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Composable Commerce: Why does the E-Commerce Rely on Modules

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Digital transformation is bringing widespread connectivity that is independent of time and place, offering great potential but also challenges for online commerce. Consumers are accessible anytime, anywhere, use a variety of different devices, and have high expectations when it comes to their shopping experiences. Companies still stuck on legacy, monolithic systems that were never designed for such modern touchpoints cannot meet these demands. Composable commerce is now delivering a new approach to digital commerce. The Corona pandemic, in particular, is seen as a driver for this rethinking of e-commerce, with digital sales channels gaining massive momentum and demonstrating the importance of flexibility and agility for businesses to respond to unforeseen developments.

What is Composable Commerce?

Composable Commerce is a term coined by Gartner and describes a modern approach in which companies select and customize various powerful commerce solutions to meet their specific business needs. In other words, the concept is based on the composability of systems and modules. Instead of relying on rigid, closed system architectures that dominated markets for years, Composable Commerce leverages modern technologies and concepts, such as MACH (Microservices, APIs, Cloud and Headless) and JAMstack (JavaScript, APIs & Markup) architectures, to adapt to rapidly changing market dynamics and future developments. This type of modular approach allows you to select targeted best-of-breed solutions to assemble a customized tech stack for the unique needs of your business and customers.

Composable Commerce is defined by four principles:

  1. Modular: Each component of the system can be deployed and interchanged independently. This enables greater agility, faster time-to-market, and improved customer experiences across all devices and touchpoints.

  2. Open ecosystem: Different systems, solutions, and external applications can be seamlessly integrated and linked for greater customizability.

  3. Flexible: Modern, flexible technologies and concepts such as MACH and JAMstack architectures are used. With your unique setup, you can create individual commerce experiences that are tailored exactly to their needs and the wishes of your customers.

  4. Business-oriented: A fully customizable system allows you to react quickly and cost-efficiently to new market requirements and developments and increases the potential for innovation. New strategies and business models can be implemented easily without being slowed down by outdated IT structures.


Gartner Composable Commerce Quote

 

Composable Commerce offers these advantages

From a business perspective, the approach enables you to:

  • Utilize all channels and touchpoints for commerce and thus realize the full revenue potential
  • Unique shopping experiences to differentiate your business from the competition
  • Commerce experiences with complex business requirements, such as personalized marketing campaigns and precise customer engagement actions, as well as full control over all activities
  • The flexibility and agility needed to respond quickly to new market and customer demands

The approach also has some advantages from a technical point of view, such as:

  • a headless architecture with API-first principle, which allows you to easily add and replace components and does not tie you to a single vendor
  • rapid adaptation of the software to changing business requirements
  • more efficient ways of working and reduced costs for system management and personnel due to the use of state-of-the-art technologies

The problem with monoliths

A single platform covering all major functions seems practical at first and was able to meet the simple needs of consumers for some time. Today, the bar is much higher in e-commerce: customers want to shop anytime, anywhere, and from any device, and they expect positive and personalized shopping experiences at all times. This trend is forcing companies to rethink their IT structures in order to remain competitive. This is true not only in the B2C sector, but also in the B2B sector. Here in particular, however, companies are encountering obstacles in e-commerce due to longer customer journeys and products that require intensive consultation. Classic commerce platforms are usually simply unable to map complex B2B business requirements.

It quickly becomes clear that monolithic systems do not bring the necessary flexibility and agility to meet high customer expectations and support rapid business growth. Legacy all-in-one solutions force you into a corset of rigid standard functionalities that are difficult to change or extend through integrations. New digital business models can hardly be implemented successfully with such legacy systems. So if you really want to remain fit for the future, you have to rely on a modern IT concept that not only enables the growth of your own e-commerce, but also actively promotes it through the latest technologies.

This is how Composable Commerce is changing online commerce

The biggest strength of Composable Commerce is the ability to perfectly customize your own commerce setup to meet the needs of your business. It allows you to use only the components and functions you need, choosing only the best applications on the market for this purpose, instead of limiting yourself to the basic functionalities of an all-in-one suite. In the expansion of your business model and your digital commerce, thanks to the modular structure you are no longer limited by your system landscape and you have much more control over the features and performance of your solution. There is no system chaos with fragile point-to-point connections: due to the innovative architecture, every application is seamlessly integrated and works natively as part of your e-commerce platform for a powerful, optimally networked IT ecosystem.

Composable Commerce focuses on uniqueness and differentiation, so you can choose exactly the systems - from your store system, to your CRM, to payment and shipping providers - that are perfectly aligned with your business. Your entire e-commerce tech stack becomes leaner, faster, more flexible and much easier to maintain. This not only simplifies your work, but also creates an exceptional customer experience for customers across all channels.

The easiest way to a modular e-commerce platform

Moving to Composable Commerce doesn't have to be complicated or lengthy - whether you're starting from scratch or building on existing systems.

At Actindo, we have long since recognized the trend towards modular IT and, with our Actindo Core1 platform, we offer a flexible all-in-one solution that makes it possible to integrate and centrally control all touchpoints as well as existing (legacy) systems. It is based on the innovative MACH+ architecture and thus provides ideal conditions for a modular commerce setup and an innovative ERP strategy. It can be deployed both as a central solution and as a scalable layer on top of existing systems, enabling easy modernization of monolithic legacy IT. So switching from a traditional ERP system to a modern solution based on the composable commerce approach need not be a costly mammoth project. Reliable legacy systems can be easily integrated into the modern commerce environment and linked to modern applications with Actindo's Digital Operations Platform.

 

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