Connected World
With businesses beginning to head into a digital future, several technologies for automating and simplifying business processes emerge in the market. Among these catalysts that lit the fuse of digital transformation are Application Programming Interfaces (API). Using APIs can make your business stand out in this new landscape with its capability to integrate the different types of data in your internal or external systems rapidly and without having to rebuild much.
The most common description of an API is a computer program that allows data transmission between different IT products. These systems may not have the same source code, may not be running on the same Operating System, or may not be housed in the same physical network. An API solves the chief problem of any digital transformation project, which is integration.
APIs can likewise help simplify customer engagement, while simultaneously providing them with instant, significant insights into their business. An example showing the power of API is your IT helpdesk ticketing system pulling employee information from the ERP, helping shorten the time it takes for the internal customer to log a helpdesk ticket. These seamless data exchanges are automated in most APIs. It also unlocks opportunities to integrate machine learning and artificial intelligence into your systems.
Benefits of Using APIs in Digital Transformation
APIs empower faster deployment and testing of functionality
With the use of APIs, deployment for new functionalities becomes quicker. This allows you to spend more time on other areas of digital transformation. Faster deployment also means that there is less overall downtime.
APIs improve customer satisfaction
Having the option to deploy and reuse integration assets quickly and efficiently is a notable advantage of using an API. From the earlier example, your internal customers benefit when they spend less time to get the services they need. This too can be extended to external customers - data collected from the vendors and warehouses can help customer service teams shorten shipping and delivery times.
APIs drive innovation
When multiple systems converge, the possibilities are endless. Convergence, paired with the fast deployment and testing, enables new systems and processes to be tested rapidly and efficiently. You also do not have to use conventional testing teams; instead, you can test a functionality with your end-users.
APIs encourage automation
With the right data and rules in place, APIs can automate most business processes. For example, banks can automate the process of approving loans with APIs to interact with credit reference bureau and regulators. This provides faster loan approvals for their customers.
APIs help identify new areas of business growth
APIs provide enterprises with new opportunities. With innovation, you can discover areas of improvement or completely new areas to grow. A new way for organizations to boost revenue is by monetizing data that can be used by other industries such as machine learning and AI development.
APIs allow for new partnership opportunities
APIs allow for multiple systems to share data across them. Multiple vendors usually support these varied systems. Integration of their systems on the API will allow them to form cross-vendor partnerships. These partnerships will help with resolution in cases of incidents, faults, and problems.
APIs also simplify the way customers interact with your front end. By allowing the integration of the supply chain, vendors, suppliers, and retailers are brought together at the backend, making for better service delivery. Businesses can leverage APIs to complement the services they offer and benefit from each other. A bar, for example, has integration with a ride-hailing service to request taxis for their patrons once they complete their orders or are too intoxicated to drive home themselves.
Developing a roadmap for API led digital transformation
We cannot stress the importance of APIs in digital transformation. In theory, they sound like a no-brainer, yet companies still struggle to conduct digital transformation with APIs successfully. To succeed in your API led digital transformation, you need to:
Identify your business goals
As is the case with most technology projects, for success, you should have a vision of the outcomes expected after the transformation is completed. You should ensure that the selected APIs for your project align with your business goals.
Confirm the supporting technology exists
APIs may need integrated technologies to function well. Confirm that your technology infrastructure, both hardware, and software, will support the integration of APIs and remediate any gaps that can exist. Fortunately, most APIs encourage reusing existing platforms and technologies and can be expanded even on the cloud. You may also need to use Leapfrog services to get better results.
Quantify the performance
Set Key Performance Indicators (KPIs) for your APIs against your business goals to ensure that the business's overarching goals are top of mind. Every business is different, and your KPIs, therefore, should be unique to your business.
Incorporate your ecosystem
The best thing about APIs is the ability to integrate multiple systems. You can ensure that you are reaping the full benefits such as revenue savings, improved customer relationships, enhanced productivity, and easier systems integration by incorporating APIs to your business ecosystem. Leveraging the use of APIs, big data, and machine learning in the digital transformation, a company can reinvent its products and services and its brand image.
It's easy to see that the impact of APIs is growing beyond tech-based businesses. As digital transformation advances, APIs will play an integral part in successfully transforming organizations.