It all depends on the API interface

Increasing digitalization and automation are increasing the degree of networking between systems. This in turn leads to an increase in the number of interfaces. In order to achieve the necessary flexibility, modern software systems must be equipped with open interfaces. The balancing act between data sovereignty and the necessary openness for digital transformation is a challenge for companies.

The way to digital companies means that existing data must be available as comprehensively, uniformly and in real time as possible. This requires programming interfaces, known as APIs. If we take the idea of the "API economy", it is these interfaces that enable automatic communication between systems and are therefore a prerequisite for successful digitalization.

Systems without API interfaces are inflexible

To understand how systems used to communicate with each other, it is worth taking a look at the world that still prevails in many companies today: system landscapes with isolated data source systems, numerous point-to-point connections and opaque data streams. Changes to the existing infrastructure lead to high adaptation and coordination costs. New data suppliers are difficult to integrate. The risk of redundant or contradictory data increases. This makes it more difficult for systems to communicate smoothly and for valuable knowledge to be gained from data or the connection of new systems.

From a digitalization perspective, there are numerous requirements for modern APIs:

• Standards: Standardized interfaces reduce development costs, as existing implementations can be reused. Any number of systems can be connected to a standard more easily.
• Openness: Open interfaces allow the service to be reused and can contribute to cost savings. The degree of openness should be weighed up by classifying information.
• Breaking down thought patterns: Today, interfaces are often only built for a specific use case. However, digitalization requires us to consider 1:n scenarios, because we do not yet know what tomorrow's needs will be, but we need to keep the development costs for connecting additional systems low in order to be scalable.

Companies achieve even greater efficiency with the Use of central data hubs. They network existing services via end-2-end connections.

What needs to happen to bridge the gap between data sovereignty and the necessary openness for digitalization? Departments must disclose their data - taking data and information protection into account. Interfaces must have the necessary prerequisites, such as a suitable security architecture. Good tools are authorization concepts for Information classification according to ISO 27001. They regulate which data is public, internal and strictly confidential.
Successful digitalization succeeds when information (data) hiding is resolved. Companies must have the courage to put data into one pot. Only in this way can they be placed in relation to each other and contribute to information gathering, process optimization and the development of new business models.