How Would a Composable ERP Help you Outsmart your Competitors?

Oct 21, 2021
Nandinee Biswas

Getting the best business outcome from what you do means you are making the most of resources available. Investing in the right ERP suite could become the catalyst to bring the practice in motion.

Though ERP, from its inception, is considered as an all-inclusive business management solution, the innovations in recording and analyzing data have raised the bar on the system’s performance to help you stay competitive.

Gartner has termed this new-age solution as ‘composable ERP’. This post-modern, fourth-era ERP could be composed and recomposed to fit in the business purpose. Furthermore, leveraging advanced technologies, this system has become smarter, faster, and better equipped to help you overcome the limitations and keep up with the rapid rate of business change.

ERP Qualities for Continued Business Improvements

The core of continuous business improvement is consistency in the performance of your company’s processes and remodeling them to improve when necessary. A well-designed enterprise resource planning system provides you with all the necessary tools that would allow you to set performance metrics and record results that you can analyze and act on to make improvements.

When considering adopting ERP, ensure the system has all the following qualities for offering you competitive advantages.

It is an integrated system

Managing a business without an integrated system means you need to maintain separate applications for all business processes - HR, CRM, payroll, accounts, and so on.

An integrated ERP solution lets you manage all these processes from a centralized platform and stores every information on the same database. This saves you from the consequences of data duplicity in business decisions.

It operates in real-time

ERP system operating in real-time means that it offers access to live information about every aspect of your business. This empowers you to visualize what business strategies are performing and what are not at any given moment, letting you anticipate and plan towards achieving greater profits.

It has a unique set of modules you need

Having a generic ERP system means you have a lot of modules that you hardly use. This makes installing and maintaining the software way more expensive. On the contrary, an industry-ready system is equipped with appropriate modules, vital to fulfilling your business needs. You get business software with almost zero customization, which reduces the implementation and maintenance time and costs.

Monolithic vs Composable ERP

Multiple deployment options

When your ERP provider is confined to a single type of ERP adoption, it limits their offering to a particular deployment model. They fail to provide you with other alternatives. If you choose such an ERP vendor making a switch from on-premise to cloud-based or a hybrid model would lead to additional investment in finding a new vendor as well as software to support your business.

Integrated modules to manage all operations

Having a modular architecture is one of the greatest qualities of an efficient ERP system. It means the software solution allows you to pick the modules that you typically need to manage your business operations. This reduces your expenses as you do not need to invest in unused tools.

Monolithic vs Composable ERP

According to Gartner, “By 2025, more than 70% of large enterprises will move from a single-vendor monolithic ERP strategy to a more inclusive composable strategy.”Here is a comparison between composable ERP with its monolithic counterpart.


A monolithic ERP system offers a wide range of general functionality for companies across industries but does very little for core operations. They would require a lot of customizations and integrations in order to perform essential business functions. Ultimately, it increases implementation costs.

Unlike this, composable ERP is an industry-ready software. It is embedded with essential tools that a generic system has, but it goes further, offering capabilities tailored to your specific industry and operational needs.

Performance clarity

Monolithic ERP lacks the integration capability with your existing software and other modern tools. This could interrupt important workflows and ultimately cut down the overall business productivity.

In contrast, a composable ERP system supports rapid post implementation integration with multiple data and third-party applications. This enables you to gain information transparency across the business operations while improving your reporting and forecasting capabilities.

Software complexity

With a monolithic ERP system, personalization is often a complex initiative. It requires developers to rewrite bespoke codes to implement the changes.

On the contrary, composable ERP offers seamless customization features and an array of options for personalization with custom codes. You could use built-in ERP configurations to get modified software.

System responsiveness

Fast-changing business conditions demand flexible ERP solution portfolios.

Monolithic ERP lacks the breadth of scope for system enhancements to support these rapidly changing requirements. You need to renovate or replace this legacy system with composable ERP to eliminate the complexities of dealing with redundant functions and adopt the required scalability.

Benefits of Deploying New Generation Software

A post modern, fourth-generation ERP software immediately puts your business at an advantage. It helps you run a more profitable business and stay competitive by:

Increasing efficiency

ERP solution improves operational efficiency by automating your business processes. It is integrated with applications that share data and give your employees instant access to the information they need. The embedded business intelligence and analytics tools help improve decisions and plan to achieve a more efficient business.

Improving productivity

Advanced ERP system simplifies and streamlines your daily business processes to bridge information gaps across various departments and reduce their complexities. It enables you to gain a more holistic view of your company’s critical data and make quick and informed decisions. This, in turn, empowers you to make better use of your employees’ time and improve the productivity of the business.

Reducing costs

ERP software offers information accuracy and automation that together improve the overall efficiency of your business operations. Process optimization reduces operational and administrative costs. The system has a centralized database for all the departments, which further lowers the costs of setting up and maintaining multiple data centers.

Is your Business Ready to Take Off?

We want every organization to prosper, and so we build sustainable and scalable solutions to support today’s complex business environment. Focus Softnet is one of the best ERP vendors in Middle East, providing companies with the perfect ERP systems to put their businesses on the right track.

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