Unbundling
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Unbundling is a
neologism A neologism Greek νέο- ''néo''(="new") and λόγος /''lógos'' meaning "speech, utterance"] is a relatively recent or isolated term, word, or phrase that may be in the process of entering common use, but that has not been fully accepted int ...
to describe how the ubiquity of
mobile device A mobile device (or handheld computer) is a computer small enough to hold and operate in the hand. Mobile devices typically have a flat LCD or OLED screen, a touchscreen interface, and digital or physical buttons. They may also have a physica ...
s,
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
connectivity, consumer web technologies,
social media Social media are interactive media technologies that facilitate the creation and sharing of information, ideas, interests, and other forms of expression through virtual communities and networks. While challenges to the definition of ''social medi ...
and information access in the 21st century is affecting older institutions (
education Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty ...
,
broadcasting Broadcasting is the distribution of audio or video content to a dispersed audience via any electronic mass communications medium, but typically one using the electromagnetic spectrum ( radio waves), in a one-to-many model. Broadcasting beg ...
,
newspaper A newspaper is a Periodical literature, periodical publication containing written News, information about current events and is often typed in black ink with a white or gray background. Newspapers can cover a wide variety of fields such as p ...
s, games,
shopping Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. A typology of shopper types has been developed by scho ...
, etc.) by "break ngup the packages they once offered (possibly even for free),https://groups.google.com/d/topic/alt.folklore.computers/RZA6FD27Tc0 a discussion group: OS/360: Forty years providing particular parts of them at a scale and
cost In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in whic ...
unmatchable by the old order." Unbundling has been called "the great disruptor".


Etymology

"Unbundling" most basically means simply the "process of breaking apart something into smaller parts." In the context of
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, unbundling refers to the "process by which a large company with several different lines of business retains one or more core businesses and sells off the remaining assets, product/service lines, divisions or subsidiaries."


Examples

*
Massive open online course A massive open online course (MOOC ) or an open online course is an online course aimed at unlimited participation and open access via the Web. In addition to traditional course materials, such as filmed lectures, readings, and problem sets, man ...
s are "part of a trend towards the unbundling of higher education" by providing access to recorded lectures, online tests, and digital documents as a complement to traditional classroom instruction. Online program management providers are also increasingly unbundling services in higher education, which some argue "reflects increasing sophistication—and capacity—of colleges and universities as they launch new online programs." *Software unbundling Some IBM Computer software "products" were distributed "free" (no charge for the software itself, a common practice early in the industry). The term "Program Product" was used by IBM to denote that it's not for free. :One of IBM's COBOL Compilers was "PP 5688-197 IBM COBOL for MVS and VM 1.2.0" which one IBMer described as Quote PP := "Program Product" aka "you pay for it" EndQuote. By contrast, the same source had: Neither the F or D versions of the COBOL compiler were ever "rented" ... (or) even copyrighted... :The majority of software packages written by IBM were available at no charge to IBM customers. (Even non-IBM customers could pay (only) for the reproduction costs and get them from IBM. All this changed, of course, with New World (June 1969), but that didn't alter the status of products released prior to that date." *
Pandora Radio Pandora is a subscription-based music streaming service owned by Sirius XM Holdings based in Oakland, California, United States. The service carries a focus on recommendations based on the " Music Genome Project" — a means of classifying indi ...
*The addition of
Maryland Maryland ( ) is a state in the Mid-Atlantic region of the United States. It shares borders with Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware and the Atlantic Ocean to ...
and
Rutgers Rutgers University (; RU), officially Rutgers, The State University of New Jersey, is a public land-grant research university consisting of four campuses in New Jersey. Chartered in 1766, Rutgers was originally called Queen's College, and w ...
to the
Big Ten Conference The Big Ten Conference (stylized B1G, formerly the Western Conference and the Big Nine Conference) is the oldest Division I collegiate athletic conference in the United States. Founded as the Intercollegiate Conference of Faculty Representati ...
was described as part of a larger trend towards the unbundling of each university's broadcast rights to maintain profitability. *The CEO of Mashable predicted that unbundled news contents' "microcontent sharing" via software like
Flipboard Flipboard is a news aggregator and social network aggregation company based in Palo Alto, California, with offices in New York, Vancouver, and Bejiing. Its software, also known as Flipboard, was first released in July 2010. It aggregates conten ...
( Android and
iOS iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also include ...
), Zite and Spun ( iPhone) would be a major trend in 2013. * LinkedIn has embraced a multi-app strategy and now has a family of six separate apps—The LinkedIn 'Mothership' app and 'satellite' apps ranging from job search to tailored news * The customers that live in large apartment complexes and multiple dwelling units can be unbundled in a way that allows multiple providers to reach each of the different units.


See also

*
Information Age The Information Age (also known as the Computer Age, Digital Age, Silicon Age, or New Media Age) is a historical period that began in the mid-20th century. It is characterized by a rapid shift from traditional industries, as established during ...
*
Creative destruction Creative destruction (German: ''schöpferische Zerstörung'') is a concept in economics which since the 1950s is the most readily identified with the Austrian-born economist Joseph Schumpeter who derived it from the work of Karl Marx and pop ...
* Disruptive innovation *
Asset stripping Asset stripping is a term used to refer to the practice of selling off a company's assets in order to improve returns for equity investors. In many cases where the term is used, a financial investor, referred to as a ' corporate raider', takes con ...
*
Leapfrogging Leapfrogging is a concept used in many domains of the economics and business fields, and was originally developed in the area of industrial organization and economic growth. The main idea behind the concept of leapfrogging is that small and incre ...
* List of emerging technologies *
Obsolescence Obsolescence is the state of being which occurs when an object, service, or practice is no longer maintained or required even though it may still be in good working order. It usually happens when something that is more efficient or less risky r ...
* Paradigm shift *
Technology strategy Technology strategy (information technology strategy or IT strategy) is the overall plan which consists of objectives, principles and tactics relating to use of technologies within a particular organization. Such strategies primarily focus on the ...
*
Killer application In marketing terminology, a killer application (commonly shortened to killer app) is any computer program or software that is so necessary or desirable that it proves the core value of some larger technology, such as computer hardware, a video game ...


References

{{Reflist, 30em


External links

*Alan Jacobs
The Great Unbundling of the University
theatlantic.com January 23, 2012 *Benjamin Lima
Massive online learning and the unbundling of undergraduate education
July 17, 2012 * McKinsey & Companybr>Unbundling the corporation
June 2000 *Justin Reich

''Education Week'', May 17, 2012 Technology neologisms Technology in society