Gartner: CIOs Need to Embrace Business Composability in 2022

Enterprises must adopt business composability to thrive through disruption in 2022 and beyond, says Gartner. It’s the outcome of Gartner’s annual global survey of 2,000 CIOs and technology executives. A business can run on technology, but technology itself must be composable to run composable businesses, stated Gartner.

The attitude, tools, and set of operational skills that enable companies to innovate and adapt swiftly to changing business demands are referred to as business composability. It is based on the idea of modularity being applied to company assets in order to reach the scale and speed demanded by business ambition.

“Business composability is an antidote to volatility,” said Monika Sinha, research vice president at Gartner. “Sixty-three percent of CIOs at organizations with high composability reported superior business performance compared with peers or competitors in the past year. They are better able to pursue new value streams through technology, too.”

AI and Distributed Cloud

The two primary technologies that a majority of high-composability companies have either adopted or intend to use in 2022 are artificial intelligence (AI) and distributed cloud. Because they provide modular technological capabilities, these technologies act as a catalyst for business composability.

With 66 percent of all respondents intending to raise associated spending in the coming year, cyber and information security is at the top of the list of planned investments for 2022. Business intelligence/data analytics (51%) and cloud platforms (51%) come in second and third, respectively (48 percent).

“There is a continued need to invest in cybersecurity as the environment becomes more challenging” added Sinha. “A high level of composability would help an enterprise recover faster and potentially even minimize the effects of a cybersecurity incident.”

‘High-Composability Enterprises Leverage IT Better’

High-composability businesses predict higher revenue and IT budget growth in 2022 than their moderate- and low-composability counterparts. High-composability companies’ revenue and IT budgets are expected to expand by 7.7% and 4.2 percent, respectively, in 2022, whereas low-composability enterprises’ revenue and IT budgets are expected to grow by just 3.4 percent and 3.1 percent, respectively.

“Most high-composability enterprises set up strategic planning and budgeting as a continuous and iterative activity to adjust to change more easily,” added Sinha. “Without big deficits to remedy elsewhere, CIOs can afford to invest in composability, especially for IT developers and business architects who can design in a composable manner.”

Globally, IT budgets are anticipated to expand at their highest rate in over ten years, with all poll respondents reporting an average increase of 3.6 percent in overall IT budget for 2022.

Three Domains of Business Composability

Photo Monika Sinha, research vice president at Gartner
“63 percent of CIOs at organizations with high composability reported superior business performance compared with peers or competitors in the past year. They are better able to pursue new value streams through technology, too,” said Monika Sinha, research vice president at Gartner.

According to Gartner, CIOs are in a great position to advance the three domains of business composability: composable thinking, composable business design, and composable technology, with volatility acting as a business driver for the foreseeable future.

“Business composability isn’t uniformly high across the economy because it requires business thinking to be reinvented,” said Monika Sinha. “Traditional business thinking views change as a risk, while composable thinking is the means to master the risk of accelerating change and to create new business value.”

CIOs that lead high-composability enterprises would realize that business circumstances, from consumer expectations to financial models, change often, and they empower the teams closest to the action to adapt and re-form to those changes. For example, over half of high-composability respondents stated their company fosters a high-trust culture that enables people to make decisions on their own – twice as many as moderate-composability companies and six times as many as low-composability companies.

Composable Business Architecture

Enterprises in the industrial age were built for stability and gradual, predictable development. Business architectures in the digital age must be built to withstand unpredictability and change, stated Gartner. Rather of focusing on efficiency, the composable enterprise prioritizes adaptability. Systems, procedures, and employees no longer fulfill a single use case or goal.

“Digital business initiatives fail when business leaders commission projects from the IT organization and then shirk accountability for the implementation results, treating it as just another IT project,” said Monika Sinha. “Instead, high-composability enterprises embrace distributed accountability for digital outcomes, reflecting a shift that most CIOs have been trying to make for several years, as well as creates multidisciplinary teams that blend business and IT units to drive business results.”

Composable Technology

“Business runs on technology, but technology itself must be composable to run composable businesses,” said Sinha. “Composability needs to extend throughout the technology stack, from infrastructure that supports rapid integration of new systems and new partners to workplace technology that supports the exchange of ideas.”

According to the Gartner report, high-composability businesses’ CIOs and technology leaders have pushed forward more aggressively in iterative technology development, data sharing across systems and people, and building up integration capabilities for data, analytics, and apps.

“CIOs at moderate-or low-composability enterprises must internalize these three domains of business composability to make their organization nimbler and well equipped to handle the rapidly changing business environment in which they operate,” concluded Sinha. “It’s a gradual, but imperative, process going into 2022 and beyond.”

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