Composable commerce: Best-in-class tools for the job

Technology is changing at lightning speed along with market trends and customer expectations. Adding more to it, as per a recent survey by the Conference Board, 93% of corporate CEOs are gearing up for a recession over the next 12 to 18 months. The immediate requirement for these leaders is to ensure the resilience of their technology stacks for the future, thereby keeping their businesses ready for a diverse range of unforeseen circumstances. In such a scenario, delivering customized user experience through composable architecture could ensure long-term survival and success.Customer experience is prioritized by 44.5% of enterprises worldwide, as per a 2021 Statista report. Achieving this in today's dynamic environment requires effectively using technology to create and deliver top-notch products and services.To help organizations respond to that sense of urgency, here are five tips to consider when futureproofing your business tech stack.1. Customized User ExperienceBrands, on their composable journey, must focus on offering personalized user experiences, attained using relevant user data right from the start. McKinsey reports that 71% of consumers expect personalized interactions from brands. Besides improving user experience, brands must focus on designing systems that scale with the growing user base and its dynamic functionality needs.2. Coordination with other business unitsContrary to traditional stereotypes, IT does not function in isolation. In fact, to ensure business success, technology initiatives must align with the business's overall strategy and add to the brand's short- and long-term goals. However, transitioning from a monolithic structure to a composable one must be iterative. Once a new technology is integrated within one business unit, it can eventually be rolled out to other units. While preparing for future challenges, the choice of technology will impact multiple business units during a business's transitional phase.To make sure a specific new tech works well for all units, it's essential to plan and think about the opportunities, problems and trends that might occur. This requires effective collaboration across business units. Given the interconnected nature of these departments, proper goal alignment must be ensured to deliver compatible, scalable, flexible and secure results. For seamless and customized solutions across different touchpoints, the chosen technology should be capable of scaling and accommodating new process changes across the organization.3. Constant hyper-personalization and differentiation The importance of customer experience (CX) is highly discussed in the current business ecosystem. Brands are constantly innovating new solutions to thrive in the face of competition. The only way to do that is by adopting highly scalable tech stacks that incorporate speedy change processes. While customers expect a more compelling experience, selecting any technology for the sake of it or, worse, by mimicking other brands will not work and will lead a brand to lose its competitive advantage. Instead, they must adopt best-of-breed components and change stack parts when required, creating the much-required hyper-personalized experiences.4. A flexible approachBusinesses are more unpredictable than ever, increasing the potential stakes for which leaders must be prepared. While tech leaders know that a tech revolution is coming, the exact nature of the change remains unknown. This unpredictability will lead to rapid and diverse market requirements and changes in user preferences. By investing in and leveraging technology, brands can quickly adapt to these changes and make necessary system adjustments. Furthermore, flexible tech is more interoperable, allowing smoother integration with other tools and platforms.5. Prepare your organization for the futureDon't bite off more than you can chew when it comes to composability. Business leaders can decide the number of components they want to switch at a time. Unlike monoliths, composable architectures allow business leaders to determine the number of components they want to change at a time. This makes the shift a lot smoother and much quicker. There is no rush to modernize in haste. With customer needs and industry trends changing dynamically, flexibility in business functionality is the only way forward and achievable through composable architecture. But before getting into the composable journey, organizations must find their motivation and identify their reasons for going composable to deliver a differentiated experience to their audience.

Why composable for finance makes sense (and dollars)The financial services sector, a front-runner in innovation, faces intense competition, from major investment firms to independent banks. When it comes to financial services, today's customers demand agility, security and continuous innovation. To surpass these expectations, the financial world is embracing composable technology for its unparalleled capacity for customization and innovation. Imagine tailoring services to meet each customer's unique needs, staying ahead of evolving regulations, and fostering relentless innovation. Composable Digital Experience Platforms (DXP) are the secret ingredient that fuels this transformative journey for today’s financial services organizations.Benefits of a Composable DXPThis shift offers financial institutions a chance to revolutionize their technology spectrum, driving revenue growth, faster market entry, cost efficiency, enhanced risk management and elevated customer contentment. Through a composable DXP, financial businesses gain the agility to adapt swiftly to market dynamics, personalize customer interactions, unveil new services quickly, and seamlessly integrate innovative solutions to maintain a competitive edge in the ever-evolving financial landscape. So what should financial institutions consider before getting started on their composable journey and how does this shift truly move the needle?Personalized digital experiencesToday’s customers crave personalization. They no longer want to be just another number on a spreadsheet; they want services tailored to their unique needs and preferences. This shift towards personalization isn't just a trend; it has become a necessity in the financial landscape. Composable technology serves as the backbone for this personalized evolution, allowing financial institutions to craft bespoke solutions that resonate with each customer. By leveraging modular components, these building blocks enable financial institutions to design personalized offerings that cater to individual needs. By breaking down services into smaller, interchangeable parts, institutions have the flexibility to mix and match these components, creating dynamic and tailored solutions for their customers. “Integrating a headless CMS into our cloud-native approach allowed us to really optimize edge delivery of a lot of our content… Render times are five times faster when compared to our legacy CMS.”— Clay Gregory | Principal Architect, MorningstarThis composable approach empowers organizations to adapt quickly to changing market demands, stay ahead of the curve and deliver innovative, customer-centric experiences.Improved connectivity, compliance and risk mitigationCompliance and risk mitigation have always been critical in finance. However, the increasing complexity of regulations and the fast-paced nature of financial transactions make these aspects even more crucial.Composable technology serves as a game-changer, not only enabling swift adjustments to comply with regulations but also enhancing risk mitigation strategies. Known for its inherent flexibility, composable technology empowers organizations to seamlessly update their systems to adapt to regulatory changes. This facilitates real-time risk assessment by enabling continuous monitoring and analysis of potential threats. Its modular architecture facilitates the integration of advanced risk management tools and AI-driven analytics. Additionally, it streamlines risk mitigation efforts by providing the agility to swiftly implement necessary controls and measures in response to identified risks. By leveraging composable technology, businesses can proactively identify and address potential risks, predict potential vulnerabilities, and implement preemptive measures, ensuring a robust and secure operational environment.Such a proactive approach not only fortifies the regulatory compliance stance but also bolsters the resilience of financial systems against unforeseen risks, safeguarding the integrity of operations in an ever-evolving regulatory environment.Increased customer engagement: Building loyalty with contentEngaging content is no longer limited to media companies. Financial institutions are recognizing the value in building loyalty and trust among their customers — and nurturing that customer loyalty requires a strategic blend of informative and engaging content. To build lasting relationships and deliver value beyond transactions, more financial services organizations are demonstrating their commitment to customer needs with personalized newsletters, social media, targeted emails and other various channels.But how does composable technology come into play in this context? By enabling seamless integration of various content delivery platforms, it empowers financial firms to create localized and omnichannel content strategies, ensuring meaningful engagement with customers across different channels and regions.This approach enhances the overall customer experience and strengthens the bond between financial institutions and their diverse customer base.“We’re aggressively making changes to the website. We’re trying to draw people in, and we haven’t done that before. We can spin up new pages faster now than they could previously.”— Jason Hagen | Software Architect, Harbor Capital AdvisorsModernizing workflows for today's expectations around agility and innovationAgility and innovation are no longer just buzzwords — they are non-negotiables. Composable technology is a force multiplier when it comes to modernizing workflows and increasing agility. The integration of composable technology not only amplifies agility but also catalyzes a culture of innovation within organizations. With composable technology, teams can streamline operational processes, seamlessly integrate new tools, and optimize collaborative efforts, resulting in enhancements in productivity and efficiency. "We cut out 40% of our tickets by having a CMS where other users can make updates to the website. That 40% is so valuable for us, so we can focus on revenue-driving initiatives and find new ways to get users to engage with our web properties to get more leads in the pipeline for sales. It is a huge advantage for us!"— Kevin Yang | Senior Manager, Digital Experience, ICE Mortgage TechnologyAdditionally, the rapid deployment of new functionalities and enhancements encourages a culture of adaptability, allowing teams to respond swiftly to market shifts and emerging opportunities. Composable technology not only future-proofs operations but cultivates a dynamic ecosystem where innovation thrives, positioning organizations at the forefront of industry advancements.Composable is the key to new growth and revenueIf you are still wondering why composable technology is the future of finance, consider this: it paves the way for new growth and revenue streams.By enabling customization, fostering innovation, enhancing compliance and improving customer engagement, composable technology helps financial institutions tap into previously unexplored opportunities. Composable Digital Experience Platforms are not just about keeping up with the times; they are a linchpin of progress. Composable DXPs embody modernization, propelling businesses forward in a landscape defined by agility, innovation and customer-centricity. Embracing these platforms isn't just about staying relevant; it's about reimagining your digital experiences to thrive in an era where adaptability, personalization and swift evolution are paramount. Are you ready to not just meet but exceed customer expectations?Get started today.

While determining tech stack pricing in monoliths is relatively easy, the entire decision-making process is lengthy due to the involvement of multiple decision-making units.  Composable architectures, on the other hand, meet dynamic business requirements and are far more affordable than legacy systems. For this reason, adopting composable application architecture will reduce software management costs significantly by 2024, as per Gartner.  How?  Let's find out. Selection costs Like decision-making, the request for proposal (RFP) process in monolith systems is elaborate and complex, covering every facet of a digital commerce system. The POCs of such architectures are also complicated and time-consuming to craft since all functionalities are tightly coupled. On the flip side, the request for proposal (RFP) scope of a modular architecture is streamlined, focusing only on the critical functionalities.  Additionally, composable commerce offers easily accessible free trial periods via the vendor's website. Planning costs Though a composable approach includes an elaborate MVP (minimum viable product) design phase, the solution can be implemented incrementally through a "strangler" pattern, ensuring a smooth and eventual function-by-function transition without disrupting the existing system. The process lowers risks and reduces end-to-end planning and coordination. Development and customization costs The development cost for a composable commerce system is much lower since component customization is achieved using flexible APIs. As modular structures feature existing backend functionalities, developers can focus on creating the front ends, accelerating the development cycle. Additionally, instead of developing all components from scratch, brands can build their solution using the best-of-breed components tailored to their specific needs. Finally, incremental launching using an MVP leads to faster realization of investments, in contrast to a monolith structure where any investment made in customization is wasted with a shift to a newer platform.  Integration & migration costs Myth: Integration and migration costs to composable architecture are higher, requiring the internal integration of components to create a cohesive solution.  Truth: That's not the case.  Let's not forget the API first approach with flexible APIs that make way for easier decoupling and lower integration costs of MACH-based composable stacks. Training costs Developers using a composable solution need to understand the entire system and its components, but the training costs are significantly reduced. Because these components follow the MACH architecture, they're easy to learn, making it quicker for development teams. This helps cut down on training costs. Reduced hardware maintenance Contrary to traditional architectures requiring rigorous hardware maintenance, MACH architecture prioritizes scaling and maintenance of required composables. The paradigm shift in maintenance can reduce hardware maintenance costs over time. However, it has to be evaluated to see how different composables add value or turn out to be more cost-effective than monoliths.  Streamlined resource management Adopting composable architecture simplifies resource management greatly, allowing efficient allocation of resources. Further, MACH architecture reduces operational overhead costs significantly, enabling efficient cost savings in the long run for composables. While the initial adoption of composable architecture requires careful planning and investment, the long-term cost savings potential is substantial. Companies can unlock substantial cost reductions, streamline processes, and enhance scalability by adhering to principles like MACH-aligned composables, prioritizing extensibility, and ensuring team alignment. Such a strategic shift isn't just about technology — it's a move toward a more economical and agile future for your organization. Invest in a technological transformation One cannot deny the transformative potential that a shift toward composable architecture holds for organizations seeking to optimize their operations, minimize expenditures, and boost scalability. It is true that this transition demands preliminary strategizing and investment; however, the enduring advantages it offers are indisputable. Composable architecture goes beyond merely streamlining resource management, reducing training expenses, and diminishing hardware upkeep. It introduces an unprecedented degree of adaptability and versatility by leveraging modular, top-quality components. Hence, embracing this strategic tactic is not just a technological transformation. It signifies a stride towards a future that promises greater cost efficiency, agility and prosperity for your organization.