MARKET VIEWPOINT

Accelerate Digital Transformation with API‑driven Strategies

Jun 23, 2021

The changing market conditions have accelerated the speed and scale of digital transformation. In 2020, 75% of organisations continued their digital transformation investments and 65% of those are completely evolving their strategies to become digital-first companies. i It is almost without exception that businesses across sectors have shifted to app-based services to engage and connect with customers, with seamless communications and interactions powered by Application Programming Interface (API). The retail, travel and technology industries accounted for the largest API traffic share, while healthcare and financial services posted the most significant year-over-year increases. As organisations integrate digital assets in different systems to improve efficiency and digital experiences, API traffic will continue to grow at an explosive pace.

Fuelling Business Innovation and Growth

APIs underpin digital transformation by creating agile and swift development of new applications. Capitalising on valuable data and functionality, APIs enable seamless integration of disparate systems, making it interoperable, while successfully creating a variety of use cases that power digital ecosystems. Unlocking new services and enabling automated processes, 61% of developers leveraged more APIs to build applications rapidly to serve increasingly-connected customers. ii Moreover, API-powered systems make data and functionalities reusable, enabling enterprises to become more capable of adapting to rapid shifts in customer demand and cross-sectoral opportunities.

Delivering Better Digital Experiences

With app-based services shifting from convenience to necessity, organisations are expanding digital capabilities to address customer needs. They have become more willing to explore different types of digital touchpoints and expect frictionless fluidity across digital transactions. This connected interaction – from making a purchase using a retail platform, to managing their finances without jumping over to a different banking app, or placing an order on a restaurant’s app to having an in-app access to delivery services – are made possible with the application of APIs.

Creating Business Value and Agility

APIs represent more than just a power line for sharing data. They provide organisations with critical connections to functionalities that make businesses more flexible and infinitely scalable. API development generates new revenue streams with monetisation of valuable data, innovative solutions and services. Moreover, APIs empower organisations to focus on maximising its strengths, while collaborating with partners for complementary services to fill market gaps.

Mapping an API-First Strategy towards Digital Transformation

While a number of API winning strategies are revealed, the real digital transformation happens in growing and maintaining an API ecosystem, driven by a robust platform with centralised control and appropriate levels of security. As the backbone of digital business ecosystems, APIs grant the access to the most valuable assets. Partnering with a leading IT service provider can help implement optimal, secure and scalable solutions, realising the benefits of API-led digital transformation.