APIs - a set of rules that allow two applications to speak the same language - are at the center of digital transformation. With APIs, you offer your data and functionality to others in a programmatic format, which enables them to easily use your services from their own apps or websites. APIs make updates easier and faster. For example, when a change is made to a sign-up process, customers can update their information by using an API that provides an interface for updating account data without templating changes or code rewrites.
Industry Trends
It's estimated that 90 percent of the world's data has been generated in the last two years. As more data is created and captured, there will be a "data tsunami" and a need for digital transformation to take place. If you work in an enterprise struggling to keep up with changes in technology, you will need to transform it into a digital organization for continuous innovation.
What this means
With APIs becoming the center of digital transformation, the ability to build, deploy, and manage API solutions will be critical. To make sure you stay competitive, you will need to invest in your API infrastructure.
Why it matters now
APIs are at the center of digital transformation that is being driven by today's rapidly changing business models. APIs facilitate easier integration with other applications, which helps organizations cut costs by reducing duplicate software assets and products. They also offer faster time to market, as companies can focus on their core competencies instead of spending money and time learning how to use someone else's API.
How can you be ready?
Are you ultimately prepared for the inevitable changes to come in your industry? In addition to investing in APIs, make sure your team is skilled in agile practices and DevOps capabilities such as API virtualization and microservices. It's also important that your approach to APIs be flexible from the beginning. Digital business models are too unpredictable for one-size-fits-all solutions.
In the case of the article above, it is important to understand that many organizations are struggling with digital transformation. Assuming that APIs are the center of this digital transformation changes things up a little bit. Rather than spending time building internal applications and systems from scratch, companies can merely focus on what they do better than everyone else without having to worry about how their systems will talk to other systems. Also, integrating with legacy applications becomes much easier for companies that are digitalizing - so investments in legacy systems actually pay off in the long run instead of being an albatross around their necks - as is so often the case in companies trying to digitize.
One of the biggest advantages of APIs is that they allow you to make automatic updates to your data and systems without having to worry about how much it will cost in money and time to do so. Companies that master APIs significantly reduce costs in operational overheads, fewer bugs, and faster time-to-market for their products. This is not the case for companies that rely on custom code, especially where those companies attempt to operate legacy systems within the new world of APIs.
Once a company starts investing in its own internal API infrastructure, it becomes easier to manage its growth even if they are shrinking at the same time.