API Integration Is “Critical” for Platform Providers
April 15, 2019
API integration is increasingly an important element of digital business strategy, fueling customer loyalty, partner ecosystems and new revenue opportunities.
The third annual “State of API Integration” report contains insights and predictions from API industry experts, as well as more than 350 API enthusiasts from 27 distinct industries.
Key findings include:
60% said API integration will have significant impact on customer upgrades or renewals.
62% said they are becoming more of a platform provider to integrate with partners, maintain stickiness with customers, and/or find new revenue opportunities.
Nearly 55% are using APIs to build B2B products, 36% for mobile products, 29% for B2C/consumer products, 26% for employee productivity, and 22% for IoT applications.
CRM is the #1 category of integrations needed (24%), followed by finance (16%), ERP (15%), database (12%), communications (10%) and human capital (6%).
Key business process use cases include “lead to customer” (45%), “customer to cash” (23%), “lead to loyalty” (20%), “quote to cash” (8%) and “hire to retire” (4%).
56% charge for API access or integration services, up significantly from 44% in 2018.
Development teams take 41 days on average to build a net new API integration with advanced capabilities. Respondents plan to build 18 integrations on average in 2019, up from 11.5 in 2018.
“The API economy is (finally) ready. We now
have the practice, the tools, the business
models. We know that it works and will
scale. But how far? This is the challenge of
API integration,” said Mehdi Medjaoui,
founder of APIdays and a contributor to the
report. “APIs have the potential to bring
the world closer together if we can find the
right blend of technical skills, business
savvy, and human ethics to build them and
integrate them. The real potential of APIs
is not to replace a software, but to
represent the business of a company.”