Prepping for the Future: How APIs Unlock New Revenue Streams
API-led connectivity is transforming how enterprises are tapping into global markets. APIs have accelerated management efficiency and business revenue across a gamut of industries from both private and the public sector in an increasingly fast pace through seamless data integration and management.
Director of technology company Twilio James Parton said that companies that wouldn’t adopt an API-based system can’t possibly cope in this digital era.
“APIs are going to be the driver for the digital economy and unless they [companies] are talking about APIs already, they will be left behind,” he said.
Driving profit across global markets
Uber and Airbnb were able to expand to global markets faster than most companies could because they made their back-end connectivity available through APIs.
“From a technological perspective, rolling Uber out in a new country simply meant switching on a new currency and modelling new billing rules in the back-end systems. Uber expanded its business into tens of new markets just by tweaking its app,” Mulesoft CEO Ross Manson said.
In this increasingly connected, and shared digital economy, a company’s ability to orchestrate and compose APIs for their business is critical for augmenting business agility.
Boosting revenue through integration
API pundit Ross Manson of Mulesoft ascertains that connecting data, apps, devices and other systems interwoven in the digital ecosystem significantly improve business operations, as it surges enterprise dexterity. He sights the airline industry as proof.
“Take airlines, for example. In the past, each airline had its own walled-off system for tickets, reservations and seating. Now they make all that data available to partners like Kayak, Expedia and Hotwire to drive customers to their flights,” he said.
“Why? Because connectivity is the new path to revenue. Any airline that didn’t provide data to companies like Expedia could never stay in business today. And for its part, Expedia doesn’t just consume data. It generates more than $2 billion annually from partners of its own, who pay to access its listings. Take another example: Salesforce, gets 75% of its revenue from connected services,” he added.
A myriad of Wall Street titans have already recognized how APIs accelerates enterprise agility, and have thus expanded their services to include API management to remain competitive in this constantly changing digital economy. Citrix and eBay, for instance,
leverages MuleSoft’s API solution as a core integration framework.
Investing in a value-laden economy
Gartner predicts that 4.9 billion devices would be connected to the Internet by 2020.
An explosion of free information, apps-based enterprises and increased user mobility is already happening. Companies must fluidly integrate data, applications and processes across on-premises, cloud and mobile to respond to the market’s need for cost-efficient and quicker access to value and services. Evidently, the API economy is influencing digital and business transformation for the better.
A company’s ability to seamlessly integrate applications, company data and consumer devices together through an effective API-led connectivity platform determines whether a company wins or loses in today’s digital landscape. Every business player should thus re-think their connectivity approach to build a forward-looking strategy empowered by an airtight API policy.