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In business, disaggregation is a term applied to any situation where something that is somewhat integrated and complex is broken down into smaller components. The general idea behind this approach is to make the process of managing multiple resources easier to manage, while getting more satisfaction out of those resources. Unbundling is the opposite of bundling, where components are combined into a single package as a way to get extra satisfaction.
There are many different types of breakdowns in the business world. One has to do with the separation of the commission. When commissions are paid using a series of formulas corresponding to the different products being sold, it can be a bit difficult to accurately calculate the commissions due for a specific period. By breaking down the process and calculating commissions due on each type of product or service sold, it is much easier to determine the correct amount and also track which product commissions were actually paid on sales generated in a given period.
Multinational companies are likely to use unbundling as a means to more efficiently manage their international assets. The concept can be applied to establish transfers of funds that are used for specific purposes in specific countries, rather than pooling the flow of funds from the corporate office to branches in various countries. This can often make the accounting process much easier, especially in terms of keeping track of what is done with the funds and how tax laws apply to the distribution of funds in a given country.
In terms of investments, disaggregated inventory is sometimes attractive. These are simply shares that are sold in lots smaller than a full lot of one hundred shares. Investing in unbundled stock options can allow investors to gradually accumulate more shares of a desirable stock, even if it’s not financially feasible to buy an entire lot at once.
Unbundling is sometimes used when it comes to purchasing different types of telecommunications services. Many people, as well as companies, sometimes request integrated services with the idea that they are saving money. In situations where it is more profitable to cancel one or more services in that bundle, breaking that bundle up into individual units becomes the smartest way to manage expenses and increase overall profits.
Ultimately, unpacking means simplifying things to manage. Breaking a larger component down into a series of individual but still related components can help focus resources to meet specific needs or obligations, while also creating a better understanding of which components are valuable and which are not. When done responsibly, this process can make daily tasks less daunting and easier to manage, as well as lead to savings.