The digital business is a transformation of traditional business and the “Composable Business” is an acceleration of digital business. See “Gartner Keynote: The Future of Business Is Composable” from the recent Gartner symposium for more on Composable Business. Composability elegantly synthesizes the key possibility of digital technologies based on two primary benefits of digital. The first is that digital offers low barriers to creating new products, services, and other business elements. Another benefit of digital is the little or no marginal cost and time it takes to make it available to all involved. Firms are now able to compose new products, services, capabilities, and many more business elements. This ability is only getting better with cheaper computing, better connectivity, more data, and intelligence in analysis and predictions. A composable business is an organization that is architected for real-time adaptability and resilience to be able to achieve such compositions.
As digital continues its unrelenting march across the economy and society, enterprises will continue to become better at composability. Turning current capabilities to composable ones is necessary but is only a first step. It enables firms to get ready to be able to respond to competitive behavior or market threats and adjust accordingly. A more luring stance would be to form new digital elements of a business that can be used for compositions that were not possible before. This could be in what firms offer their customers, how they work internally, and with others. For example, a bank might adjust the financial services in its app dynamically based on what is available from its fintech partners and the customer profile, thereby composing new services and experiences for its customers.
Tech Providers Should Take an Expansive View of Composable Business
At a minimum, tech providers can help upgrade their current technology investments of clients to become composable. But there is more value in helping their clients imagine and bring to fruition new business elements and enabling new business compositions will be much larger. This requires a closer understanding of the business strategy of their customers, the combinatorial possibilities of emerging trends, appreciation of trends in their formative age, and the willingness to apply them meaningfully. Furthermore, it demands that tech. providers absorb the larger context of how the customer can use their product or service. This context should be used to provide more comprehensive offerings and advice. But, this opportunity is harder to spot, takes more energy to coalesce their teams around and execute. Our experience from how tech providers navigated digital business products and services show that it is likely that many will gravitate toward solutions and services that turn today’s technology artifacts composable. But the opportunity is more for the ones that choose to embrace composability as a mechanism across all aspects of the business including internal organization, external ecosystems, and customer products and services.
Gartner will be investing further in building research on composable business for tech. providers. We would love to hear how you embrace this concept of composability and what it means to you.