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API 101: Modern Technology for Creating Business Value a Guide to Building and Managing the Apis That Empower Today’S Organizations

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API 101: Modern Technology for Creating Business Value a Guide to Building and Managing the Apis That Empower Today’S Organizations API 101: Modern technology for creating business value A guide to building and managing the APIs that empower today’s organizations WHITE PAPER WHITE PAPER API 101: Modern technology for creating business value Contents The modern API: What it is and why you need it 3 The conduit of digital ecosystems 3 The seismic change in the API landscape 3 iPaaS: A better way to build APIs 4 Quick API primer 4 A superior alternative 5 The API Integration Maturity Curve 5 Modern API management: Where are you on the maturity curve? 6 User profiles and requirements 6 How to determine API and management requirements 7 Overview of API creation and management requirements 8 From here to modernity: A checklist for API longevity 9 The components of a modern, manageable architecture 9 Case Study | TBWA Worldwide 10 SnapLogic: A unified integration platform 10 2 WHITE PAPER API 101: Modern technology for creating business value The modern API: What it is Digital deposits in consumer mobile banking provide a perfect example of a digital ecosystem in action. No longer and why you need it do customers need to trek to a branch office to deposit Application programming interface, or API as it’s universally a paper check. They can now open the bank app, take a referred to, is a technology almost as old as software itself, picture of the front and back of the check, specify the designed to allow data to flow between different applications. amount and, somewhat magically, money is transferred Today, modern APIs enable much more than inter-application into the customer’s account within a day. Many backend data exchange; they are the foundation of new business systems must be integrated for online banking to occur; processes, the lifeblood of customer-centric innovation. APIs mobile deposit requires a highly integrated system speed new business processes into production, to quickly of applications, databases, transaction processes and exploit opportunities and drive revenues. services to interact together almost instantly. This white paper provides an actionable overview of best APIs are the conduit of digital ecosystems, allowing mobile practices for building and managing modern APIs, the deposit and myriad other seemingly “magical” processes technology engine that drives business growth and value to occur. Specifically, by facilitating communication within, creation, 21st-century style. and beyond, corporate boundaries APIs: y Enable business systems to connect to each other y Accelerate partner connectivity The conduit of digital ecosystems y Increase customer stickiness Increasingly, sophisticated new processes are created y Increase speed and agility between companies, not just within. Along with their y Improve business processes business partners, the most advanced organizations form a digital ecosystem, which Gartner defines as an The seismic change in the API landscape “interdependent group of actors (enterprises, people, Processes like mobile deposit were unimaginable even a things) sharing standardized digital platforms to decade ago; since then, the API landscape has changed achieve a mutually beneficial purpose.”1 As to what that significantly. The highly structured SOAP data exchange mutually beneficial purpose may be, Gartner notes, protocol of yesteryear has been largely supplanted by “Business ecosystems offer unprecedented access to the the built-for-the-web REST protocol, improving business capabilities, resources, and talent on a global scale that outcomes by allowing legacy applications to work more sets the stage for innovation.”2 effectively with newer technology. The complexity of SOAP slowed operations and innovation, a hindrance that has been largely reversed by REST. For example, basic online banking has been available for well more than a decade, yet robust, reliable web and mobile banking has been fully enabled only APIs are the conduit of digital ecosystems, within the past several years. allowing mobile deposit and myriad other seemingly “magical” processes to occur. 1 “Insights from the 2017 CIO Agenda Report: Seize the Digital Ecosystem Opportunity,” Gartner. gartner.com/imagesrv/cio/pdf/Gartner_CIO_Agenda_2017.pdf 2 Digital Business Ecosystems & The Platform Economy,” Gartner. gartner.com/technology/topics/business-ecosystems.jsp 3 WHITE PAPER API 101: Modern technology for creating business value Quick API primer APIs typically come in the form of REST, SOAP, and RPC with REST APIs being the most common web services API used today. REST SOAP RPC Representational State Simple Object Access Remote Procedure Call Transfer (REST) is a concept Protocol (SOAP) uses XML (RPC) is a inter process that allows for flexible to define API request and communication which allows patterns over any protocol, response structure. Still in calling a function in another through mostly HTTP/ use, but slowly falling out of process (local or remote). HTTPS. Most popular today. favor as it is relatively rigid. Likewise, over time, point-to-point integrations between iPaaS: A better way to build APIs two applications have been replaced by more complex integrations. Point-to-point integrations are fragile and Ad hoc, hand-built point-to-point integration has given prone to break, causing productivity and revenue losses. way to a strategic approach. Many organizations have They’re often quick-fix integrations intended to be embraced integration platform as a service (iPaaS) temporary but end up permanently in production. Over technology to assist in building their digital ecosystems. time they’ve been replaced by more sophisticated, complex An iPaaS is a cloud-based platform enabling the multipoint integrations that are sturdier and more reliable, deployment, management, and governance to connect yet require comprehensive management. software applications and services across different environments. An iPaaS should allow the user to create In response, API management platforms have proliferated, integration pipelines and convert the composite into an enabling widespread API adoption within digital ecosystems API, a process that is much faster than writing and testing and beyond. The resulting broad monetization of APIs has an API from scratch. yielded the API Economy, in which companies sell their APIs to other organizations on a subscription basis, utilizing iPaaS is most often used in large business-to-business value-based metering to determine fees. (B2B) environments – i.e., digital ecosystems – that need to integrate on-premises applications and data with cloud Read on to learn more about best practices applications and data. As a cloud-based platform, iPaaS for building and managing modern APIs. scales to meet the increased data volume from multiple environments. Because legacy production environments are almost always involved, an iPaaS should support real- time integration with the goal of minimum disruption. 4 WHITE PAPER API 101: Modern technology for creating business value Gartner estimates that enterprise iPaaS efficiencies and business outcomes superior to two crossed the $1 billion threshold in 2017. It traditional alternatives: reached more than $1,075 million in 2017 y Hand-built APIs create very high downstream and grew 72 percent year over year in maintenance overhead, requiring programming terms of providers’ subscription revenue resources to address any change in the surrounding when compared with 2016.3 computing environment that may affect the API. They are also vulnerable because professionals familiar with the particular APIs may not always be available. For these reasons, hand-built APIs frequently break, A superior alternative jeopardizing the flow of business and revenues. When considering their iPaaS options, buyers should y APIs provided with an application incorporate be aware of the difference between legacy and modern integration expertise limited to that application’s integration solutions. Legacy iPaaS providers are older, development team. They are inefficient because each existing integration companies that have modified their application has its own API; collectively, they present tools to work with cloud services. Modern iPaaS solutions a high learning curve for professionals wanting to are born in, and architected for, the cloud. work with multiple APIs. Lastly, while application APIs Because they are optimized for the cloud environments may function adequately, they do not incorporate the that enable today’s ecosystem-driven digital bilateral high performance and reliability required to transformation, iPaaS solutions offer operational keep enterprises running at peak efficiency. The API Integration Maturity Curve Data Digital ecosystem monetization enablement Enterprise-wide digital transformation Cross-LOB consumption Full-Lifecycle API Management Individual use case API Management API Creation Figure 1: The API Integration Maturity Curve comprises three phases: building APIs, managing them, and full-lifecycle API management. 3 Gartner report Market Share Analysis: Integration Platform as a Service, Worldwide, 2017 - Published 7 August 2018 - ID G00366592. gartner.com/doc/3885665/market- share-analysis-integration-platform 5 WHITE PAPER API 101: Modern technology for creating business value Modern API management: Where y API management through the iPaaS platform’s facilities. These include API gateways, proxies, are you on the maturity curve? developer portals, and analytics to distribute securely, As modern APIs proliferate across enterprises and digital market, and monitor API consumption/monetization.
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