Vertical Market Software

Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Vertical market software is tailored to fit the need of a specific industry. In this lesson we will discuss the advantages and disadvantages of vertical market software, and why training is essential when using it.

What Is Vertical Market Software?

Imagine a businesses where all the services it relied on were general and not specific to the needs of its industry. Do you think this would make it more difficult for the business to function?

A vertical market helps provide niche services for those companies. The term vertical market describes a group of companies that produces goods for customers - whether individuals or other businesses - within one particular industry. For instance, a company that makes stethoscopes will focus its efforts on the healthcare industry.

Vertical markets don't just exist for products and services; software companies can serve specific niches as well. So vertical market software is just software that is created for a specific company or industry.

Choosing Vertical Market Software

As you can imagine, a company that develops software for a vertical market should know a great detail about the industry to be able to provide the most efficient software possible for clients. And your business should also choose vertical market software that comes from a company that offers 24/7 technical support, ideally by phone and through local technicians. For instance, if there is an issue with the credit card system that can not be fixed by employees, the software company should be able to quickly come out and repair the problem.

One disadvantage of vertical market software is that it usually can not be integrated into other systems in the business. Another disadvantage is that, because every business is different, the software may need to be adapted to better suit the customer every time it's sold. The time required for this process can negatively impact a business, especially if they're already very busy.

Importance of Training

Training is essential when a company utilizes vertical market software - since the software is designed specially for your business's niche, it's unlikely that employees already know how to use it. And there are often different types of software within one vertical market, so even if a person has experience in the industry they may still need training for the particular software you've decided to purchase.

For example, your new vertical market software may be integrated through a POS system. POS stands for 'point of sale', and helps you both make sales and keep track of important business information. Some employees will have to be trained on how to use the sales portion of the software, while your managers will have to know both the sales software and the inventory software.

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