Business technology is a lot of things to many companies, but one word that traditionally hasn’t been used to describe it is “flexible.” Companies will often opt for an all-encompassing tech solution from a single vendor based on its strengths or for simplicity.
Then, they’ll live with the solution’s deficiencies because it’s all part of the package.
The problem with this approach is that it can force you to compromise on your chosen business strategy. If you don’t have the tech to pursue your priorities properly, you capped your organization’s potential.
Traditional tech architecture is like an action figure – a pretty cool birthday present, but ultimately limited in what it can be and do. Composable architecture is like a Lego set, which can be configured into any number of things, limited only by your imagination.
While “composable architecture” is technically a software engineering term, I think it’s also useful to describe how businesses should build their tech ecosystems in an increasingly digital world.
A composable tech ecosystem is modular, meaning that it’s made up of components that can be independently developed, deployed, and scaled while still communicating effectively with one another. When a vendor comes with a new product that would be perfect for your organization is mission, you can easily add it to your ecosystem. And when one of your modules is no longer helpful, whether it’s because better technology has become available or your company made a strategic pivot, you can easily swap it out.
In the past, businesses generally shied away from composable architecture. Not only was it more straightforward to just get an out-of-the-box solution from a single vendor, but it could also be tough to get individual pieces of software to work together reliably.
But now, technology has evolved to the point where it’s relatively easy to connect ERPs, CRMs, data warehouses, and other components through integration layers and application programming interfaces (APIs). The rise of cloud computing and AI has made it possible for these programs to efficiently share data and put it to good use across systems.
This means that for businesses that are paying attention, the scales have tipped the other direction, and it’s now more practical to use a model that allows them to optimize their tech stack than to force a one-size-fits-all platform.
When your tech ecosystem is built so that any given element can quickly be upgraded when the opportunity arises, you can make your technology work for your strategy rather than vice versa.
Your business operations will become more agile, as you won’t have to tear your platform down to the studs just to upgrade one element. The change will no longer feel like a massive lift but rather an ongoing series of much more manageable ones.
For example, if you like your ERP’s order-to-cash module overall but don’t love how it handles bids, you can replace that with a custom component without having to change your entire platform.
If your CRM does an excellent job of handling the sales process but needs to improve in the analytics department, you can enhance it with a more robust third-party business intelligence tool.
If your rebate management tool does the job, but you’ve independently built a better way to optimize rebates, you can insert your program into your system.
Just about any process — or any given step in a process — can be improved with a small and specialized software solution. No single vendor can be the best at everything, but that doesn’t mean you have to shrug your shoulders and say that perfect is the enemy of good. A good or great solution can always be enhanced — but you have to be willing to think outside the box.
Artificial intelligence (AI) is the most visible example of the power of decentralization. It shows that no matter how big and famous a software company may be, it has no chance of keeping up with the market regarding innovation. Even when Tiger Woods was at the peak of his powers in golf, the smart bet was always on the field. The odds are better for a collective than for an individual. AI is the same way.
Many companies, most of which the average person has never heard of, use widely available large language models to create powerful software to achieve super-specific goals.
Here at ProfitOptics, we’ve developed AI solutions like CARE and ADAPT.
If you go all-in on your ERP and wait for your provider to deliver the AI-powered goods, you will drive yourself crazy watching the hyper-specialized tools you dream of emerging from the marketplace. But if you allow yourself the flexibility of composable architecture, you can snatch up those tools and integrate them.
AI isn’t going to take over the world like Skynet. However, it will present endless opportunities to enhance existing business software with capabilities like advanced search, predictive sales, and process automation. The only way to take advantage of those opportunities is to ensure your ecosystem is built to incorporate them.
Composable architecture has its challenges. More solutions certainly mean more complexity, even if the technology exists to handle it. There are more vendors to manage, more bills to pay, and more strain on IT and executive leadership.
One way to mitigate this is by decentralizing your approach to technology. Don’t put all of the burden on IT; instead, have each department own its role-specific tech and manage its vendors. If an issue escalates, IT can come in and help. But in a world where tech is integral to every business process, they shouldn’t have to handle everything.
Finding a technology partner to help you stand up and implement your solutions and integrations is also essential. At ProfitOptics, we not only build those solutions, but we ensure that your data sources are clean and organized and that the data flows smoothly across systems, no matter how many vendors you use.
Contact our expert team today to learn more about how ProfitOptics can help your company embrace composable architecture.
