To continue on from my last post on API’s and their Business Value I did a few years ago. I thought I would write an updated post on API’s (Application Programmer Interfaces) do a little deep dive. APIs have had a big impact on my last role and bigger impact on my current role as a PM @ 5nine Software, and thought I would share my knowledge and research so far. APIs are not scary 🙂
APIs are not new. They’ve served as interfaces that enable applications to communicate with each other for decades. But the role of APIs has changed dramatically in the last few years. Innovative companies have discovered that APIs can be used as an interface to the business, allowing them to monetize digital assets, extend their value proposition with partner-delivered capabilities, and connect to customers across channels and devices.
When you create an API, you are allowing others within or outside of your organization to make use of your service or product to create new applications, attract customers, or expand their business. Internal APIs enhance the productivity of development teams by maximizing re-usability and enforcing consistency in new applications. Public APIs can add value to your business by allowing 3rd party developers to enhance your services or bring their customers to you. As developers find new applications for your services and data, a network effect occurs, delivering significant bottom-line business impact.
For example, Expedia opened up their travel booking services to partners through an API to launch the Expedia Affiliate Network, building a revenue stream that now contributes $2B in annual revenue. Salesforce released APIs to enable partners to extend the capabilities of their platform and now generates half of their annual revenue through those APIs.
Next up, “Breaking Bad” on APIs – Lessons Learned”
Until next time, Rob.