I like the word ‘synergy’ for this, because people literally use it as a generic example of a meaningless business word, but—when not being abused—it actually has a very precise meaning. (Value created by combination; the part of the whole which exceeds the sum of the parts. You could almost translate it as “binding energy.” Or perhaps by analogy “binding value.”)
I didn’t really fully grasp the importance of the concept until I was spending some time thinking about the question: Why merge or spin off companies? Doesn’t a free-market merger or spinoff transaction result in trading a business for an amount of cash worth the same amount as the business? Synergy (or, I suppose, anti-synergy, though I’ve never heard the word used) -- binding energy, positive or negative—is the answer.
I like the word ‘synergy’ for this, because people literally use it as a generic example of a meaningless business word, but—when not being abused—it actually has a very precise meaning. (Value created by combination; the part of the whole which exceeds the sum of the parts. You could almost translate it as “binding energy.” Or perhaps by analogy “binding value.”)
I didn’t really fully grasp the importance of the concept until I was spending some time thinking about the question: Why merge or spin off companies? Doesn’t a free-market merger or spinoff transaction result in trading a business for an amount of cash worth the same amount as the business? Synergy (or, I suppose, anti-synergy, though I’ve never heard the word used) -- binding energy, positive or negative—is the answer.
To me the word synergy means something very different.
The term “disruptive innovation” was coined by Clayton Christensen to have a specific meaning.
See: https://en.wikipedia.org/wiki/Disruptive_innovation
What does synergy mean to you?