In this growing age of technology, you might have come across the term “the rise of APIs” but you might not be concretely aware of what it means. It is a huge trend adopted by organisations lately to bring them operational efficiency and enhance performance. For example, Salesforce reportedly generates 50 percent of its revenue through the use of an API, whilst eBay nearly 60% and to top it off, Expedia about 90%.
API stands for ...
… for Application Programmatic Interface. In the simplest terms, it is a set of function which allows the creation of additional features on top of another system. They are what makes it possible to move information between platforms. APIs work as a plugin tool which is a bridge between separate platforms allowing to share data with unique functionalities.
How it works?
An API works through a set of given programmatic language that accomplishes a specific task, and allows an interaction. Having an API will allow you to manipulate an existing program to serve your own business interests. It can harness business intelligence or create remote storage by forming a technology layer on top of an existing platform. For instance, when you buy a movie ticket online and enter your payment details, the movie ticket website uses an API to send your payment details to an application that verifies if your information is correct. The integration between the two platforms, the website and the source checking your bank details, comes through an API.
You might have stumbled across the benefits of API along with how it is improving the API economy. API economy is a general term which addresses how APIs can positively influence an organisation’s profitability. APIs can successfully reach new consumers, fuel internal innovation and enhance partnerships. As this technology layer is a communication bridge between platforms, companies can now collect important consumer information across all touch points. APIs also allow you to have a variety of data extracted from different sources in place. You can keep track of important consumer or business intelligence information all in one place, adding value to your services.
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