eCommerce Buzz Term: Composable Organisations – what does it mean?
A Composable Organisation structure can be formed on the business philosophy that every specific function is equally as important to the other.
In eCommerce, this translates that every element of the user purchase journey, for example something like the functionality of the shopping cart on the website and having the option to “save for later”, has a real impact on a consumers decision to purchase.
With that in mind some companies are now increasing both collaboration and results by using smaller cross-functional teams to scale-in on each element of the user purchase journey.
Key Ideologies of Composable Organisations
Having said that, there are some simple key ideologies behind composable organisations. Firstly, are adaptable and flexible; they are capable of rearranging the organisations components in various combinations to meet changing needs. They are also innovative, scalable and resilient in the face of disruption since they don’t rely on a single monolithic structure. Lastly and perhaps most prolifically in relation to eCommerce, they are customer-centric; by organising themselves around customer segments or value streams, they can deliver products or services that are tailored to specific customer requirements, resulting in higher satisfaction and loyalty.
5 ways a Composable Organisation structure could benefit your eCommerce business.
- As we mentioned above, a composable organisation can foster collaboration by modularising its relationships with partners and integrating them seamlessly into its operations. This is very useful in eCommerce as eCommerce ecosystems often involve multiple stakeholders, including suppliers, distributors, logistics partners, and technology providers.
- A composable organisation can optimise its supply chain by dynamically adjusting sourcing, warehousing and distribution strategies based on factors such as demand forecasts, inventory levels and shipping costs. eCommerce businesses rely heavily on efficient supply chain management and the agility of a composable organisation structure will help eCommerce business to be more resilient in the face of changes in the supply chain.
- The composable organisation structure can help tailor the customer experience on an eCommerce site to individual preferences by assembling different components such as personalised product recommendations or targeted marketing campaigns, leading to higher customer satisfaction and an increase in purchases.
- Composable organisations can easily scale their operations up or down by adding or removing modular components, such as, customer service teams or marketing campaigns. Fluctuating demand is often a major pain point for eCommerce businesses, especially during peak seasons or promotional events, therefore, being able to meet demand fluctuations more efficiently through the composable organisation model would be hugely beneficial.
- Similarly to composable organisations flexibility when it comes to scaling operations, a composable organisation can also easily reconfigure its product offerings. This allows for rapid experimentation with new products or variations of existing ones perfect when your eCommerce business needs to keep up-to-date with changing market trends.
At Adapt, we specialise in recruitment in the eCommerce space and our specialist, Dean is always happy to chat.
If you’re an eCommerce professional looking for a new and exciting business to join she partners with some of the best in the industry, alternatively if you are an eCommerce business looking to expand your team, contact us to get a scope on the current market.
