Management and Business Context: VTA Innovation Report

This report provides a comprehensive analysis of innovation within the Victoria Taxi Association (VTA). It begins with an executive summary and introduction that outlines the context of the taxi industry in Victoria, Australia, and the role of VTA as a representative body. The report delves into the concept of innovation within VTA, differentiating between sustainable and disruptive innovation and highlighting the implementation of new technologies such as app-based booking systems and fare collection systems. It then explores the impacts of innovation, including increased market share, profitability, and improved transportation systems. However, the report also addresses the issues and challenges associated with innovation, such as high costs, regulatory hurdles, and competition from illegal operators. Recommendations include the adoption of new technologies, financial support for drivers, and government funding for innovation. The report concludes by emphasizing the importance of strategic innovation for VTA's continued success in the competitive market. The report includes a SWOT analysis and references.

Running head: Management and business context
Management and business context

Management and business context
Executive summary
Victoria taxi association is the ambassador of taxi operation’s organization in the Victoria state.
It inspires the taxi industry by providing various services to the passengers. Here is the
discussion about the innovation and impact of innovation. The paper explains that how the
company reduces issues and challenges of the market with the help of innovation. In today’s era,
various attractive and unique projects are being made by VTA that helps to increase the
outcomes and sustainability.
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Management and business context
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Innovation in VTA......................................................................................................................................4
Impacts of innovation..................................................................................................................................6
Issues in innovation.....................................................................................................................................6
Recommendation.........................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
Appendices................................................................................................................................................10
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Management and business context
Introduction
The primary purpose of this paper is to provide brief information about the innovation in
Victoria taxi association. VTA encourages the operations and activities of taxi industry in the
city. The paper explains the significance and impacts of innovation. The company faces
enormous issues and challenges in the city while making innovation. More detail of the task has
been detailed below.
Victoria taxi association is the representative body of the taxi operator’s organizations in the
Victoria state. VTA promotes and encourages the work of taxi industry in the global market. It
shall be noted that VTA closely work with Victorian government for expansion and development
of the taxi industry in the competitive market (Cairns & Liston-Heyes, 1996). Victoria taxi
association identifies and measures the new opportunities within the state in order to engage in
social activities and operations. It will help to maximize and increase the revenue and
profitability of the firm. It shall be analyzed that taxi industry in Australia is largely regulated
and operated by the state authorities and government (Rose & Hensher, 2014). It is noted that
taxi regulations are very harsh and complicated in the country that could affect the success and
growth of the firm. Drivers are considered the heart and soul of the taxi industry in the Australian
country. In today’s era, the significance of taxi industry is increasing and improving day by day.
It shall be stated that excellent and unique services are being provided by the taxi drivers in the
global market. In today’s era, various factors may influence the success and growth of the firm.
Disruption in the taxi industry creates fluctuations and further it affects the efficiency and
effectiveness of the individual operators (Hwang & Christensen, 2008).
Innovation in VTA
Innovation may be defined as a new idea, device and method to accomplish the long term goals
and objectives of the firm. It is crucial and effective to the continuing success and growth of any
company. Innovation is done by Victoria taxi association in a large extent. State regulators and
commentators believed that emergence of Uber and other booking apps as some sort of miracle
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Management and business context
developed by forces outside the taxi establishment. VTA structure is focused on the top down
models of control and command. A single vertically integrated biggest player, cab charge, has
dominated the taxi industry. Therefore, the industry can be portrayed as an oligopoly. These
innovations improve and enhance Cab charge profitability and revenue. It also helps in providing
safety and security of the passengers. Innovation is done by VTA at three levels to maximize the
profitability and returns within the organization. These three levels include renewal, revolution
and resilience. There are two types of innovation including sustainable innovation and disruptive
innovation. Disruptive innovation may be defined as a innovation that creates a new market and
network and ultimately disrupts an existing and new market, growth and value network. The
disruptive innovation focuses on the product and service which has not been presented in the
market. It helps in reducing the prices of the product and service with increasing in market share.
On the other hand, sustainable innovation focuses on the better product and high profit margin in
the sales. Both the innovation are done by VTA while performing business activities and
operations in the global market (Gevero, Alves & Durante, 2015).
It shall be noted that VTA is increasing and improving the technological presence that can helps
to gain competitive advantages in the market. If the company uses new and innovative
technology then it will help to make a good image in the minds of the consumers (Meng et al,
2015). App based taxi booking is done by VTA to increase and enhance the profitability in the
taxi industry. It will also help to maintain sustainability in the country (Gander et al, 2011).
Under innovation, integration and effective fare collection system would be used by the industry.
Along with this, the industry needs to focus on the needs and requirements of the drivers to
expand and flourish the business of taxi. In addition, VTA needs to implement the peak time fare
and off-peak fare collection system to increase and enhance the outcomes. The industry also
focuses on the simplicity and convenience to attract wide range of customers in the global
market (Kefauver, 2014). It has been studied that VTA has created an interactive learning lab
where employees, students and technology partners can collaborate and communicate on a wide
variety of innovative transportation tasks and projects (Noble, 2013). The innovation center
includes workstations where staff and participants can build, test and showcase new technology
that will improve and enhance the transit consumer experience and optimize the functioning of
the company’s vehicles as well (Lam, 2004). It will also help to improve the transportation
infrastructure. VTA is working on the various new projects to improve the transportation system
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Management and business context
(VTA, 2018). It has been stated that VTA has opened a new innovation center at River Oaks
headquarters on February 2018 as a space where VTA companies and teams can improve the
technology and transportation system (Maciejewski & Bischoff, 2015). Many of the exciting
projects are being undergone by VTA to focus on the mobile apps, big data, and connected
vehicles. The industry is trying to develop a zero emission vehicle with dynamic features and
quality to attract more clients (VTA, 2018). The taxi industry is trying to enlist potential and
talented candidates to drive the taxi industry in the country. Moreover, pilot programs were
designed by VTA to interact with taxi passengers at various stages of their journey. It increases
awareness among the passengers while travelling. The red dot projects are being undergone by
VTA in the city (Abelson, 2010).
Impacts of innovation
Innovation helps VTA to make a strong goodwill in the marketplace. Furthermore, it provides
competitive advantages to the industry. If the innovation is done by VTA then it can increase
market share and profitability in the rivalries market. Along with this, it also maximizes
operating income and revenue of VTA. Innovation in VTA also helps in predicting future risks
and challenges of the market. It also improves and enhances the transportation system.
Innovation is done by VTA to earn more income in the competitive market. Innovation in
software allows drivers to better utilize their time and services. If VTA hires talented and
potential drivers then the customers can take more advantages by using taxi services.
Furthermore, it helps in making good relationship with customers in the market. Innovation also
helps to identify and analyze the plans, policies and strategies of the competitors. Besides this, it
also empowers the employees to innovate and improve their work processes provide a sense of
sovereignty that develops and boost morale and job satisfaction in the workplace. Innovation also
provides new opportunities to the consumers as well as VTA (Victoria Taxi Association, 2017).
Issues in innovation
If the innovation is done by VTA then various challenges would be occurred in the global
market. VTA is unable to differentiate and integrate innovative concepts in the marketplace that
may affect the profitability and revenue of the taxi industry adversely. Huge cost is involved in
the innovation therefore it reduces the revenue of the industry. Apart from this, it shall be noted
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Management and business context
that VTA has been unable to focus and identify the plans, actions and strategies of the
competitors due to lack of talented and potential staff. There is a high chance of disruption
innovation (Schwab, 2018). The government is not provided fund for innovation therefore VTA
has to invest money that leads to insolvency. Illegal taxi operators may also influence the
innovation in the city. Furthermore, rules and regulations that have been made by the
government can disturb the innovation in the country. VTA needs to focus on these issues too
overcome and strive with competitors in the international market (Samuel, 2015).
Recommendation
Now it is recommended that VTA should focus and identify the new and latest technology to
stay in the competitive market. Along with this, it must establish the financial bank system for
taxi drivers that can render assistance of insurance, car loan, medical insurance, accident claim,
and superannuation. It shall be revealed that VTA should focus on the new business model for
innovation. Besides this, the government should provide funds to VTA while making innovation.
VTA should also focus on the macro environment factors for innovation and enhancement. In
this way, VTA can achieve its long term mission and vision.
Conclusion
Form the above mentioned analysis, it can be concluded that Victoria taxi association provides
various services to the passengers in the country. The paper explains the contextual factor
innovation that could affect the revenue and returns adversely and positively as well. VTA needs
to make effective strategies and policies for innovation. The taxi industry faces ample of issues
while making innovation in the operations and projects. At the end, effective recommendations
have been given to make a strong financial position in the market.
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Management and business context
References
Abelson, P. (2010). The High Cost of Taxi Regulation, with Special Reference to
Sydney. Agenda : A Journal of Policy Analysis and Reform, 17(2), 41-70
Cairns, R. D., & Liston-Heyes, C. (1996). Competition and regulation in the taxi
industry. Journal of Public Economics, 59(1), 1-15.
Gander, P., Hartley, L., Powell, D., Cabon, P., Hitchcock, E., Mills, A., & Popkin, S. (2011).
Fatigue risk management: Organizational factors at the regulatory and industry/company
level. Accident Analysis & Prevention, 43(2), 573-590.
Gevero, A., Alves, E., & Durante, B. (2015). HOW UBER AND OTHER RIDE-SHARING
COMPANIES ARE ROILING THE TAXI MEDALLION INDUSTRY. The RMA
Journal, 98(4), 36-41,11.
Hwang, J., & Christensen, C. M. (2008). Disruptive innovation in health care delivery: a
framework for business-model innovation. Health Affairs, 27(5), 1329-1335.
Kefauver, J. (2014). How apps like Uber, Airbnb could impact your business.(POLICY
CHECK). Nation's Restaurant News, 48(16), 11.
Lam, L. T. (2004). Environmental factors associated with crash-related mortality and injury
among taxi drivers in New South Wales, Australia. Accident Analysis and Prevention,
36(5), 905-908. doi:10.1016/j.aap.2003.10.001
Maciejewski, M., & Bischoff, J. (2015). Large-scale Microscopic Simulation of Taxi Services.
Procedia Computer Science, 52, 358-364. doi:10.1016/j.procs.2015.05.107
Meng, F., Li, S., Cao, L., Li, M., Peng, Q., Wang, C., & Zhang, W. (2015). Driving fatigue in
professional drivers: a survey of truck and taxi drivers. Traffic injury prevention, 16(5),
474-483.
Noble, A. (2013). Victimized by regulation: the victimogenicity of taxi drivers. (United
Kingdom) (Legal Perspectives on the Victim). Nottingham Law Journal, 22, 104.
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Rose, J., & Hensher, D. (2014). Demand for taxi services: New elasticity
evidence. Transportation, 41(4), 717-743.
Samuel, D. (2015). VTA Annual Report. Victoria Taxi Association. Victoria Pty Ltd. Retrieved 4
1, 2018, from
http://www.victaxi.com.au/assets/downloads/VTA_AR_2015_16v5%20FINAL.pdf
Schwab, K. (2018). The Global Risks Report 2018. Retrieved April 2018, from World Economic
Forum: http://www3.weforum.org/docs/WEF_GRR18_Report.pdf
Victoria Taxi Association. (2017, January 30). Australia Day ‘Multicultural Harmony’ award.
Retrieved from Victoria Taxi Association:
http://103.8.28.168/news-and-events/news/2017/01/30/australia-day-
%E2%80%98multicultural-harmony%E2%80%99-award/
VTA.(2018). Innovation center, Retrieved from
http://www.vta.org/projects-and-programs/programs/innovation-center
VTA.(2018). VTA opens innovation center to incubate and test new ideas, Retrieved from
http://www.vta.org/News-and-Media/Connect-with-VTA/VTA-Opens-Innovation-
Center-to-Incubate-and-Test-New-Ideas#.WwOYG-6FPIU
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Appendices
SWOT analysis of VTA
Strengths
• Large network of members.
• Strong communication channels and call centers.
• Strong presence in Victoria state.
Opportunities:
• Support and knowledge exchange from other states taxi organisation
• Develop technological support for booking taxi.
• Providing additional service to the customer
Weakness:
• High license cost
• Industry is regulated by government
• High taxi fare
Threats:
• Rise of Uber
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Management and business context
• Illegal taxi operators in city
• Regulation from the government
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