What Unbundling really means

Every now and then reports and rankings like “Bloomberg’s Innovation Ranking” are published to show how companies and countries are competing or holding up.

If you look at the these reports over time, they follow the traditional industrial paradigm of industrial leaders. The countries at the top are heavily dominated by family owned/controlled industrial complexes.

If you overlay the overview of the most valuable companies in the world, you see a very interesting pattern.

So countries that clime down the ladder of being the most innovative, seem to inreasingly be the home of the most valuable companies in the world?

Did Bloomberg get this whole thing wrong?

I do not think so. I think they are tracking the traditional industrial groups, the ones that thrived under the world where R&D and distribution post was so hard and expensive that startup companies could not compete.

As software has been eating the world (and lately AI is giving that rocket fuel), that has gradually changed.

This is what is so deceptive with the shift (or disruption) that is happening, which has become pretty apparent from the unbundling of the incumbents that have not figured out how to be in front of the wave of disruption.

Unbundling of a Bank

Unbundling of The Hotel

I think soon we will see the unbundling of companies like Atlas Copco, Ericson, General Electric and the Energy Industry (oil, gas etc).