Composability is about crafting Flexibility in Procurement - Block by Block
Imagine renovating a house by simultaneously fixing the foundation, updating the wiring and plumbing, while rebuilding the structure brick by brick and elevating the ceiling to accommodate more space.
Traditionally, this would be quite a daunting task. A complex construction that requires precision, patience, and a tolerance for the chaos that comes with ever-lasting transformation, which is no longer a once-a-decade undertaking but by now standard business operations.
For most businesses aiming to adapt to changing market conditions, shifting business requirements and user expectations all at the same time is a balancing act between modernising rapidly without causing major disruption.
But what if we could navigate this challenge? What if the possibilities stretched beyond rigid protocols and traditional process construction allowing for much needed organisational flexibility and seamless integration of workflows?
This is not as far fetched as it seems. The concept of composability isn't confined to the pixelated worlds of games like Minecraft.
It's a viable, strategic option for enterprises poised to build a blueprint, based on an architecture where innovation and adaptability are woven into the very fabric of their operations.
It’s not just about singular capabilities like AI, Process Orchestration or any other technology-centric buzzwords which currently abound.
It’s about mining value continuously and crafting an environment where change is not just expected but very much pre-empted and incorporated at ease.
It's a paradigm where Procurement or any other function can be continually reconfigured, much like renovating a virtual house — block by block — in a game where innovation and intelligence knows no bounds.
What does Composability really mean?
Before we get carried away too far with yet a new term and a concept framing what Procurement shall evolve to, let’s first define what composability really entails at the core.
Starting with the definition and to get this out of the way first, let’s see how Gartner understands determines the core of a composable enterprise through their research and studies. In plain words it’s:
“creating an organisation made from interchangeable building blocks. The modular setup enables a business to rearrange and reorient as needed depending on external (or internal) factors like a shift in customer values or sudden change in supply chain or materials.
These building blocks, are more than a singular solution or a flashy concept.
There are 3 key interwoven layers constituting Composability according to Gartner:
Composable Thinking opening up to the possibilities to organise and imagine work flows in modular, autonomous and orchestrated fashion to craft innovation supported by creativity.
Composable business architecture ensuring that an organisation is built to be flexible and resilient. It’s about a clear structure and purpose and as much about principles which provide guidance for enablement of composability.
Composable technologies. These are the solutions providing the modular bricks and components which connect, sequence and rearrange processing of information, data assets to create a unified user experience leveraging available solutions such as traditional Procurement or ERP platforms but without replacing them.
That alone, is a great starting point to build a foundation but needs to be
established with 4 key principles, supporting that Composability layers connect:
Orchestration - the conductor and seamless synchronisation force of integrated solution components and processes ensuring that each department, tool and process works in concert to achieve overarching business goals by removing friction, and facilitating effective and cohesive operational flows.
Autonomy - powering components within a larger system to work independently and take self-sufficient decisions based on insights & data within given boundaries and without constant oversight.
This supports agility and a rapid response to adapt to changing circumstances.
Modularity - as the cornerstone of Composability allowing for this malleability of systems and replacement, exchange or enhancements without affecting other components. Much like in Minecraft, this allows for easy updates and scalability, and a mesh and go of bricks much like in Minecraft without disrupting the overall game.
Discovery - inspiring an environment and culture where continuous improvement of experiences, processes and integration of new ideas and concepts secures up to date and state of the art solutions unbounded by organisational silos and fuelled by internal and external supplier collaborations forming an Ecosystem of Innovation, and connected partnerships.
These principles help to create a procurement function that is not just equipped to handle current challenges but is also poised to adapt to future challenges and opportunities.
It establishes a dynamic, resilient, and continually evolving environment, ensuring that the business can navigate the complexities of modern commerce with confidence and agility.
And it’s not totally new or smoke and vapour ware.
The concept of Composability is already integrated into Automation platforms, low code/no code solutions and API’s but often without a comprehensive strategy to elevate the agility of the business with a solid, enabling business architecture or culture.
Wait, but… does Composability disturb the Core Foundation of Procurement?
A valid concern that arises when discussing the shift toward a more flexible, composable business model is whether this new approach compromises the core principles and competencies that have traditionally defined success.
In essence, composability is acting as a way to preserve what is core, adding the much needed possibility to adapt and enhance how business is conducted and evolving. It’s not about immediate disruption but a path for enhancement.
It ensures that core values, mission, and principles are not static but can dynamically evolve.
It is giving buoyancy to a function to keep on top of changing waves of regulations and expectations without sacrificing stability.
Adding composability into a business model can start small and scale fast.
It’s not about large scale SAP, Ariba or COUPA replacement but thoughtful consolidation and complementation.
It’s a matter of having a vision in mind which balances rapid change and enhanced agility with continuous ongoing operations and transformation goals by adding flexibility to the core.
What can Composability do for the Enterprise and Procurement in particular?
Traditional business architecture follows a rigid, hierarchical model—a model increasingly clashing with today's fast-paced and unpredictable business environment.
Composability, through it’s flow orchestration, modularity and components-based approach is providing flexibility, offering solutions to challenges that enterprises and procurement departments face.
It can help to craft Procurement value by it’s adaptive business architecture leveraging components where and how they are needed.
Here a few examples how Composability, can help to continuously Innovate, Mine Value and Adapt:
Modularising complex Supply Chains
Composability enables procurement to deconstruct and reconstruct supply chains into autonomous modules, linked into a modular network of suppliers and partners.
This provides the necessary agility to set-up new chains to deliver products quickly or address disruption recompose partner use without single links compromising continuity.
Build intuitive work orchestrated for Human
Work is no longer linear. Processes and tasks span across multiple systems fragmenting activities and limiting the abilities to create an intuitive flow supporting efficiency and bridging manual swivel chair work between systems.
Humanised work calls for a connection and synchronisation of work steps serving intuitive and simplified processing supported by data presented in context and presenting options for routing or decision making.
Mine cost data & market signals for Intelligent Optimisation
Cost management and optimisation cannot be performed through retrospective comparison or late actions. It’s requiring an adjustment of tactics and decisions to contract, source or rebalance volumes leveraging spend patterns, market trends and savings opportunities. Plugging in Analytics and AI modules provides resources to reshape strategies, contain risks and improve cost exposure.
Mesh and Go - simplifying Technology fabric and integration
As new technologies emerge, integrating them into existing systems can be challenging. Composable enterprise architectures are designed for plug-and-play interactions with new tech, ensuring procurement remains on the cutting edge without the need for extensive system redevelopment.
This includes swift integration of supplier portals with API’s or the adaptation of buying and sourcing cockpits with low code / no code widgets with a simple few clicks.
Enhancing Stakeholder Collaboration & Sustainability goals
Composability in procurement facilitates a collaborative ecosystem that seamlessly connects internal stakeholders and external partners. It provides a structure for easy data sharing and communication without enforcing yet another unique collaboration portal but building on API integration.
The capture of Sustainability data across the value chain becomes a matter of data capture and modelling rather than guess work.
Building Data Assets
Making sense of the large volume of data in different storage locations and shades of quality is a monster of an undertaking in any enterprise. A composable approach empowers businesses to turn data overload into strategic advantage, organising and analysing data more effectively to drive informed decisions.
Composability thrives on organising data assets such as suppliers, materials across different entities, building a common nomenclature and model.
It provides a unified language across disparate systems.
Bridging the Skills Gap through bundling
The rapid evolution of procurement requires a workforce with a diverse set of skills. Composability focuses on fostering an environment of continuous learning and professional development, ensuring that teams can develop the competencies needed to keep pace with change. Building an organisation based on a composable business architecture assures that resources and skills are effectively used contributing to a more fluid collaboration keeping knowledge relevant and up to date.
Pooled capabilities to deliver Sourcing, Project Management or Analytics can support different areas of a process as needed rather than as organised.
Conclusion & about starting small
The journey towards a composable enterprise need not be daunting.
The key is not to overhaul systems overnight but to initiate small, incremental changes that collectively drive significant transformation.
Enterprises, especially within their procurement functions, should identify specific areas where flexibility and modularisation can immediately bring value, such as automating routine procurement tasks, adopting modular tech solutions for better data analysis, or restructuring teams to enhance agility.
Begin with small, manageable changes. Automate a routine process, integrate a new digital tool, or form a cross-functional team to encourage innovation.
These incremental steps pave the way for scaling up and fully leveraging the benefits of a composable structure.
In the end, composable procurement is about crafting an environment where change is not just managed but anticipated and seamlessly integrated.
It's about building resilience, block by block, to form a procurement function that is as strategic and dynamic as the ever-changing business landscape it navigates with an adaptive business architecture - one that's ready not just for today's challenges but for tomorrow's opportunities.
Do you want to learn more about Composability & Process Orchestration in action within Procurement.
Get in touch with me to discuss use cases and how you can get started on your journey.
This post is part of a series of topics about Automation, Composability and Process Orchestration.
If you enjoyed the article and find it insightful, react to this post or leave a comment with your thoughts.
Connect with me via my LinkedIN profile to follow my posts on Digital Transformation, Process Automation and other cool topics around Digital Procurement i frequently share.