How to achieve cost optimization with composable commerce

What is composable commerce?

Composable commerce is a way for e-commerce businesses to create more meaningful, intuitive, and convenient product experiences for their customers through a careful selection of best-of-breed technologies.

How does composable commerce work?

Composable commerce breaks down the traditional monolithic e-commerce platform into a set of modular and independent services or microservices that can be assembled and reassembled as needed. These services cover various e-commerce functionalities such as product catalog, inventory management, pricing, checkout, etc.

By decoupling these components and making them composable, businesses can easily customize and extend their e-commerce capabilities, integrating best-of-breed solutions and adapting to changing market demands. Best-of-breed technologies refer to a niche or category's leading applications, systems, or software for specific use cases, such as the best-ranked CRM, ERP, PIM, BI, or AI tools.

As such, composable commerce enables faster innovation, scalability, and improved customer experiences by empowering organizations to build tailored e-commerce ecosystems that fit their specific needs and goals.

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Composable commerce: An analogy

Think of a restaurant that only offers a set menu. Although you may not be hungry enough to eat an entree, two main courses, and an entire dessert, you must pay for it since it’s part of the deal. A similar thing happens with monolithic platforms and their one-size-fits-all solution that is both costly and restricting. Even if users do not want to utilize all the platform features, they will still have to pay for them and won’t be able to adapt to changing business needs fast enough, given the platform’s rigid nature.

Now think of a restaurant that operates purely “à la carte.” With an “à la carte” approach, you can freely choose the dishes you want from a broad selection of options and only pay for the amount you eat. This is the case with composable commerce. Thanks to its modular approach, businesses can cherry-pick those microservices or Packaged Business Capabilities (PBCs) that suit their current business needs and only pay for those. After all, why would you pay for an entire menu of courses you will not finish when you can select and just pay for the dishes you want to eat? At the end of the day, it’s all about being able to choose what suits you best, and save money while doing it.

What are the benefits of Composable Commerce?

• Flexibility: it enables businesses to seamlessly integrate best-of-breed systems without the need to re-platform, fostering adaptability to new markets, channels, and customer demands.
• Modularity: PBCs used in composable structures can be deployed independently and modified over time, eradicating the liabilities that stem from rigid pairings of services.
• Cost-effectiveness: thanks to its best-of-breed approach, businesses only need to pay for the necessary features instead of paying for an all-in-one platform filled with features they will not use.
• Time-effectiveness: integrating different components with the composable approach is easier since they communicate through modern APIs.

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How does composable commerce drive cost optimization?

Modular approach: Composable commerce enables businesses to adopt a modular approach to their technology stack. Instead of relying on monolithic, all-in-one solutions, businesses can choose best-of-breed components and services that meet their specific needs. This means that businesses can invest in only the functionalities they truly need, eliminating unnecessary expenses associated with bundled features that go unused.

Flexibility and scalability: As businesses evolve and expand, they can easily adapt their commerce architecture by adding or replacing individual components. This allows for a cost-efficient scaling strategy, where organizations can invest in new capabilities when they are needed rather than making costly upfront investments in anticipation of future requirements. composable commerce enables efficient resource allocation and maximizes the return on investment by aligning costs with actual business needs.

Integration and interoperability: Composable commerce emphasizes seamless integration between different systems and components. By leveraging APIs and microservices, businesses can connect their existing systems, legacy applications, and third-party services more effectively. This integration tis the need for costly custom development or manual workarounds, streamlining operations, and minimizing expenses. As such, integration solutions like the iPaaS (integration Platform as a Service) help facilitate composable commerce in a quick and cost-effective way.

Agility and time-to-market: Composable commerce enables businesses to quickly adapt to market changes and customer demands. By leveraging pre-built components and services, businesses can accelerate their development and deployment cycles, reducing time-to-market. This agility helps businesses optimize costs by responding rapidly to market opportunities and avoiding prolonged development cycles that can incur additional expenses.nte

Vendor flexibility: Composable commerce allows businesses to choose vendors and services based on their specific requirements and budget. This flexibility enables businesses to negotiate favorable pricing and service agreements, optimizing costs by selecting the most cost-effective options available in the market.

Elimination of legacy systems: Composable commerce empowers businesses to gradually replace legacy systems and technologies with more efficient and cost-effective solutions. By eliminating outdated and costly systems, businesses can reduce maintenance expenses, improve operational efficiency, and leverage modern technologies to achieve better cost optimization.

Conclusion

In conclusion, composable commerce offers a game-changing approach to cost optimization in today's dynamic business environment. A composable approach gives businesses the flexibility to select and integrate individual components and services tailored to their specific needs, promoting agility, scalability, and innovation. This flexibility allows businesses to quickly adapt to changing market demands and adopt new technologies, increasing their ROI and thus driving cost optimization. Spending money on unnecessary features is a thing of the past!

Simply put, choosing composable commerce is choosing financial success.

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