2022 CIO Agenda:

Create an Action Plan

to Master Business
Composability
 Create an Action Plan to Master Business Composability

It’s time to master

business composability
Business composability is not a new concept. In fact, most businesses
already follow some of its principles in some way.

However, where your organization falls on the scale of low, moderate or

high composability will determine how effective your operating model is.

It’s not enough to simply add new technology in an attempt to create modular Monika Sinha
business pieces. The changes must be strategic, and they must be scaled VP Analyst
across the organization.

Outdated operating models focus on efficiency and assume an orderly,

slow-changing and relatively predictable business environment. Even before
the COVID-19 pandemic, the business world was rife with disruptions ranging
from trade wars to Brexit.

The "new normal" is disruption. Organizations that lean into this reality and
leverage their innovation capacity, technology and reach to deliver the scale
and pace needed to achieve enterprise goals, will out-deliver their peers.
They will not only survive, but grow as a result and stay ahead of the pack.

2
 Create an Action Plan to Master Business Composability

An antidote to risk
As boards of directors have increased risk appetite (or plan to), an economically
and politically polarized society is the biggest risk.

Organizations with high composability came out of the pandemic ahead

of their moderate and low-composability peers. They are faster and more
effective at developing new partnerships, pursuing new opportunities,
offering innovative products and being more responsive to customers,
clients and citizens.

57 % of boards of directors believe an economically and

politically polarized society is the biggest source of risk.

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 Create an Action Plan to Master Business Composability

Business composability
drives business performance
What is business composability? Mastery of business composability stretches across a spectrum, from
those just starting out, to those that have made business composability the
Business composability applies modularity to any business asset — people,
default way of thinking and executing. The benefits flow accordingly.
processes, technologies and even physical assets — so that leaders can quickly,
The greater the level of mastery of business composability, the higher the
easily and safely recompose them and create new value in response to disruption.
relative performance.

Comparison of Business Performance Against Average Business Composability Scores

7
Business Composability Score

1
Far Behind Behind Slightly About the Slightly Ahead Far Ahead
Behind Same Ahead
Relative Overall Business Performance Versus Our Peers or Competitors
n = 2,304 CIOs and technology executives
Create an Action
Source: 2022 Plan
Gartner CIOto Master
and Business
Technology Composability
Executive Survey 4
 Create an Action Plan to Master Business Composability

What’s the difference between

traditional and composable thinking?
Traditional Orientation Composable Orientation

Goal Efficiency Flexibility/agility

Value Cost leadership at scale Highly attuned to business environment

Approach Technology automation drives efficiency and scale Composable technologies enable multiple outcomes simultaneously

Governance Plan-driven, approval-based, safe Distributed, emergent, empirical, continuous, calculated risk

Sourcing Conventional enterprise services Composable (low-code, no-code services)

Talent Generalists and specialists Flexible “versatilists”

Culture Values low-risk, predictable execution Values rapid responsiveness to environmental change

Cycle Times Long (months) Hybrid long and short*

Source: Gartner
* Modular components initially take longer to create but less time to redeploy.

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 Create an Action Plan to Master Business Composability

Three action areas

of business composability
Organizations that want to excel in business composability must develop
skill sets in all three domains that extend throughout the enterprise.

1 Composable thinking:
a mindset to guide the business
through uncertainty and opportunity
2 Composable business architecture:
a blueprint to manage the pace of
business change
3 Composable technologies:
systems and data that integrate
quickly and easily

“We combine business “The work of producing

“Leaders at my organization
elements (e.g., capabilities, technology capabilities is
encourage the creation and
products and services) modularized and automated
reuse of modular business
in multiple ways to create using APIs, microservices and
capabilities and technologies.”
new value.” other modular components.”

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 Create an Action Plan to Master Business Composability
Take action

Assess your business composability

Q. To what extent does your enterprise utilize these principles?
Limited Common in several Extensively
(e.g., in specific (but not most) throughout the
Not at all Rarely Somewhat business units) business units Widely enterprise
Our culture encourages
the continuous
exploration and creation
Thinking 1 2 3 4 5 6 7
of game-changing
business capabilities.

Our culture encourages

the continuous
Business exploration and creation
Architecture 1 2 3 4 5 6 7
of game-changing
business capabilities.

Our culture encourages

the continuous
exploration and creation
Technologies 1 2 3 4 5 6 7
of game-changing
business capabilities.

Interpreting your score:

You enjoy High Business Composability if you scored 6 You enjoy Moderate Business Composability if you scored You enjoy Low Business Composability if you scored 1,2
or 7 on Thinking, Business Architecture AND Technologies 4 or 5 on Thinking, Business Architecture OR Technologies or 3 on Thinking, Business Architecture AND Technologies

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 Create an Action Plan to Master Business Composability
Take action

Identify next steps

It’s likely that assessing your current business composability level helped identify Only a Few Enterprises Are Really Good
key areas to work on. Every organization has areas in which it is less mature. In at Business Composability
fact, none of the organizations surveyed were proficient in all the key actions.

On page 9, we provide an example of actionable steps for the business

architecture domain. Each of these actions made a significant contribution for
13%
Low
high-composability organizations. Composability

Where to start
Low-composability organizations should begin on Step 1.

Moderate-composability organizations should begin on Step 2.

81%
High-composability organizations should begin on Step 3. Moderate
Composability
Use the planner on page 10 to track your progress.

6%
High
Composability

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 Create an Action Plan to Master Business Composability
Take action

Example: How to apply composability

to your business architecture
Shape multidisciplinary teams Embrace distributed accountability Design business processes and
to align on value for digital outcomes technology together

Step 1 Shift from uncoordinated siloes to teams Establish “fusion” teams with joint Use priority business capabilities to define
working around customer journeys accountability for digital outcomes and develop the technology and business
transformation efforts

Step 2 Establish “fusion” teams to accelerate Adjust governance practices to balance Create dedicated roles to coach fusion teams
technology-enabled business transformation autonomy and control with distributed and stakeholders in Agile, lean products, etc.
accountability

Step 3 Have “fusion” teams leverage cross- Redistribute responsibilities for the Apply agile development methods to
enterprise communities for insight into the enterprise’s technology portfolio among IT complete business activities, not just
business environment and business technologists technology efforts

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 Create an Action Plan to Master Business Composability
Take action

Create a business composability

action planner
Not sure where to start? Contact a Gartner expert who can walk you through this template.

Will Do More Of Will Do Less Of/Stop Doing How We Will Measure Progress

Composable
Thinking

Composable
Business
Architecture

Composable
Technologies

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 Create an Action Plan to Master Business Composability
Conclusion

Organizations need to develop

business composability now
These actions will help your organization get the biggest ROI from business Three action areas of business composability

1
composability. All enterprises, CIOs and technology executives can benefit
Composable thinking: a mindset to guide the business through
from these actions and might already be doing them at some siloed level.
uncertainty and opportunity

2
Business composability is just as much a mindset shift as a strategy shift.
Composable business architecture: a blueprint to manage the pace
CIOs will be responsible for encouraging a new culture alongside a new
of business change
approach to flexible operational models.

At successful organizations, the CIO will act as evangelist, engineer and

orchestrator, as he or she views change as a tool, provides guidance on modular
3 Composable technologies: systems and data that integrate quickly
and easily

designs that enable change, then helps to execute it.

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 Create an Action Plan to Master Business Composability

The Gartner CIO Agenda

The Gartner CIO Agenda is based on the 2022 Gartner CIO and Technology
Executive Survey. Qualified respondents are the most senior IT executives for the
overall organization or their part of the organization.

Respondents:

2,387 85 Representing
CIOs/technology countries All major $185 billion
executives industries in IT spending

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 Create an Action Plan to Master Business Composability

Actionable, objective insight

Explore these additional complimentary resources and tools
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