Benefits of API Driven Strategy For Business

Before directly starting with the benefits of API, let’s understand what actually is an API and why are businesses so inclined toward them?

With the continuous growth of mobile and web applications making their way into the routine life of consumers as well businesses, it is important than ever to discover valuable new uses for formerly isolated data sources. Indeed, APIs have become a hot topic in the corporate and IT world in recent months, and their boom can clearly be seen through the rapid increase of its usage. Indeed, most individuals, especially those who have an eye for technology, are already aware of APIs and the transformative power of API.

But if you are among those who haven’t heard about it, let me explain it in easier language…

What Actually Is API?

API is the abbreviation for Application Programming Interfaces, and they create a bridge allowing components, platforms, systems, and diverse applications to connect and share data. In other words, they are the tools that assist businesses in effectively utilizing data through innovative and inspiring ways. Experienced developers can use APIs to create new and better business opportunities while improving the current systems, products, and processes.

Do you know…?

Yes, checking the portfolio of a company you are choosing is the first step, as it will offer you an eye into what type of projects the company is offering. The easiest way to have a look is by visiting their website and checking if the eCommerce projects are successfully completed. Quite important to highlight here,
Just don’t look at the screenshots; rather go the extra mile – click and head over to the actual websites built by the eCommerce agency.

Why Do Businesses Need APIs?

Businesses and corporations are relying heavily on applications to accumulate and process an enormous amount of data. Absolutely, data is the most treasured asset of any enterprise as this customer data helps the company to deliver personalized experiences.

Another reason why businesses love APIs is that it analyzes the interactions between customers, products, services, and operations, leading to better decisions for the company and the customer. This aids the enterprise in achieving a higher rate of customer satisfaction, improving business models, and identifying new areas of opportunities. Additionally, businesses can also provide customers, employees, stakeholders, and partners access to business data that leads to operational efficiencies.

According to the study by MuleSoft’s Connectivity Benchmark Report, approx. 43% of the businesses today are utilizing more than 1000 applications on a daily day routine to manage their business operations. Moreover, over 2/3 (two-thirds) of the time the technical and IT department personnel spend is developing innovative projects. As more and more businesses integrate intelligent technologies in their ecosystem, there is no doubt that success is implementing API-driven strategies.

What Is API-Driven Business?

Before understanding the benefits of API, let’s get our head cleared with what is API-Driven business strategy?. It is undeniably true that the different systems, processes, and interfaces wouldn’t be able to share data without APIs, and the digital experiences would be totally different. The highlighting point here is that APIs work in the background while connecting us to the technology and information needed.

Yes, that’s true that businesses don’t prioritize leveraging APIs in their marketing strategies, and they are definitely missing out on the benefits. There is no doubt that APIs make it easier to connect and integrate people, systems, processes, and algorithms to develop groundbreaking products and business models.

It’s a fact that not all enterprises need to develop APIs as they are meant to be consumed – their developers created the interface to benefit others. To capitalize on the advantages of API, businesses must start embracing APIs as a part of their digital strategies. However, in some cases, it may seem irrelevant in comparison to the nature of business operations. Nonetheless, with the fast advancement rate of technology and the power of APIs, businesses should start adopting an API-driven strategy to ace the digital platforms.

Benefits Of APIs

APIs have become the digital glue that empowers developers in creating innovative applications and helps businesses develop new revenue streams. In short, it streamlines its business process and market strategy to deliver better customer experiences.

Perhaps the number one benefit of API is digital transformation. And nowadays, consumers carry more computing power in their pockets, and their expectations for digital experiences are tremendously high.

Hence, these new stakes have undoubtedly created the demand for interconnected experiences across multi-channels. Unquestionably, consumers expect a smooth interaction with business through diverse mobile, web, desktop, voice, AI chatbots, text, and many others. Not only this, the most efficient and cost-effective method of data integration is multi-platform connectivity, which is only possible through APIs.

In addition to improving developer ecosystem, customer experience, business models, the benefits of API are not limited to just these, but some of them are highlighted below:

Efficiency

Yes, there is no confusion now that API-based systems increase reusability, which in return significantly reduces the operational overhead – leading to an efficient business process.

Better Integration

Another great advantage of API-driven strategy in business is that it provides an automated way to integrate data among partners, consumers, systems, and processes.

Building Brand Image

Undeniably, the APIs developed by third parties have the power to spread awareness regarding the brand, and at the same time, it increases the audience size.

Productize

Enterprises and businesses can productize APIs in their own right as a SaaS, which in return help consumers to enhance and enrich their applications, workflows, and business ecosystems.

Regulations

Furthermore, by implementing APIs, businesses can now meet all the new data-sharing regulations such as GDPR, Open Banking, and many others

State-Of-The-Art Technologies

Modern technologies and devices rely heavily on APIs, and they are central to application architecture as they allow data integration. This results in increased flexibility and agility that empowers internal innovation.

Reduced Cost And Time

One of the main benefits of API strategy is that it decreases development effort and improves time to market. Not only this, but the developers are also aware that much of the functionality needed to build the application already exists elsewhere. Instead of spending time and resources on reinvesting, use third-party platforms – leveraging businesses to save time, money, and resources.

Superior Digital Experiences

Since the developers are empowered to build digital solutions across multi-channels via APIs, this creates better engaging experiences for consumers. They also help with the delivery of services like personalization, integration, and data collection. Not only this, if the application of APIs continues to grow in numbers and popularity, then the capabilities will only improve and expand.

Final Thoughts

Indeed, the above business benefits of API make it evident that Application Programming Interfaces are becoming a major component of achieving digital success.