API
As we mentioned at the start, it is an API (Application Programming Interface) that enables two independent systems to communicate. In short, an API is a programming interface that is used to share data between two different applications.
How does this work in practice?
An API gives another system access to your system. In general, three things are involved:
- Access to retrieve data from your system so that this data can be fed into other processes (think back to some of the CRM examples above)
- Access to change or create data
- Access to start defined processes, e.g. reverse an invoice based on information from another system
Some points to consider in connection with APIs
- These days if you have to choose a new application, it is pretty much a “must” for the application to have a sound and well-documented API. Check whether the solution already has integrations with other useful tools, particularly as regards the rest of your digital infrastructure!
- The fact that there is an API is not the same as there being an integration with your system. The more unique the system, the greater the chance that the actual integration has to be developed separately. Remember that this means spending money!
- A lot of businesses have an API, but it is only accessible internally, and it has to be adapted for each customer. This is not good enough, and is often a sign that there are additional costs lurking at the other end
- If you end up paying for an integration, remember that you also have to pay to maintain it. If one of the applications is updated, as often happens, the integration also has to be updated. This is a good argument for choosing systems where the integration already exists. Plan and think long term!
- Measure investment in integration against the actual commercial value it creates. For an online store, for example, payment, order flow and accounts have to work. Other integrations are great to have, but are not considered business-critical
- If you have a lot of heavy business logic, start the dialogue on integrations early to avoid surprises
- Set requirements for suppliers. They have to be able to give a clear and comprehensible answer when asked about the scope for integrating with their systems. The best ones have well-documented APIs that are open and accessible online, with good explanations as to how others can automatically communicate with their applications. See link: https://mailchimp.com/developer/