Composable Commerce: Navigating Build vs. Buy Orchestration

Article Overview : The article talks about composable commerce and its key element, orchestration layers. It discusses the decision-making process, weighing factors like cost, flexibility, and scalability when choosing to build or buy these layers. The article concludes by offering essential questions to help businesses navigate the ever-changing world of composable commerce successfully.

In the past few years, composable commerce with its tailor-made, plug-in-as-you-play functionality has put retail businesses on the fast-track of digital innovation. A UK perfumer saw a 155% growth in sales in the past five years after switching to a composable commerce stack.

In this article, we explore :

• Introduction of Composable Commerce
• Role of Orchestration Layers
• Build Vs Buy Decision
• Key Aspects to Address When Developing Composable Commerce Orchestration
• Essential Factors to Weigh in Composable Commerce Orchestration
• Unveiling the Key Questions for Your Composable Commerce Vendor Hunt
• The Wrapping Up Whistle

Do you know that a March 2023 survey showed that 72% of US retailers have already incorporated composable commerce to some extent, with an additional 21% planning to implement it within the next year?

Now what’s all that fad around composable commerce! Let’s explore!

Introducing Composable Commerce

Think about how technology has changed the way we do business in the past ten years. We've moved on from 'omnichannel' and are now exploring something called unified commerce – it's exciting! But how do you join in and make your business smoother? Well, the trick is to adopt a composable commerce mindset.

In today's fast-paced world of business, you need more flexibility than the usual way of doing things. That's where forward-thinking retailers come in. They're using SaaS-based, modular systems that help them keep up with changes, meet customer needs, and handle new trends.

Now, let's talk about 'composable.'

Gartner has said that it's a smart way to use modular, cloud-based tools to create digital shopping experiences that last. Composable commerce is like building with Lego pieces – you choose the best parts to fit your business. It's a modern way to make your online store work just right for you.

Excited to try out composable commerce and create a future-proof shopping experience for your customers?

Then explore this content for insights on composable commerce, emphasizing orchestration layers in the composable architecture. Navigate the perpetual build vs buy debate to empower informed decision-making.

Role of Orchestration Layers

Composable commerce is a game-changer in digital transformation, providing the flexibility businesses need. Think of it as a dynamic DIY toolkit for your online store, allowing you to craft a tailor-made digital experience that resonates with both businesses and customers.

But how does that flexibility come into the picture? It’s majorly because of the unsung hero – the orchestration layer.

In composable commerce, the orchestration layer acts as a coordinator, blending various elements to guarantee seamless functionality. This layer is the glue that binds your chosen tools, orchestrating a seamless symphony of functionalities powering your online presence.

Consider the instance of online shopping that comprises browsing, adding to your cart, and making a purchase. Behind the scenes, the orchestration layer coordinates inventory, payments, and shipping logistics, ensuring a delightful and hassle-free experience.

However, there are two types of orchestration layers, namely the API Orchestration and the Data Orchestration.

What is the API Orchestration Layer?

An API orchestration framework enables you to modify the appearance of requests and responses, enhance the collaboration of old systems, regulate permissions between services, manage sudden increases in activity, and strengthen overall security.

What is the Data Orchestration Layer?

The Data orchestration layer helps transform data, manage servers, handle authentications, and integrate old systems. In the cloud, it also manages how things connect and work together between online and in-house parts.

To sum it up the orchestration layer in composable commerce is like the wizard behind the curtain, making magic happen seamlessly. It empowers businesses to stay agile, adapt to trends, and deliver personalized experiences. Choosing to build or buy this layer isn't just a technical decision – it's unlocking the full potential of composable commerce for a transformative success story.

The Build vs. Buy Decision

The orchestration layer brings together different parts (like systems and applications) to make everything run smoothly, just like instruments in a music symphony. Even though it works behind the scenes, it makes sure that all the pieces work well together to give users a seamless and efficient experience.

Now, when it comes to establishing this crucial orchestration layer, businesses face a fundamental decision: to build it in-house or to buy a pre-built solution. This is known as the "Build vs. Buy Decision". Building your orchestration layer means tailoring it to your brand's specific needs and preferences. This approach demands time, resources, and expertise, but the result can be a finely tuned system that aligns precisely with your business goals and processes.

However, building of orchestration layer comprises two options.

The first one involves using API extension capabilities, which means having APIs communicate with each other. In this case, you would add business logic to each API connected to every channel. While API extensions are powerful, they mainly focus on commerce-related aspects and may not meet all requirements in a complex omnichannel setup.

The second option is to place an API orchestration layer between all backend APIs and customer-facing channels. This layer brings together multiple backend APIs, making data, processes, and actions accessible for any channel through a single API.

On the flip side, opting to buy an orchestration solution is like selecting a well-crafted suit from a reputable store. It might not be as tailored, but it offers a quicker and often more cost-effective solution. Buying can be especially beneficial for businesses without the in-house expertise to build and maintain a complex orchestration layer.

The significance of this decision impacts a brand's agility, scalability, and adaptability in the digital landscape. An in-house-built orchestration layer may provide a competitive edge with its tailor-made functionalities, while a purchased solution can get your operations up and running swiftly, enabling you to focus on your core business competencies.

Yet, brands continue to face a strong dilemma whether to build or buy the orchestration layer for composable commerce.

In the upcoming section, we'll delve into these dilemmas, seeking ways to effectively address and mitigate them.

Key Aspects to Address When Developing Composable Commerce Orchestration

According to a recent survey, the projected size of the composable application market is anticipated to expand from approximately USD 5.2 billion in 2023 to USD 11.8 billion by 2028, with a compound annual growth rate (CAGR) of 17.5%.

The growth is attributed to rising demands for swift customization and scalability. Nevertheless, a potential obstacle to this growth is the scarcity of skilled professionals among developers.

But amidst the soaring growth, the debate between build vs buy continues to stay, let’s understand both sides of the coin which includes buying an orchestration layer or building it from scratch.

Today, businesses grapple with the critical decision of building or buying the orchestration layer that powers their operations. Like deciding whether to customize a solution or opt for a pre-packaged one, building in-house allows tailoring to specific needs. Key considerations involve a skilled development team, clear business requirements, and commitment to ongoing maintenance. However, this path demands a substantial upfront investment and technical expertise.

On the flip side, buying the orchestration layer is like getting a ready-made solution. It offers convenience, saving time and leveraging existing infrastructure. However, an off-the-shelf solution may not align perfectly with unique business requirements. The decision hinges on balancing pros and cons, weighing the convenience of a pre-made solution against the personalized touch of a customized one.

Essential Factors to Weigh in Composable Commerce Orchestration

When contemplating an in-house build for composable commerce orchestration layers, businesses must weigh several crucial factors.

Cost : Finances involved become a pivotal consideration as developing and maintaining an in-house solution. Companies need to assess whether they have the financial resources to cover development, ongoing maintenance, and potential scalability needs.

Tech Infrastructure Landscape : The prevalence of legacy applications and the absence of out-of-the-box support in the ready-made orchestration layer are key factors prompting the decision to pursue a custom build in IT. It means when there are too many legacy applications and third-party integrations building from scratch is a better option than buying it.

Time : It is another critical factor; building an orchestration layer in-house can be time-consuming, affecting time-to-market and the ability to adapt quickly to changing market demands.

Flexibility : Agility and control are essential elements that businesses often seek with an in-house build. Creating a solution from scratch allows customization to specific needs and processes, providing a level of control that off-the-shelf solutions might not offer. However, it's essential to consider the expertise required for this level of customization. Does the internal team possess the necessary skills, or is external expertise needed?

Scalability : Adequate amount of scalability is another vital factor; businesses should evaluate whether their in-house solution can scale effectively as the company grows.

Certain questions directed towards orchestration vendors can help in the decision-making process.

How flexible is the vendor's solution to adapt to unique business requirements?

What level of control and customization is available?

Additionally, understanding the vendor's expertise in providing scalable solutions and the associated costs can aid businesses in comparing the advantages and drawbacks of an in-house build versus opting for a vendor solution.

The goal is to find a balance that aligns with the company's financial capabilities, time constraints, need for flexibility, and long-term scalability goals.

Unveiling the Key Questions for Your Composable Commerce Vendor Hunt

Searching for the perfect orchestration vendor for your composable commerce solution?

Here are key questions to simplify your selection:

How seamlessly does their system integrate with your tech? Is customization a tailored fit for your business needs?

Next, inquire about their commitment to innovation with frequent updates. Ensure the bouncer at the data security party is vigilant – ask about their strategy for safeguarding customer data.

Don't overlook support – inquire about the level of assistance for a smooth tango with their system.

Lastly, check scalability – avoid a one-time fit with questions on futureproofing.

Get ready to waltz into composable commerce success!

The Wrapping Up Whistle

As businesses stand at the crossroads of the "Build vs. Buy Decision," envision the orchestration layer as the unseen conductor in your digital symphony, ensuring a flawless customer experience. With the composable application market poised for a leap, the dilemma emerges – to build a customized in-house solution or opt for quick-deployment convenience.

Building offers control but demands a hefty upfront investment, while buying provides speed but may lack tailored precision. The key lies in a balanced approach that fits your budget, timeline, flexibility, and long-term growth goals. In this ever-evolving landscape, these considerations pave the way for a harmonious and successful composable commerce journey, where businesses confidently navigate the changing rhythms of the industry.