Advantages & Applications of a Composable Tech Stack

What is a composable tech stack?

In ecommerce, a ‘composable tech stack’ refers to a collection of technologies strategically chosen to execute a brand’s desired operations and support its unique business requirements.

It is a flexible and scalable ecosystem of best-in-breed apps and business systems that empowers retailers to remain efficient and resilient in the dynamic ecommerce landscape.

This article will dive into the importance of building a composable tech stack. It will consider the core benefits of such an approach, as well as key practical applications.

Benefits of a composable tech stack

1. Reduced costs

Composability allows ecommerce businesses to select the best tools and systems for each specific function they require. This approach means that instead of paying for a monolithic platform with features that may go unused, you only need to invest in the components you need. Selectively investing in technology like this allows your budget to be directed towards the most impactful solutions, helping to significantly optimise your technology expenses and reduce total cost of ownership.

At Swanky, we have seen examples of businesses cutting their technology expenses by as much as 40% by moving to more efficient composable solutions.

For instance, large enterprises moving from costly legacy monolithic systems to Shopify, a modular platform built for composability, usually see an immediate reduction in licence fees as well as a substantial drop in development costs.

Furthermore, maintaining and upgrading individual components in a composable tech stack is typically less expensive and more efficient than having to fund the maintenance of a complex monolithic system.

2. Increased agility

The ability to easily interchange platforms in a tech stack allows businesses to quickly adapt to changes in market conditions, evolving customer needs or new opportunities, without overhauling their entire system.

This agility enables much faster deployment of new solutions – all while keeping costs under control.

3. Improved time-to-market

These faster deployment times mean that new offerings can be brought to market at pace.  This can include everything from the introduction of sub-brands, expansion into new international markets or the addition of new sales channels.

Being able to quickly integrate new solutions in a flexible tech stack can provide a significant competitive advantage for businesses.

4. Reduced vendor lock-in

Building a composable tech stack means you’re not reliant on a single vendor. It gives you the freedom to choose the best solutions from a variety of providers.

Not being tied to a single vendor means you’re not forced into expensive upgrade cycles, with plenty of flexibility to swap components in and out as needed. As well as helping to reduce costs, this facilitates greater innovation and allows for a more dynamic approach that’s responsive to external factors.

5. Risk mitigation

There are a number of ways in which a composable tech stack can help to mitigate risk for businesses.

Firstly, the independence of components reduces the risk of an isolated issue impacting your entire stack and allows for quicker recovery.

Composability also helps mitigate the risks associated with technology transitions. Instead of a daunting, large-scale replatforming project, businesses can adopt a phased approach, integrating new components gradually. This reduces disruption and allows for more manageable implementation and training processes.

Being able to freely experiment with new tools and technologies and easily switch or remove components without compromising the stability of your entire ecommerce operation also reduces risk for businesses.

6. Scalability

A composable tech stack can scale with your organisation over time, allowing you to add or upgrade individual components as required as your business grows.

This is beneficial from both an integration and adoption process, as it affords businesses the time to gradually transition systems, change processes and train staff. In turn, this significantly reduces the risk of disruption.

Practical applications of composable tech stacks

Clear on the benefits that a composable tech stack can offer businesses, we will now use our experiences with clients to explore two practical applications.

Testing new markets quickly & cost-effectively

A composable tech stack makes it easier to test new international markets by enabling the selective integration of region-specific components. This modular approach simplifies proof of concept cross-border expansion, whilst condensing timelines and reducing costs.

For example, global mealkit company HelloFresh leveraged composability to help them test out the Asian market for the first time. To expedite the launch of their proof of concept Japanese website, they engaged Swanky to build a custom Shopify store and integrate it seamlessly with their existing systems.

This approach allowed them to enter and evaluate the Japanese market quickly and cost-effectively, without the financial risk and long timelines typically associated with such international expansion.

You can read more about this specific example in our case study about helping HelloFresh start selling online in Japan.

Phased approach to brand integration for roll-up groups

One of the beauties of composability is that retailers looking to migrate to different technology aren’t forced to replatform their entire ecommerce operations in one go. Instead, businesses can gradually re-architect their tech stack, ‘plugging and playing’ the right systems in a phased approach to change.

This is particularly compelling for enterprise businesses with sizeable tech stacks and complex processes.

Moreover, this has proven to be a valuable approach for roll-up groups involved in the acquisition of multiple companies, each using different ecommerce technologies. A composable tech stack enables these brand aggregators to gradually move newly acquired brands to new tech systems, as and when budget and resources allow.

The core of a composable tech stack: Understanding your needs

The foundation of a high-performing tech stack is understanding its purpose. Whilst many businesses fall into the trap of adopting a cookie-cutter approach to their tech stack, it’s important to tailor chosen technology to unique needs, team capabilities, and business processes. It’s also crucial to consider the interconnectivity of your stack.

When talking with clients, we always emphasise the importance of a methodical approach to building a tech stack, starting with a deep understanding of the business’ needs at a functional level. This involves detailed documentation and categorisation using the MoSCoW method (Must have, Should have, Could have, and Won’t have).

This approach helps businesses eliminate technology bloat and focus on what truly adds value to their operations.

Build a composable tech stack with Swanky

Investing in a composable tech stack is not just about immediate cost savings. It’s about future-proofing your business and staying competitive in a constantly changing digital commerce market.

To talk to our team about how we could help you embrace composability in your tech stack and build a more efficient, resilient business, please get in touch.