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Today, your management team should be giving more thought to horizontalintegration. Decades of tweaking levels of vertical versus horizontalintegration have left deep impressions on organizations. people tasked to be integrators, to foster human connections and champion the organization's purpose.
From Microsoft’s latest radical reorganization and subsequent purchase of Nokia’s devices unit to Google’s acquisition of Motorola , it’s clear that after decades of horizontalintegration, high tech is in an age of increased verticalization.
The biggest opportunities for these companies are simplification and horizontalintegration projects. For mature, large-scale, multinational companies, there is a virtuous cycle of efficiency improvements that frees up resources, which can then be deployed for growth and innovation projects.
The current cohort of acquisitions goes well beyond the typical defensive, synergy-driven, horizontalintegration that marked previous M&A spurts. How to make your company more nimble and responsive. But there’s more to it than that. These new deals are taking parent companies in uncharted directions.
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