What is API Integration?

API integration refers to the process of connecting two or more applications or systems by using APIs (Application Programming Interfaces) to exchange data and perform actions. APIs are sets of protocols and standards that allow different software applications to communicate with each other. Two or more systems that have APIs can interoperate in real-time using those APIs, which saves time, money, and is far more reliable in terms of information currency and data accuracy.

For example, let us say your company has a TMS (transportation management system) and my company has an ERP (enterprise resource planning) system, and these two systems need to exchange data. In the old days, we might have faxed or emailed this information or discussed it on the phone. With API integration, it happens digitally, without human interaction. API integration is what opens a channel that enables our companies to, quite literally, conduct business faster and more accurately.

Why is API Integration necessary?

API connectivity helps applications share data and communicate with each other without human interruption. You enable communication between two web tools or applications through their APIs. It allows organizations to automate systems, enhance the seamless sharing of data, and integrate current applications.

Enterprises cannot overlook the importance of API integration in the modern world. After the explosion of cloud-based products and apps, organizations must create a connected system where data is relayed automatically between various software tools. API integration makes that possible as it allows sharing process and enterprise data among applications in a given ecosystem. It unlocks a new level of flexibility of information and service delivery. It also makes the embedding of content from different sites and apps easy.

Examples of API integration

E-commerce sites are among the most significant users of API integrations. Web stores have order management systems that process shopping and shipping orders. But to process them, they need to access servers and databases which include customers, products, and inventory levels. There is an ongoing data interchange, which connects the online store to the shopping cart. Enterprises achieve this through API integration.

The payment gateway integration is another example. As a consumer, you don’t see the actual transaction when paying for a product online. But in the background, there is data transfer for verification of your credit card/debit card details. The payment gateway API is integrated into the web store and often hidden out of sight.

Conclusion

API integrations are the glues that hold together technological developments. There’s currently a booming market for API integrations and API integration tools. It’s safe to assume that we’ll be seeing these platforms continue to evolve soon to address even more elaborate Enterprise challenges.

If you would like to find out more about working with APIs at an enterprise level then contact ElmMac.