From buzzword to business strategy: Composable commerce as a competitive advantage

valantic employees in Langenfeld

Decoupled frontend, MACH, best of breed, PBCs, microservices, APIs, and now composable commerce – the digital industry has never been short of buzzwords. However, the term composable commerce signifies more than just a new technological hype. It is, in fact, a highly relevant strategic initiative that acts as a kind of bracket for the aforementioned terms. Let’s explore together how composable commerce enables your business to respond more quickly to market requirements and create individual customer experiences.

What does composable commerce mean?

Composable commerce represents a philosophy of modularity and flexible adaptability in response to an ever-changing and accelerating market environment in which rigid monolithic structures are increasingly becoming a strategic risk. However, companies have been striving to increase their responsiveness to anticipate changes in consumer behavior or new market opportunities and address them faster than the competition, long before the term composable commerce came into existence. A good example of this is the hype around the topic of microservices, which has now given way to a certain disillusionment. 

Composability as a success factor

So, what is new about composable commerce? The essential difference from purely tech-driven initiatives is the multidimensional and integrated approach. It goes without saying that a successful e-commerce business also requires an adequate technology stack. However, composable commerce is a comprehensive corporate paradigm, in which a modular architecture and flexible technologies only fulfil the function of an enabler if flexible business processes and the corresponding mindset are present within a company to truly leverage technology-induced advantages. Excellent technology components alone are thus no guarantee for sustainable business success in e-commerce. Nonetheless, the adaptability (composability) of the underlying system landscape and architecture is a crucial key to long-term e-commerce success, as a company’s reaction speed should not be restricted by technology-related framework parameters. A high degree of composability, therefore, enables companies to continuously expand and adapt their technological infrastructure to remain competitive in the long term. A positive side effect: The more flexible and modular an infrastructure, the less dependency on individual vendors. 

The strategic path to composable commerce

Just as the development of a composable commerce strategy represents a paradigm shift of varying degrees depending on the company, the question of what type or degree of composability to aim for cannot be answered universally. The respective business model plays a crucial role in terms of flexibility of such important parameters as business processes, organizational structure, or tech stack. For example, companies that trade commodities in the market will have different composable capabilities critical to success than companies with highly individualized products.

In the course of developing a forward-looking composable commerce strategy, the following questions should therefore be central:

  1. Which composable capabilities are necessary for my business model today?
  2. Which will be needed in the future?
  3. What composable capabilities does my company already have?
  4. What steps are required to close any gaps, make one’s own digital business dynamic and flexible, and create the foundation for generating sustainable competitive advantages?

Do you need support in identifying strategically relevant composable capabilities and developing a future-oriented composable commerce strategy? At valantic CX, we combine strategic thinking with business know-how and tech expertise, making us the ideal partner for companies that want to take the next step in digital commerce.

Your company deserves a tailored solution. Let’s talk if you want to discover and strategically advance your composable potential.

Philipp Hoberg

Contact: Dr. Philipp Hoberg

Get in touch with us today!

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