Synergy
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Synergy is an interaction or cooperation giving rise to a whole that is greater than the simple sum of its parts. The term ''synergy'' comes from the
Attic Greek Attic Greek is the Greek dialect of the ancient region of Attica, including the '' polis'' of Athens. Often called classical Greek, it was the prestige dialect of the Greek world for centuries and remains the standard form of the language that ...
word συνεργία ' from ', , meaning "working together".


History

In
Christian theology Christian theology is the theology of Christian belief and practice. Such study concentrates primarily upon the texts of the Old Testament and of the New Testament, as well as on Christian tradition. Christian theologians use biblical exeg ...
, synergism is the idea that salvation involves some form of cooperation between divine grace and human freedom. The words ''synergy'' and ''synergetic'' have been used in the field of
physiology Physiology (; ) is the scientific study of functions and mechanisms in a living system. As a sub-discipline of biology, physiology focuses on how organisms, organ systems, individual organs, cells, and biomolecules carry out the chemic ...
since at least the middle of the 19th century:
SYN'ERGY, ''Synergi'a'', ''Synenergi'a'', (F.) ''Synergie''; from ''συν'', 'with', and ''εργον'', 'work'. A correlation or concourse of action between different organs in health; and, according to some, in disease. :—Dunglison, Roble
''Medical Lexicon''
Blanchard and Lea, 1853
In 1896, Henri Mazel applied the term "synergy" to social psychology by writing ''La synergie sociale'', in which he argued that Darwinian theory failed to account of "social synergy" or "social love", a collective evolutionary drive. The highest civilizations were the work not only of the elite but of the masses too; those masses must be led, however, because the crowd, a feminine and unconscious force, cannot distinguish between good and evil. In 1909, Lester Frank Ward defined synergy as the universal constructive principle of nature:
I have characterized the social struggle as centrifugal and social solidarity as centripetal. Either alone is productive of evil consequences. Struggle is essentially destructive of the social order, while communism removes individual initiative. The one leads to disorder, the other to degeneracy. What is not seen—the truth that has no expounders—is that the wholesome, constructive movement consists in the properly ordered combination and interaction of both these principles. This is ''social synergy'', which is a form of cosmic synergy, the universal constructive principle of nature. :—Ward, Lester F
''Glimpses of the Cosmos'', volume VI (1897–1912)
G. P. Putnam's Sons, 1918, p. 358


Descriptions and usages

In the natural world, synergistic phenomena are ubiquitous, ranging from physics (for example, the different combinations of quarks that produce protons and neutrons) to chemistry (a popular example is water, a compound of hydrogen and oxygen), to the cooperative interactions among the genes in genomes, the division of labor in bacterial colonies, the synergies of scale in multi-cellular organisms, as well as the many different kinds of synergies produced by socially-organized groups, from honeybee colonies to wolf packs and human societies: compare stigmergy, a mechanism of indirect coordination between agents or actions that results in the self-assembly of
complex system A complex system is a system composed of many components which may interact with each other. Examples of complex systems are Earth's global climate, organisms, the human brain, infrastructure such as power grid, transportation or communication sy ...
s. Even the tools and technologies that are widespread in the natural world represent important sources of synergistic effects. The tools that enabled early
hominin The Hominini form a taxonomic tribe of the subfamily Homininae ("hominines"). Hominini includes the extant genera ''Homo'' (humans) and '' Pan'' (chimpanzees and bonobos) and in standard usage excludes the genus ''Gorilla'' (gorillas). The ...
s to become systematic big-game hunters is a primordial human example. In the context of organizational behavior, following the view that a cohesive group is more than the sum of its parts, synergy is the ability of a group to outperform even its best individual member. These conclusions are derived from the studies conducted by Jay Hall on a number of laboratory-based group ranking and prediction tasks. He found that effective groups actively looked for the points in which they disagreed and in consequence encouraged conflicts amongst the participants in the early stages of the discussion. In contrast, the ineffective groups felt a need to establish a common view quickly, used simple decision making methods such as averaging, and focused on completing the task rather than on finding solutions they could agree on. In a technical context, its meaning is a construct or collection of different elements working together to produce results not obtainable by any of the elements alone. The elements, or parts, can include people, hardware, software, facilities, policies, documents: all things required to produce system-level results. The value added by the system as a whole, beyond that contributed independently by the parts, is created primarily by the relationship among the parts, that is, how they are interconnected. In essence, a system constitutes a set of interrelated components working together with a common objective: fulfilling some designated need. If used in a business application, synergy means that teamwork will produce an overall better result than if each person within the group were working toward the same goal individually. However, the concept of group cohesion needs to be considered. Group cohesion is that property that is inferred from the number and strength of mutual positive attitudes among members of the group. As the group becomes more cohesive, its functioning is affected in a number of ways. First, the interactions and communication between members increase. Common goals, interests and small size all contribute to this. In addition, group member satisfaction increases as the group provides friendship and support against outside threats. There are negative aspects of group cohesion that have an effect on group decision-making and hence on group effectiveness. There are two issues arising. The risky shift phenomenon is the tendency of a group to make decisions that are riskier than those that the group would have recommended individually. Group Polarisation is when individuals in a group begin by taking a moderate stance on an issue regarding a common value and, after having discussed it, end up taking a more extreme stance. A second, potential negative consequence of group cohesion is group think. Group think is a mode of thinking that people engage in when they are deeply involved in cohesive group, when the members' striving for unanimity overrides their motivation to appraise realistically the alternative courses of action. Studying the events of several American policy "disasters" such as the failure to anticipate the Japanese
attack on Pearl Harbor The attack on Pearl HarborAlso known as the Battle of Pearl Harbor was a surprise military strike by the Imperial Japanese Navy Air Service upon the United States against the naval base at Pearl Harbor in Honolulu, Territory of Hawaii ...
(1941) and the
Bay of Pigs Invasion The Bay of Pigs Invasion (, sometimes called ''Invasión de Playa Girón'' or ''Batalla de Playa Girón'' after the Playa Girón) was a failed military landing operation on the southwestern coast of Cuba in 1961 by Cuban exiles, covertly fin ...
fiasco (1961), Irving Janis argued that they were due to the cohesive nature of the committees that made the relevant decisions. That decisions made by committees lead to failure in a simple system is noted by Dr. Chris Elliot. His case study looked at IEEE-488, an international standard set by the leading US standards body; it led to a failure of small automation systems using the IEEE-488 standard (which codified a proprietary communications standard
HP-IB IEEE 488 is a short-range digital communications 8-bit parallel multi-master interface bus specification developed by Hewlett-Packard as HP-IB (Hewlett-Packard Interface Bus). It subsequently became the subject of several standards, and ...
). But the external devices used for communication were made by two different companies, and the incompatibility between the external devices led to a financial loss for the company. He argues that systems will be safe only if they are designed, not if they emerge by chance. The idea of a systemic approach is endorsed by the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
Health and Safety Executive. The successful performance of the health and safety management depends upon the analyzing the causes of incidents and accidents and learning correct lessons from them. The idea is that all events (not just those causing injuries) represent failures in control, and present an opportunity for learning and improvement. UK Health and Safety Executive, ''Successful health and safety management'' (1997): this book describes the principles and management practices, which provide the basis of effective health and safety management. It sets out the issues that need to be addressed, and can be used for developing improvement programs, self-audit, or self-assessment. Its message is that organizations must manage health and safety with the same degree of expertise and to the same standards as other core business activities, if they are to effectively control risks and prevent harm to people. The term synergy was refined by R. Buckminster Fuller, who analyzed some of its implications more fully in collaboration with E. J. Applewhite. Introduction and contribution by Arthur L. Loeb. and coined the term synergetics. * A dynamic state in which combined action is favored over the difference of individual component actions. * Behavior of whole systems unpredicted by the behavior of their parts taken separately, known as emergent behavior. * The cooperative action of two or more stimuli (or drugs), resulting in a different or greater response than that of the individual stimuli.


Information Theory

Mathematical formalizations of synergy have been proposed using
information theory Information theory is the scientific study of the quantification, storage, and communication of information. The field was originally established by the works of Harry Nyquist and Ralph Hartley, in the 1920s, and Claude Shannon in the 1940s. ...
to rigorously define the relationships between "wholes" and "parts." In this context, synergy is said to occur when there is information present in the joint state of multiple variables that cannot be extracted from the individual parts considered individually. For example, consider the logical XOR gate. If Y=XOR(X_1,X_2) for three binary variables, the
mutual information In probability theory and information theory, the mutual information (MI) of two random variables is a measure of the mutual dependence between the two variables. More specifically, it quantifies the " amount of information" (in units such ...
between any individual source and the target is 0 bit. However, the joint mutual information I(X_1,X_2;Y)=1 bit. There is information about the target that can only be extracted from the joint state of the inputs considered jointly, and not any others. There is, at yet, no universal agreement on how synergy can best be quantified, with different approaches that decompose information into redundant, unique, and synergistic components appearing in the literature. Despite the lack of universal agreement, information theoretic approaches to statistical synergy have been applied to diverse fields, including climatology, neuroscience sociology, and machine learning Synergy has also been proposed as a possible foundation on which to build a mathematically robust definition of emergence in complex systems and may be relevant to formal theories of consciousness.


Biological sciences

Synergy of various kinds has been advanced by Peter Corning as a causal agency that can explain the progressive evolution of complexity in living systems over the course of time. According to the Synergism Hypothesis, synergistic effects have been the drivers of cooperative relationships of all kinds and at all levels in living systems. The thesis, in a nutshell, is that synergistic effects have often provided functional advantages (economic benefits) in relation to survival and reproduction that have been favored by natural selection. The cooperating parts, elements, or individuals become, in effect, functional "units" of selection in evolutionary change. Similarly, environmental systems may react in a non-linear way to perturbations, such as climate change, so that the outcome may be greater than the sum of the individual component alterations. Synergistic responses are a complicating factor in environmental modeling.


Pest synergy

Pest synergy would occur in a
biological Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary in ...
host
organism In biology, an organism () is any living system that functions as an individual entity. All organisms are composed of cells ( cell theory). Organisms are classified by taxonomy into groups such as multicellular animals, plants, and fu ...
population, where, for example, the introduction of
parasite Parasitism is a close relationship between species, where one organism, the parasite, lives on or inside another organism, the host, causing it some harm, and is adapted structurally to this way of life. The entomologist E. O. Wilson h ...
A may cause 10% fatalities, and parasite B may also cause 10% loss. When both parasites are present, the losses would normally be expected to total less than 20%, yet, in some cases, losses are significantly greater. In such cases, it is said that the parasites in combination have a synergistic effect.


Drug synergy

Mechanisms that may be involved in the development of synergistic effects include: *Effect on the same cellular system (e.g. two different
antibiotics An antibiotic is a type of antimicrobial substance active against bacteria. It is the most important type of antibacterial agent for fighting bacterial infections, and antibiotic medications are widely used in the treatment and preventio ...
like a
penicillin Penicillins (P, PCN or PEN) are a group of β-lactam antibiotics originally obtained from '' Penicillium'' moulds, principally '' P. chrysogenum'' and '' P. rubens''. Most penicillins in clinical use are synthesised by P. chrysogenum usin ...
and an aminoglycoside; penicillins damage the cell wall of gram-positive
bacteria Bacteria (; singular: bacterium) are ubiquitous, mostly free-living organisms often consisting of one biological cell. They constitute a large domain of prokaryotic microorganisms. Typically a few micrometres in length, bacteria were am ...
and improve the penetration of aminoglycosides). * Bioavailability (e.g.
ayahuasca AyahuascaPronounced as in the UK and in the US. Also occasionally known in English as ''ayaguasca'' ( Spanish-derived), ''aioasca'' (Brazilian Portuguese-derived), or as ''yagé'', pronounced or . Etymologically, all forms but ''yagé'' desce ...
(or pharmahuasca) consists of
DMT ''N'',''N''-Dimethyltryptamine (DMT or ''N'',''N''-DMT, SPL026) is a substituted tryptamine that occurs in many plants and animals, including human beings, and which is both a derivative and a structural analog of tryptamine. It is used as a ...
combined with MAOIs that interfere with the action of the MAO enzyme and stop the breakdown of chemical compounds such as DMT). *Reduced risk for substance abuse (e.g.
lisdexamfetamine Lisdexamfetamine, sold under the brand name Vyvanse among others, is a stimulant medication that is mainly used to treat attention deficit hyperactivity disorder (ADHD) in people over the age of five as well as moderate-to-severe binge eatin ...
, which is a combination of the
amino acid Amino acids are organic compounds that contain both amino and carboxylic acid functional groups. Although hundreds of amino acids exist in nature, by far the most important are the alpha-amino acids, which comprise proteins. Only 22 alpha ...
L-lysine, attached to dextroamphetamine, may have a lower liability for abuse as a recreational drug) *Increased potency (e.g. as with other NSAIDs, combinations of aspirin and
caffeine Caffeine is a central nervous system (CNS) stimulant of the methylxanthine chemical classification, class. It is mainly recreational drug use, used recreationally as a Nootropic, cognitive enhancer, increasing alertness and attentional perfor ...
provide slightly greater pain relief than aspirin alone.). *Prevention or delay of degradation in the body (e.g. the antibiotic
Ciprofloxacin Ciprofloxacin is a fluoroquinolone antibiotic used to treat a number of bacterial infections. This includes bone and joint infections, intra abdominal infections, certain types of infectious diarrhea, respiratory tract infections, skin i ...
inhibits the metabolism of Theophylline). *Slowdown of excretion (e.g. Probenecid delays the renal excretion of Penicillin and thus prolongs its effect). *Anticounteractive action: for example, the effect of
oxaliplatin Oxaliplatin, sold under the brand name Eloxatin among others, is a cancer medication (platinum-based antineoplastic class) used to treat colorectal cancer. It is given by injection into a vein. Common side effects include numbness, feeling ...
and
irinotecan Irinotecan, sold under the brand name Camptosar among others, is a medication used to treat colon cancer, and small cell lung cancer. For colon cancer it is used either alone or with fluorouracil. For small cell lung cancer it is used with cispl ...
. Oxaliplatin intercalates DNA, thereby preventing the cell from replicating DNA. Irinotecan inhibits topoisomerase 1, consequently the cytostatic effect is increased. *Effect on the same receptor but different sites (e.g. the coadministration of benzodiazepines and barbiturates, both act by enhancing the action of GABA on GABAA receptors, but benzodiazepines increase the frequency of channel opening, whilst barbiturates increase the channel closing time, making these two drugs dramatically enhance GABAergic neurotransmission). More mechanisms are described in an exhaustive 2009 review.


Toxicological synergy

Toxicological synergy is of concern to the public and regulatory agencies because chemicals individually considered safe might pose unacceptable health or ecological risk in combination. Articles in scientific and lay journals include many definitions of chemical or toxicological synergy, often vague or in conflict with each other. Because toxic interactions are defined relative to the expectation under "no interaction", a determination of synergy (or antagonism) depends on what is meant by "no interaction". The
United States Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it ...
has one of the more detailed and precise definitions of toxic interaction, designed to facilitate risk assessment. In their guidance documents, the no-interaction default assumption is dose addition, so synergy means a mixture response that exceeds that predicted from dose addition. The EPA emphasizes that synergy does not always make a mixture dangerous, nor does antagonism always make the mixture safe; each depends on the predicted risk under dose addition. For example, a consequence of pesticide use is the risk of health effects. During the registration of
pesticide Pesticides are substances that are meant to control pests. This includes herbicide, insecticide, nematicide, molluscicide, piscicide, avicide, rodenticide, bactericide, insect repellent, animal repellent, microbicide, fungicide, and ...
s in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
exhaustive tests are performed to discern health effects on humans at various exposure levels. A regulatory upper limit of presence in foods is then placed on this pesticide. As long as residues in the food stay below this regulatory level, health effects are deemed highly unlikely and the food is considered safe to consume. However, in normal agricultural practice, it is rare to use only a single pesticide. During the production of a crop, several different materials may be used. Each of them has had determined a regulatory level at which they would be considered individually safe. In many cases, a commercial pesticide is itself a combination of several chemical agents, and thus the safe levels actually represent levels of the mixture. In contrast, a combination created by the end user, such as a farmer, has rarely been tested in that combination. The potential for synergy is then unknown or estimated from data on similar combinations. This lack of information also applies to many of the chemical combinations to which humans are exposed, including residues in food, indoor air contaminants, and occupational exposures to chemicals. Some groups think that the rising rates of cancer, asthma, and other health problems may be caused by these combination exposures; others have alternative explanations. This question will likely be answered only after years of exposure by the population in general and research on chemical toxicity, usually performed on animals. Examples of pesticide synergists include Piperonyl butoxide and MGK 264.


Human synergy

Human synergy relates to human interaction and teamwork. For example, say person A alone is too short to reach an
apple An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple trees are cultivated worldwide and are the most widely grown species in the genus '' Malus''. The tree originated in Central Asia, where its wild ancest ...
on a
tree In botany, a tree is a perennial plant with an elongated stem, or trunk, usually supporting branches and leaves. In some usages, the definition of a tree may be narrower, including only woody plants with secondary growth, plants that are ...
and person B is too short as well. Once person B sits on the shoulders of person A, they are tall enough to reach the apple. In this example, the product of their synergy would be one apple. Another case would be two
politician A politician is a person active in party politics, or a person holding or seeking an elected office in government. Politicians propose, support, reject and create laws that govern the land and by an extension of its people. Broadly speaking, ...
s. If each is able to gather one million votes on their own, but together they were able to appeal to 2.5 million voters, their synergy would have produced 500,000 more votes than had they each worked independently. A
song A song is a musical composition intended to be performed by the human voice. This is often done at distinct and fixed pitches (melodies) using patterns of sound and silence. Songs contain various forms, such as those including the repetiti ...
is also a good example of human synergy, taking more than one musical part and putting them together to create a song that has a much more dramatic effect than each of the parts when played individually. A third form of human synergy is when one person is able to complete two separate tasks by doing one action, for example, if a person were asked by a
teacher A teacher, also called a schoolteacher or formally an educator, is a person who helps students to acquire knowledge, competence, or virtue, via the practice of teaching. ''Informally'' the role of teacher may be taken on by anyone (e.g. whe ...
and his
boss Boss may refer to: Occupations * Supervisor, often referred to as boss * Air boss, more formally, air officer, the person in charge of aircraft operations on an aircraft carrier * Crime boss, the head of a criminal organization * Fire boss, a ...
at work to write an
essay An essay is, generally, a piece of writing that gives the author's own argument, but the definition is vague, overlapping with those of a letter, a paper, an article, a pamphlet, and a short story. Essays have been sub-classified as formal a ...
on how he could improve his work. A more visual example of this synergy is a
drummer A drummer is a percussionist who creates music using drums. Most contemporary western bands that play rock, pop, jazz, or R&B music include a drummer for purposes including timekeeping and embellishing the musical timbre. The drummer's ...
using four separate
rhythm Rhythm (from Greek , ''rhythmos'', "any regular recurring motion, symmetry") generally means a " movement marked by the regulated succession of strong and weak elements, or of opposite or different conditions". This general meaning of regular re ...
s to create one
drum The drum is a member of the percussion group of musical instruments. In the Hornbostel-Sachs classification system, it is a membranophone. Drums consist of at least one membrane, called a drumhead or drum skin, that is stretched over a ...
beat. Synergy usually arises when two persons with different complementary skills cooperate. In business, cooperation of people with organizational and technical skills happens very often. In general, the most common reason why people cooperate is that it brings a synergy. On the other hand, people tend to specialize just to be able to form groups with high synergy (see also division of labor and teamwork). Example: Two teams in System Administration working together to combine technical and organizational skills in order to better the client experience, thus creating synergy. Counter-examples can be found in books like The Mythical Man-Month, in which the inclusion of additional team members is shown to have negative effects on productivity. Organismic computing is an approach to improving group efficacy by increasing synergy in human groups via technological means. When synergy occurs in the work place, the individuals involved get to work in a positive and supportive working environment. When individuals get to work in environments such as these, the company reaps the benefits. The authors of ''Creating the Best Workplace on Earth'' Rob Goffee and Gareth Jones, state that "highly engaged employees are, on average, 50% more likely to exceed expectations that the least-engaged workers. And companies with highly engaged people outperform firms with the most disengaged folks- by 54% in employee retention, by 89% in
customer satisfaction Customer satisfaction (often abbreviated as CSAT) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of ...
, and by fourfold in revenue growth. Also, those that are able to be open about their views on the company, and have confidence that they will be heard, are likely to be a more organized employee who helps his/ her fellow team members succeed.


Corporate synergy

Corporate synergy occurs when corporations interact congruently. A corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation. This type of synergy is a nearly ubiquitous feature of a corporate acquisition and is a negotiating point between the buyer and seller that impacts the final price both parties agree to. There are distinct types of corporate synergies, as follows.


Marketing

A
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...
synergy refers to the use of
information campaign A public service announcement (PSA) is a message in the public interest disseminated by the media without charge to raise public awareness and change behavior. In the UK, they are generally called a public information film (PIF); in Hong Kong, ...
s, studies, and scientific discovery or experimentation for
research and development Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...
. This promotes the sale of products for varied use or off-market sales as well as development of
marketing tool Marketing strategy allows organizations to focus limited resources on best opportunities to increase sales and achieve a competitive advantage in the market. Strategic marketing emerged in the 1970s/80s as a distinct field of study, further bui ...
s and in several cases exaggeration of effects. It is also often a meaningless
buzzword A buzzword is a word or phrase, new or already existing, that becomes popular for a period of time. Buzzwords often derive from technical terms yet often have much of the original technical meaning removed through fashionable use, being simply used ...
used by corporate leaders.


Revenue

A
revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive rev ...
synergy refers to the opportunity of a combined corporate entity to generate more revenue than its two predecessor stand-alone companies would be able to generate. For example, if company A sells product X through its sales force, company B sells product Y, and company A decides to buy company B, then the new company could use each salesperson to sell products X and Y, thereby increasing the revenue that each salesperson generates for the company. In media revenue, synergy is the promotion and sale of a product throughout the various
subsidiaries A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a sa ...
of a
media conglomerate A media conglomerate, media group, or media institution is a company that owns numerous companies involved in mass media enterprises, such as music, television, radio, publishing, motion pictures, theme parks, or the Internet. According t ...
, e.g. films, soundtracks, or video games.


Financial

Financial Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
synergy gained by the combined firm is a result of number of benefits which flow to the entity as a consequence of acquisition and merger. These benefits may be:


Cash slack

This is when a firm having a number of cash extensive projects acquires a firm which is cash-rich, thus enabling the new combined firm to enjoy the profits from investing the cash of one firm in the projects of the other.


Debt capacity

If two firms have no or little capacity to carry
debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...
before individually, it is possible for them to join and gain the capacity to carry the debt through decreased gearing (leverage). This creates value for the firm, as debt is thought to be a cheaper source of finance.


Tax benefits

It is possible for one firm to have unused tax benefits which might be offset against the profits of another after combination, thus resulting in less tax being paid. However this greatly depends on the tax law of the country.


Management

Synergy in
management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activitie ...
and in relation to teamwork refers to the combined effort of individuals as participants of the team. The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone. Positive or negative synergies can exist. In these cases, positive synergy has positive effects such as improved efficiency in operations, greater exploitation of opportunities, and improved utilization of resources. Negative synergy on the other hand has negative effects such as: reduced efficiency of operations, decrease in quality, underutilization of resources and disequilibrium with the external environment.


Cost

A cost synergy refers to the opportunity of a combined corporate entity to reduce or eliminate expenses associated with running a business. Cost synergies are realized by eliminating positions that are viewed as duplicate within the merged entity. Examples include the headquarters office of one of the predecessor companies, certain executives, the human resources department, or other employees of the predecessor companies. This is related to the economic concept of
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
.


Synergistic action in economy

The synergistic action of the economic players lies within the economic phenomenon's profundity. The synergistic action gives different dimensions to competitiveness, strategy and network identity becoming an unconventional "weapon" which belongs to those who exploit the economic systems' potential in depth.


Synergistic determinants

The synergistic gravity equation (SYNGEq), according to its complex "title", represents a synthesis of the endogenous and exogenous factors which determine the private and non-private economic decision makers to call to actions of synergistic exploitation of the economic network in which they operate. That is to say, SYNGEq constitutes a big picture of the factors/motivations which determine the entrepreneurs to contour an active synergistic network. SYNGEq includes both factors which character is changing over time (such as the competitive conditions), as well as classics factors, such as the imperative of the access to resources of the collaboration and the quick answers. The synergistic gravity equation (SINGEq) comes to be represented by the formula: where: *ΣSYN.Act = the sum of the synergistic actions adopted (by the economic actor) *Σ R- = the amount of unpurchased but necessary resources *ICRed = the imperative for cost reductions *ICOOP+ = the imperative for deep cooperation (functional interdependence) *IAUnimit. = the imperative for purchasing unimitable competitive advantages (for the economic actor) *VCust = the necessity of customer value in purchasing future profits and competitive advantages VInfo = the necessity of informational value in purchasing future profits and competitive advantages *cc = the specific competitive conditions in which the economic actor operates


Synergistic networks and systems

The synergistic network represents an integrated part of the economic system which, through the coordination and control functions (of the undertaken economic actions), agrees synergies. The networks which promote synergistic actions can be divided in horizontal synergistic networks and vertical synergistic networks.


Synergy effects

The synergy effects are difficult (even impossible) to imitate by competitors and difficult to reproduce by their authors because these effects depend on the combination of factors with time-varying characteristics. The synergy effects are often called "synergistic benefits", representing the direct and implied result of the developed/adopted synergistic actions.


Computers

Synergy can also be defined as the combination of human strengths and computer strengths, such as
advanced chess Advanced chess is a form of chess in which each human player uses a computer chess program to explore the possible results of candidate moves. Despite this computer assistance, it is the human player who controls and decides the game. Also called c ...
. Computers can process data much more quickly than humans, but lack the ability to respond meaningfully to arbitrary stimuli.


Synergy in literature

Etymologically, the "synergy" term was first used around 1600, deriving from the Greek word "synergos", which means "to work together" or "to cooperate". If during this period the synergy concept was mainly used in the theological field (describing "the cooperation of human effort with divine will"), in the 19th and 20th centuries, "synergy" was promoted in physics and biochemistry, being implemented in the study of the open economic systems only in the 1960 and 1970s. In 1938, J. R. R. Tolkien wrote an essay titled ''On Fairy Stores'', delivered at an Andrew Lang Lecture, and reprinted in his book, ''The Tolkien Reader'', published in 1966. In it, he made two references to synergy, although he did not use that term. He wrote:
Faerie cannot be caught in a net of words; for it is one of its qualities to be indescribable, though not imperceptible. It has many ingredients, but analysis will not necessarily discover the secret of the whole.
And more succinctly, in a footnote, about the "part of producing the web of an intricate story", he wrote:
It is indeed easier to unravel a single ''thread'' — an incident, a name, a motive — than to trace the history of any ''picture'' defined by many threads. For with the picture in the tapestry a new element has come in: the picture is greater than, and not explained by, the sum of the component threads.


The book "Synergy"

''Synergy''
a book: DION, Eric (2017), ''Synergy; A Theoretical Model of Canada's Comprehensive Approach'', iUniverse, 308 pp.


Synergy in the media

The informational synergies which can be applied also in media involve a compression of transmission, access and use of information's time, the flows, circuits and means of handling information being based on a complementary, integrated, transparent and coordinated use of knowledge. In media economics, synergy is the promotion and sale of a product (and all its versions) throughout the various subsidiaries of a media conglomerate, e.g. films, soundtracks or video games.
Walt Disney Walter Elias Disney (; December 5, 1901December 15, 1966) was an American animator, film producer and entrepreneur. A pioneer of the American animation industry, he introduced several developments in the production of cartoons. As a film p ...
pioneered synergistic marketing techniques in the 1930s by granting dozens of firms the right to use his
Mickey Mouse Mickey Mouse is an animated cartoon Character (arts), character co-created in 1928 by Walt Disney and Ub Iwerks. The longtime mascot of The Walt Disney Company, Mickey is an Anthropomorphism, anthropomorphic mouse who typically wears red sho ...
character in products and ads, and continued to market Disney media through licensing arrangements. These products can help advertise the film itself and thus help to increase the film's sales. For example, the
Spider-Man films The fictional character Spider-Man, a comic book superhero created by Stan Lee and Steve Ditko and featured in Marvel Comics publications, has appeared as a main character in numerous theatrical and made-for-television films. Nicholas Hammond ...
had toys of webshooters and figures of the characters made, as well as posters and games. The NBC sitcom
30 Rock ''30 Rock'' is an American satirical sitcom television series created by Tina Fey that originally aired on NBC from October 11, 2006, to January 31, 2013. The series, based on Fey's experiences as head writer for ''Saturday Night Live'', tak ...
often shows the power of synergy, while also poking fun at the use of the term in the corporate world.30 Rock episode 3.09; Liz: "I hate those corporate things; a bunch of drunk people talking about 'synergy'." Jack: "First of all, never badmouth 'synergy'!" There are also different forms of synergy in popular card games like Magic: The Gathering,
Yu-Gi-Oh! is a Japanese manga series written and illustrated by Kazuki Takahashi. It was serialized in Shueisha's ''Weekly Shōnen Jump'' magazine between September 1996 and March 2004. The plot follows the story of a boy named Yugi Mutou, w ...
, Cardfight!! Vanguard, and Future Card Buddyfight.


Information theory

When multiple sources of
information Information is an abstract concept that refers to that which has the power to inform. At the most fundamental level information pertains to the interpretation of that which may be sensed. Any natural process that is not completely random, ...
taken together provide more information than the sum of the information provided by each source alone, there is said to be a synergy in the sources. This in contrast to the case in which the sources provide less information, in which case there is said to be a redundancy in the sources.


See also

*
Behavioral cusp A behavioral cusp is any behavior change that brings an organism's behavior into contact with new contingencies that have far-reaching consequences. A behavioral cusp is a special type of behavior change because it provides the learner with oppo ...
*
Emergence In philosophy, systems theory, science, and art, emergence occurs when an entity is observed to have properties its parts do not have on their own, properties or behaviors that emerge only when the parts interact in a wider whole. Emergenc ...
* Gestalt *
Holism Holism () is the idea that various systems (e.g. physical, biological, social) should be viewed as wholes, not merely as a collection of parts. The term "holism" was coined by Jan Smuts in his 1926 book '' Holism and Evolution''."holism, n." OED O ...
* Perfect storm *
Stroke A stroke is a disease, medical condition in which poor cerebral circulation, blood flow to the brain causes cell death. There are two main types of stroke: brain ischemia, ischemic, due to lack of blood flow, and intracranial hemorrhage, hemorr ...
* Synergetics * Systems theory


References


External links

*
Synergism Hypothesis
Evolutionary biology concepts Holism Production economics {{Combined substance use and adulteration