Technology is witnessing a paradigm shift in the way it is distributing data. Once it was chest beating gesture to claim our concreteness on data, but now it is all about making it open. The expansive potential of the business is directly proportional to the degree of exposure it offers with its software interfaces. That is the nature of an API. When data is open to larger set of app developers, the possibility of it scaling new heights is obviously high. Economy, which runs parallel to the technological innovation is not barred from it. The arrival of API in nearly every business process will usher the new era of economy i.e API based economy.

Why API is Relevant?

Since mobile, cloud and social computing have emerged rapidly and necessity to place an agile software environment at the core of organizations has surfaced, APIs have emerged as a substantial requisite for it. They will push the external innovation to happen through third-party developers and offer buoyant yet effective application integration.

What inherent changes API will Bring?

Since last decade, APIs were in moderate usage. But this era which is widely been viewed as API 2.0 is expecting the radical changes compared to the advancements it has brought till now. The influence it is showcasing it deep and far-reaching than in past:

Organizations are tending towards having their internal processes automated. It eliminates human uncertainties and heads towards achieving optimized business goals. The information exchange that were slower and always in need for rapid update, are happening on a real-time basis. A phenomenal increase in the data bulk is offering wide range of interpreting options thereby giving room to draw qualitative conclusions backed with generous quantitative insights. This has made business decisions to be made more effective than in past. Status quo is getting almost nullified by egalitarian access to real time data.

How the Economy will see a Paradigm shift?

When organizational processes are getting modified and business goals get approachable, it offers a fully new cascade of enterprise structures.

The restructuring of the business processes backed by automation will increase the agility and bring down the maintenance costs.

Innovation potential thus has avalanched will create new channels for customer interaction and build win-win partnerships. This will provide an unprecedented impetus to generate revenue through new service contracts.

APIs will increase the visibility of data and reduce the complexities otherwise would have happened. This makes both internal and external processes to be streamlined, automated and error-free.

User interfaces needs to be frequently changed across the organization. Hence APIs offer means to stabilize the core transaction service to comparatively robust platform enabling rapid integration at the edge.

The influence which API based economy is projecting to loom will extend its reach towards prominent sectors like Banking(FinTech), Fashion, Real Estate, Mobile Development, Events(Real-time data analysis), Healthcare and Hospitality. Every sector chooses its own style of adapting to API thereby ushering in API base economy.