The term refers to a system design paradigm where applications are built from independent, reusable components. These components, often referred to as packaged business capabilities, are designed to be easily integrated and orchestrated to create complex functionalities. For example, rather than developing a monolithic e-commerce platform, a business might assemble it from distinct modules handling product catalogs, shopping carts, payment processing, and customer relationship management. Each module operates autonomously but can be combined with others to deliver a complete shopping experience.
This approach offers significant advantages in terms of agility and resilience. It enables organizations to respond quickly to changing market demands by swapping out or updating individual components without disrupting the entire system. Furthermore, it promotes innovation by allowing for the easy incorporation of new technologies and functionalities. Historically, software development often resulted in tightly coupled, inflexible systems. This evolved due to a need for greater flexibility and scalability in response to ever-changing business requirements.
