Unbundling Explained

Unbundling is the process of breaking up packages of products and services that were previously offered as a group, possibly even free.^{[1] [2] [3]} Unbundling has been called "the great disruptor".^[4]

Etymology

"Unbundling" means the "process of breaking apart something into smaller parts".^[5] 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."^[6]

Examples

• Massive open online courses are "part of a trend towards the unbundling of higher education"^[7] 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."^[8]
• Software unbundling^[2] 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 is a chargeable item.^[2]

One of IBM's COBOL Compilers was "PP 5688-197 IBM COBOL for MVS and VM 1.2.0" which one IBMer described as . 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),^[9] but that didn't alter the status of products released prior to that date."^[2]

• Pandora Radio
• The addition of Maryland and Rutgers to the Big Ten Conference was described as part of a larger trend towards the unbundling of each university's broadcast rights to maintain profitability.^[10]
• The CEO of Mashable predicted that unbundled news contents' "microcontent sharing" via software like Flipboard^[11] (Android and iOS), Zite and Spun (iPhone) would be a major trend in 2013.^[12]
• 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 ^[13]
• The customers that live in large apartment complexes and multiple dwelling units can be unbundled in a way that allows multiple service providers to reach each of the different units.^[14]

See also

• Information Age
• Creative destruction
• Disruptive innovation
• Asset stripping
• Leapfrogging
• List of emerging technologies
• Obsolescence
• Paradigm shift
• Technology strategy
• Killer application

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 Unbundling the corporation June 2000
• Justin Reich, Will Technology Lead to the Unbundling of Schools? Education Week, May 17, 2012

Notes and References

1. Web site: Unbundling and Unmooring: Technology and the Higher Ed Tsunami. Watters. Audrey . . September 5, 2012 . November 25, 2012.
2. https://groups.google.com/d/topic/alt.folklore.computers/RZA6FD27Tc0 a discussion group: OS/360: Forty years
3. News: Chatfield. Tom . Can schools survive in the age of the web?. . 23 November 2012.
4. Web site: The Unbundling of Media . Pakman. David . April 15, 2011. 19 Dec 2012.
5. Web site: Unbundling . businessdictionary.com. 19 Dec 2012.
6. Web site: Unbundling . investopedia. 13 May 2017.
7. News: Not what it used to be: American universities represent declining value for money to their students . economist.com. Dec 1, 2012 .
8. Web site: Backward Innovation: The Great Unbundling of Higher Ed's Online Service Providers . edsurge.com. May 4, 2016. 2018-01-01.
9. otherwise known as Unbundling
10. Web site: The great unbundling . informationarbitrage.com . November 24, 2012 . 19 Dec 2012.
11. Richmond, Shane (August 4, 2010). "Flipboard: The Closest Thing I've Seen to the Future of Magazines". The Daily Telegraph (London). Retrieved March 4, 2012.
12. Web site: Big Idea 2013: Unbundling Media. Cashmore. Pete . linkedin.com. December 11, 2012.
13. An Inside Look at LinkedIn's 'Unbundling' Mobile Strategy. Kapko. Matt. CIO Magazine. August 26, 2014.
14. 2015-08-04. The Problem of Exclusive Arrangements in Multiple Dwelling Units: Unlocking Broadband Growth in Indonesia and the Global South . The 7th Indonesia International Conference on Innovation, Entrepreneurship, and Small Business (IICIES 2015). 1–16. 2637654. Ryan. Patrick S. Zwart. Breanna. Whitt. Richard S. Goldburg. Marc. Cerf. Vinton G.