1. digitalization
in logistics
COMPOSABLE COMPANY

2. Concepts ● Composable business
● Process Design

3. What is…
Process Design?
● Factors that affects process
design
● Product & Service process
types
● Stages of product/service
design

4. Process Design
• Products, services and the processes which produce them all have to be
designed
• Decisions taken during the design of a product or service will have an impact
on the decisions taken during the design of the process which produces those
products or services and vice versa.
• Products and services should be designed in such a way that they can be
created effectively.
• Product/service design has an impact on the process design and vice versa.

5. Why Process Design is important?
• Design helps businesses connect strongly with their customers
• Design reduces costs by making processes more efficient.
• Design reduces the time to market for new products and services.
• Companies with effective process design have outstanding financial
performance.
• Standardizing processes can give some significant advantages, but not every
process can be standardized.

6. Process Design typology
• Processes should be designed so they can create all products and services
which the operation is likely to introduce.
• There are different process types.
• Process types are defined by the volume and variety of “items” they process.
• Process types go by different names depending on whether they produce
products or services.

7. Product & Service process types

8. What is it designed in a Product or a Service?
• Concept: the understanding of the nature, use and value of the service or
product
• Package: the group of “component” products and services that provide
those benefits defined in the concept
• Process: the way in which the component products and services will be
created and delivered.

9. Stages of product/service design

10. Component structure for remote mouse
LEVEL 0 Remote mouse
LEVEL 1
LEVEL 2
LEVEL 3 Lead Plug Cover
Speaker
Leaflet
Outer
Logo
Moulding Battery
housing
Moulding Spring
base
Button
Upper
casing
Control
unit
Lower
casing
Packing

11. Why Process Design is important?

12. What is…
Composable business
● Principles of business
composability
● Fundamentals of business
composability
● Benefits of business
composability
● Modularity
● Containerization

13. Composable business
• IBM was the first company that introduced composability in business processes
back in 2014.
• The global pandemic in 2019, due to COVID-19, enhanced the specific direction
where companies try to combine much more agile business models with
flexible digital architecture and to adapt to the evolving needs of their
customers.
• But what do we mean by the term “composable business” in the first place…..???

14. Composable business
• A composable business is like a collection of interchangeable building blocks
that can be added, rearranged, and jettisoned as needed.
• Composable in business means creating an organization using interchangeable
blocks like technology, mindset and process. These blocks are like Lego pieces
that businesses can easily rearrange to fit in any situation
• As Daryl Plummer, VP, Distinguished Analyst & Gartner Inc. Fellow says
"Composable business is a natural acceleration of the digital business that
organizations live every day. It allows organizations to finally deliver the resilience
and agility that these interesting times demand."

15. Composable business

16. Composable business
• Actually, composability lets companies break down monolithic applications into
discrete components. Each component can be built, scaled, and maintained
independently. This, in return, gives businesses leverage to adopt new
technologies and processes efficiently.
• Business composability is a building block that helps you adopt the ever-
changing business dynamics.

17. Principles of business composability

18. Principles of business composability
• Gartner Inc. offers four principles of composable business:
1. Discovery: Try to react faster when you see a new change
happening in your business domain.
2. Modularity: Move interchangeable blocks in an agile manner to
achieve desired results.
3. Orchestration: Mix and match business functions to respond to
changing needs.
4. Autonomy: Create greater resilience via independent business units

19. Fundamentals of business composability

20. Fundamentals of business composability
• Gartner Inc. also provides three building blocks of composable business:
1. Composable thinking (People)
2. Composable business architecture (Processes)
3. Composable technologies (Technology)

21. Fundamentals of business composability
Composable thinking:
• Composability implies adapting a new mindset where anything is composable.
It’s about conceptualizing what to compose and when.
• A composable mindset involves thinking about what could happen in the future,
predicting what your business may need, and designing a flexible architecture
to meet those needs.

22. Fundamentals of business composability
Composable business architecture:
• Composable thinking alone doesn’t work if you don’t establish a composable
architecture where the different business elements dynamically evolve to
create new value
• Composable business architecture ensures that your organization is built to be
flexible and resilient. It’s about structure and purpose. These are structural
capabilities — giving you mechanisms to use in architecting your business.

23. Fundamentals of business composability
Composable technologies:
• After the two previous fundamentals of business composability, technology is
the tool that will bring composable business to life and what connects all the
company’s pieces together.
• The four principles are product design goals driving the features of technology
that support the notions of composability
• Composable technology begets sustainable business architectures, ready to
address the challenges of the future.

24. Benefits of business composability
• Never miss a business opportunity
• Desire to expand
• Never overlook the need for change
• Leverage an open application ecosystem
• Streamline business operations

25. Benefits of business composability
• Cross-functional teams
• Composable software
• Composable IT infrastructure

26. What about Modularity?
• Evolution from lean management, procurement excellence and supply chain
optimization to modular strategies
• A modular system is an excellent structure for aligning strategies across
functions. By working from a common product structure and using that to drive
strategy execution, the functions will self-align and communicate much more
effectively.
• How can a modular system can lead to a resilient supply chain???

27. Modularity - Resilience benefits
• Shared modular systems
• Harmonization of components
• Nearshoring
• Multi-sourcing
• Buffers for critical components

28. Modularization
• Product Leadership: Development. What is the need and plan for product
improvements? What modules can be used for achieving this?
• Customer Intimacy: Flexibility. Is there a need to meet varying product
performance levels to satisfy market and customer needs? Having different
module variants can fulfill this requirement.
• Operational Excellence: Stability. Where in the product can we keep the
development and complexity to a minimum? Stability over time is essential for
production and the supply chain. It can push down the total costs significantly.
Are there specific areas that would have extraordinary benefits and will not
impact the customer’s needs and/or requirements?

29. Modularization
Common Supply Chain mistakes:
• Mass production mode
• Insourcing to fill capacity at downturns
• Hiding product complexity by Outsourcing

30. Modularization
Delayed Differentiation technique

31. What about Containerization?
• A container is a software solution that wraps your software process or
microservice to make it executable in all computing environments. In general,
you can store all kinds of executable files in containers, for example,
configuration files, software code, libraries, and binary programs.
• Containerization is a form of virtualization where applications run in isolated user
spaces, called containers, while using the same shared operating system (OS).

32. What about Containerization?
• Containers in the cloud are hosted in an online environment. Users access them
from anywhere. However, application processes or microservices in cloud-
based containers remain separate from cloud infrastructure.
• The container itself is abstracted away from the host OS, with only limited
access to underlying resources — much like a lightweight virtual machine (VM).
As a result, the containerized application can be run on various types of
infrastructure — on bare metal, within VMs, and in the cloud — without needing
to refactor it for each environment.

33. Containerization vs Virtualization
Containers and Virtual machines function in different ways:
• Virtual machines use hypervisors that bind them directly to the server hardware
• Containers sit directly on the host’s OS
• Applications in a virtual machine need a Guest OS per app for execution
• Applications in containers can directly run on the host OS

34. Containerization vs Virtualization

35. Benefits of Containerization
 Containers require fewer system resources than virtual machines as they do not
bind operating system images to each application they store.
 They are highly interoperable as containerized apps can use the host OS.
 Optimized resource usage as container computing lets similar apps share
libraries and binary files.

36. Benefits of Containerization
 No hardware-level or implementation worries since containers are
infrastructure-independent.
 Better portability because you can migrate and deploy containers anywhere
smoothly.
 Easy scaling and development because containerization technology allows
gradual expansion and parallel testing of apps.

37. Use of Containerization
 Microservices
 Databases
 Web servers
 Containers within VMs
 ADCs
 Batch Processes
 Application Refactoring or Modernization

38. Sources - References
• Heizer, J., & Render, B., (2014) Operations Management: Sustainability and Supply Chain
Management, 11th Ed, Harlow, Pearson Education
• Krajewski, L, Ritzman, P. & Malhotra, M. (2013) Operations Management – Processes and
Supply Chains, 10thEdition, Harlow, Pearson Education
• Slack, N., Chambers S. & Johnston R., (2010) Operations Management, 6th Edition, London,
FT Prentice-Hall
• Indeed Editorial Team, (2022) “What Is Process Design? With Benefits and Key Principles”,
https://au.indeed.com/career-advice/career-development/process-design
• Anand S. (2022), “Everything you need to know about business composability”,
https://agilitycms.com/resources/posts/what-is-business-composability

39. Sources - References
• Borges N., (2022), Becoming a Composable Business
https://www.outsystems.com/blog/posts/composable-business/
• Soudai R., (2022), Composable business: The whats, whys, and hows
https://www.outsystems.com/blog/posts/composable-business/
• Paneta K., (2020), Gartner Keynote: The Future of Business Is Composable
https://www.gartner.com/smarterwithgartner/gartner-keynote-the-future-of-business-
is-composable
• Kaur G., (2021), Composable Enterprise: The Future of Business
https://opensenselabs.com/blog/articles/composable-enterprise-future-business
• Editorial Staff, (2023), What is Composable Business? (Definition, Principles & Benefits)
https://www.erp-information.com/composable-business?expand_article=1

40. Sources - References
• Murray C., (2021), Building a Composable Business: Mindset First, Technology Second
https://www.oomphinc.com/insights/building-composable-business/
• AWS, What Is Containerization?
https://aws.amazon.com/what-is/containerization/
• Xu A., (2022), What are the differences between Virtualization (VMware) and
Containerization (Docker)?
https://blog.bytebytego.com/p/what-are-the-differences-between
• NetScaler, What is containerization?
https://www.netscaler.com/articles/what-is-containerization
• Meir A., (2023), What are Containers and How Do They Work?
https://www.ridge.co/blog/what-are-containers/

41. Sources - References
• Gyllenskepp M. & Martin T., Resilient Supply Chains Through Modularity
https://www.modularmanagement.com/blog/how-does-modularity-supports-resilient-
supply-chains
• Overview of Kubernetes, https://kubernetes.io/docs/concepts/overview/