[[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article","articleBody":"You\u2019ve likely heard of the API Economy \u2013 it\u2019s a concept which has grown in recent years to become a vital part of the technology landscape. But what exactly does the term mean, and what impact could it have for your business?\nThe API Economy defined\nLet\u2019s start with some basic definitions:\nThe API Economy is the sharing, access, and integration of core app competencies with business systems and processes.\nAn API, or Application Programming Interface, is a bundle of code that essentially acts as a bridge between digital services, allowing one app to access information or capabilities from another.\nIoT, smartphones, and wearables have created an instant-update lifestyle that we\u2019ve come to expect. They\u2019ve also spurred the creation of endless apps and services to meet the needs of today\u2019s always-on consumers. It\u2019s the underlying seamlessness of APIs that pulls everything together behind the scenes.\n \nIoT adoption in consumer products: The intelligent sensor grid for digital commerce\n   The consumer products industry may be the greatest beneficiary of IoT. No other sector faces more pressures from more directions with more frequency.  \nIt\u2019s big business: Benefits of the API Economy\nWe\u2019re seeing more and more intelligent enterprises opening up their services and data to others. This gives them the chance to monetize a capability and resource directly, by isolating a small part of their overall offering and exposing it to the world as an API.\nAs a result, app developers are increasingly creating new digital products by combining these standardized building blocks in a unique way.\nA taxi booking app, for example, might combine a mapping API, communication API, and billing API, each from different providers, with their own UX layered on top.\nThis makes it easy to launch new services without having to build everything from scratch \u2013 and the result is that successful projects can be built using APIs from emerging providers and established communications-as-a-service (CPaaS) platforms.\n \nCX benefits of microservices: Scaleable, inexpensive, rapid response\n   The benefits of microservices for improving customer experience are immense, allowing companies to tune services for the best results.  \nIt\u2019s not all roses: Challenges of the API Economy\nThe API Economy is quick, convenient, and levels the playing field for everyone from the smallest developers to the largest companies to add API-driven engagement capabilities to apps. However, because there\u2019s often no direct contact between the API provider and the developer who utilizes it, it can be hard to know which API is right for your needs \u2013 and to ensure you\u2019re implementing it correctly and to its full potential.\nGet it wrong, and you risk undoing all of those benefits and putting your app deployment in peril.\nFor example, say a project starts out focused on the US, and developers select a communications API that suits their needs for that region. However, as the business expands, the API may not enable the scalability or interconnectivity needed for a global enterprise. At this point, it likely becomes a \u2018rip up and replace\u2019 scenario, which is always harder and costs more in time and money than implementing the right API from the start.\nAs the API Economy continues to mature, more companies will realize that APIs can help them successfully launch new services and transform their business, relationships, and experiences.\nLeaders need to understand their value and how selecting a trusted CPaaS provider can deliver these key building blocks and measurable results.\nDeliver the best experiences \ud83d\ude0e Increase customer loyalty\ud83d\udc95 Boost the bottom line\ud83d\udcb0 Start HERE\nMichael Smith is the co-author of this post.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2019\/07\/Uffe-Jes-Hansen-150x150.jpg"},"name":"Uffe Jes Hansen","sameAs":"https:\/\/www.linkedin.com\/in\/uffejeshansen\/","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/uffe-jes-hansen\/"},"dateModified":"2021-12-03T03:21:14+00:00","datePublished":"2019-07-23T12:00:00+00:00","description":"The sharing, access, and integration of core app competencies with business systems and processes is what we call the API Economy.","headline":"What is the API Economy: Definition, benefits, and why it matters","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2019\/07\/thumbnail-74e43176f87276cee45a2261f4504f7f-1200x630.jpeg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/","name":"What is the API Economy: Definition, benefits, and why it matters","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and 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B2B.","@id":"https:\/\/www.the-future-of-commerce.com\/"},{"@type":["Article"],"@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article","@context":{"@vocab":"http:\/\/schema.org\/","kg":"http:\/\/g.co\/kg"},"url":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/","publisher":[{"@id":"https:\/\/www.the-future-of-commerce.com\/"}],"author":[{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_author_Person","image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_author_Person_image_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2019\/07\/Uffe-Jes-Hansen-150x150.jpg"}],"sameAs":"https:\/\/www.linkedin.com\/in\/uffejeshansen\/","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/uffe-jes-hansen\/","name":"https:\/\/www.the-future-of-commerce.com\/contributor\/uffe-jes-hansen\/"}],"subjectOf":[{"@type":"FAQPage","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_subjectOf_FAQPage","mainEntity":[{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity0","name":"The API Economy defined","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity0_acceptedAnswer_Answer","text":"Let\u2019s start with some basic definitions:An API, or Application Programming Interface, is a bundle of code that essentially acts as a bridge between digital services, allowing one app to access information or capabilities from another.IoT, smartphones, and wearables have created an instant-update lifestyle that we\u2019ve come to expect. They\u2019ve also spurred the creation of endless apps and services to meet the needs of today\u2019s always-on consumers. It\u2019s the underlying seamlessness of APIs that pulls everything together behind the scenes."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity1","name":"It\u2019s big business: Benefits of the API Economy","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity1_acceptedAnswer_Answer","text":"We\u2019re seeing more and more intelligent enterprises opening up their services and data to others. This gives them the chance to monetize a capability and resource directly, by isolating a small part of their overall offering and exposing it to the world as an API.As a result, <a href=\"https:\/\/www.the-future-of-commerce.com\/2018\/04\/18\/gig-economy-will-disrupt-next-gen-app-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">app developers are increasingly creating<\/a> new digital products by combining these standardized building blocks in a unique way.This makes it easy to launch new services without having to build everything from scratch \u2013 and the result is that successful projects can be built using APIs from emerging providers and established communications-as-a-service (CPaaS) platforms."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity2","name":"It\u2019s not all roses: Challenges of the API Economy","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#subjectOf_FAQPage_mainEntity2_acceptedAnswer_Answer","text":"The API Economy is quick, convenient, and levels the playing field for everyone from the smallest developers to the largest companies to add API-driven engagement capabilities to apps. However, because there\u2019s often no direct contact between the API provider and the developer who utilizes it, it can be hard to know which API is right for your needs \u2013 and to ensure you\u2019re implementing it correctly and to its full potential.Get it wrong, and you risk undoing all of those benefits and putting your app deployment in peril.For example, say a project starts out focused on the US, and developers select a communications API that suits their needs for that region. However, as the business expands, the API may not enable the scalability or interconnectivity needed for a global enterprise. At this point, it likely becomes a \u2018rip up and replace\u2019 scenario, which is always harder and costs more in time and money than implementing the right API from the start.As the API Economy continues to mature, more companies will realize that APIs can help them successfully launch new services and transform their business, relationships, and experiences.Leaders need to understand their value and how selecting <a href=\"https:\/\/www.the-future-of-commerce.com\/2019\/08\/26\/cpaas-communications-platform-as-a-service\/\">a trusted CPaaS provider<\/a> can deliver these key building blocks and measurable results.<em><a href=\"https:\/\/www.the-future-of-commerce.com\/contributor\/michael-smith\/\" target=\"_blank\" rel=\"noopener noreferrer\">Michael Smith<\/a> is the co-author of this post.<\/em>"}]}]}],"image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#Article_image_ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2019\/07\/thumbnail-74e43176f87276cee45a2261f4504f7f-1200x630.jpeg","width":"1200","height":"630"}],"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/","articleBody":"\n        You\u2019ve likely heard of the API Economy \u2013 it\u2019s a concept which has grown in recent years to become a vital part of the technology landscape. But what exactly does the term mean, and what impact could it have for your business?\nThe API Economy defined\nLet\u2019s start with some basic definitions:\nThe API Economy is the sharing, access, and integration of core app competencies with business systems and processes.\nAn API, or Application Programming Interface, is a bundle of code that essentially acts as a bridge between digital services, allowing one app to access information or capabilities from another.\nIoT, smartphones, and wearables have created an instant-update lifestyle that we\u2019ve come to expect. They\u2019ve also spurred the creation of endless apps and services to meet the needs of today\u2019s always-on consumers. It\u2019s the underlying seamlessness of APIs that pulls everything together behind the scenes.\n\n  \n    IoT adoption in consumer products: The intelligent sensor grid for digital commerce\n    \n      \n      The consumer products industry may be the greatest beneficiary of IoT. No other sector faces more pressures from more directions with more frequency.\n    \n  \n\nIt\u2019s big business: Benefits of the API Economy\nWe\u2019re seeing more and more intelligent enterprises opening up their services and data to others. This gives them the chance to monetize a capability and resource directly, by isolating a small part of their overall offering and exposing it to the world as an API.\nAs a result, app developers are increasingly creating new digital products by combining these standardized building blocks in a unique way.\nA taxi booking app, for example, might combine a mapping API, communication API, and billing API, each from different providers, with their own UX layered on top.\nThis makes it easy to launch new services without having to build everything from scratch \u2013 and the result is that successful projects can be built using APIs from emerging providers and established communications-as-a-service (CPaaS) platforms.\n\n  \n    CX benefits of microservices: Scaleable, inexpensive, rapid response\n    \n      \n      The benefits of microservices for improving customer experience are immense, allowing companies to tune services for the best results.\n    \n  \n\nIt\u2019s not all roses: Challenges of the API Economy\nThe API Economy is quick, convenient, and levels the playing field for everyone from the smallest developers to the largest companies to add API-driven engagement capabilities to apps. However, because there\u2019s often no direct contact between the API provider and the developer who utilizes it, it can be hard to know which API is right for your needs \u2013 and to ensure you\u2019re implementing it correctly and to its full potential.\nGet it wrong, and you risk undoing all of those benefits and putting your app deployment in peril.\nFor example, say a project starts out focused on the US, and developers select a communications API that suits their needs for that region. However, as the business expands, the API may not enable the scalability or interconnectivity needed for a global enterprise. At this point, it likely becomes a \u2018rip up and replace\u2019 scenario, which is always harder and costs more in time and money than implementing the right API from the start.\nAs the API Economy continues to mature, more companies will realize that APIs can help them successfully launch new services and transform their business, relationships, and experiences.\nLeaders need to understand their value and how selecting a trusted CPaaS provider can deliver these key building blocks and measurable results.\n  Modern CRM, meet revenue:\n\u2013 Seize opportunity\n\u2013 Engage quickly\n\u2013 Scale anywhere\n\u2013 Boost your bottom line\nStart HERE\n\n\nMichael Smith is the co-author of this post.\n\n\n\t\n      ","name":"What is the API Economy: Definition, benefits, and why it matters","dateModified":"2021-12-03T03:21:14+00:00","datePublished":"2019-07-23T12:00:00+00:00","headline":"What is the API Economy: Definition, benefits, and why it matters","description":"The sharing, access, and integration of core app competencies with business systems and processes is what we call the API Economy."}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2019","item":"https:\/\/www.the-future-of-commerce.com\/2019\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2019\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"23","item":"https:\/\/www.the-future-of-commerce.com\/2019\/\/07\/\/23\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"What is the API Economy: Definition, benefits, and why it matters","item":"https:\/\/www.the-future-of-commerce.com\/2019\/07\/23\/the-api-economy\/#breadcrumbitem"}]}]