Why Your Business Needs an API-Driven Strategy to Stay Ahead of the Curve
Modern applications rely almost completely on APIs for delivering amazing user experiences. But APIs are not just mere software solutions; they are powerful agents of digital transformation. Hence, an API-driven strategy has become indispensable for businesses to attain success.
Today, we delve into the benefits of APIs and figure out how a business can execute a solid API-driven strategy that sells.
What is an API?
API or Application Programming Interface is a software link that enables two or more apps to freely connect and share data with one another, regardless of underlying technologies. Every time you book flight tickets or hotel rooms via travel sites or pay bills via eCommerce apps/sites, APIs work behind the scenes to get the job done.
Why Adopt APIs?
Apart from the technological benefits that they offer, APIs strongly serve as revenue-creating channels for businesses. According to a widely shared article published in Harvard Business Review, companies like Salesforce, Expedia and eBay generate a substantial amount of their revenue through APIs.
APIs provide superior digital experience centered around innovation, personalization and data integration. Third-party API services help in nurturing partnerships that drive user engagement; as seen in the case of Uber and Foursquare. Better cost efficiency, lesser time-to-market and developer productivity are other API benefits.
Implementing a Successful API-driven Strategy
Any business aiming to strike gold in the fiercely competitive market can think of integrating an API-first approach into their business strategies. The following steps will help:
1) Identify the Best Opportunities
An API is more of an opportunity enabler than a technology driver; so, first analyze customer pain points to identify where APIs will work best.
2) Know Your IT Environment
Understand the ins and outs of your company’s data architecture – the back-end systems in place, the tools used, data hosting models, and so on.
3) Decide Your Stakeholders
Finalize your API partners; i.e; other companies capable of adding value to your new and existing products. By bringing them onboard, a robust API ecosystem takes shape.
4) Conduct Pilot Test Run
Before publishing the completed API for broader use, first, do a trial run of the beta version among internal developers. This will reveal any security vulnerabilities and other shortcomings.
5) Measure the Progress
After the final roll-out of the API, track and analyze its performance through key performance indicators (KPIs) like ROI, traffic growth, app adoption rate, customer satisfaction, etc.
The concept of an API economy is slowly gaining pace as secure and developer-friendly APIs are fueling remarkable business and customer outcomes. So, to understand the endless possibilities that APIs can offer your company, just approach an experienced API service provider.