Making the Strategic Shift from Legacy ERP to Composable Commerce

Ever felt like your business is stuck in a time warp, while the world around it evolves at breakneck speed? 

When the pandemic flipped the script and forced global supply chains to a halt, businesses faced the ultimate test—survive or thrive in the face of unprecedented change. 

This is also where legacy Enterprise Resource Planning (ERP) systems— once hailed as the backbone of commerce—started to show its limitations. 

Legacy ERP systems, with their cumbersome structures and rigid frameworks, are like the creaky foundation of an old building—solid, but unable to withstand the tremors of change.

Industry leaders had to scramble to find a worthy replacement—and found one in the form of composable commerce.

In this blog post, we're going to demystify composable commerce, exploring what it is and why your business needs to ditch the restrictive legacy ERP in favour of a composable architecture. 

If your business hasn't made the switch yet, you're missing out on more than just a trend—you're missing a ticket to resilience and innovation.

It's not just a tech upgrade—it's your passport to staying competitive in today's fast-paced marketplace. 

Lessons Learned During Covid About ERP

In the wake of the Covid-19 Crisis, businesses worldwide found themselves at a crossroads, forced to reassess their operational strategies amidst the global upheaval. 

A staggering 84% of companies underwent significant operational changes to remain relevant in the face of pandemic-induced disruptions. 

What emerged from this tumultuous period were valuable lessons about the role of Enterprise Resource Planning (ERP) systems in steering companies through uncertainty.

During this time, businesses who survived fell into two distinct categories: Firstly, there were those early adopters of cloud ERPs, which gave them the agility to navigate the rapidly changing landscape. This adaptability allowed seamless supplier switches, increased production at localised factories, and direct-to-customer sales, all managed efficiently in the cloud.

On the opposite side were companies that barely managed to stay open due to their lack of flexibility and adherence to rigid, monolithic mindsets. Because they were chained to outdated, inflexible systems, they only pulled through because of sheer hard word and determination. It was adapt or die. 

The lessons learned during the Covid-19 era underscore the importance of flexibility and adaptability. Businesses must embrace the transformative potential of modern ERPs to weather  the challenges that lie ahead.

Legacy ERP Systems and the Urgency for Change

Once hailed as indispensable IT infrastructure during the 1990s and 2000s, ERP software began to lose its lustre by the mid-2000s, plagued by a series of implementation failures. 

These setbacks, coupled with hefty price tags and inherent inflexibility, sparked a growing belief that the era of traditional ERP systems was coming to an end. 

Businesses, on the lookout for alternatives to these all-in-one solutions, began searching for more agile and adaptable options.

In the current ERP landscape, vendors often stick to proprietary, static data models, development/integration tools, and business logic. This monolithic model, while once the norm, presents a host of serious downsides that cannot be ignored.

One glaring issue is the lack of synchronisation, especially with regards to pricing and inventory. This flaw leads to operational inefficiencies and hinders the seamless flow of information within the system. 

The result? Duplication of work and a frustrating lack of visibility into critical business processes.

The rigid nature of the ERP black box becomes even more evident when considering the challenges associated with making changes. Under this monolithic approach, modifying even a single component requires a wholesale upheaval, akin to tearing out everything to modify one solitary element.

The future of ERP lies in moving away from rigid structures to systems that allow for flexibility, ensuring businesses can adapt and thrive without the need for extensive overhauls.   

The urgent need for change is clear, as organisations look for alternatives that offer flexibility, synchronicity, and the ability to evolve without resorting to drastic measures. 

Overcoming Vendor Lock-in in the ERP Landscape

Gone are the days when organisations could install ERP solutions and forget about them until the next upgrade—often only several years down the line.

In today's landscape, ERP requires an ongoing commitment to align the application portfolio with evolving business objectives. 

It's crucial to understand that ERP is not just a product—it's a strategy. This strategy demands continuous engagement, review, and innovation.

In essence, it's about liberating your business from the limitations of a single vendor, allowing flexibility and choice in adopting solutions that best suit your evolving needs. By doing so, organisations position themselves to navigate the complexities of the business landscape with agility, ensuring they are not tethered to outdated systems but are instead empowered to thrive in the face of change.

Breaking free from vendor lock-in isn't just a strategic move—it's a fundamental shift towards a more adaptable and resilient future.

What is Composable ERP?

Imagine having access to a core of applications and software platforms that are not only configurable and integrated but also flexible enough to embrace the technological innovations of tomorrow.

This is the essence of Composable ERP—a composite architecture made up of applications and software platforms delivered as a service. These integrated applications can be composed and recomposed to tailor business capabilities and outcomes.  

 Which means your ERP is now made up of a constellation of modular, interoperable components made up of third-party apps, cloud connectors, APIs, and modern corporate IT platforms. Each of these components can be independently deployed, managed, and scaled, giving you the flexibility to tailor your solution precisely to your needs. 

This innovative architecture is inherently agile, designed to facilitate swift adaptation to changes in the business environment. 

Composable ERP is a dynamic approach that empowers businesses to stay ahead of the curve, ensuring they can seamlessly integrate new technologies and respond to the evolving needs of the business landscape. 

Composable ERP is the key to unlocking a future where businesses can shape their digital capabilities with flexibility and efficiency.

The Power of Composable Architecture to Deliver Infinite Adaptability

Composable ERP empowers companies to deploy a flexible mix of services, point solutions, and suites, providing a level of versatility previously out of reach in heavily monolithic ERP solutions.

The real genius of composable ERP lies in its ability to evolve alongside your business. As your company undergoes changes and requires new models, composable ERP seamlessly recomposes your applications to unlock new capabilities. 

Two key initiatives drive this recomposition: ownership of data and integration strategies. Unlike traditional ERP solutions, where vendors dictated data integration and strategies by virtue of owning data models, composable ERP places control firmly in the hands of businesses.

Composable ERP gives businesses the tools to proactively shape and enhance their digital capabilities. With composable architecture, the power to drive innovation and stay ahead in the business landscape is firmly in the hands of the businesses themselves. This is the transformative potential of composable ERP—delivering infinite adaptability and putting businesses in the driver's seat of their technological evolution.

Using Composable ERP to Create Customized Apps

Composable ERP empowers individuals across the organisation, even those without extensive coding expertise, to actively participate in the creation and modification of apps. 

 Let's dive into a practical example of how composable ERP proves instrumental in swiftly developing custom apps to meet evolving requirements:

1. Expense Tracking

 Composable ERP facilitates the swift creation of custom apps that empower users to effortlessly track and manage expenses. This  empowers users to take control of their expense tracking processes without the need for extensive coding expertise. 

2. Supply Chain Management

Whether it's adjusting inventory levels, fine-tuning ecommerce-businesses">order fulfilment workflows, or enhancing logistics tracking, composable ERP provides the tools for creating custom applications that precisely align with the evolving requirements of efficient supply chain management.

3. Customer Relationship Management

Businesses can swiftly develop applications that track customer interactions, capture essential lead data, and effectively manage customer relationships.  This promotes a personalised approach to customer interactions.

4. Human Resources Management

By accelerating the development of custom apps, composable ERP empowers HR teams to focus on strategic initiatives, foster employee engagement, and ensure that HR processes align seamlessly with the overall goals of the organisation.

5. Financial Management

 The flexibility of composable ERP ensures that businesses can swiftly adapt their financial management applications to changing regulations, financial reporting standards, and organisational needs.

The Benefits of Composable Commerce

Composable ERP has become a game-changer for businesses seeking flexibility and adaptability in their operations. 

Delving into the advantages of composable commerce, let's highlight the key benefits that make it a game-changer for businesses seeking flexibility and adaptability in their operations:

1. Centralised Inventory and Pricing Management

By centralising inventory data and pricing information, businesses can ensure consistency, accuracy, and real-time visibility. This not only simplifies the management of stock levels but also facilitates more precise pricing strategies, contributing to better decision-making and operational control.

2. Dynamic Component Replacement

The dynamic component replacement feature offers businesses the flexibility to upgrade or switch out specific modules without overhauling the entire system. The result is a system that can seamlessly evolve alongside the business, accommodating changes efficiently and cost-effectively. 

3. Improved Visibility and Control

The modular and adaptable nature of composable ERP ensures that data from different aspects of the business is centralised and easily accessible. This leads to improved visibility so that businesses can identify trends, analyse performance, and proactively address challenges.

4. Simplified Reporting and Analytics

By simplifying reporting and analytics, composable ERP ensures that decision-makers can easily extract the information they need to understand performance, identify trends, and make informed choices

5. Streamlined and Automated Integration

Composable ERP makes life easier by automating integration processes. This means less hassle and more efficiency in how businesses operate. No more unnecessary complexities – just smooth, streamlined operations.

Specific Advantages of Composable Commerce for SMEs

At its core, Composable ERP is all about responsiveness. It's a solution designed to keep pace with the relentless changes in corporate requirements. Now, let's dive into the tangible benefits of embracing a Composable ERP architecture—especially for small and medium-sized enterprises (SMEs):

1. Cost-Efficiency

SMEs can now optimise their costs by paying only for the functionality they need. No more unnecessary expenses – it's a tailored and budget-friendly approach to enterprise resource planning (ERP).

2. Vendor Flexibility

Composable Commerce provides SMEs with the vendor flexibility they need to thrive. No longer confined to one-size-fits-all solutions, SMEs can customise, adapt, and evolve their systems in line with their unique business demands.

3. Agility in Growth

Why settle for a system that hinders your growth when you can have one that propels it forward? Composable ERP offers SMEs the agility they need to navigate the complexities of growth. No longer shackled by rigid systems, SMEs can embrace expansion with confidence, knowing that their enterprise solutions are ready to scale alongside them. 

e-commerce-through-composable-commerce">Full-Functional E-Commerce Through Composable Commerce

With composable commerce, your E-commerce platform is not a rigid structure but made up of modular, interoperable components. Let's look at the  key components that would form the backbone of such a composable commerce solution:

1. Product Information Management (PIM)

At the heart of Composable Commerce lies Product Information Management (PIM). It ensures the accuracy and consistency of product data across all channels.

2. E-commerce Shopping Cart

This component takes charge of the logic behind the shopping cart, allowing customers to effortlessly select products, adjust quantities, and smoothly proceed to checkout. It's the engine that powers the overall shopping experience, ensuring that every step feels intuitive and enhances customer satisfaction.

3. Order Management System (OMS)

rom the moment an order is placed to its fulfilment, the OMS takes charge of critical tasks, orchestrating a seamless process. The OMS ensures that each order is processed efficiently, payments are handled securely, and inventory levels are in perfect harmony with demand.

4. Customer Relationship Management (CRM)

At the heart of customer-centric commerce lies the Customer Relationship Management (CRM) component. From managing the sales pipeline to optimising customer service interactions, CRM fosters a deeper understanding of customer needs.

5. Search and Merchandising

Why settle for a static display when you can have a system that dynamically adapts, guiding customers to the products that resonate with their preferences?Search and Merchandising components ensure that your customers not only find what they're looking for but also discover products they didn't know they needed. 

6. Pricing and Promotions Engine

The Pricing and Promotions Engine empowers businesses to adapt their pricing strategies to market trends, customer behaviour, and competitive landscapes. This component will also  orchestrate discount campaigns and oversee promotional activities.

7.Warehouse Management System (WMS) / Inventory Management

WMS / Inventory Management empowers businesses to keep a finger on the pulse, tracking stock levels in real-time. This not only streamlines warehouse operations but also aids in restocking and forecasting future inventory needs.

8. Fulfilment and Shipping Integration

In the world of digital transactions, the last mile is often the most critical. Fulfilment and Shipping Integration ensure that the final stage of order fulfilment is handled with efficiency and reliability. This component integrates seamlessly with shipping carriers, providing real-time tracking to enhance transparency and elevate customer satisfaction.

9. Analytics and Reporting

Analytics and Reporting empower businesses to understand customer preferences, track sales performance, and glean actionable insights.

10. Personalisation Engine

The Personalisation Engine elevates customer experiences through meticulously crafted, personalised shopping journeys. This component leverages customer data and the finesse of machine learning to tailor recommendations and content, creating an individualised experience that resonates with each customer.

11. API Gateway

The API Gateway ensures that the exchange of information between different elements is not just smooth but also secure. These components ensure that data flows seamlessly between the Personalization Engine, Analytics and Reporting, Fulfilment and Shipping Integration, and every other component, creating a unified and integrated e-commerce ecosystem.

12. Customer Data Platform (CDP)

In the digital age, understanding your customers is key. The CDP ensures that every interaction, from purchases to website visits, contributes to a comprehensive understanding of individual customer preferences.

13. Marketplace Integration

Marketplace Integration effortlessly expands the horizons of your business. This component seamlessly connects your business with various online marketplaces, opening the door to new audiences and markets. 

Conclusion

Composable commerce, and the broader concept of a "composable business," offers a flexible framework that empowers companies to not only weather uncertain times but to flourish amid the chaos.

Gone are the days of a vendor-centric approach—instead, gear up for a composable ERP that puts the customer at the forefront.

Composable ERP ensures that your enterprise has the foundational, administrative, and operational digital capabilities to keep pace with change. 

Composable ERP propels your business into a landscape where integrated applications can be seamlessly composed and recomposed to meet your specific needs. 

In essence, embracing Composable ERP is about future-proofing your business.  It's about more than just adaptability—it's about flourishing in the face of uncertainty.

Now, it's your turn to take the reins of this transformative journey. Embrace composable ERP, and let your business ride the wave of innovation and efficiency. The future is here, and the tools to shape it are within your grasp. Don't just survive—thrive!