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Case 2

Vertical Integration

This California based public company focuses on advanced enabling technologies targeting the vertical markets of instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. Annual revenue is around $2.5B with the market capitalization of $3.6B. Revenue, earnings, and margin have been growing steadily over the years.​

The company's four segments have total of 52 child companies. Each child company has its unique vertical technology and product focus. As a result of the collections of small and medium companies with the vertical technologies and products, the company has a portfolio of technologies and products that target at the stable markets and hold the steady market share. The CSF for the company is exactly the collections of SM companies with the right sets of technologies and products.

 

Microsoft Dynamics AX ERP Package has been used to manage these individual companies. The consolidation company functionality enables the company to manage the different hierarchical organization structures that the company desires to have.

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