Adapted from our recent web event, Condensing the Path to Composable for B2B: An Executive Conversation, with Kelly Goetsch, CSO of commercetools and Ryan Heusinkveld, CEO of Smith.
Digital initiatives have become the lifeblood of business innovation and growth. However, many organizations still find themselves hesitating or even halting significant digital transformation efforts. How can business leaders shake up their organizations and rally their teams behind the concept of composable commerce? In this article, we explore insights and strategies shared by industry experts Kelly Goetsch, CSO at commercetools and Ryan Heusinkveld, CTO at Smith.
How can business and IT leaders inspire their organizations about the potential of composable?
The Importance of Management and Quantifying Outcomes
Kelly highlighted the role of the management team and the critical need to quantify the benefits of composable commerce before selling it to the rest of the organization. CFOs tend to be cautious about cash expenditures, particularly in the current economic environment. The business case must be clear and quantify the potential upside of investment. It is essential for leadership teams to assess their current sales strategies and project where they want to be in the future. This forward-looking perspective helps justify investments.
Kelly illustrated this, noting a shoe manufacturer facing competition from retail giants like Walmart, who launched their own competitive product line. To survive long-term, the shoe brand decided to build a direct-to-consumer channel. This major decision was driven by the board’s understanding of the threats posed by changing retail dynamics. The collaboration from the top down was possible because they could clearly attribute a return on investment (ROI) to the initiative.
Shaking up the Status Quo
Ryan emphasized that the “no decision” approach to digital investment hampers transformative efforts and overall growth. One of the largest challenges businesses face is the inability to meaningfully measure their current state of their technology platforms. Understanding their starting point, or baseline, is crucial to articulating the benefits of a new platform accurately. If a business cannot quantify where they are today, it’s challenging to show the potential forward-looking improvements. Measuring your current performance accurately across the tech stack may require augmenting existing systems to provide the requisite data needed to gauge progress. With that data in hand, however, businesses are better able to set clear goals and communicate the value of composable commerce effectively.
Inspiring Change Through Clarity and Collaboration
Composable commerce opens opportunities for businesses willing to adapt and innovate.
To inspire your organization to embrace this transformative concept, follow these key takeaways:
- Quantify the Benefits: Justify your digital initiatives by quantifying their benefits and ROI. Make a compelling business case to management team and all impacted stakeholders.
- Assess Threats and Opportunities: Proactively adapt to changing market dynamics and adjust your digital commerce strategy accordingly to align with the broader business plan.
- Measure Your Current State: Invest in tools and technologies to measure your current performance accurately. This will enable you to set realistic goals and track progress effectively.
- Collaborate from the Top Down: Foster collaboration between leadership and the board to align on the importance of composable commerce and its potential for your organization.