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 physical ...
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 ''internetworking, network of networks'' that consists ...
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 me ...
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 began ...
,
newspaper
A newspaper is a periodical publication containing written 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 politics, business, sport ...
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
Scale or scales may refer to:
Mathematics
* Scale (descriptive set theory), an object defined on a set of points
* Scale (ratio), the ratio of a linear dimension of a model to the corresponding dimension of the original
* Scale factor, a number ...
and
cost
In Production (economics), 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 o ...
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, 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, ma ...
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
COBOL (; an acronym for "common business-oriented language") is a compiled English-like computer programming language designed for business use. It is an imperative, procedural and, since 2002, object-oriented language. COBOL is primarily ...
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 in ...
*The addition of Maryland
Maryland ( ) is a U.S. state, state in the Mid-Atlantic (United States), 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 Rutgers 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 List of NCAA conferences, athletic conference in the United States. Founded as the Intercollegiate Conferen ...
was described as part of a larger trend towards the unbundling of each university's broadcast rights to maintain profitability.
*The CEO of Mashable
Mashable is a digital media platform, news website and entertainment company founded by Pete Cashmore in 2005.
History
Mashable was founded by Pete Cashmore while living in Aberdeen, Scotland, in July 2005. Early iterations of the site were ...
predicted that unbundled news contents' "microcontent sharing" via software like Flipboard (Android
Android may refer to:
Science and technology
* Android (robot), a humanoid robot or synthetic organism designed to imitate a human
* Android (operating system), Google's mobile operating system
** Bugdroid, a Google mascot sometimes referred to ...
and iOS), 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
In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. The concept w ...
* 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
This is a list of emerging technologies, in-development technical innovations with significant potential in their applications. The criteria for this list is that the technology must:
# Exist in some way; purely hypothetical technologies ca ...
* 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
A paradigm shift, a concept brought into the common lexicon by the American physicist and philosopher Thomas Kuhn, is a fundamental change in the basic concepts and experimental practices of a scientific discipline. Even though Kuhn restricted ...
* Technology strategy
* Killer application
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 & Company
McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest and ...
br>Unbundling the corporation
June 2000
*Justin Reich
''Education Week'', May 17, 2012
Technology neologisms
Technology in society