Digitization and business – the goal and tools used to achieve it. If we wanted to find the ultimate goal in the discussion, it would certainly be a desire to demonstrate that a company with a highly integrated organizational structure has more chances to prosper and guarantee continuity in the future. Activities carried out in relation to other companies operating in the manufacturing sector. Under the contract summarized in this document, two particularly important business cases are presented that summarize the verticalization trends described above. On the one hand, a company that has existed for many years is represented not only in the market, but also in the world market.
He is a leader in the eyewear sector, and he has reached his highest position due to the strong tendency towards vertical integration, which the founder sought, already in the first years of his work, starting in 1961. The society under consideration is a great example of how, through the process of integration of the stages of production and distribution under the control of one organization, you can impose yourself on the world production market and guarantee the continuity of life and activity of the company.
The second company considered in the dissertation, still operating in the Italian manufacturing sector, is a very young automobile company, actually born in 2006, which, thanks to its leadership skills, succeeded in a few years to understand the importance of having a highly integrated structure.
The latter was originally introduced as a simple assembly company for automotive components imported from China; Today it is clearly striving for vertical development, expanding its retail outlets throughout the country and expanding control over distribution processes. When assessing the degree of vertical integration, the Adelman index was used, since it can signal the orientation of companies to purchase goods on the market compared to the choice of domestic production.
Integration and the contract economy. Exchange of electronic data.
The economic importance of electronic data interchange. The central theme of the thesis regarding the usability of a vertically integrated organizational structure is important in the economic sphere, since it emphasizes the changing tendency of the market in which companies operate and its evolution in relation to the past. The fact that organizations (and in this case we refer only to those that belong to the Italian manufacturing sector that was considered), have changed their tendency to resort to the market in favor of greater verticalization, indicates the transition of the Italian economy, based on small companies, interdependent with each other, with a family consisting of medium and large companies, whose goal is the internal integration of processes and knowledge, which provides greater control over the quality of the final product. Consequently, the relevance presented by the topic relates to changes in the Italian company, changes dictated by the needs of both internal and external to the organizations themselves. Until the mid-1990s, especially in certain regions that contributed to its development, there was a very strong presence of industrial areas.
“The truly revolutionary influence of the information revolution is only beginning to be realized. The Internet is becoming an important, perhaps the most important global channel for the distribution of goods, services and professional and managerial activities … Its impact on society, politics and, above all, on how we live in the world, can still be greater than we perceive it now.”
Obviously, the digitization of the business and the takeover of other activities as a complement to these basic elements that have already been completed, implies an increase in the size of the organization and its complexity; For this reason, the benefits of integration are often accompanied by numerous risks that must be prevented. The advantages associated with a vertically integrated structure are numerous, among which the most important are briefly described. They considered it convenient to resort to outside help, thereby violating the production process that determines the composition of a given product or service.