Advanced Programming Interfaces are the standard for creating and connecting applications. Think of them as software blocks that can be rearranged as needed to generate new value. Because of this, APIs should be a part of every innovation strategy.
They allow applications, systems, and devices to communicate by sharing data. This occurs regardless of the data or its format.
There are more than 20,000 public APIs on the internet. The current API economy is changing the ways organizations succeed. A recent report revealed 35% of technology leaders today generated more than 25% of their company revenue because of APIs.
One example of how APIs are changing the technology landscape is how food businesses are delivering food through third-party services. APIs allow capabilities from one application to be exported to another without the need to rewrite code.
This open network of business capabilities allows for faster adaptation and the delivery of diverse customer experiences. Here are five ways APIs help drive innovation and digital transformation.
Develop application-based services
Organizations that develop application-based services create endpoints that offer valuable data. Quickly connect customers to services and meet a broader range of needs.
These connections are necessary for companies to remain relevant. According to recent customer experience research, 85% of decision-makers on the enterprise level report a time frame of two years for implementing digital transformation before losing their competitive edge.
The right digital infrastructure ensures communication across multiple companies and platforms. This promotes greater agility for organizations around the globe.
Many API components are reusable. For instance, the email API your business has used from the beginning can be reused multiple times as you create new web-based services and tools.
APIs can also increase efficiency in how your business operates. Track data from multiple apps to plan inventory and predict customer preferences. This strengthens the customer experience by allowing you to connect all relevant systems to create a powerful network.
Create a smooth digital transformation
APIs bring all components of a project together. They bind processes, systems, and data so that customers can access it all in one place.
Structured APIs help agile companies integrate seamlessly with external applications, and are an integral part of a successful innovation strategy. Businesses can securely connect with a wide range of programs and devices at any time.
APIs also add functionality to your business while decreasing operating costs. Legacy systems can be kept in place while APIs are configured for maximum digital transformation benefits.
Create revenue channels
APIs promote new opportunities for businesses through collaboration and participation. This drives revenue and helps organizations gain new markets. For example, healthcare organizations allow data to be securely exchanged to improve outcomes for patients.
Likewise, retailers are providing additional services to customers through existing partner and affiliate platforms. APIs enable this sharing of information, making it possible to improve the efficiency of business operations.
Adopt and API strategy
An API innovation strategy puts customers first. As the means used to connect with technology continues to grow, so does the need for greater consistency of existing channels and the creation of new ones.
Leveraging a common base provides a reliable customer experience. This is further evidenced in the growth of mobile technologies and subsequent need for multiple communication options. All these options are driven by APIs, which will continue to take the business landscape to new heights.