Computer software applications are designed to support a specialized group or a general group. A vertical application is a software application designed for a specific industry or organization. This software contains business logic and functions specific to a particular industry.
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The modern world uses computer applications for most business activities. This includes word processing, communications, and specific business activities. The vertical application is the single application for a specific business industry. These apps help an organization with sales, marketing, inventory, and general organization.
Car insurance is an insurance policy that, among other things, protects the driver from personal liability in the event of an accident. Typically, this insurance policy requires a specific background check and validation of an individual’s driving record. Most large insurers use an insurance application to determine the rates for each person’s policies. This vertical application has enabled the insurance industry to provide near real-time quotes to potential clients.
The medical industry is a complex field with many specialized units. Computer automation has turned the medical industry into a modern diagnostic and record-keeping machine. Each patient has specific needs that require proper monitoring and management. The software application used in hospitals to register patients is an example of a vertical application.
The hospitality industry is a service-based industry that includes restaurants, hotels, and most vacation destinations. In the hospitality industry, there are several vertical applications. A hotel reservation system is a computer application that allows customers to reserve rooms for a certain date. These systems have evolved into web-based applications where customers can check room rates from various hotel organizations. Typically, each hotel chain has a vertical application specific to that organization.
A horizontal application is a software application designed to support multiple business units. It is a ubiquitous application that can provide automation for an entire industry. An automated email application is an example of a horizontal application. Any business unit can use automated email applications as a communication device, regardless of industry-specific business flows.
A vertical market is a business term that describes a single market in a specific industry. This market specializes as a niche business unit. Video Conferencing is a vertical market software application that enables live video with audio. This evolution in the telecommunications industry created a new model in most organizations that made outsourcing resources possible.