Businesses are always searching for ways to cut costs and overhead. If there is a way your business could potentially save more than $590 billion, your company would be foolish not to implement that method. So, why aren’t more companies integrating systems with APIs?
APIs (application programming interfaces) control how one application talks to another, serving as a gateway into a company’s digital assets. From there, developers then take that data and use it to build mobile apps and other desktop applications. They’re the secret ingredient so many startups use to get quickly off the ground.
To keep up with today’s agile startups, decision-makers need to face the facts: APIs are necessary. Companies are using them for everything from messaging to analytics to mapping, essentially taking the best parts of others’ technology to fulfill their own needs.
If you want to grow your business effectively and quickly, here’s why you need to use APIs.
APIs Open Up Doors
Startups see the value in APIs, and traditional companies should, too. APIs enable a company to tap into a partner’s data to create a new function or app. The ability to share and exchange data so quickly is what helps companies maintain their competitive edge.
APIs give you the ability to:
Securely Share and Receive Data With Others. No need to worry about data corruption, APIs allow other developers to use that data to create their own apps without compromise. Conversely, you can access another company’s data safely to use to build your own apps as well.
Easily Integrate With Partners. The easy exchange of data makes it easy to integrate with partners, and ultimately, create a unique product or value. Let’s say you’re OpenTable, a restaurant reservation app. Partnering with Uber makes you an appealing product to customers who want to go out to dinner, have a few drinks, and still get home safely.
Source: PCWorld
Gain Access to Millions of App Developers. Get exposed to app developers from around the world. For instance, Walgreens built an open API around their photo printing machines. Now more than 75 different mobile apps integrate with Walgreens’ QuickPrint functionality.
They’re More Efficient and Less Restrictive
In the past, APIs were used as a way to develop for a specific platform. And for many developers, APIs were limiting, often creating a sense of dependency on the platform. However, today’s new third-party APIs are offering developers more freedom. No longer do they have to lock into a particular platform. This opens up a world of possibilities for faster apps.
Let’s say your company uses a tool like Salesforce. Instead of having to be solely dependent on Salesforce, a third-party API gives you the option to create your own functionality. You can use certain elements of Salesforce, but a third-party API will allow you to customize to fit your needs.
A great example of a company who uses APIs to parse what they need is Uber. (Notice a trend here?) Uber skipped building out mapping, communications, and payment. Instead they used APIs to connect Google Maps, Braintree for payment, Twilio for mobile, etc. This saved Uber a significant amount of time and resources.
Source: Points, Miles & Martinis
And Uber returned the favor when they launched a publicly-accessible API in August 2015. The API allowed other companies like United Airlines and OpenTable to embed Uber into their apps, creating a beneficial arrangement where everyone profits.
They Can Fill a Resource or Skill Void
Of course, standard API is great for building internal reporting tools, tracking performance, boosting public web applications, etc. But it’s also extremely beneficial for small businesses who don’t have the resources or skills to fill a particular void. APIs connect the missing links, enabling a company to use a third party to get the task done.
Perhaps, you need someone to process payments. There’s an API for that. In fact, there are several, including PayPal, CardConnect, and others.
Or maybe your company is in the market for chatbots, but doesn’t have the technology. Facebook offers chatbots on Messenger. For businesses that don’t have the resources or skills to build chatbots, Facebook is providing developers with API tools to build chatbots and live chat web plug-ins.
APIs aren’t only for technology or apps. Let’s say you’re looking to produce marketing content, but have a small team or perhaps no team at all. You have no time to devote figuring out what’s trending, which keywords to use, where to place your context, etc. Enter BuzzSumo’s API (highly recommended by Moz).
Bottomline: APIs Streamline Costs
When APIs fill a void, there’s always the heightened risk of job loss due to automation. APIs could potentially replace workers, specifically engineers. As Sawhorse Media has learned, APIs are significantly more cost effective.
Here, the company breaks down their annual spend on SaaS services. It comes to about $55,930.08. That’s the average salary of just one engineer.
Source: TechCrunch
Naturally a company would be tempted to eliminate the bulk manpower for APIs. However, if your company isn’t in a position where cost-cutting is necessary, don’t cut just yet. Instead consider cutting back on hiring and reallocate the work load. Use those freed up engineers to work on new projects. You never know, one of those projects might just be the next big thing.