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Unbundling

Last updated: 2025-07-25 05:23:34

Unbundling

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] Unbundling prices and extending choice are generally processes seen as favourable to customers.[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]

Etymology

"Unbundling" means the "process of breaking apart something into smaller parts".[7]

Examples

  • Massive open online courses are "part of a trend towards the unbundling of higher education"[8] by providing access to recorded lectures, online tests, and digital documents as a complement to traditional classroom instruction.[3] 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."[9]
  • Software unbundling:[2] some IBM computer software "products" were once 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]
  • Harvard Business Review writer Anthony Tjan refers to law firms offering itemised billing instead of quoting a single bundled price.[5]
  • 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

References

  1. Watters, Audrey (September 5, 2012). "Unbundling and Unmooring: Technology and the Higher Ed Tsunami". educause.edu. Retrieved November 25, 2012.
  2. 1 2 3 https://groups.google.com/d/topic/alt.folklore.computers/RZA6FD27Tc0 a discussion group: OS/360: Forty years
  3. 1 2 Chatfield, Tom (23 November 2012). "Can schools survive in the age of the web?". bbc.com.
  4. Pakman, David (April 15, 2011). "The Unbundling of Media". Retrieved 19 Dec 2012.
  5. 1 2 Tjan, A., The Pros and Cons of Bundled Pricing, Harvard Business Review, published on 26 February 2010, accessed on 22 JUne 2025
  6. "Unbundling". investopedia. Retrieved 13 May 2017.
  7. "Unbundling". businessdictionary.com. Retrieved 19 Dec 2012.
  8. "Not what it used to be: American universities represent declining value for money to their students". economist.com. Dec 1, 2012.
  9. "Backward Innovation: The Great Unbundling of Higher Ed's Online Service Providers". edsurge.com. May 4, 2016. Retrieved 2018-01-01.
  10. "The great unbundling". informationarbitrage.com. November 24, 2012. Retrieved 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. Cashmore, Pete (December 11, 2012). "Big Idea 2013: Unbundling Media". linkedin.com.
  13. Kapko, Matt (August 26, 2014). "An Inside Look at LinkedIn's 'Unbundling' Mobile Strategy". CIO Magazine.
  14. Ryan, Patrick S; Zwart, Breanna; Whitt, Richard S; Goldburg, Marc; Cerf, Vinton G (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. SSRN 2637654. {{cite journal}}: Cite journal requires |journal= (help)

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