Synergy and emergence - what is it in the economy?

The development of any sphere of life, and above all of the business sphere, depends on the effect that the correct combination of several ideas aimed at one goal will give. Simply put, several projects that complement each other at the output will yield results that exceed the single idea by results of development. Synergy in business is the determining factor for the stability and development of small companies.

What is synergy?

Scientifically speaking, synergy is the need to promote two or more forces (things, matter, etc.) in an effort to achieve a certain mutually beneficial effect for all. We can enumerate the essence and the reflection of this term indefinitely, but by enclosing all the examples in one definition we say that synergy is the effective interaction of several forces to create one more stable and powerful flow. Virtually everything that surrounds us has a synergy effect:

What is the synergy effect?

The synergistic effect is determined by what will be specifically obtained at the output when connecting and interacting several components. In the definition it is important to take into account the factor that such terminology is applicable not only in the event that a positive final result is finally present. The negative result will also be the result achieved by using the interaction scheme. Synergetic action in more detail and deployed can be traced in the sphere of management.

Synergy in Management

The growth and development of the company depends not only on the financing of the project itself, but also on the quality management of the internal processes that form the basis of this business. In management, the positive effect of synergy is achieved by the fact that a certain set of combinatorial actions directed to one channel allows:

Such an effect can be achieved only if all spheres of business work towards a common goal. The quality of the work of each link will ensure the effectiveness of the functionality of the whole organism as a whole. Only the unification of common efforts can ensure a full-fledged final result.

Law of Synergy in Management

The business sphere is its laws and its own characteristics. In management, the principle of synergy is focused only on achieving a positive result. Thus, company executives who have extensive experience in different spheres of one activity, are able to achieve a better end result only by interacting with each other and by making general decisions. Each sphere serves as a complement to the union of other spheres, providing them with support for further movement in one direction.

What is synergy in the economy?

The merger of two or more firms, or the absorption of smaller counterparts by a large corporation, leads to the fact that the giant is building up its strength by feeding new infusions, and small businesses are able to continue to function without risking losing their competitiveness and market demand. The effect of financial synergy is achieved if several small companies united in one large corporation operate not in the mode of competition but in the mode of interaction with the goal of further development.

Synergism and emergence

To determine the term, emergence again refers to the corresponding example. So, functioning separately, the thread, needle and fabric can not provide any final result, no matter what they initially are full-fledged elements. If these things are joined together by a common process, where each component still plays its role, but not as a separate element, but as part of a general mechanism, they will give a new product at the output.

The same principle determines the synergy in the economy: the unification of several independent directions in one union, will ultimately present a more powerful, more functional and more stable economic product. And already this product will be called emergence.

Summing up, it can be said that the merger of several companies of one direction and one field of activity into a common corporation creates the effect of financial synergy, and the unification of several synergy streams ultimately create emergence - a higher level of enterprise development.