6 business benefits of API integration (with examples) (2024)

Organizations need their applications and databases to communicate effectively with one another in order to keep data in sync and power end-to-end automations.

While there are a few integration methods to choose from, connecting systems via their application programming interfaces (APIs) is often the best choice.

We’ll explain why API integration can be an invaluable part of your digital transformation efforts by highlighting some of the top benefits it provides. But to start, let’s align on the definitions of an API and API integration.

What is an API?

An API is either an endpoint or a collection of endpoints that an application provides. A client application can access one of these endpoints by making an API call to the application’s server; if successful, the client application receives the requested data or functionality in near real-time.

6 business benefits of API integration (with examples) (1)

What is API integration?

It’s either a 3rd-party or in-house solution that allows your organization to connect applications and databases via their APIs.

Related: How API integrations work (7 examples)

Benefits of API integration

API integrations allow you to transform your processes, remove data silos, avoid mundane, repetitive tasks, improve the customer experience, keep employees engaged, and more.

Let’s take a closer look at its benefits.

Offers high performance

API integrations perform well in a number of ways.

For starters, data can move from app to app in a matter of milliseconds, enabling your employees and partners to access the data they need, as soon as they need it. Moreover, they’re resilient, as making changes to your applications’ UIs won’t affect your API integrations. And finally, they can be easy to set up and manage with a 3rd-party’s application connectors. For instance, the 3rd-party’s connectors can account for any changes to APIs over time without disrupting the integrations they’re used in.

Related: 5 tips for building API integrations

Enables innovative automations

API integrations can enable a variety of end-to-end automations.

For example, using API integration, you can connect your ITSM tool (e.g. ServiceNow) with a storage solution (e.g. Amazon S3), a machine learning platform (e.g. Amazon SageMaker), and a business communications platform (e.g. Slack).

Once connected, you can implement the following intelligent automation:

6 business benefits of API integration (with examples) (2)

ServiceNow sends each ticket to Amazon S3, where AWS SageMaker uses a ML model to classify it. Once classified, the ticket gets assigned to the appropriate helpdesk. The employees associated with that helpdesk also receive a Slack notification on the ticket—allowing them to become aware of the issue quickly and work on resolving it as soon as possible.

Fosters greater employee productivity

In the absence of integration, each of your employees likely move between more than a thousand applications on a given day; according to a study by the Harvard Business Review, this leads employees to waste nearly 4 hours each week.

Fortunately, API integrations can help by providing employees the data they need within the applications they regularly use. For example, someone in finance doesn’t need to log into your CRM to look up the sales rep for a given deal, as that field can be synced to your ERP system.

Related: The top benefits of API integration platforms

Reduces human errors

Forcing employees to copy and paste data between applications can lead to all kinds of issues, from inputting the wrong information to adding it to the wrong place. And while not every human error has significant repercussions, many do. For instance, someone in finance can accidentally input the wrong amount on a client invoice—leading to a bad customer experience.

API integrations can help employees avoid the error-prone task of copying and pasting data, which enables them to minimize downstream errors.

Improves the employer’s reputation

Allowing employees to avoid tedious, time-consuming tasks around searching for information and copying and pasting data across applications doesn’t just benefit employee productivity and data integrity—it also helps you become a more attractive employer.

Case in point: when Gallup surveyed thousands of professionals to better understand their criteria when evaluating open positions, they found that most professionals want to work in a role where they can spend more time on the projects they’re best suited to perform. In addition, the majority of professionals want a healthy work-life balance.

Related: The benefits of REST API integration

Enhances the customer experience

API integrations can directly benefit customers. For example, if you apply the ticket-classification automation outlined earlier to customer issues, your support team can resolve issues sooner. Moreover, API integrations can benefit clients indirectly; if your integrations lead to happier employees, they’ll likely behave in ways that improve customer satisfaction.

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Ready to integrate your applications?

Workato, the leader in enterprise automation, offers a low-code/no-code UX, enterprise-grade governance and security controls, and more than a thousand pre-built API connectors to help your teams integrate and automate at scale, safely.

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6 business benefits of API integration (with examples) (2024)

FAQs

6 business benefits of API integration (with examples)? ›

For this API integration example, your company provides a SaaS product for monitoring building security. Among other things, your app regularly records temperature and humidity levels from sensors installed at critical points in each of your customers' buildings.

What is API integration examples? ›

For this API integration example, your company provides a SaaS product for monitoring building security. Among other things, your app regularly records temperature and humidity levels from sensors installed at critical points in each of your customers' buildings.

What are the benefits of web APIs to a business? ›

APIs facilitate communication and data sharing between different software and online services. This allows a company's tools and systems to work cohesively, creating an integrated ecosystem that benefits both internal operations and the customer experience.

What are two benefits of using APIs and integrations? ›

Some of the benefits of using API are:
  • Ease of integration. An API is a component that allows different platforms, applications and systems to connect and share information with each other and carry out diverse types of tasks. ...
  • Better integration. ...
  • Automating tasks. ...
  • Improved services.

What is the importance of APIs in business? ›

What can an API do? APIs allow for a greater connection between your business and the outside world, allowing you to integrate with other companies or third-party software so that they can communicate with each other. You can use APIs in various ways to develop effective business intelligence.

What is API and examples? ›

What does API stand for? API stands for Application Programming Interface. In the context of APIs, the word Application refers to any software with a distinct function. Interface can be thought of as a contract of service between two applications.

What are the most common types of API integrations? ›

Here are a few of the most common types of API integrations:
  • REST - REST or Representational State Transfer is a software architectural style and is used in web services development. ...
  • SOAP - SOAP stands for Simple Object Access Protocol and is a protocol defined by a standard, whereas REST is an architectural style.

What is API and its benefits? ›

An API or Application Programming Interface is a set of functions and procedures that allow systems to integrate, so its functionalities can be reused by other apps or programs. An API serves to exchange data between different types of software and so automate procedures and develop new features.

What are the business benefits of API gateway? ›

The API Gateway provides a single entry point for all API requests, making it easier to manage, monitor, and maintain APIs across multiple backend services. This simplifies the development and deployment process and reduces the complexity of the overall system.

What are the 4 main benefits of using REST APIs? ›

What are the benefits of RESTful APIs?
  • Scalability. Systems that implement REST APIs can scale efficiently because REST optimizes client-server interactions. ...
  • Flexibility. RESTful web services support total client-server separation. ...
  • Independence. REST APIs are independent of the technology used.

What are the benefits of API connect? ›

IBM API Connect allows developers to create, run, manage, and secure APIs in IBM Cloud. It emphasizes strong security standards and is part of IBM Cloud Pak for Integration based on Red Hat OpenShift.

When to use API integration? ›

API integration resolves these implementation differences in a programmatic way so that data can flow freely between APIs—without human intervention. Improved operational efficiency: API integration is often used to automate time-consuming tasks and streamline business-critical workflows.

How does API affect business? ›

APIs enable businesses to scale rapidly. APIs connect data and services, improving the customer experience. Digital service-based companies can tap into new revenue streams with data gained through APIs.

What value can APIs bring to a business in terms of new opportunities? ›

APIs empower developers to create innovative solutions and design services by leveraging the functionalities and data offered by other third-party platforms. By exposing specific functionalities through APIs, businesses open up opportunities for developers to build upon their services and explore new use cases.

What happens when an API is used to advance a business? ›

Integrating APIs allows you to leverage the capabilities of other software systems, access valuable data, and extend functionalities, resulting in improved efficiency, enhanced user experiences, and the ability to create innovative solutions faster and more cost-effectively.

What is the difference between API and API integration? ›

APIs act as a translator and bridge communication barriers allowing applications to communicate in a seamless way. API integration is a process of integrating the use of such APIs within the application such that different applications can exchange data.

What is API integration strategy? ›

What is an API integration strategy? It's an ever-changing, documented plan that lays out how a company should build and maintain their API integrations. This includes the goals from the integrations, the individuals who should participate in specific projects, the tool(s) that are used, and more.

What is API integration in healthcare? ›

Using APIs as part of electronic health records systems, or EHRs, can make it easier for patients to get and share important health information. APIs can also help health care providers share patient information with other providers securely and efficiently.

Why is API integration done? ›

API integration software allows users to create custom software instead of pre-written APIs. Custom API integration allows businesses to grow and improves efficiency and flexibility, allowing you to get more work done on your project.

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