APIs Today: An Essential Tool

Application Programming Interfaces, commonly known as APIs, have become essential for exchanging information in businesses, both internally across departments and externally when they expose their data and services. However, many companies view APIs merely as a technical deployment, which makes them just another cost item in budget lines. This limited perspective can be overturned by adopting an effective API management strategy, thus transforming APIs into a source of value.

The API Economy: Numbers and Opportunities

When used correctly, APIs represent the most secure and efficient method to expose company data and services while maintaining complete control over the process. The growing interest in APIs shown by companies has led to the impressive forecast published in this research: the economic impact of APIs will reach $14.2 billion by 2027. This figure excludes the value of API monetization, which is set to double from $3.97 billion to $8.56 billion. Clearly, generating value is possible when the right strategy is in place.

Strategies to Create Value with APIs

There are two main approaches to create value through APIs:

1. API Monetization

2. Resource Optimization

Based on our experience, the second approach is more common, even if it is not necessarily linked directly to API exposure: not all companies that optimize resources publicly expose their APIs, while those that monetize them also benefit from optimization.

Optimization: A Journey towards Value

For an effective journey towards transforming APIs into full “digital products,” we suggest a structured plan in three steps:

1. Solution Foundation: Establish processes, rules, and decision-makers for API project management and identify the ideal solution.

2. Adoption Strategy: Manage API-based functionalities as a coordinated effort across all company teams. A common language and shared control procedures are essential to leverage the API portfolio.

3. Monitor and Control: Manage the company’s API assets to maximize value through process optimization and the completion of functionalities.

This strategy is not just about technical procedures: at ApiShare, we recognize the collaboration between technology and governance, integrating both technical solutions and governance aspects, including defining goals and onboarding partners.

Monetization: Beyond Direct Sales

API monetization is not limited to the direct sale of API-based services, a business practice that few companies in Italy adopt. There are also indirect forms of monetization, such as exposing data to business partners, which improves the efficiency and timeliness of information and creates competitive advantages. For instance, in highly competitive sectors, having efficient APIs means potentially outperforming competitors who are slower in communication.

ApiShare: Your Partner in Creating Value

By adopting the right API management strategy, APIs can be turned from a mere cost into a source of value. However, to do this, it is essential to design an API Journey: a path towards adoption or consolidation that considers both business needs and technological advancement. For this reason, ApiShare has developed a comprehensive strategy that, in addition to paying attention to each phase, places special emphasis on balancing technology and people, which is crucial for innovating in a fair and sustainable way.