API Economy is:
"In API Economy company utilizes resources efficiently and quickly to create added value for own customers. These resources can be for example data or function provided by other organizations.
Building blocks utilized are own APIs and open APIs provided by other organizations (free or commercial) in addition to developer communities. These enable quicker adaptability to unpredictable and faster changing customer needs.
Defining characteristics of API Economy are competing for popularity among application developers and considering them as primary customers. In brief, services are offered from businesses to developers (Business-to-Developers, B2D)."
Moilanen J., Niinioja M., Seppänen M. & Honkanen M. 2019. API Economy 101
Do you agree with the definition?
See what some of our hundreds of students in Introduction to API Economy course are saying:
I agree on how powerful APIs can be but would like to highlight that understanding API Economy is essential also for other people too than just for developers. Developers are hardly making decisions what is going to be implemented. This was told in the course book, too, but not included in the definition.
Honestly, I am not sure I want to learn more about the topic before forming an opinion.
I would add two things to the definition: 1- "to create added value for own customers" I would add: at low cost! 2- " company utilizes resources efficiently and quickly" I would add: considering the high-security level and a high degree of customization
In any business, it’s important to recognize who your ‘customers’ are. The definition makes it clear: Defining characteristics of API Economy are competing for popularity among application developers and considering them as primary customers.
I agree on the definition of API although and I believe APIs are an opportunity to create new business. It takes time to change attitudes.