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Unbundling

Posted by Henry on October 21, 2004

In Reply to: As due to..... posted by Leslie on October 21, 2004

: Hi,

: I read an article from Design Management Review. There's a sentence I found very confusing. Could anyone here kindly help me out? Could you please phrase the whole sentence in a simpler way? especially the 'as due to rationalization......reducing risk' part and 'by some six degrees ' part. Thank you very much for your help.
: "Its [Strategic Initiatives Group] mere existence could be interpreted by some business analysts as due to the rationalization of innovation investments that comes as industries mature and become more competent at reducing risk. This is often done by 'unbundling' the corporation--of separating, sometimes by just six degrees, from the company's normal operations the generally higher-risk business of innovation that sets out to achieve sustained high growth by finding gaps, incongruities, and opportunities in the marketplace."

Some business analysts consider that as industries mature and become more competent at reducing risk, they are in a better position to rationalize their investments in innovation. The Strategic Initiatives Group exists to help them to do this. Innovation in business sets out to achieve sustained high growth by finding gaps, incongruities and opportunities in the marketplace. It generally bears a higher risk and can often be separated (unbundled) from the company's normal operations.