Unbundling means the process of breaking something apart into smaller components. Unbundling can be seen as a product of heightened connectivity. At a high cost of interaction, the system is typically bound - or bundled - into a centralized monolithic configuration to reduce the organization’s overall cost of transaction. However, when we reduce the cost of exchange, as IT, transport and other innovations have done, then connectivity increases and the system can become unbundled from this centralized configuration as components become distributed out and re-coordinated through networks.