Written by Nicholas Price – Aircall
It’s not always clear how software programs work behind the scenes. However, many of the applications you use daily rely on open API technology to connect software systems more efficiently. Why? Open APIs simplify the process of integrating multiple software programs, often in real time, and support broader digital transformation that helps businesses unlock new revenue streams. An open API enables developers to set up seamless integration across various platforms, making it easier for businesses to share data between applications. This fosters agility in software systems, even those with legacy components, ensuring they remain relevant in today’s fast-paced API economy.
By adopting open APIs, companies can build stronger integrations that let them incorporate numerous features without writing large amounts of proprietary code. This reduces costs by increasing efficiency, especially when connecting programming interfaces from different vendors. Additionally, open APIs can form part of a broader API strategy, giving businesses a clear direction on managing data exchange, strengthening customer satisfaction and improving operational performance across all applications.
The software industry is highly competitive, and open APIs can increase a company’s competitiveness by enabling robust integration platforms that support data sharing in real time. You don’t need to be a developer to understand the basics of what an open API is, how it fits into larger integration initiatives and how it can deliver significant benefits. As with any technology, there are security considerations, but understanding best practices can help you stay protected. Familiarity with the mechanics, as well as API documentation and integration tools, will help ensure the success of your open API approach.
What Is an Open API?
What exactly is an open API? Let’s break down the term.
API stands for application programming interface. It’s a crucial technology for software developers looking to build robust integrations. Sometimes called a public API, it is often confused with open-source technology; however, open-source technology and open APIs are different in important ways. The interface component of an API is a system that allows two or more software programs to interact and understand each other without communication problems. Think of it as an intermediary that helps one software program share data with another.
How is an open API different from a restricted API? A closed API can only be used by the developer or the company that created it. An open API, on the other hand, is accessible to any developer without major barriers. Developers can access an open API freely via the Internet, greatly simplifying integration efforts. The value of open APIs lies in universal access to software programs and data, which is especially important for businesses that want to integrate multiple software applications. Developers can use open APIs to access specific features of a software program that would otherwise require writing large amounts of new code.
By following open API specification standards and adopting language-agnostic approaches, businesses can accelerate their digital transformation. They can connect software systems on different platforms, integrate RESTful APIs and establish a foundation for real-time data exchange. This not only brings the benefits of API integration but also enables more cost-effective strategies for expanding into new markets, such as financial services.
How Do Open APIs Work?
To better understand how open APIs work in practice, let’s look at how a sales call center might use an open API to deliver a better customer experience.
Sales call centers streamline the sales process and shorten the sales cycle to close deals faster and generate greater revenue streams. Open APIs enable software systems to communicate, making integration simpler and reducing the need for complicated coding. Here’s an example of how an open API creates efficiency in a sales call center workflow:
API Sales Workflow
A call center agent or marketer uses automation to send an ad to a large number of prospects within the CRM to gauge their interest in a product.
Customers reply with their interest.
The CRM automatically creates a ticket and logs each prospect’s response.
Sales agents receive a digital alert when a client is interested.
The agent clicks on the customer name in the CRM system and pulls up the account.
Open API technology allows the agent to also access a cloud-based phone system without leaving the CRM, illustrating the value of an API integration platform.
Using a headset, the sales agent uses the click-to-dial or power dialing feature within the phone system to automatically dial the prospect or customer.
If the prospect isn’t interested right away, the agent can schedule a follow-up activity and get an automated alert when it’s time to call them back, so they don’t miss an opportunity for a sale.
If a sale is made, the agent uses another software app to send a link via chat, text or email to the customer for payment.
Once the transaction is complete, the system automatically triggers a survey to the customer and generates a report on their level of satisfaction.
In this type of workflow, multiple application programming interfaces communicate in real time, enabling a series of integrated processes for sales, service or support. Customer satisfaction typically improves because staff can work more quickly and efficiently, thanks to well-structured API business practices and consistent data exchange.
The Benefits of an Open API
The Internet gives us access to vast amounts of data, and open APIs help businesses turn that data into actionable insights. By leveraging open APIs, organizations can design a strategy that supports dynamic integration with less coding. For example, a McKinsey report explained how one bank used open APIs to rapidly address data needs and reduce IT costs, illustrating how banking APIs can be woven into broader business initiatives for improved financial data sharing and efficiency.
Here are some of the many valuable benefits of an open API:
Low cost
Easy to implement
Allows for greater functionality
Cloud-based, accessible anywhere there is Internet
Easily set up virtual call centers, remote teams or distributed teams
Use with any device anywhere in the world
Enhances productivity and performance for sales, service or support
Truly integrated workflows
Adjusts workflows to enhance the customer experience and reduce friction in data sharing
Provides visibility into specific activities, such as those that happen inside a call center
Because open APIs provide a powerful way to share information and integrate multiple software applications, companies that develop their own apps can allow other businesses to use them, generating new revenue streams through licensing or subscriptions. This is advantageous because an organization can simultaneously benefit from API integration, expand the lifecycle of its own solutions and positively influence the entire market. Within financial services, for instance, open APIs can facilitate robust data sharing, enabling more cost-effective ways to handle financial data while enhancing customer satisfaction.
How to Maintain an Open API
Maintaining an open API requires governance to ensure integration remains smooth across the API lifecycle. Swagger recognizes how open APIs used internally and by third parties can create a sprawling ecosystem of components. These components should match an organization’s API management policies to ensure that integration platforms remain consistent and secure. Swagger also highlights the importance of continuous updates and well-defined API documentation.
Swagger, an expert in API technology, developed the following list of nine best practices for API governance:
Centralization: Create a central point to create and enforce API policies.
API contract: Establish a contract to ensure that APIs are reusable and consistent.
Style guidelines: Establish and enforce style guidelines for all APIs to ensure consistency.
Reusability: Incorporate reusable components into designs.
Automation: Automate the processes for API contracts, documentation and tracking.
Versioning: Use versioning to deprecate an old version of an API when you create a new version. Content negotiation helps keep track of all versions.
Deprecation policy: Establish a deprecation policy to guide developers and control various versions.
Tracking: Keep track of where your APIs are being used, who is using them and how they’re being used.
API discovery: Provide the means to easily search for and discover APIs that are deployed and the tooling currently in use.
Proper API governance keeps everything aligned and allows components to be reused across integration tools and solutions. Monitoring reliability, performance and security ensures any open API remains a key part of your overall digital transformation strategy.
What Risks Are Involved with an Open API?
While there are not many risks associated with open APIs, it’s important to be aware of potential drawbacks. A key consideration is that the developer has significant control over the API, meaning they can change terms of use or fees at any time. Businesses that rely on these open APIs for core functionality should stay alert for such adjustments.
Another potential issue is that an open API may contain bugs, flaws or security vulnerabilities that can result in poor performance or compromised data. When open APIs are used to connect integration platforms or handle sensitive financial data, these flaws can be especially risky. However, implementing robust security measures and thorough testing helps reduce these concerns.
Type of Security Needed
In recent years, the growth in API usage has placed greater emphasis on security. With open APIs often transferring real-time data, it’s essential that protective protocols are implemented across the entire technology infrastructure. A continuous approach to API security that aligns with the entire lifecycle ensures these programming interfaces have built-in defenses, including encryption and strict authentication.
Developers need to be aware of both direct and indirect exposures to security threats, since they can be responsible in either case. While consumers usually see fewer direct risks, maintaining a security-first approach is still prudent.
Security measures to protect APIs include:
API inventorying
Eliminate HTTP basic authentication
API access control
Monitoring and analytics across API silos
API threat detection
Auditing and incident response
API security testing
Use SSL and enforce TLS 1.2 (deprecate older versions of TLS)
With these steps in place, open APIs remain a strong foundation for a variety of integrations, empowering businesses and enabling them to securely share data.
Summary
When selecting business applications for your company, the long-term benefits of an open API align closely with transformative initiatives such as digital transformation and adopting robust API integration platforms. Open APIs enable integration, cost-effective data exchange and the potential for greater revenue streams. They also streamline legacy systems into more flexible architectures and foster customer satisfaction. Contact us today to learn how open APIs can transform your business.
