Understanding APIs: What They Are and How They Work

 

Understanding APIs 101: What is an API?

 

An API, or Application Programming Interface, is a set of defined rules and protocols that allows different software applications to communicate with each other. It acts as an intermediary layer that processes data transfers between systems, enabling companies to open their application data and functionality to external third-party developers, business partners, and internal departments within their companies. 

Did I jargon you out, already? Let’s break that down the API basics a little more. 

 

Defined Rules & Protocols 

 

The API is like the telecommunication policy of your software communication. The rules and protocols define who can talk to whom, in which direction data can flow (in, out, or both), and when (in real-time when specific calls are made, etc.) And once these protocols are set, they are locked down. So, if I say that my finance system can pull data in but not send data out unless you’re a hacker, that’s how the data flows.

 

Communication Between Multiple Software Programs

 

An API is only required if multiple systems are talking to each other. It acts as the translator between the two systems, helping them to speak the same language. 

 

Open Application Data & Functionality

 

This is the cool part. Let’s say one of your systems is collecting information on your customers, but you’re using a different system to say, produce your product, or manage a claim. The API allows the data collected in one system to be sent to any system that needs that information. And especially when it comes to the customer experience, this is huge. 

Some of the other ways I like to describe them is as a Common Language, or the Master Key to the door that allows your internal organization to communicate with the outside world; for your legacy systems (past technologies), present stack (software implementations, integrations and data management systems), and whatever might be available in the future (new technologies, trends and business opportunities). You don’t want your business door to be locked against the new opportunities that are coming your way. Check out blog on How to Succeed in a Cookie-less World to expand on these opportunities. 

 

The Role of APIs in Everyday Activities

 

You might be surprised at how APIs make your everyday activities come to life. They are in play when using rideshare apps, sending mobile payments, or changing your thermostat temperature from your phone. 

Now, while you might be experiencing the benefits of an API as a user, you’re likely only going to interact with them directly if you’re a developer. And while we work in depth with our Developer Army over at Expresia to ensure our developers are well-versed in connecting the systems YOU need to be connected, let’s take a moment to explore the some benefits of using APIs in your system connectivity. 

 

The Business Benefits of Using APIs

 

APIs offer a multifaceted array of crucial benefits for modern businesses, contributing significantly to system connectivity and seamless data transfer. Through the seamless integration of diverse cloud-based services, APIs not only enhance operational efficiency but also facilitate real-time analytics, automate business processes, and foster cross-functional collaboration. Furthermore, APIs play a pivotal role in enhancing user experiences and contribute to disaster recovery and redundancy planning, ensuring businesses remain agile and resilient in the face of evolving challenges. In essence, APIs emerge as indispensable tools, providing businesses with the agility, efficiency, and connectivity needed to thrive in today's dynamic digital landscape. While the benefits are vast, let's delve into some of the most relevant advantages of incorporating APIs into your business strategy.

 

Improved Collaboration 

Zippia says the average employee uses 36 cloud-based services daily. With over 200 cloud services that fall under the category of collaboration (e.g.  Dropbox, Microsoft Teams, or Google Suite), it’s no surprise that employees use several of these services daily, many of which are disconnected. APIs enable integration between these types of systems, allowing data to flow seamlessly between them. Even if we’re not talking about automating workflows, having your data where you need it when you need it, can be a game-changer. 

 

Accelerated Innovation 

How quickly can decisions be made in an organization if all of the relevant data is being held in 
silos? This is a huge hindrance to innovation. APIs break down these silos, so more information can be seen by more people, creating more opportunities for innovation. Innovation happens when people - and systems - are talking to each other. 

 

Security and Privacy 

When it comes to both system security and user security, privacy is paramount for most organizations these days. Because API protocols keep the infrastructure of the requesting and responding services separate, each system maintains its privacy protocols. Plus, most API requests require authentication credentials, which adds a layer of security between the systems. And with all of the reported hacks these days, your customers will be glad that THEIR data is secured.

 

So, why might you want to know that your stack is API-compatible? 

 

Simply put, if innovation and security are part of your brand values, you really should have APIs managing your systems' communication.

Most systems nowadays will tell you if they are API-compatible when you’re exploring them. Or, an informed sales rep will be able to tell you. And if a system you’re exploring is NOT API enabled, and innovation and security are important to you, then it’s not the right solution, no matter how much selling someone wants to throw at you. 

Now, of course, just like anything else, not all APIs are created equal. If you’d like to dive into the details, check out our previous article Restful API vs. GraphQL.

 

The Future of Data Connectivity

We’re past the days of keeping our data safe by locking it in a black box. That just stops businesses from being able to execute the promises they want to make. There is an option to maintain security AND allow for the free flow of data that allows you to create experiences that match your brand. And if you’d like to explore that opportunity with an expert, reach out to the Expresia Team. So, as you embark on your journey, remember: Understanding APIs isn't just about technology; it's about unlocking the true potential of your business in the interconnected world of tomorrow.