Insight

Growth Through API and What to Consider

You’ve probably come across the term Application Programming Interface (API). It’s commonly used when talking about software and mobile applications.

An API is a piece of software that allows other software applications to communicate with each other. Most of us use APIs daily without even being aware of them. Every time you use an app on your smartphone, such as checking social media, the weather, or flight times, you’re using APIs. The API is what allows a smartphone app to talk to a program’s database and servers and access information. 

In addition to mobile apps, APIs also can connect software programs to other programs or databases. This function makes them extremely useful for businesses to develop tools that can be used both internally and externally. 

Using APIs in Your Business

Many programs you use in your business already rely on APIs. One that you probably use is a web analytics tool that connects to your website to monitor traffic. You may also use project management software, that allows you to connect to and share outside files like documents or spreadsheets.

Where APIs become really useful is when they’re combined with your own website, software, and databases. They can add functionality for your team and customers, giving you a quick way to fuel growth by adding complementary services without devoting the time, cost, and resources to build the new service from scratch. Developers can dramatically cut the time it takes to deploy new products by using ready-made, third-party API solutions that are available.

In addition to saving time and resources, an API project can add value to your business in several ways, including:

  • Supplementing your core offerings
  • Further monetizing existing clients
  • Enhancing client stickiness by providing additional value
  • Offering continuity in user experience by keeping the same user interface when updating systems
  • Differentiating from your competitors

What You Should Know Before API Integration

Many benefits are available to your business from integrating APIs and offering new services. However, updating your software and offerings doesn’t automatically guarantee increased profits. Before embarking on an API integration in your business, you should consider these three key factors to ensure success.

  1. Assess the business opportunity. Will your organization be able to monetize the service provided by the API? Before you make plans to offer a new service, consider surveying your clients to determine demand for the specific service. You can also talk with target clients to see their level of interest in the new service. Once you determine there’s an interest and a reasonable probability of meaningful uptake of the new service, then you can move forward with the project.
  2. Allocate sufficient resources to support the API project. One of the benefits of APIs is that they can be deployed quickly, without a large development cost. However, they still require technical resources to configure, test, deploy, and maintain. Technical staff can review API documentation and access an API developer sandbox to work with API calls and test applications. Just be mindful that a short two or three week project can easily become a two or three month project — or longer — if sufficient technical resources are not deployed to focus on the API project. 
  3. Promote the new services. Once live, the API connectivity enables your organization to provide additional services with all of the benefits noted above. However, just as you would when offering any new service, you’ll still need to have a go-to-market (GTM) strategy to launch the product and increase awareness of the new offering. You’ll also need an ongoing marketing communications program that runs over a period of time to enhance adoption of the new service.

Partnering for Success

In today’s competitive global business market, businesses may offer additional services to their customers as a way to provide value, and differentiate from competitors. To be profitable, you need to have an efficient way to develop new services without committing significant resources in development.

Once you’ve determined that there’s both a customer desire and benefit to a new service, API integrations can help you make it a reality. Developers can use APIs to efficiently launch new services without a large amount of money or time.

As you move forward in your business, remember that TEMPUS is here to help you grow. Contact us to see the many ways we can assist you.

 

 

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Andrew Woelflein

Andrew Woelflein Chief Strategy Officer Monex USA

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