For decades, centralised IT departments were the driving force behind business transformation initiatives. However, in recent years, business leaders have taken the reins in pushing for digital transformation, and this has given rise to the importance of composable ERP.
Historically, businesses relied on monolithic ERP systems that acted as the centre of gravity for the entire organisation. These systems provided a single source of truth for data and streamlined operations. However, the rise of cloud technology and SaaS applications has challenged this notion, with many business leaders favouring a best-of-breed approach to application selection.
Composable ERP is the desire for businesses to select the best applications for each individual function and then seamlessly integrate them into a cohesive whole. This approach enables businesses to stay nimble, with the ability to quickly add or replace applications as needed. It also enables more personalised experiences for employees and customers.
In the past, implementing a composable ERP system was a complex and costly endeavour, often requiring extensive customisation and integration efforts. However, newer cloud-based ERP solutions are designed with composability in mind from the ground up.
Many modern solutions offer a suite of cloud-based applications that are built to work together seamlessly but also provide the flexibility to integrate with other best-of-breed applications as needed. This enables businesses to easily swap out applications as their needs change, without sacrificing the integrity of their ERP systems.
With the rise of composable ERP, it’s clear that the IT department is no longer the sole driver of digital transformation. Business leaders are taking charge, and they are demanding the flexibility and agility that a composable ERP system can provide. By embracing this approach, businesses can stay ahead of the curve and adapt to changing market conditions with ease.
How should distributors best use composable solutions?
Distributors can approach composable ERP by first identifying their business needs and pain points and then researching and selecting the best-of-breed applications that best address those specific needs. It’s important for distributors to consider applications that integrate seamlessly with their current technology stack and that are built with composability in mind.
Once the applications have been selected, distributors can then focus on integrating them into their ERP system. This may involve customisation and integration efforts, but newer cloud-based ERP solutions make this process easier and more cost-effective.
To fully take advantage of composable ERP, distributors should continuously evaluate their applications and be open to swapping them out as needed. This requires a mindset of agility and flexibility, but it can also provide a competitive advantage by enabling distributors to quickly adapt to changing market conditions and customer needs and further automate their operations.
In the same way that yoga pants can be mixed and matched with different tops and accessories to create a personalised and versatile look, composable ERP enables distributors to select and integrate the best applications to create a personalised and versatile technology stack that meets their specific business needs. By taking advantage of composable ERP, distributors can differentiate themselves from competitors and stay ahead of the curve in the ever-evolving world of business technology.