Bundling
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Bundling in complex adaptive systems

Summary
This page reviews the strategy of bundling multiple products within a single offer in a complex adaptive system (
This page introduces the complex adaptive system (CAS) theory frame.  The theory is positioned relative to the natural sciences.  It catalogs the laws and strategies which underpin the operation of systems that are based on the interaction of emergent agents. 
John Holland's framework for representing complexity is outlined.  Links to other key aspects of CAS theory discussed at the site are presented. 
CAS
).  The mechanism is discussed with examples from biology and business. 
Introduction
To enable bundling the necessary
Plans emerge in complex adaptive systems (CAS) to provide the instructions that agents use to perform actions.  The component architecture and structure of the plans is reviewed. 
schemata
for each aspect of the 'offer' must be present, coherent and consistent:
  1. They must replicate successfully targeting associatively related structures. 
  2. They must generate required benefits. 
  3. They are different but symbiotic is a long term situation between two, or more, different agents where the resources of both are shared for mutual benefit.  Some of the relationships have built remarkable dependencies: Tremblaya's partnership with citrus mealybugs and bacterial DNA residing in the mealybug's genome, Aphids with species of secondary symbiont bacteria deployed sexually from a male aphid sperm reservoir and propagated asexually by female aphids only while their local diet induces a dependency.  If the power relations and opportunities change for the participants then they will adapt and the situation may transform into separation, predation or parasitism. 
The integration of multiple production functions is a defining attribute of eukaryotic, a relatively large multi-component cell type from which yeast and multi-celled plants and animals, including humans, is constructed.  It contains modules including a nucleus and production functions such as mitochondria.   cells.  The situation is essentially one of symbiosis.  Blue green bacterial cells have become integrated into the operational and developmental is a phase during the operation of a CAS agent.  It allows for schematic strategies to be iteratively blended with environmental signals to solve the logistical issues of migrating newly built and transformed sub-agents.  That is needed to achieve the adult configuration of the agent and optimize it for the proximate environment.  Smiley includes examples of the developmental phase agents required in an emergent CAS.  In situations where parents invest in the growth and memetic learning of their offspring the schematic grab bag can support optimizations to develop models, structures and actions to construct an adept adult.  In humans, adolescence leverages neural plasticity, elder sibling advice and adult coaching to help prepare the deploying neuronal network and body to successfully compete. 
processes of eukaryotes as mitochondria are the energy molecule generating production functions of eukaryotic cells.  They are vestigial blue-green bacteria with their own DNA and infrastructure.  Unlike stand-alone bacteria they also use the eukaryotic host DNA and infrastructure for some functions.  The high energy molecules are nucleotides with a high energy phosphate bond.  The most used high energy molecule is Adenosine-tri-phosphate.  

In business bundling is a key strategy for creating competitive advantage.  Product and business bundling both occur regularly.  IBM performed both practices.  Richard DeLamarter explains in Big Blue how IBM's modular system 360 was leased with very dynamic interfaces between the modules.  If a particular module came under competitive pressure IBM could:
  • Change the interface to render the foreign module ineffective. 
  • Shift the collection of margin from the threatened module to another module that was required for operation. 
IBM also competes by using a modular business architecture where its operations and their product and service offerings can be bundled together.  The value added software infrastructure company BEA was incapable of competing effectively with IBM who could bid a bundled hardware, software and services offering.  In effect BEA would have had to obtain margin from its hardware or services partners!

Certain
E. O. Wilson & Bert Holldobler illustrate how bundled cooperative strategies can take hold.  Various social insects have developed strategies which have allowed them to capture the most valuable available niches.  Like humans they invest in specialization and cooperate to subdue larger, well equipped competitors. 
social insects are also masters of bundling
.  Some ants for example generate multiple types of offspring which act in a coordinated way to subdue much larger prey. 

The added
To benefit from shifts in the environment agents must be flexible.  Being sensitive to environmental signals agents who adjust strategic priorities can constrain their competitors. 
flexibility
obtained by schematic integration and bundling options is offset by increased costs of the reproductive infrastructure.  Bundling will provide a competitive advantage in niches rich in resources and alternative opportunities where flexibility is important and the costs are offset by the returns from the captured resources.  The
Plans are interpreted and implemented by agents.  This page discusses the properties of agents in a complex adaptive system (CAS). 
It then presents examples of agents in different CAS.  The examples include a computer program where modeling and actions are performed by software agents.  These software agents are aggregates. 
The participation of agents in flows is introduced and some implications of this are outlined. 
agents
will need to be able to detect the environmental situation and coordinate appropriately, which requires the presence of schematic plans and their coordination. 
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integrating quality appropriate for each market
 
This page looks at schematic structures and their uses.  It discusses a number of examples:
  • Schematic ideas are recombined in creativity. 
  • Similarly designers take ideas and rules about materials and components and combine them. 
  • Schematic Recipes help to standardize operations. 
  • Modular components are combined into strategies for use in business plans and business models. 

As a working example it presents part of the contents and schematic details from the Adaptive Web Framework (AWF)'s operational plan. 

Finally it includes a section presenting our formal representation of schematic goals. 
Each goal has a series of associated complex adaptive system (CAS) strategy strings. 
These goals plus strings are detailed for various chess and business examples. 
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This page uses an example to illustrate how:
  • A business can gain focus from targeting key customers,
  • Business planning activities performed by the whole organization can build awareness, empowerment and coherence. 
  • A program approach can ensure strategic alignment. 
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