What’s Driving Digital Disruption?
Digital is the new black. With businesses aggressively ramping up their strategy to meet the expectations of the digitally savvy customer, efforts to go ‘digital’ and drive growth through ‘digitization’ are gathering momentum like never before. From a more involved leadership to allocating big budgets toward their digital initiatives, businesses are going full throttle to meet their new age goals and evolving at a much faster rate than ever.
However, often, companies face several hurdles in this endeavor. According to a McKinsey report, embedding digital capabilities within an organization involves more than adding technology in a piecemeal fashion—it requires the company itself to become a digital engine. The speed of doing things is pivotal in ensuring a well-rounded digital transformation. CIOs must deliver digital capabilities quickly and repeatedly across multiple business units. And because a process can only move as fast as its slowest cog, the timely and successful deployment of digital initiatives is limited by the pace at which digital applications are produced and updated.
IT leaders face the challenge of delivering on the demands of digital business strategy despite legacy business applications. In fact, legacy apps are often required to work alongside less constrained, more innovative solutions and approaches. This need to collaborate between legacy and new age platforms to bring about a coherent business change is highly complex and can create a fragile infrastructure with increased security risks. This makes digital enablement not only expensive, but also time-consuming.
APIs to the Rescue
Application Programming Interfaces or APIs have surely and firmly entered into the business dynamics. As the name suggests, API is used to allow two (or more) digital assets to talk to each other. API platforms increase transaction efficiency, shorten development timelines, reduce costs, and simplify interfaces, and enterprise architecture. They enable process automation that can help save countless hours of manual effort and are considered to be, literally, the ‘building blocks of digital business’. Organizations are aggressively embracing an API-centric approach to grow their digital footprints.
Industry pundits agree that an accurately implemented API platform provides an attractive upside to IT and the organization. The API platform centralizes and overcomes multiple technical challenges that may otherwise appear each time new digital capabilities are added. Some of the key benefits of API include:
- Improved transaction efficiency and agility
- Streamlined project implementation and execution
- Simplified IT architecture with centralized control
- Improved RoI on IT budgets
- Improved revenues with faster time-to-market
- More responsive leadership
- Facilitates future modernization of back-end systems
- Maintains back-end systems control and governance
- Facilitates engagement with external developers
Interestingly, a recent industry report found that traditional software companies are not the only ones developing APIs. About 70% of financial organizations are also focused on API platforms. With banks and financial institutions centering more and more on providing innovative digital services to meet customer expectations, APIs are increasingly being incorporated into their digital framework. Industry leaders believe that 2016 may well be the year that sees open APIs get ingrained as a fundamental component of the financial and banking ecosystem.
Installing an API platform streamlines the data integration development process, simplifies interfaces, improves testing, and provides additional data for managing and monitoring application performance. To get detailed insights on how API can impact your digital strategy, download this whitepaper here.