Whether you are working in trading, finance, or operations, you must have got to hear about API Integrations in the last couple of years and their significance for different enterprises.
Today in this digitalized world, industries cannot neglect the value of API integration in the current world. After cloud-based products and apps arrive, enterprises are compelled to create an interconnected system where data is forwarded automatically between multiple software tools. Here comes the API integration that allows sharing strategy and enterprise data among applications in a provided ecosystem.
Let’s unleash the true meaning of API integration and how it is helping businesses to grow further.
What is API?
To make it simple, an API (Application Programming Interface) is an interface that enables connections and communication between two or more software applications. It facilitates connections between apps or websites to improve user experience.
A simple way to understand the purpose of APIs is with an example. Suppose you order something online; when you put the order, you contact the vendor through an app or website to buy your chosen items. This contact process occurs via an API. The order is sent in the form of a request to the website/app, and as a result, you see a message (response) ‘order placed, which confirms the order placement.
In addition, APIs assist two applications to connect and communicate by serving as a mediator between them.
What does it mean by API integration?
API Integration refers to this seamless connectivity that allows organizations to program business processes and enhance the sharing and integration of data between different applications and systems. For instance, TripAdvisor gathers data from varied airlines and hotels by reaching their APIs. Another example you can see is PayPal that is purposely embedded into a big number of websites that need money transactions, from Zendesk Inc. to Airbnb.
Why Modern Enterprises are Now More into APIs Integration
For making the flow of data better throughout the different departments, it is imperative for businesses that they must have to integrate with different interactive platforms.
With around 23,000 APIs in presence, they are speedily evolving as an integral part of most IT infrastructures for today’s enterprises. Since 2015, an average of 2,000 APIs have been added each year to the directory, and the growth rate has increased exponentially in the past few years.
The development rate of APIs has raised dramatically in the past few years. You will be stunned to know that since 2015, an average of 2,000 APIs have been added per year to the directory.
APIs have evolved as a part of everything we do digitally/online, from booking theatre tickets to using social media to sending messages. For example, search engines like Google use APIs to show appropriate information based on past user search queries gathered.
Let’s look at some of the best reasons we have gathered why modern enterprises prefer to adopt API integrations to their business and how it can help enterprises develop better in this competitive market.
As the market for modern software grows, businesses are looking for faster ways to prototype and create new products. However, when developers spend precious time building applications from the ground up when a similar solution is already available as an API, it can have a negative impact on your organization’s productivity.
APIs provide a strong framework for accelerating development. Developers can use APIs to implement existing functionality rather than creating solutions from scratch quickly.
Microsoft, for example, provides a Text Analytics API that allows you to perform text analytics tasks such as language detection, key phrase extraction, and sentiment analysis.
Saves Extra Costs
One of the most significant reasons why businesses prefer APIs is saving money. Because APIs significantly reduce development effort, creating applications is an excellent way to cut costs.
Developers can use APIs to get most of the functionality they need to create applications from elsewhere, eliminating the need to start from scratch. Instead of wasting valuable resources and time reinventing the wheel, they can use low-cost APIs from third-party providers or their internal APIs.
Consuming APIs allows developers to focus on refining the unique capabilities of their apps more quickly, allowing enterprises to save resources and money.
Enhances Accessibility and Collaboration
Private APIs, also known as internal APIs, can improve collaboration and internal communication within an organization. The core functionality of APIs is connectivity—they allow different systems, applications, and platforms to connect and share data and perform various functions.
In the early 1990s, the average enterprises used only 5 to 10 applications. However, in the modern environment, it is reported that the average company is running 464 custom applications.
As innovative applications undermine companies at extraordinary rates, it runs to unequal environments that hold back communication and connectivity. As a result, many businesses end up with disjointed systems that can’t easily share data and functionalities.
APIs serve as the bond that connects those multiple software solutions, such as those for customer relationship management (CRM), marketing automation, and financial services. By doing so, the enhanced connectivity and collaboration results in interoperable components that streamline operations and assist enterprises in delivering desired functionalities without bottlenecks.
Furthermore, APIs are extremely useful when an application is deployed using the microservices architecture; the application is built as a collection of small, loosely coupled components that communicate with one another via APIs.
Another useful feature of APIs is enabling businesses to embrace new technologies. In today’s competitive environment, innovation is critical to organizational success.
APIs are excellent for fostering development and innovation. Enterprises use APIs to implement cutting-edge technologies with fewer resources, quickly adapt to customer requirements, and set off new avenues for growth.
APIs help businesses to strengthen their competitiveness, differentiation, and efficiency. According to a report, enterprises that integrated APIs increased their innovation by 51%.
APIs can serve as the connecting layer between the two modes, allowing for more coherent interaction and the deployment of innovative and feature-rich applications. In addition, APIs allow you to flawlessly extract value from legacy data sources and enhance the capabilities of your current systems.
Improves the Customer Experience
Let us now discuss the upsides of API for customers.
Enterprises can create new and effective ways of interacting with customers by leveraging API capabilities, especially in the current digital age when consumers demand top-notch experiences.
Customers today are primarily interested in personalized experiences rather than one-size-fits-all enterprise solutions. According to Gartner, companies that use personalized messaging to assist customers can expect a 16 percent boost in business outcomes over those that do not.
Organizations that expose their data and services through APIs can empower their API consumers to control their own customer experiences, opening a world of possibilities. In addition, these interfaces allow customers to take the wheel and identify flaws in the customer journey.
Developers can use APIs to create solutions that meet specific customer expectations, which would be difficult to achieve without them.
Many brands, for example, use APIs to deploy cutting-edge artificial intelligence and predictive analytics technology that analyses a buyer’s unique journey and recommends the “next best action.” This improves the shopping experience for customers and leads to more sales.
Generates New Revenue Streams
Another benefit of APIs for your business is that they open new revenue streams. By monetizing APIs, you can uncover the value of your digital resources and discover new ways to expand your business’s growth.
You can charge users (or use a revenue-sharing formula to pay them) for consuming API-exposed functionality. It is what you require to mine your services and data for gold and increase the profits of your organization.
APIs enable modern companies to reach new heights and transform their digital assets into new revenue streams, just as contemporary businesses expand their reach beyond traditional brick-and-mortar locations.
Meet and Surpass Other Integration Solutions
Almost every task within an organization necessitates the completion of multiple processes. For example, consider inventory management: sales data, stock levels, purchase orders, and demand forecasting are all part of the process. While some systems declare to be an “all-in-one” solution, this software does not adjust to the needs of a business.
Instead, many businesses work with software developers to create their customized applications. API integration platforms make it simple to combine tools, functions, and information from various systems. Hence, it removes redundant features or data sources that overlapping services may have populated.
Improve the Performance of Existing Systems
Organizations that continue to use legacy systems or older data integration services frequently experience software bottlenecks due to the accumulation of outdated data. The database accumulates clutter over time, making it nearly impossible for users to access data or successfully implement integration technology.
An integration platform service solves this issue by enabling management to designate specific APIs for internal and external use. In addition, this feature categorizes all stored data, making it easier for users to find and gather information. For example, enterprises can have smooth and quick data transformation by leveraging SQL Server Integration services.
A Thought from ARC
As API systems have grown in popularity in recent years, businesses have realized that API integration platforms improve system performance even further. Access to real-time information from all solutions enables businesses to broaden the scope of their operations. In addition, APIs enable the software to get integrated with third-party digital apps or services to foster business efficiency and development. Also, a compelling API can help to boost a brand presence in the market.
A SharePoint consulting firm who is expert in providing data analytics integration can assist you have the most out of data integrations. At Al Rafay Consulting we have experienced professionals who can serve you with the best B2B integration services.
Check out our portfolio analytics and tracking solution that we have developed while leveraging data integration from Entrata, specifically for the student living industry.