While APIs have been around for decades, the capabilities of these increasingly sophisticated tools are now indispensable to businesses. APIs have become the essential connective tissue that enables companies to securely and quickly exchange data and information with the outside world. Today’s forward-thinking companies are taking APIs very seriously and doubling down on their API strategies. And there’s a strong business case for doing so. When companies adopt a robust API strategy, the results can be transformative. Enterprises with advanced API management processes experience up to 47% better business results as compared to enterprises with basic API management.
With a thoughtful strategy in place—a strategy that goes beyond a technical imperative—companies can capitalize on several core benefits of APIs.
Enhancing the customer experience
We’re living in the age of the customer. Customers are demanding top-notch experiences. More than half (57%) have ceased buying from a company because a competitor provided a better experience. Each customer is distinct and has a unique set of needs and wants. It’s impossible to serve up a perfect resonating experience for each customer without leveraging the power of APIs.
By opening up information access via an API, companies empower their customers to design and tailor their own experiences. The possibilities are endless. 75% of individuals believe that their company’s use of APIs has significantly enhanced their customer experience. With APIs, customers can take a driver’s seat role and identify gaps in the customer journey. And, equally important, companies are well poised to take a back seat and monitor API usage so as to better understand customer behavior and their desired workflows and work processes. It’s a powerful—and profitable—proposition, especially given the fact that 74% of business buyers claim they’re willing to pay more for a great experience.
Driving connectivity and collaboration
In 1990, the average enterprise used a mere 5 to 10 different enterprise apps. Fast forward to today and the average enterprise uses nearly 1,200 cloud apps! New apps are infiltrating businesses at unprecedented rates. At the same time, customers demand integrated experiences. APIs are the glue that allows these otherwise disconnected and siloed apps—the likes of CRMs, ERPs, finance, communication, and marketing automation platforms— to communicate with each other and, in turn, deliver any functionality that the organization requires or desires. With APIs, workflows can be carefully and strategically orchestrated so that productivity and impact are optimized.
In today's workplace, workflows and processes are constantly changing. APIs help ensure that connectivity and collaboration remain strong even as workflows are processes change. There’s a reason why approximately 50% of all B2B collaboration occurs via APIs. If companies don’t have access to APIs and can’t easily interact with your data and business, collaboration and connectivity will be compromised and you’ll find yourself getting trampled by the competition.
80% of consumers are more likely to do business with a company if it offers a personalized experience. If customers aren’t able to seamlessly integrate their most important apps, they’ll turn to a competitive option. After all, 76% of customers now report that it’s easier than ever to take their business elsewhere. If you’re not meeting the mark, customers will find an alternative that does.
Fueling innovation
Innovation is the lifeblood of all successful companies—now, more than ever. 56% of customers actively make a point of buying from the most innovative companies. APIs allow companies to supercharge innovation. They allow them to expand reach and tap into new markets that otherwise wouldn’t have been considered (either due to a lack of resources or due to a lack of awareness).
Consider IBM's Watson. In a pre-API world, Watson's applications would, in all likelihood, constrained to software and technology applications. But, by leveraging the power of APIs, IBM has managed to galvanize third-parties. The result? A host of new services have been developed, including ones related to medical care, shopping, travel, and even cooking.
Today’s companies need to be agile. With APIs, companies can quickly pivot to new verticals and adapt to changing customer expectations, market dynamics, and technology trends. The results are game-changing. It’s no surprise that 34% of companies use APIs to improve speed-to-market and innovation.
Businesses can’t afford to take their API strategies lightly. Unfortunately, far too many API initiatives are viewed as a check-box item that is part of a broad shift towards digital transformation. API initiatives are most effective when treated as a separate line of business. There should be a centralized body that oversees API design, development, implementation, and ongoing enhancements. Clear documentation and code samples are also essential. The onus is on companies to maintain and promote their APIs, enact appropriate governance and certification requirements, and measure the effectiveness of their API initiatives.
When businesses take APIs seriously, it’s the single fastest way to extract value out of data. Research by Mulesoft found that 80% of large enterprises (defined as businesses with 10,000 employees or more) generate more than $5 million a year from APIs alone. Embracing APIs is a business imperative. It’s no longer sufficient to offer a standalone, isolated product. Companies must take the leap from selling a product to selling a platform.
