2007 is the year for transition at Datalogic

April 2nd marked the beginning of a new Group structure, in which three distinct divisions were born, each with a specific product-focus and market focus: Datalogic Scanning, Datalogic Mobile, and Datalogic Automation.

The objective: To develop a new framework highlighting economy of scale - a winning factor in large, mature markets, and economy of scope – a winning factor that creates competitive advantages in smaller, more fragmented markets.

The history of Datalogic

Founded in 1972 in the automation industry, Datalogic quickly came to realize that there was serious potential in the bar code industry, in particular, in the information technology world in which it could be used, and not only within the automation market.

From the beginning of the 80’s, Datalogic has maintained a close link with the foreign market, consolidating its direct presence in various countries. The objective was to acquire control over major strategic accounts, and moreover, to gain entry into the United States, a market with excellent potential in terms of technology and potential clients.

In the meantime, Datalogic was growing in the bar code industry, quickly obtaining an effective balance between industry and retail, all the while remaining fully European: its strength had to be drawn for the most part outside of Europe, therefore maximizing its presence in Asia and the United States. The solution was to acquire locally, something with an already established presence within the national territory, thus gaining increased value from its resources. Going in the same direction was its listing on the Italian stock exchange in 2001, which gave the company sufficient capital to acquire a suitable company when one become available.

In 2005, following a series of strategic moves, Datalogic had the opportunity to purchase American-based PSC Inc. As a result, Datalogic not only made the giant leap into the US retail market, but also became the third largest automatic identification company in the world.

In 2006, a year after the acquisition of PSC, after learning its strengths and synergies, and accurately evaluating the best way in which to optimize both company’s resources, Datalogic underwent a transformation, resulting in the present day organization.

The new Datalogic

Accelerating growth, generating value, and increasing profit through strategic direction and resource development. Using these objectives, Datalogic operates an efficient and streamlined organization: a “federal company” with autonomous operating divisions with specific focus on markets and products.

Within the new organizational structure, Datalogic S.p.A. is responsible for defining the corporate vision and strategy, values and politics, and controlling the coordination and administration of the three companies. Datalogic Scanning, headquartered in Eugene, Oregon in the US, is focused on the retail market, which is a thriving and growing opportunity in the States. Datalogic Mobile, headquartered in Bologna, Italy, focused on mobile computing applications for warehouse management systems. Datalogic Automation, also headquartered in Bologna, combines three different business areas: unattended scanning systems, marking and RFID; all of which share the same market and clients in the automation industry. The Business Development unit of Datalogic SpA is charged with the responsibility of developing new internal business platforms and evaluating possible future mergers and acquisitions.

This business model maximizes the potential for new economic growth, geography and technology, while at the same time facilitating the evaluation and integration diverse resources and operational methods. Only through increased internal autonomy is it possible to overcome the hurdle of a mature and competitive market; close relationships between suppliers, clients, and businesses are fundamental to success.

Datalogic’s new structure recognizes the diversity of its three businesses: each one brings its own unique characteristics with regards to product types, market types, channel, and logic; this structure provides autonomy for them to develop in the manner that they deem right for them. Each company will have new business opportunities and the ability to develop unique resources; as a result each company can offer clients a more accurate analysis of their needs, increasing business visibility and diversification.

This business model enables not only internal improvement within the company, but also external growth, in which acquisitions and mergers become daily part of operations to guarantee the strength and leadership of the Group.

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