From Wikipedia, the free encyclopedia
Synergy is the creation of a whole that is greater than the simple sum of its parts. The term
synergy comes from the
Attic Greek word συνεργία
synergia[1] from
synergos,
συνεργός, meaning "working together".
History
The words "synergy" and "synergetic" have been used in the field of
physiology since at least the middle of the 19th century:
SYN'ERGY, Synergi'a, Synenergi'a, (F.) Synergie; from συν, 'with,' and εργον, 'work.' A correlation or concourse of action between different organs in health; and, according to some, in disease.
- —Dunglison, Robley Medical Lexicon Blanchard and Lea, 1853
In 1896,
Henri Mazel applied the term "synergy" to social psychology by writing
La synergie sociale,
in which he argued that Darwinian theory failed to account for "social
synergy" or "social love", a collective evolutionary drive. The highest
civilizations were the work not only of the elite but of the masses too;
those masses must be led, however, because the crowd, a feminine and
unconscious force, cannot distinguish between good and evil.
[2]
In 1909,
Lester Frank Ward defined synergy as the universal constructive principle of nature:
I have characterized the social struggle as centrifugal and social
solidarity as centripetal. Either alone is productive of evil
consequences. Struggle is essentially destructive of the social order,
while communism removes individual initiative. The one leads to
disorder, the other to degeneracy. What is not seen—the truth that has
no expounders—is that the wholesome, constructive movement consists in
the properly ordered combination and interaction of both these
principles. This is social synergy, which is a form of cosmic synergy, the universal constructive principle of nature.
- —Ward, Lester F. Glimpses of the Cosmos, volume VI (1897–1912) G. P. Putnam's Sons, 1918, p. 358
Descriptions and usages
In the natural world, synergistic phenomena are ubiquitous, ranging
from physics (for example, the different combinations of quarks that
produce protons and neutrons) to chemistry (a popular example is water, a
compound of hydrogen and oxygen), to the cooperative interactions among
the genes in genomes, the division of labor in bacterial colonies, the
synergies of scale in multi-cellular organisms, as well as the many
different kinds of synergies produced by socially-organized groups, from
honeybee colonies to wolf packs and human societies: compare
stigmergy, a mechanism of indirect coordination between agents or actions that results in the
self-assembly of
complex systems.
Even the tools and technologies that are widespread in the natural
world represent important sources of synergistic effects. The tools that
enabled early
hominins to become systematic big-game hunters is a primordial human example.
[3]
In the context of organizational behavior, following the view
that a cohesive group is more than the sum of its parts, synergy is the
ability of a group to outperform even its best individual member. These
conclusions are derived from the studies conducted by Jay Hall on a
number of laboratory-based group ranking and prediction tasks. He found
that effective groups actively looked for the points in which they
disagreed and in consequence encouraged conflicts amongst the
participants in the early stages of the discussion. In contrast, the
ineffective groups felt a need to establish a common view quickly, used
simple decision making methods such as averaging, and focused on
completing the task rather than on finding solutions they could agree
on.
[4]
In a technical context, its meaning is a construct or collection of
different elements working together to produce results not obtainable by
any of the elements alone. The elements, or parts, can include people,
hardware, software, facilities, policies, documents: all things required
to produce system-level results. The value added by the system as a
whole, beyond that contributed independently by the parts, is created
primarily by the relationship among the parts, that is, how they are
interconnected. In essence, a system constitutes a set of interrelated
components working together with a common objective: fulfilling some
designated need.
[5]
If used in a business application, synergy means that teamwork
will produce an overall better result than if each person within the
group were working toward the same goal individually. However, the
concept of group
cohesion
needs to be considered. Group cohesion is that property that is
inferred from the number and strength of mutual positive attitudes among
members of the group. As the group becomes more cohesive, its
functioning is affected in a number of ways. First, the interactions and
communication between members increase. Common goals, interests and
small size all contribute to this. In addition, group member
satisfaction increases as the group provides friendship and support
against outside threats.
[6]
There are negative aspects of group cohesion that have an effect
on group decision-making and hence on group effectiveness. There are two
issues arising. The
risky shift
phenomenon is the tendency of a group to make decisions that are
riskier than those that the group would have recommended individually.
Group
Polarisation
is when individuals in a group begin by taking a moderate stance on an
issue regarding a common value and, after having discussed it, end up
taking a more extreme stance.
[7]
A second, potential negative consequence of group cohesion is
group think. Group think is a mode of thinking that people engage in
when they are deeply involved in cohesive group, when the members'
striving for unanimity overrides their motivation to appraise
realistically the alternative courses of action. Studying the events of
several American policy "disasters" such as the failure to anticipate
the Japanese
attack on Pearl Harbor (1941) and the
Bay of Pigs Invasion
fiasco (1961), Irving Janis argued that they were due to the cohesive
nature of the committees that made the relevant decisions.
[8]
That decisions made by committees lead to failure in a simple system is noted by Dr. Chris Elliot. His case study looked at
IEEE-488,
an international standard set by the leading US standards body; it led
to a failure of small automation systems using the IEEE-488 standard
(which codified a proprietary communications standard
HP-IB).
But the external devices used for communication were made by two
different companies, and the incompatibility between the external
devices led to a financial loss for the company. He argues that systems
will be safe only if they are designed, not if they emerge by chance.
[9]
The idea of a systemic approach is endorsed by the
United Kingdom Health and Safety Executive.
The successful performance of the health and safety management depends
upon the analyzing the causes of incidents and accidents and learning
correct lessons from them. The idea is that all events (not just those
causing injuries) represent failures in control, and present an
opportunity for learning and improvement.
[10] UK Health and Safety Executive,
Successful health and safety management
(1997): this book describes the principles and management practices,
which provide the basis of effective health and safety management. It
sets out the issues that need to be addressed, and can be used for
developing improvement programs, self-audit, or self-assessment. Its
message is that organizations must manage health and safety with the
same degree of expertise and to the same standards as other core
business activities, if they are to effectively control risks and
prevent harm to people.
The term synergy was refined by
R. Buckminster Fuller, who analyzed some of its implications more fully
[11] and coined the term
synergetics.
[12]
- A dynamic state in which combined action is favored over the difference of individual component actions.
- Behavior of whole systems unpredicted by the behavior of their parts taken separately, known as emergent behavior.
- The cooperative action of two or more stimuli (or drugs), resulting
in a different or greater response than that of the individual stimuli.
Biological sciences
Synergy of various kinds has been advanced by
Peter Corning
as a causal agency that can explain the progressive evolution of
complexity in living systems over the course of time. According to the
Synergism Hypothesis, synergistic effects have been the drivers of
cooperative relationships of all kinds and at all levels in living
systems. The thesis, in a nutshell, is that synergistic effects have
often provided functional advantages (economic benefits) in relation to
survival and reproduction that have been favored by natural selection.
The cooperating parts, elements, or individuals become, in effect,
functional “units” of selection in evolutionary change.
[13]
Similarly, environmental systems may react in a non-linear way to
perturbations, such as climate change, so that the outcome may be
greater than the sum of the individual component alterations.
Synergistic responses are a complicating factor in environmental
modeling.
[14]
Pest synergy
Pest synergy would occur in a
biological host organism population, where, for example, the introduction of
parasite
A may cause 10% fatalities, and parasite B may also cause 10% loss.
When both parasites are present, the losses would normally be expected
to total less than 20%, yet, in some cases, losses are significantly
greater. In such cases, it is said that the parasites in combination
have a synergistic effect.
Drug synergy
Mechanisms that may be involved in the development of synergistic effects include:
- Effect on the same cellular system (e.g. two different antibiotics like a penicillin and an aminoglycoside; penicillins damage the cell wall of gram-positive bacteria and improve the penetration of aminoglycosides).[15]
- Prevention or delay of degradation in the body (e.g. the antibiotic Ciprofloxacin inhibits the metabolism of Theophylline).[16]
- Slowdown of excretion (e.g. Probenecid delays the renal excretion of Penicillin and thus prolongs its effect).[16]
- Anticounteractive action: for example, the effect of oxaliplatin and irinotecan. Oxaliplatin intercalates DNA, thereby preventing the cell from replicating DNA. Irinotecan inhibits topoisomerase 1, consequently the cytostatic effect is increased.[17]
- Effect on the same receptor but different sites (e.g. the
coadministration of benzodiazepines and barbiturates, both act by
enhancing the action of GABA on GABAA receptors, but
benzodiazepines increase the frequency of channel opening, whilst
barbiturates increase the channel closing time, making these two drugs
dramatically enhance GABAergic neurotransmission).[citation needed]
More mechanisms are described in an exhaustive 2009 review.
[17]
Toxicological synergy
Toxicological synergy is of concern to the public and regulatory
agencies because chemicals individually considered safe might pose
unacceptable health or ecological risk in combination. Articles in
scientific and lay journals include many definitions of chemical or
toxicological synergy, often vague or in conflict with each other.
Because toxic interactions are defined relative to the expectation under
"no interaction", a determination of synergy (or antagonism) depends on
what is meant by "no interaction".
[18] The
United States Environmental Protection Agency has one of the more detailed and precise definitions of toxic interaction, designed to facilitate risk assessment.
[19]
In their guidance documents, the no-interaction default assumption is
dose addition, so synergy means a mixture response that exceeds that
predicted from dose addition. The EPA emphasizes that synergy does not
always make a mixture dangerous, nor does antagonism always make the
mixture safe; each depends on the predicted risk under dose addition.
For example, a consequence of pesticide use is the risk of health effects. During the registration of
pesticides in the
United States
exhaustive tests are performed to discern health effects on humans at
various exposure levels. A regulatory upper limit of presence in foods
is then placed on this pesticide. As long as residues in the food stay
below this regulatory level, health effects are deemed highly unlikely
and the food is considered safe to consume.
However, in normal agricultural practice, it is rare to use only a
single pesticide. During the production of a crop, several different
materials may be used. Each of them has had determined a regulatory
level at which they would be considered individually safe. In many
cases, a commercial pesticide is itself a combination of several
chemical agents, and thus the safe levels actually represent levels of
the mixture. In contrast, a combination created by the end user, such as
a farmer, has rarely been tested in that combination. The potential for
synergy is then unknown or estimated from data on similar combinations.
This lack of information also applies to many of the chemical
combinations to which humans are exposed, including residues in food,
indoor air contaminants, and occupational exposures to chemicals. Some
groups think that the rising rates of cancer, asthma, and other health
problems may be caused by these combination exposures; others have
alternative explanations. This question will likely be answered only
after years of exposure by the population in general and research on
chemical toxicity, usually performed on animals. Examples of pesticide
synergists include
Piperonyl butoxide and
MGK 264.
[20]
Human synergy
Human synergy relates to human interaction and teamwork. For example, say person A alone is too short to reach an
apple on a
tree and person B is too short as well. Once person B sits on the
shoulders
of person A, they are tall enough to reach the apple. In this example,
the product of their synergy would be one apple. Another case would be
two
politicians.
If each is able to gather one million votes on their own, but together
they were able to appeal to 2.5 million voters, their synergy would have
produced 500,000 more votes than had they each worked independently. A
song
is also a good example of human synergy, taking more than one musical
part and putting them together to create a song that has a much more
dramatic effect than each of the parts when played individually.
A third form of human synergy is when one person is able to
complete two separate tasks by doing one action, for example, if a
person were asked by a
teacher and his
boss at work to write an
essay on how he could improve his work. A more visual example of this synergy is a
drummer using four separate
rhythms to create one
drum beat.
Synergy usually arises when two persons with different
complementary skills cooperate. In business, cooperation of people with
organizational and technical skills happens very often. In general, the
most common reason why people cooperate is that it brings a synergy. On
the other hand, people tend to specialize just to be able to form
groups with high synergy (see also
division of labor and
teamwork).
Example: Two teams in System Administration working together to
combine technical and organizational skills in order to better the
client experience, thus creating synergy. Counter-examples can be found
in books like
The Mythical Man-Month, in which the addition of additional team members is shown to have negative effects on productivity.
Organismic computing is an approach to improving group efficacy by increasing synergy in human groups via technological means.
When synergy occurs in the work place, the individuals involved
get to work in a positive and supportive working environment. When
individuals get to work in environments such as these, the company reaps
the benefits. The authors of
Creating the Best Workplace on Earth
Rob Goffee and Gareth Jones, state that "highly engaged employees are,
on average, 50% more likely to exceed expectations that the
least-engaged workers. And companies with highly engaged people
outperform firms with the most disengaged folks- by 54% in employee
retention, by 89% in customer satisfaction, and by fourfold in revenue
growth (Goffee & Jones, pg. 100)." Also, those that are able to be
open about their views on the company, and have confidence that they
will be heard, are likely to be a more organized employee who helps his/
her fellow team members succeed.
[21]
Corporate synergy
Corporate synergy
occurs when corporations interact congruently. A corporate synergy
refers to a financial benefit that a corporation
expects to realize when it merges with or acquires another corporation.
This type of synergy is a nearly ubiquitous feature of a corporate
acquisition and is a negotiating point between the buyer and seller that
impacts the final price both parties agree to. There are distinct types
of corporate synergies, as follows.
Marketing
A marketing synergy refers to the use of information campaigns,
studies, and scientific discovery or experimentation for research or
development. This promotes the sale of products for varied use or
off-market sales as well as development of marketing tools and in
several cases exaggeration of effects. It is also often a meaningless
buzzword used by corporate leaders.
[22][23]
Revenue
A revenue synergy refers to the opportunity of a combined corporate
entity to generate more revenue than its two predecessor stand-alone
companies would be able to generate. For example, if company A sells
product X through its sales force, company B sells product Y, and
company A decides to buy company B then the new company could use each
sales person to sell products X and Y, thereby increasing the revenue
that each sales person generates for the company.
In media revenue, synergy is the promotion and sale of a product
throughout the various subsidiaries of a media conglomerate, e.g. films,
soundtracks, or video games.
Financial
Financial synergy gained by the combined firm is a result of number
of benefits which flow to the entity as a consequence of acquisition and
merger. These benefits may be:
Cash slack
This is when a firm having number of cash extensive projects acquires
a firm which is cash-rich, thus enabling the new combined firm to enjoy
the profits from investing the cash of one firm in the projects of the
other.
Debt capacity
If two firms have no or little capacity to carry debt before
individually, it is possible for them to join and gain the capacity to
carry the debt through decreased gearing (leverage). This creates value
for the firm, as debt is thought to be a cheaper source of finance.
Tax benefits
It is possible for one firm to have unused tax benefits which might
be offset against the profits of another after combination, thus
resulting in less tax being paid. However this greatly depends on the
tax law of the country.
Management
Synergy in management and in relation to teamwork refers to the combined effort of individuals as participants of the team.
[24]
The condition that exists when the organization's parts interact to
produce a joint effect that is greater than the sum of the parts acting
alone. Positive or negative synergies can exist. In these cases,
positive synergy has positive effects such as improved efficiency in
operations, greater exploitation of opportunities, and improved
utilization of resources. Negative synergy on the other hand has
negative effects such as: reduced efficiency of operations, decrease in
quality, underutilization of resources and disequilibrium with the
external environment.
Cost
A cost synergy refers to the opportunity of a combined corporate
entity to reduce or eliminate expenses associated with running a
business. Cost synergies are realized by eliminating positions that are
viewed as duplicate within the merged entity.
[25]
Examples include the headquarters office of one of the predecessor
companies, certain executives, the human resources department, or other
employees of the predecessor companies. This is related to the economic
concept of
economies of scale.
Synergistic action in economy
The synergistic action of the economic players lies within the
economic phenomenon's profundity. The synergistic action gives different
dimensions to competitiveness, strategy and network identity becoming
an unconventional "weapon" which belongs to those who exploit the
economic systems’ potential in depth.
[26]
Synergistic determinants
The synergistic gravity equation (SYNGEq), according to its complex
“title”, represents a synthesis of the endogenous and exogenous factors
which determine the private and non-private economic decision makers to
call to actions of synergistic exploitation of the economic network in
which they operate. That is to say, SYNGEq constitutes a big picture of
the factors/motivations which determine the entrepreneurs to contour an
active synergistic network. SYNGEq includes both factors which character
is changing over time (such as the competitive conditions), as well as
classics factors, such as the imperative of the access to resources of
the collaboration and the quick answers. The synergistic gravity
equation (SINGEq) comes to be represented by the formula:
[27]
∑SYN.Act = ∑R-*I(CRed+COOP++AUnimit.)*V(Cust.+Info.)*cc
where:
- ∑SYN.Act = the sum of the synergistic actions adopted (by the economic actor)
- ∑ R- = the amount of unpurchased but necessary resources
- ICRed = the imperative for cost reductions
- ICOOP+ = the imperative for deep cooperation (functional interdependence)
- IAUnimit. = the imperative for purchasing unimitable competitive advantages (for the economic actor)
- VCust = the necessity of customer value in purchasing future profits
and competitive advantages VInfo = the necessity of informational value
in purchasing future profits and competitive advantages
- cc = the specific competitive conditions in which the economic actor operates
Synergistic networks and systems
The synergistic network represents an integrated part of the economic
system which, through the coordination and control functions (of the
undertaken economic actions), agrees synergies. The networks which
promote synergistic actions can be divided in horizontal synergistic
networks and vertical synergistic networks.
[28]
Synergy effects
The synergy effects are difficult (even impossible) to imitate by
competitors and difficult to reproduce by their authors because these
effects depend on the combination of factors with time-varying
characteristics. The synergy effects are often called "synergistic
benefits", representing the direct and implied result of the
developed/adopted synergistic actions.
[29]
Computers
Synergy can also be defined as the combination of human strengths and computer strengths, such as
advanced chess. Computers can process data much more quickly than humans, but lack the ability to respond meaningfully to arbitrary stimuli.
Synergy in literature
Etymologically, the "synergy" term was first used around 1600,
deriving from the Greek word “synergos”, which means “to work together”
or “to cooperate”. If during this period the synergy concept was mainly
used in the theological field (describing “the cooperation of human
effort with divine will”), in the 19th and 20th centuries, "synergy" was
promoted in physics and biochemistry, being implemented in the study of
the open economic systems only in the 1960 and 1970s.
[30]
In 1938,
J. R. R. Tolkien wrote an essay titled
On Fairy Stores, delivered at an Andrew Lang Lecture, and reprinted in his book,
The Tolkien Reader, published in 1966. In it, he made two references to synergy, although he did not use that term. He wrote:
Faerie cannot be caught in a net of words; for it is one of its
qualities to be indescribable, though not imperceptible. It has many
ingredients, but analysis will not necessarily discover the secret of
the whole.
And more succinctly, in a footnote, about the "part of producing the web of an intricate story", he wrote:
It is indeed easier to unravel a single thread — an incident, a name, a motive — than to trace the history of any picture
defined by many threads. For with the picture in the tapestry a new
element has come in: the picture is greater than, and not explained by,
the sum of the component threads.
Synergy in the media
The informational synergies which can be applied also in media
involve a compression of transmission, access and use of information’s
time, the flows, circuits and means of handling information being based
on a complementary, integrated, transparent and coordinated use of
knowledge.
[31]
In media economics, synergy is the promotion and sale of a
product (and all its versions) throughout the various subsidiaries of a
media conglomerate,
[32] e.g. films, soundtracks or video games.
Walt Disney pioneered synergistic marketing techniques in the 1930s by granting dozens of firms the right to use his
Mickey Mouse
character in products and ads, and continued to market Disney media
through licensing arrangements. These products can help advertise the
film itself and thus help to increase the film's sales. For example, the
Spider-Man films had toys of webshooters and figures of the characters made, as well as posters and games.
[33] The NBC sitcom
30 Rock often shows the power of synergy, while also poking fun at the use of the term in the corporate world.
[34] There are also different forms of synergy in popular card games like
Yu-Gi-Oh!,
Cardfight!! Vanguard, and
Future Card Buddyfight.
Information theory
When multiple sources of
information
taken together provide more information than the sum of the information
provided by each source alone, there is said to be a synergy in the
sources. This in contrast to the case in which the sources provide less
information, in which case there is said to be a
redundancy in the sources.