Reference no: EM131220096
You recently joined a small start-up company that has developed a suite of cybersecurity products that integrate network sensors (hardware) with big data analytics (software) to provide advanced threat detection at an affordable price. As is often the case with small companies, you are expected to lend your hand to whatever task needs doing. Yesterday, you were helping to write the online product brochures and other marketing materials. Today, your tasks include adding the North American Industry Classification System (NAICS) code(s) for the "cybersecurity" industry to the company's Website. As you delve into the matter, you quickly discover that there is no NAICS code for a "cybersecurity" industry (see https://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012). After additional research, you learned that the NAICS codes for your company's direct competitors (companies selling similar cybersecurity products) included the following:
• Computer and Electronic Product Manufacturing (NAICS prefix "334")
o Computer Terminal and Other Computer Peripheral Equipment Manufacturing
o Computer Storage Device Manufacturing
• Information Industry (NAICS prefix "51")
o Custom Computer Programming Services
o Software Publishers
• Professional, Scientific, and Technical Services Industry (NAICS prefix "54")
o Computer Systems Design Services
o Electronic Stores
• Retail Trade (NAICS prefix "44")
o Electronic Stores
You also learned that the NAICS system was designed to be production or product oriented and that provisions exist for adding new or emerging industries to the NAICS classification system (see NAICS Update Process Fact Sheet, p. 4, section "The Four Principles of NAICS" https://www.census.gov/eos/www/naics/reference_files_tools/NAICS_Update_Process_Fact_Sheet.pdf )
Your team leader has asked you to write a short report detailing your findings and recommending which industry your company should declare as its primary industry (out of the four listed above). Your report should include a justification for your selection. Your team leader has also asked you to provide a well-reasoned explanation as to why "cybersecurity" is considered an industry by many reporters and market analysts but is not listed as a unique industry under NAICS.
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