Back in 2021, when composable commerce emerged as the new technology solution for businesses whose online sales were outgrowing the capabilities of their monolithic commerce platform, people consistently used LEGO® bricks as an analogy to describe the approach. They used terms like building blocks or individual components to support the message that a composable approach gives businesses the freedom to choose best-of-breed solutions from multiple vendors to create a commerce tech stack that fits their exact needs.
Well, now that businesses are increasingly embracing composable commerce and relying on multiple, specialized software solutions to run their commerce operations, interoperability is the latest tech term everyone’s talking about. Here, we explain what it is, why it matters and how you can embrace it.
What is interoperability in digital commerce?
At its core, interoperability refers to the ability of different software systems, platforms and technologies to communicate and exchange data effectively. In digital commerce, this means that your eCommerce platform, inventory management software, customer relationship management (CRM) system, payment gateways and marketing tools can all function as part of a unified ecosystem.
For example, when a customer places an order on your website, your inventory system automatically updates in real-time, your CRM captures new customer data, and your marketing platform can trigger personalized post-purchase communications. This seamless exchange of information allows your business to function efficiently and deliver a consistent experience to customers across every touchpoint.
There are three main types of interoperability — syntactic, semantic and cross-domain — each addressing a different layer of integration. Together, they ensure smooth operations and efficient data exchange across digital commerce ecosystems.
What’s the difference between the three types of interoperability?
Syntactic interoperability is the ability of systems to exchange data in a consistent format. It’s the most basic form of interoperability and focuses on ensuring that data transmitted between systems is structured in a way that both sender and receiver can understand and process it.
In the digital commerce space, where multiple systems handle product information, inventory data, customer records and transactions, syntactic interoperability ensures that all systems are "speaking the same language." It allows platforms like order management, payment gateways and cCRM to transfer data efficiently without losing meaning or accuracy during translation. Without syntactic interoperability, data exchange would be prone to errors, slowing down business processes and causing operational inefficiencies.
Semantic interoperability goes further than syntactic by ensuring that the meaning of exchanged data is preserved and understood consistently by all systems. While syntactic interoperability deals with structure, semantic interoperability focuses on the interpretation and context of the data being transferred. For example, when a product attribute such as "color" is shared between different systems, semantic interoperability ensures that "red" in one system is understood the same way by all others. This is important as it ensures accurate product listings and more personalized search results, reducing miscommunication and improving the customer experience. It also supports more effective data-driven decision-making.
Finally, cross-domain interoperability refers to the ability of systems in different business areas, industries or domains to communicate and work together. It enables integration across various sectors and platforms that may have distinct functions but need to collaborate to deliver cohesive services.
It is particularly relevant for businesses that operate in complex ecosystems involving various stakeholders, such as suppliers, financial institutions, logistics providers and marketing partners. For instance, cross-domain interoperability allows the sales platform to seamlessly communicate with logistics providers for shipping updates or payment systems for financial reconciliation. It is also crucial for providing end-to-end services that span multiple domains, such as order fulfillment or subscription-based commerce models.
Why is interoperability essential in today’s digital commerce landscape?
As businesses grow and digital commerce becomes more sophisticated, the need for different systems to work together has never been more critical. Here are a few reasons why it’s important for you to consider interoperability when building your tech stack:
Today’s customers expect seamless, personalized experiences at every stage of their journey — from browsing products to post-purchase engagement. To meet these demands, you need interconnected systems that can provide a 360-degree view of the customer. Without interoperability, silos form and the customer experience suffers due to inconsistent data or fragmented interactions across platforms.
Efficiency is the lifeblood of success in digital commerce. Interoperable systems reduce the need for manual processes, minimizing errors and streamlining workflows. For instance, if your eCommerce platform doesn’t integrate with your inventory management system, manual updates may lead to overselling or stock shortages. By automating and connecting processes across systems, you can operate more smoothly and focus on strategic growth initiatives rather than firefighting operational inefficiencies.
The digital commerce space is constantly evolving, with new tools and technologies being introduced at a rapid pace. Businesses that rely on rigid, isolated systems struggle to keep up with these changes. Interoperability enables flexibility by allowing you to adopt and integrate new technologies quickly. Whether it’s a new payment method, AI-driven customer insights or enhanced marketing automation, interoperable systems help you stay ahead of the curve and adapt to shifting consumer preferences and industry trends.
As you expand into new markets or channels, you need systems that can scale with you. Interoperable systems provide the foundation for growth by allowing you to add new functionalities, such as regional payment options or multi-channel sales strategies, without disrupting their entire infrastructure. This flexibility supports both short-term scalability and long-term innovation, ensuring businesses remain competitive as they grow.
How business leaders can foster interoperability
Interoperability doesn’t happen by accident. Digital commerce leaders need to be proactive in fostering an interconnected ecosystem. Here are some actionable steps to promote interoperability within your organization:
Composable commerce is an approach that embraces agile principles and interoperability. It allows you to select and integrate the best tools for each function rather than relying on a one-size-fits-all platform. Its modular setup ensures that different systems can be easily swapped or updated as business needs evolve without disrupting the entire ecosystem.
One of the key advantages of buying best-of-breed software in a composable approach is that you no longer need to overbuy based on growth plans or vendor roadmaps. Following the principles of interoperability means that you can easily procure and integrate services as needed (and importantly, no sooner).
Open standards and APIs (Application Programming Interfaces) are key enablers of interoperability. When evaluating software solutions, you should prioritize those that provide robust APIs, allowing systems to integrate with each other seamlessly. This ensures data can flow freely between applications, improving the overall efficiency of your operations.
Using APIs simplifies integration and interoperability, which, in turn, reduces complexity within the overall commerce infrastructure. By creating well-defined APIs, businesses can ensure that different components and systems can communicate seamlessly with each other, promoting flexibility and adaptability.
Head of Product Marketing, commercetools
Maintaining an interoperable system requires ongoing collaboration with your technology vendors and partners. Ensure that your partners are committed to supporting open integrations and keeping pace with evolving industry standards. Strong partnerships can help you navigate potential challenges in maintaining interoperability and adapting to new technologies.
As you introduce new tools and updates, you must regularly assess your tech stack to confirm systems continue to interoperate effectively. Over time, small incompatibilities can grow into significant disruptions if not addressed. By staying vigilant and conducting audits, you can catch potential issues early and make necessary adjustments before they affect your operations or customer experience.
The competitive edge of interoperability
In a world where customer expectations are continuously rising and technology is evolving rapidly, interoperability provides a competitive edge. Not only does it optimize day-to-day operations and support the delivery of exceptional customer experiences, but it also keeps you agile, putting you in the best position possible to capitalize on continual innovation and drive long-term growth.
By embracing interoperability, your business can remain responsive to change, unlock greater efficiency, and, most importantly, keep customers at the center of your strategy. In today’s digital world, the path to success is no longer linear — it’s interconnected. And interoperability is the key to navigating it.
To learn more about how you can bring all your commerce operations together on a single backend, gain a holistic view of your business, the ability to enhance interoperability and create a single source of truth, explore commercetools Platform today.
Anita J. Temple is the Corporate Journalist at commercetools. She was a fashion editor at Women’s Wear Daily (WWD) and W Magazine before launching a career as a freelance writer and creative producer. She has written content and worked on a wide range of marketing projects for companies including Dreamworks, Walmart, Coca-Cola, Verizon, and Adidas.