Every so often, the tech and consulting worlds bless us with a new buzzword. The latest entry into the jargon hall of fame? Composable ERP, a term coined by Gartner years ago to describe a strategic approach to building ERP with modular, plug-and-play components. The goal is to allow organizations to assemble and reassemble their ERP capabilities as needed.
But here’s the thing: this isn’t new. Not even a little bit. In fact, it’s like someone looked at the Chipotle burrito line and said, “This would be perfect for enterprise software!”
Gartner packaged the concept of composable ERP into a trendy, marketable term to reflect how modern ERP systems are evolving in light of cloud technology, APIs, and digital transformation.
Composable ERP is flexible and helpful—but it’s not groundbreaking.
In plain English, composable ERP means organizations don’t need one monolithic software system that does it all—just in a mediocre way—and refuses to bend as the organization changes. Instead, smaller and specialized apps can mix, match, and be swapped out as needs evolve. Real world examples include adding an inventory module for better inventory tracking or a currency management plug-in for international expansion. It allows for customization without disrupting or replacing the whole system.
Old-school ERP was like buying a frozen burrito from a gas station—everything was fixed, and if you didn’t like the beans or the mystery meat, too bad. Composable ERP is like walking into Chipotle and customizing your burrito exactly how you want it. Want double meat? Add it. Skip the pico? No problem. If your taste changes tomorrow, you can build a totally different burrito or even switch to a bowl.
While the concept of modular ERP has been around forever, Gartner slapped a shiny label on it. Why now? There are several benefits of composable ERP:
ERP vendors have moved to cloud-based platforms that make modularity more practical. Legacy on-prem systems were about as flexible as a brick wall. Now, APIs and cloud services let businesses mix and match tools as needed.
Integration tools have enabled businesses to connect aps and services quickly and more easily. Plugging a new module into the ERP is no longer an IT nightmare.
Companies need to adapt quickly to changing markets, supply chains, and customer needs. Composable ERP puts a name on the flexibility organizations seek to achieve.
The ERP market is crowded and vendors want to stand out. A term like “Composable ERP" makes their products sound more modern, future-proof, and innovative.
Pretty much. The term itself is mostly fluff. But the concept behind it—flexible, modular ERP systems that adapt to changing business needs—is valuable.
Businesses no longer have to settle for rigid, do-it-all software that holds them back. Modern tools and cloud technology have made composability practical and accessible, even for small and mid-sized companies. This approach is the way forward for businesses looking to stay agile, competitive, and future-proof.
At Trenegy, we help organizations navigate ERP selection and implementation and find fit-for-purpose solutions. To chat more about ERP, email us at info@trenegy.com.
