APIs are at the core of the next digital transformation, and silently, away from the big headlines, they have already started to do so.
In previous articles we have mentioned the advantages of using APIs, and it is clear to us that betting on an API strategy can imply a significant leap in the generation of income for any company.
-This post will interest you: API strategy, how to create an API Marketplace-
Why an API business strategy
Let’s go over why an API business strategy can have such a significant impact:
- It allows you to broaden the market or create new lines of business
A good example is JP Morgan, which is currently promoting a line of business that is completely unrelated to traditional banking activities: the creation of a platform as a service that other companies can use to create applications and services using the content that they offer, which is accomplished via APIs.
- APIs themselves are a product that can be sold
Logically, the investment and efforts involved in creating APIs needs to lead to profits, which consist of the payment that third parties make for taking full advantage of their data. APIs therefore become a direct source of income!
- Fosters innovation and deep changes in organizations
An API business cannot be built out of complacency. Any technology-based business always implies a strong complacency, which forces organizations implementing an API strategy to remain open to innovation and perform internal structural changes that allow it to stay always at the forefront.
- It can be used as an entryway to recruit external talent
APIs are the bridge that allows companies from very different sectors to build strategic alliances, which implies the creation of joint workgroups. The incorporation of this external talent to a company implies enriching its working systems, whether as a result of the new knowledge that they provide, or because they join the company in time.
APIs: a revolution in the development of new business models
While many companies are already aware of the advantages that using APIs implies, in most cases, the API Business strategy implemented is far from taking full advantage of the potential that this new business model has to offer.
One could say that this might be a result of the market’s immaturity, which is only getting started.
A company that intends to be serious about implementing an API business needs to understand a myriad of aspects: from offering its customers an omnichannel experience, to modernizing the organization’s internal structures, migrating systems to the cloud or connecting with partner platforms.
-Multichannel vs. Omnichannel: what is the difference?-
A true challenge that, however, is unavoidable, since, as some experts say, it is not about doing it or not, but rather about doing it at the right time. Latecomers will find that they will have missed their chance.
Competition will be increasingly fierce, and the only way to differentiate oneself from rivals will be to offer new services and applications before the rest, and doing so while providing an impeccable user experience.
In practice, this translates into a significant organizational shift, where the IT and Marketing departments will no longer be able to act separately. They both will need to work jointly, and technology will have an importance that will be much greater than it is now.
Mostly, because it will be technology the one that sets goals, while the marketing departments will have to work with that condition.
Now that we are aware of the overall landscape in the horizon for any company willing to develop an API business strategy, it is time to move on to specifics. Here, it is important to study why a tool such as WSO2 API Manager, when applied to an API strategy, can provide value and be of use.
WSO2 API Manager: the most effective solution
In previous articles we have learned that API Management is the first step toward the development of an API strategy. Now we will discover a tool to accomplish that: WSO2 API Manager.
WSO2 API Manager is an Open Source solution that facilitates the management of APIs. This software allows you to:
- Design and build API prototypes
- Publish and manage the use of APIs
- Control accesses and strengthen security
- Manage a community of developers
- Create a place to store all available APIs
- Manage API traffic
- Supervise the use and performance of APIs through analytics
All in all, what it does is provide a main access point from which to manage, supervise and have a secure access to public web services.
WSO2 API Manager is a first-rate technological tool, evidenced by the fact that leading companies worldwide such as Motorola, Uber, Ebay or Cisco are using it.
If your company wishes to incorporate this technology and climb onto the unstoppable wave of digital transformation that APIs are bringing about, at Chakray we will be happy to answer any question you may have, as well as provide you with the best counseling.