Technology is witnessing a paradigm shift in the way it is distributing data. Once it was a chest beating gesture to claim our concreteness on data, but now it is all about making it open. The expansive potential of the business is directly proportional to the degree of exposure it offers with its software interfaces. That is the nature of an API. When data is open to a larger set of app developers, the possibility of it scaling new heights is obviously high. Economy, which runs parallel to the technological innovation is not barred from it. The arrival of API in nearly every business process will usher the new era of economy — API based economy.
Why API is Relevant?
Since mobile, cloud and social computing have emerged rapidly and the necessity to place an agile software environment at the core of organizations has surfaced, APIs have emerged as a substantial requisite for it. They will push the external innovation to happen through third-party developers and offer buoyant yet effective application integration.
What inherent changes will API bring?
In the last decade, APIs have been in moderate usage. But this era which is widely being viewed as API 2.0 is expecting radical changes compared to the advancements it has brought till now. The influence it is showcasing is deeper and further-reaching than in the past:
- Organizations are moving towards having their internal processes automated. It eliminates human uncertainties and heads towards achieving optimized business goals.
- The information exchanges that were slower and always in need of rapid updates, are happening on a real-time basis.
- A phenomenal increase in bulk data is offering a wide range of interpretation options thereby giving room to draw qualitative conclusions backed with generous quantitative insights. This has allowed business decisions to be made more effectively than in the past.
- The status quo is getting almost nullified by egalitarian access to real-time data.
How will the Economy see a Paradigm shift?
When organizational processes are getting modified and business goals get approachable, it offers a new cascade of enterprise structures.
- The restructuring of the business processes backed by automation will increase agility and bring down maintenance costs.
- Innovation potential has avalanched and will create new channels for customer interaction and build win-win partnerships. This will provide an unprecedented impetus to generate revenue through new service contracts.
- APIs will increase the visibility of data and reduce the complexities associated with it. This makes both internal and external processes streamlined, automated and error-free.
- User interfaces need to be frequently changed across the organization. Hence APIs offer a means to stabilize the core transaction service to a comparatively robust platform enabling rapid integration at the edges.
The influence that the API based economy is projecting will extend its reach towards prominent sectors like Banking (FinTech), Fashion, Real Estate, Mobile Development, Events (Real-time data analysis), Healthcare and Hospitality. Every sector will choose its own style of adapting to API, thereby ushering in their own version of the API based economy.