Efficiency and streamlined processes are the key reference points many businesses are desperately trying to achieve by all means. One of the key drivers of this transformation is Application Programming Interface (API) integration, which allows disparate systems to communicate seamlessly, enabling businesses to automate complex processes globally.
From healthcare to finance and beyond, API integration has become a great helper in achieving digital transformation. In this article, we’ll explore the reasons behind the widespread adoption of API integration, its impact on business process automation (BPA), and the types of APIs that serve various purposes.
API integration: What is it in plain words
API integration is the process of connecting different software systems and enabling them to interact with each other. As a result, the exchange of data takes place that, in turn, facilitates the automation of various business processes. From a simple weather widget on a website to complex enterprise-level integrations, APIs serve as the bridge between different applications. Moreover, businesses often seek the support of an integration partner like MindCloud to ensure seamless integration across their systems and applications, further enhancing efficiency and productivity.
Can you imagine that 80% of businesses worldwide invest in API integration services? But this is a fact. Reason? Companies would like to enhance their operations, and accounting for its scope, you can easily guess that this widespread adoption of APIs is evident across different industries: healthcare, finance, e-commerce, etc.
For instance, APIs are essential to the healthcare industry because they link electronic health record (EHR) systems, enabling safe access to and sharing of patient data by healthcare providers. In the finance sector, APIs enable seamless transactions and real-time data exchange between banks, payment processors, and financial institutions. However, the success stories of API integration aren’t limited to specific domains, highlighting its high applicability.
Reasons to use API integration for your IT business
API integration offers various benefits that drive businesses to adopt this technology. Below, we’ll get you familiar with the most popular reasons for choosing API integration as a strategic move.
Filling functionality gaps in business processes
As API integration connects different applications and allows them to easily exchange data, this proves particularly beneficial in filling functionality gaps within existing business processes. For instance, a customer relationship management (CRM) system can integrate with an email marketing platform through APIs, ensuring that customer interactions and marketing efforts are synchronized.
Companies like Salesforce have successfully implemented API integrations to enhance the functionality of their CRM platform. Thanks to this decision, Salesforce remains a comprehensive solution that addresses diverse business needs.
Meeting broader business needs
API integration also helps businesses to scale their operations and meet broader business needs. In which way? Again, by connecting various software systems. Consider an e-commerce platform that integrates with a shipping and logistics API. This integration automates the order fulfillment process, providing customers with real-time tracking information while streamlining the backend logistics for the business.
Amazon, a global e-commerce giant, leverages API integration extensively. From connecting with third-party sellers to facilitating payment gateways, Amazon’s ecosystem relies heavily on API integrations to meet the diverse needs of its expansive platform.
Discovering and accessing deliverables
API integration facilitates efficient discovery and access to deliverables within a business ecosystem. This is particularly relevant in content management systems, where APIs enable seamless connections between different repositories. Imagine integrating a document management system with a collaboration platform. In this case, users will be able to access and share documents effortlessly. A magic, isn’t it?
Companies like Dropbox have embraced API integration to enhance their file-sharing and collaboration capabilities. By allowing seamless integration with various third-party applications, Dropbox ensures that users can access their files and collaborate across different platforms seamlessly.
How exactly do APIs ameliorate business process automation?
Using APIs, companies can easily automate complex business processes and functions. Here is the list of criteria through which you can acknowledge this change.
Time savings
By connecting different systems, APIs eliminate the need for manual data entry and facilitate the seamless flow of information. If you think about it in the e-commerce business context, you’ll probably imagine the inventory levels that are automatically updated when a new order is placed. Just think how much time and effort it reduces. This is what is done under the hood of Shopify, which knows how to save businesses valuable time in managing their online stores.
Decreased maintenance costs
Want to reduce your maintenance costs? Create a more efficient and scalable infrastructure through API integrations. For instance, a Human Resources Information System (HRIS) can integrate with payroll software through APIs, ensuring that employee data seamlessly flows from one system to another. You may go read how Workday proved the efficacy of this idea.
Flexibility of the solution
APIs provide businesses with a flexible solution that can adapt to changing requirements. Namely, if you’re a customer support business, you can integrate with a chatbot API to provide automated responses to common customer queries. Ineffective? Unnatural? Release both doubts by looking at Zendesk’s API integration case.
Easier changes to the existing system
Whether it’s adopting new technologies or updating existing processes, APIs provide a seamless way to integrate these changes without disrupting the entire system. If you’re a marketing automation platform, think of integrating with social media APIs, and you’ll be able to shape the working marketing strategy based on the latest trends. This is what HubSpot is doing to stay nimble in their marketing efforts.
No overheads
Instead of undergoing a complete overhaul of existing systems, you can make incremental changes by integrating new functionalities seamlessly. Take, for example, a project management system integrated with a time-tracking API. What will it bring? An opportunity to track project timelines without disrupting the existing workflow, which is used by Trello.
Types of APIs to serve your purpose
Not all APIs serve the same purpose, and businesses must choose the right type of API to meet their specific needs. Here are three common types of APIs:
Experience APIs
Experience APIs focus on providing a seamless user experience by aggregating data and functionalities from various backend systems. This way, you create a unified front-end experience for users, regardless of the complexity of the backend systems. The obvious illustration is a travel booking platform that uses APIs to aggregate data from airline, hotel, and transportation systems, providing users with a unified booking experience.
System APIs
System APIs allow different software systems to communicate and share data, like a CRM system with an email marketing platform. Their key role is to achieve interoperability between different applications, ensuring that data flows interrruptedly between systems.
Process APIs
Process APIs are aimed at streamlining and automating business processes by connecting various services. They normally allow for minimizing manual intervention by creating end-to-end automated workflows. The most widespread usage of process APIs is logistics, where a supply chain management system can integrate with inventory management and order processing for smooth production and end-to-end delivery.
Invest in your BPA today
Explore the possibilities of API integration for your business today. Consult with experts, assess your automation needs, and embark on a journey towards a more efficient and streamlined future. Don’t wait!
