, in turn allowing an organization to effectively and successfully compete in its niche market. For instance, electronic communication tools, such as e-mail, voice mail, and faxing, allow various members of a group to effectively communicate to reach a common goal, regardless of their physical location. This speaks volumes about organizations in the modern age, and their ability to carry out common tasks from various locations. These collaborative tools, in essence, bring together people working together, sharing information, to achieve a common objective. By understanding how various processes in an organization may change, companies will understand how collaboration initiates might impact or even reduce operating costs (McDonald, 2011). For example, Microsoft’s SharePoint tool promotes new ways of working together and enables employees to easily collaborate with their team members on specific projects, find organization resources, and manage content and share ideas. According to a Forrester Research Report, companies may benefit from a return on investment of 301% and a payback period of 7.4 months when investing in this particular software (Exigy, 2015). Additionally, these types of systems allow for better branding of a company’s web presence: What used to be an arduous process, now enables any web designer with proficiency in HTML, CSS, and JavaScript to brand a SharePoint site and create a public-facing or internal site that is presentable (Hassell, 2013).

In conclusion, e-businesses have brought forth numerous benefits to the daily operations of organizations. With the emergence of the Internet, companies are able to gain a competitive edge by implementing various e-business systems to help them market themselves easily and more effectively, gain a larger customer base, study their competitors, and find avenues to capitalize on their gains and minimize their costs.

Snider, E. (2013, May 1). PeopleSoft HCM 9.2 strengthens healthcare user's confidence. Retrieved February 18, 2015, from http://searchfinancialapplications.techtarget.com/feature/PeopleSoft-HCM-92-strengthens-healthcare-users-confidence

Inpatient Computerized Provider Order Entry (CPOE). (2014, March 1). Retrieved February 18, 2015, from http://healthit.ahrq.gov/ahrq-funded-projects/emerging-lessons/computerized-provider-order-entry-inpatient/inpatient-computerized-provider-order-entry-cpoe

McDonald, D. (2011, January 7). Defining and Measuring Enterprise Collaboration - Managing Technology - Dennis D. McDonald's Web Site. Retrieved February 18, 2015, from http://www.ddmcd.com/managing-technology/defining-and-measuring-enterprise-collaboration.html

Enterprise Collaboration. (n.d.). Retrieved February 20, 2015, from http://www.exigy.com/Solutions/Enterprise-Collaboration

Hassell, J. (2013, February 11). 7 Things About SharePoint 2013 All IT Pros Should Know. Retrieved February 27, 2015, from http://www.cio.com/article/2388447/collaboration/7-things-about-sharepoint-2013-all-it-pros-should-know.html

Business Intelligence Systems

A business intelligence system is designed to analyze business data and turn it into information that can be used to benefit the business. There are several different types of activities that are considered business intelligence, including data mining, online analytical processing, and reporting. The raw data is analyzed and can then be used to make decisions, cut costs, and make predictions for the future of the business. The systems should not only be used to present the data, but should be able to determine what factors are influencing the results. (Mulcahy, 2007)

This type of system may be expensive to implement, with prices ranging from thousands to millions of dollars. The initial costs usually include the software licenses and the first year of maintenance. (King, 2009) There are also several factors to consider when making the decision to purchase this type of system. The company should first look at their needs and determine what type of information should be analyzed. Also, when implementing a business intelligence system, the company should ensure that the data collected is complete and accurate. The system should be able to produce different types of reporting to meet the changing needs of the business. Due to the high cost of this type of software, the company should be clear on the data needed and the objectives for the future of the company. The return on investment should be clearly defined to ensure that the company is benefiting from the system. (Desmarais, 2011)

There are several potential problems associated with business intelligence systems. User resistance may be an issue; therefore, all employees, ranging from the highest executives down to the sales team, should be trained properly and encouraged to ‘buy-in’ to the idea of using the new system. Another issue is inaccurate or incomplete data. If the data is not correct, decisions made using the system will be based on incorrect information. Business intelligence systems will also be ineffective if a company doesn’t understand their processes. They should be very knowledgeable about how each aspect of the business operates so that they can utilize the system as an effective tool for improving these processes. (Mulcahy, 2007)

Cultural differences may also be a factor when implementing business intelligence systems. Data collection methods, ideas regarding timeliness, and accuracy may all vary across different cultures. Ethical standards for gathering information may be different. In addition, the different technologies and language barriers may also be a factor when operating in different countries. (Park, Fables, Parker & Nitse, 2010)

There are numerous benefits to business intelligence systems. These systems can be used to identify new business opportunities and cost-saving changes in their processes. For example, Welch’s used software to analyze their transportation expenses. By using the software, they were able to consolidate their shipments into full loads, which decreased their shipping costs drastically. Another company used a business intelligence system to strategically market their product. In response to decreased bookings, Carnival Cruise Lines used their customer information to determine which of them would be most likely to book a cruise during a recession. They then focused their marketing efforts on this segment of their past customers. (King, 2009)

The systems also produce informative reports that help companies know how to optimize prices due to fluctuating product demands. The pharmaceutical manufacturer, Wyeth, used information from their system to determine that the demand would increase when they launched the arthritis drug, Enbrel®, to the European market. They were then able to increase production to keep up with the projected increase in demand. (King, 2009)

In summary, while business intelligence systems have shown to have numerous benefits for a company, a great deal of thought and research should go into the decision to purchase a system and what type of system to purchase. The company should be sure that the software meets their needs and is compatible with their data collection ability.

References:

Desmarais, C. (2011, September 7). Can Small Business Benefit from Business Intelligence Software? Inc. Retrieved from www.inc.com

King, R. (2009, March 2). Business Intelligence Software’s Time is Now. Bloomberg Business. Retrieved from www.bloomberg.com

Mulcahy, R. (2007, March 6). Business Intelligence Definition and Solutions. CIO. Retrieved from http://www.cio.com/article/2439504/business-intelligence/business-intelligence-definition-and-solutions.html

Park, J., Fables, W., Parker, K. & Nitse, P. (2010). The Role of Culture in Business Intelligence. The International Journal of Business Intelligence Research,  1.3, 1-14, http://www.irma-international.org/viewtitle/45723/

The Uber-ization of Taxis

The transportation industry is a multi-trillion dollar industry that has seen its share of ups and downs over the years, and has been subject to a number of regulatory burdens with which to comply. According to an article by Select USA, spending in U.S. logistics and transportation in 2012 amassed a whopping $1.3 trillion, representing 8.5% of annual gross domestic product (GDP)¹ – quite frankly, music to the ears of potential investors! For decades, one of the main contributing sources to this industry has been the success of taxi cabs – that is, until recently! With the advent of technology and the constant search for the “next big thing,” the once sought-after taxi industry is now, unfortunately, a thing of the past. With the continual progress toward a more tech-savvy world, the question to ask is: How can technology help eliminate the barriers of commerce within the transportation industry? 

The answer is simple! Here are three main factors to consider:

Time

For many, taxis are used as a source of transportation when one is not readily available. In huge metropolitan cities, such as New York, it typically involves grasping the attention of the cab driver by a simple hand gesture to halt. In a city such as Los Angeles, where the number of cab drivers are dramatically less, as the need and use of public transportation is less, this process entails a different story: the need to contact a central station, check the availability of drivers, before committing to a ride. For many, time is of the essence, and this no longer seems to be a viable option.

This is where companies, such as Uber and Lyft, got it right, and it’s time that the taxi industry align its business model to that of its successful competitors. With a simple mobile application (hereafter referred to as an app), the user is able to select a driver and monitor both the departure and arrival time. The proposal with taxis is to be able to utilize technology to its utmost advantage. In essence, the idea would be to create an application to be sold to various taxi companies, where a) taxis implement them within their daily operations; b) users are able to access at no charge; and, c) are able to select a driver within their vicinity to make the best use of their time. 

Clearly not enough bang for your buck

Cost

To many, the cost of using a taxi service is reason enough to look for alternative options. According to a Forbes.com magazine, a simple ride to LAX may cost one passenger $11 with Uber, while three times higher ($35) with a cab service². The numbers do not lie! People want to be part of a the “cool revolution” – these are the times where technology dictates what the “hot” trends are, and what one must follow, while the concept itself may not necessarily be a novelty. With the development of the software, the idea would be to create an app for the user to download, which will link the end-user them with a nearby driver. The software will be programmed to find the easiest and quickest route to a destination, resulting in less mileage usage to the driver, and less money per mileage spent by the user. In essence, a win-win situation for both! 

                     

Resources

One of the main cons of the taxi system is its sheer lack of drivers. For instance, a user in Santa Monica, CA may call a dispatch station, only to find that its nearest center is in a nearby city, thus resulting in her waiting for an extended period of time for her ride. In a 2012 study conducted by the Bureau of Labor Statistics, the number of taxi drivers totaled near 230,000.³ How would technology help? For starters, if Uber’s model is used to their advantage, it will help increase the demand of passengers, thus allowing taxi companies to add more stations and more drivers. There is certainly value in numbers!

Uber drivers vs. taxi drivers
	Uber driver-partners (hourly earnings)	Taxi drivers and chauffeurs (hourly wages)
Boston	$19.06	$12.31
Chicago	$16.20	$11.87
Washington, D.C.	$17.79	$13.10
Los Angeles	$16.98	$11.73
New York	$30.35	$15.17
San Francisco	$23.52	$13.72
BSG Survey Uber Market	$19.04	$12.90
Source: Uber and the Occupational Employment Statistics Survey

C for Competition 

With the insurgence of technology, the taxi industry has a lot to accomplish to compete with its main competitors. Technology will help tremendously in offsetting a number of barriers that are currently present within the industry. It is imperative that companies develop and strategize their business model to not only successfully compete, but be one step ahead. By implementing the suggestions outlined above, the taxi business would strive toward creating a more attractive industry to operate within. 

For instance, the application may include a system that will warrant a patent, thus decreasing the threat of new entries;  relatively lower prices for taxis will deem substitutes unnecessary; and, the employment of more professional drivers will provide the industry its differential advantage - all for the benefit of taxis in this ever-evolving, technology-driven, world.

1. SelectUSA. (n.d.). Retrieved January 25, 2015, from http://selectusa.commerce.gov/industry-snapshots/logistics-and-transportation-industry-united-states
2. Diamandis, P. (2014, September 8). Uber vs. the Law (My Money's on Uber). Retrieved January 25, 2015, from http://www.forbes.com/sites/peterdiamandis/2014/09/08/uber-vs-the-law-my-moneys-on-uber/
3. Taxi Drivers and Chauffeurs. (2014, January 8). Retrieved January 25, 2015, from http://www.bls.gov/ooh/transportation-and-material-moving/taxi-drivers-and-chauffeurs.htm