Vertical Application

Definition - What does Vertical Application mean?

A vertical application is software that is defined and built according to a user’s specific requirements in order to achieve specific functions and processes that are unique to that user. It is usually customized for a target enterprise or organization in order to meet its own special needs. These applications may support the business or organization in different business units like sales, marketing, inventory and overall management, but may not work for another business that do not have very similar processes to the one for which it was built. Vertical applications are simply targeted for specific users or a niche, unlike horizontal applications, which are created with a broader audience in mind.

Techopedia explains Vertical Application

Vertical applications can sometimes be complicated to understand and use if the users are not specifically trained by the developers of the application. This is because the applications are customized and unique to a specific business. This makes it hard for new employees to learn. As a result, experts or the developers themselves are necessary if the application needs to be integrated into existing software used inside the organization, unlike with broader horizontal applications that tend to be familiar to more people.

Enterprise applications like enterprise resource planning (ERP) and customer relationship management (CRM) are some of the examples of vertical applications. ERP is a software for business management that will allow the end users, mostly organizations, to use a system of joined applications to help manage the business. CRM, however, takes into account all aspects of communication that an organization has with its customers. It helps the business manage both customers and clients, and win contracts and sales leads. ERP and CRM are so vertical that each one has to be custom-tailored for each enterprise. As a result, it is very unlikely that any two ERP/CRM software will be totally identical.

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