With 40 percent of Singapore firms having been able to define the value of APIs and translate them into business benefits, Singapore ranked the highest across the Asia Pacific & Japan (APJ) region and also topped the global average of 34 percent.
Respondents in Singapore reported using APIs to incorporate third-party services (80 percent), build web-based applications (79 percent), integrate back-office systems (78 percent), build mobile applications (75 percent) and enable third-party developers (71 percent).
Singapore respondents noted that the factors which contributed to the top current and future drivers for using APIs are new and improved customer experiences, faster delivery of new apps, exploring new business models, lowering IT-related costs and risks and leveraging third-party developer innovation – all ranked at 87 percent. This clearly showed that the major drivers of API programs are business-related, not technical.
“The recognition that APIs are the foundation of today’s application economy, where software is at the center of every business, is gaining traction in Singapore,” said Vic Mankotia, vice president, Security & API Management, Asia Pacific & Japan, CA Technologies. “While a vast majority in Singapore agree on the most important strategies needed for success with APIs, only a minority are implementing them. Nonetheless, for those who get it right, API programs are paying off handsomely. It is important to not only have APIs, but to ensure that they are implemented and managed well, with the right strategies in place.”
Opportunities to Enhance API Capabilities
Even though Singapore leads the pack when seeing the business benefits, only 25 percent of the firms have actually managed to translate this into securing funding for APIs.
The reason being many companies having stumbled in building the business case to decision makers: In Singapore, only 1 in 4 respondents have been able to educate senior budget holders and secure funds; or even find the right suppliers to provide skills and advice.
Hence for many organizations, fully developing and instituting a strategic API program is still a work in progress. The survey showed that while a majority agree on which strategies are the most important for success with APIs, few have implemented these measures.
For example, 88 percent of firms in Singapore agree on the importance of having the right infrastructure in place, but only 34 percent have completed this; 90 percent agree that finding the right suppliers is crucial, but only a quarter of businesses indicated that they have achieved this; 84 percent agree that they need to recruit a critical mass of developers and define a developer community support program, but only 25 and 40 percent of firms, respectively, have implemented these strategies.
Firms could stand to be less hesitant in growing their API capabilities. Results from the study found that increased investment in APIs yielded significant benefits across the entire spectrum, from increasing operational efficiency and competitive advantage, to digital disruption.
“As per our findings, a clear correlation exists between the level of API-enabling capability and the benefits achieved from API-related investments,” said Tony Lock, Distinguished Analyst at Freeform Dynamics, the IT industry analyst firm that conducted the study. “Also of note is that digital disruptors today are 2-2.5 times more likely than the mainstream to have a managed and coordinated approach to APIs.”
In Singapore, API programs are paying off handsomely for those who get them right:
- 82 percent of respondents have been able to deliver improved customer experiences
- 78 percent have experienced faster delivery of revenue-enhancing applications
- 81 percent have been able to lower IT-related costs and risks
- 79 percent have been able to extend their digital reach
- 77 percent have been able to monetize their data
Organizations stand to gain a lot from building and supporting their API programs. As APIs become more widespread, simply having the basics in place will no longer be enough – to thrive, enterprises will have to fully secure, manage and maximize API capabilities for continued success in the application economy.
As the leader in API management, CA helps customers maximize the use of APIs by providing them with a secure, developer-friendly environment that can address large scale mobile and Internet of Things (IoT) initiatives.
The global online survey of 1,442 senior IT and business executives was sponsored by CA Technologies and conducted by industry analyst firm Freeform Dynamics in July 2015. It was augmented by in-depth telephone interviews with key industry executives. For full survey methodology details, see the report “APIs and the Digital Enterprise: From Operational Efficiency to Digital Disruption.”
About Freeform Dynamics
Freeform Dynamics is an IT industry analyst firm. Through our research and insights, we aim to help busy IT and business professionals get up to speed on the latest technology developments, and make better-informed investment decisions. For more information, and access to our library of free research, please visit www.freeformdynamics.com.