Data Integration Using API: Essential Strategies and Benefits

In today's digital realm, mastering data integration through Application Programming Interfaces (APIs) is not merely an operational enhancement but a strategic necessity. Data integration APIs enable businesses to bridge the divide between disparate data sources, fostering interconnectivity and operational fluidity previously unattainable.

The vital role of APIs in facilitating data integration underscores their significance in optimizing business workflows, accelerating decision-making processes, and delivering exceptional customer experiences.

This crucial capability of APIs to act as conduits for data harmonization empowers organizations to navigate the complexities of the digital landscape with unparalleled agility and efficiency.The core advantage of API-driven data integration lies in its ability to amalgamate and synchronize information across various applications, refining business operations and paving the way for innovation and expansion. By leveraging APIs, companies can ensure a seamless and uninterrupted flow of data, enhancing the quality and utility of information across different ecosystems. In an era where data is paramount, the strategic implementation of APIs for data integration is equivalent to securing a competitive edge and achieving operational supremacy. If you think this is your case, then schedule a call.

Exploring data integration through APIs reveals a nexus where technological innovation meets strategic foresight, offering enterprises the agility, adaptability, and insight needed to excel in a complex digital marketplace. Through the prism of API-led integration, organizations are poised to transcend conventional limitations, driving innovation, streamlining efficiency, and cultivating more personalized and impactful customer interactions. This narrative frames API integration's vast potential and transformative impact on the journey toward digital evolution.
In the relentless pursuit of digital innovation, companies increasingly turn to APIs as a cornerstone for data management and operational optimization.

As we explore the comprehensive guide for mastering data integration through APIs, it's crucial to spotlight the evolutionary trends and statistics within the API and data integration sphere as of 2024. The global market for data integration, a beacon of the growing dependency on API-centric integrations, is witnessing remarkable growth. Valued at approximately USD 13.60 billion in 2023, it's projected to grow at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2032, reaching an estimated USD 37.39 billion by 2032. This surge reflects the broadening adoption of data integration solutions across diverse sectors, such as healthcare, manufacturing, retail, government, and defense, spanning various regions worldwide.

‍This guide, presented by DATAFOREST, delves into the essence of harnessing APIs for data integration, highlighting its critical role in modernizing business functions, boosting productivity, and crafting seamless customer journeys.

Significance of Integrating Data Using APIs

The digital transformation journey mandates a seamless integration of data across disparate systems. Data integration using APIs is instrumental in this process, enabling businesses to efficiently link and synchronize data across various applications, thus optimizing operations, empowering informed decision-making, and enhancing customer experiences.

Fundamentals of API-Driven Data Integration

At its core, data integration through APIs involves using Application Programming Interfaces to facilitate the effortless exchange and synchronization of information between different software systems or applications. This approach is vital in today’s digital business landscape, where adequate data management is synonymous with success. Data integration using APIs ensures continuous data sync across platforms and guarantees reliability and accessibility, improving organizational efficiency and decision-making capacity.

Source: https://marketsplash.com/api-statistics/ 

The Critical Role of API Integration in Today's Businesses

The significance of API-driven data integration extends beyond mere data exchange, influencing various strategic, operational, and technological domains within contemporary enterprises. Critical aspects of API integration include:

• Innovation and Adaptability: Data integration using APIs fosters innovation, allowing businesses to quickly adapt to market changes and expedite the development of new applications and functionalities.
• Operational Efficiency through Automation: Data integration through APIs facilitates data flow automation, reducing manual tasks and errors and enhancing operational performance.
• Customization and Flexibility: APIs allow businesses to customize and scale their systems and processes, adapting their technological infrastructure to meet specific operational needs.
• Monetization and Revenue Generation: Data integration using APIs can create new monetization avenues, as businesses can leverage their APIs as products or services, opening up new revenue channels.
• Competitive Advantage: Utilizing data integration through APIs for personalizing customer interactions enables businesses to gain insights into customer preferences, thereby delivering tailored experiences that boost loyalty and engagement.

API-driven data integration is not merely a technological initiative but a strategic necessity for navigating the complexities of the digital marketplace with agility and foresight. Organizations prioritize data integration using APIs to streamline their immediate operations and establish a solid groundwork for sustainable growth and competitive advantage. The role of APIs in data integration is increasingly becoming a linchpin for businesses aiming to leverage technology for strategic gains. Hence, integrating data through APIs is imperative for corps seeking to thrive in the digital age, offering a pathway to overcome contemporary challenges while laying the foundation for future achievements.

Critical Trends in API and Data Integration

Venturing further into the prevailing dynamics, four key trends in the API and data integration sphere emerge as instrumental in deciphering the present and future contours:

• Embracing Cloud and API-centric Applications: The cross-industry gravitation towards cloud solutions underscores the centrality of a robust API and integration strategy. This inclination propels the demand for applications and platforms enriched with extensive API functionalities, enabling fluid integration within digital ecosystems and smoother business operations.
• Advancements in API and Integration Platforms: The arena is witnessing substantial investments in enhancing API and integration platforms' capabilities. This development sought to accommodate emerging use cases like robotic process automation (RPA), artificial intelligence (AI), and the Internet of Things (IoT), which mirrors the market's response to the escalating demand for sophisticated integration solutions.
• Transitioning from CoE to C4E Models: The shift from traditional centers of excellence (CoE) to centers for enablement (C4E) signifies a move towards a more distributed operation model. This model encourages the productization, dissemination, and reuse of API assets enterprise-wide, facilitating quicker market entry and the scalable reuse of assets across varying ecosystems.
• Hybrid Integration Platforms and Event-driven Architectures: The trend towards hybrid integration platforms reflects the ongoing debate on whether to consolidate integration capabilities under a unified platform or maintain a cohesive yet diverse set of platforms. Furthermore, the growing adoption of event-driven architectures empowers more dynamic and scalable API integrations, responding adeptly to real-time data shifts and transactions across systems.

These insights lay a solid groundwork for appreciating the strategic importance of API-led data integration and its role in redefining business operations, enhancing productivity, and crafting seamless customer experiences. Integrating these statistics and trends into your business strategies highlights the indispensability of data integration through APIs. It lights the path for enterprises aiming to utilize this technology for sustained growth and innovation.

Harnessing APIs for Enhanced Data Integration

APIs are the linchpin in digital development, offering a structured approach for varied software entities to converse and collaborate seamlessly. These digital intermediaries outline the essential commands and agreements, enabling software to tap into the capabilities or datasets of another, thus playing a pivotal role in the fabric of data integration using API.

Within the tapestry of data integration, APIs emerge as critical conduits, bridging the gaps between divergent platforms and facilitating the smooth transition of information across systems. They are the architects of digital dialogue, crafting a lexicon of rules and standards that dictate how applications can engage in mutual exchange. This orchestration by API integration ensures that the data stream flows unimpeded across varied ecosystems, irrespective of their foundational technologies.

Regarding integrating a consumer relationship management (CRM) system with an e-commerce framework, Without the symbiosis offered by APIs, melding these platforms would entail a labyrinthine journey through manual data manipulation or bespoke integration mechanisms. Yet, the advent of data integration using API, through the APIs furnished by both platforms, paves the way for a harmonious link, enabling the real-time reciprocation of customer insights.

APIs, thus, are the architects of digital synthesis, forging pathways between isolated systems and sanctioning them to function as a cohesive unit. API integration simplifies the intricacies of data merging by standardizing the communication protocols. It enhances enterprises' operational efficiency and productivity, allowing them to unlock the latent value within their technological infrastructure.

Mastering Data Integration Through APIs

In today's digital era, APIs emerge as the cornerstone of technological synergy, enabling disparate systems to connect and communicate through data integration. The continuous evolution of API technology unveils a spectrum of architectures, each designed to meet diverse data integration needs, thus empowering developers to establish more effective, scalable, and interconnected data environments.

Source: https://www.ktlsolutions.com/which-data-integration-strategy-is-right-for-you/ 

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Deciphering the Essentials of RESTful APIs

At the heart of API simplicity and adaptability lies RESTful APIs, grounded in the principles of Representational State Transfer. By leveraging HTTP protocols, these APIs facilitate effortless interactions between clients and servers, creating an ecosystem where data integration using API becomes straightforward and efficient.

Critical Characteristics of RESTful APIs

• Statelessness: The hallmark of RESTful APIs is their stateless nature, ensuring each interaction between client and server is self-contained, embedding all necessary information within each request. This characteristic simplifies the data integration process and boosts server scalability.
• Resource-Based: Viewing data as resources, identifiable by URIs and manageable via standard HTTP methods (GET, POST, PUT, DELETE), RESTful APIs make data access and manipulation a breeze, enhancing the ease of data integration using API.
• Consistency: A consistent interface across RESTful APIs guarantees ease of use and comprehension, which significantly aids developers in implementing data integration using API across various platforms.
• Efficiency: Focused on lightweight data formats such as JSON and XML, RESTful APIs are designed to be platform-neutral, significantly facilitating their integration across different systems.

Unpacking SOAP APIs

Contrasting with RESTful simplicity, SOAP APIs present a protocol-based approach to integration, utilizing XML for comprehensive message exchanges. This format is particularly adept in scenarios requiring intricate messaging and protocol flexibility, pivotal for complex data integration using API tasks.

Distinguishing Traits of SOAP APIs

• Message-Centric: The essence of SOAP APIs is encapsulated in XML-based messaging, enabling structured requests and responses that are ideal for complex data transactions and integration.
• Flexibility in Protocol: SOAP's independence from specific transport protocols allows it to function over HTTP, SMTP, TCP, and more, offering a versatile foundation for API data integration.
• Complex Architecture: Geared towards delivering extensive functionalities such as WS-Security, SOAP APIs provide a sophisticated structure suitable for advanced data integration needs.
• Standardization: Leveraging WSDL for service descriptions and adhering to strict standards, SOAP APIs ensure high interoperability and durability, crucial for robust API data integration.

Exploring the Dynamics of GraphQL

As a modern contender, GraphQL champions a query-driven approach, enabling precise client-side data specifications. This method significantly streamlines data retrieval and integration, marking a leap forward in data integration using API.

Defining Features of GraphQL

• Query Specificity: GraphQL's strength lies in allowing detailed queries and enabling precise data fetching to avoid unnecessary network traffic, thereby optimizing data integration using API.
• Unified Endpoint: Simplifying API architecture by consolidating data requests to a single endpoint, GraphQL enhances the flexibility of client-side data integration.
• Type Safety: With its robust typing system, GraphQL facilitates query validation and assures data structure consistency and clarity, benefiting data integration efforts.
• Real-Time Updates: Supporting real-time data through subscriptions, GraphQL is ideally suited for applications that mandate immediate data sync, enhancing operational performance through efficient data integration using API.

API Types: A Comparative Overview

To highlight the distinct advantages and applications of each API style, consider the following comparison:

This comparative analysis sheds light on the unique capabilities of each API type, guiding developers toward the most suitable technology for enhancing their data integration using API strategies.
To harness the full potential of data integration using API, developers, and organizations should consider adopting a combination of these API types based on their specific needs. Starting with RESTful APIs for general web services, incorporating SOAP for enterprise-level security and complexity, and leveraging GraphQL for real-time data and flexible queries can create a robust and versatile data ecosystem.

Implementing these strategies enables seamless data sharing, improves operational performance, and boosts productivity. By integrating data sources, automating processes, and enhancing application logic, businesses can achieve a new level of efficiency and innovation. Empowering your data infrastructure with API-enabled integration streamlines workflows and unlocks new opportunities for growth and competitiveness in the digital landscape.

Implementing Data Integration via APIs: An Exhaustive Manual

Embarking on a data integration journey involves harmonizing data from many internal and external sources to foster a unified, insightful view. This process, pivotal for informed decision-making and streamlined operations, hinges on the strategic use of APIs. APIs serve as the conduit for data flow, enabling systems to interact, share, and sync data effortlessly. Here's a step-by-step guide to navigating the data integration landscape using APIs tailored to ensure a smooth, efficient integration process.

Identifying Data Sources: The Foundation of Data Integration

• Internal Systems Exploration: Begin thoroughly auditing your organization's internal systems, such as CRM, ERP, and databases. Understanding the landscape of existing data repositories is critical for identifying how data integration using APIs can bridge gaps and enhance connectivity.
• External Data Discovery: Extend your exploration to external data sources. This contains third-party APIs, web services, and cloud-based platforms. Integrating external data is essential for enriching your organization's data pool, offering broader insights, and accelerating data integration using APIs.

Ensuring Data Integrity and Governance

• Quality Assurance: Rigorously assess the quality of data from all sources. High-quality, reliable data is the cornerstone of successful data integration using APIs, necessitating measures to promptly address any inaccuracies or inconsistencies.
• Governance and Compliance: Uphold strict governance standards and comply with relevant data integration regulations. Managing permissions and adhering to legal frameworks is crucial for secure and responsible data integration using APIs.

API Selection: Tailoring Integration to Your Needs

Selecting the most fitting API is a pivotal decision in data integration. Consider the following criteria to guide your selection:

• Functional Compatibility: Ensure the API's capabilities align with your specific data integration needs, including support for necessary operations and data formats.
• Comprehensive Documentation: Opt for APIs backed by detailed documentation to facilitate a smoother integration process. Good documentation accelerates development and troubleshooting, making data integration using APIs more accessible.
• Community and Support: A robust developer community signifies a reliable, well-supported API. Community resources can prove invaluable for overcoming challenges and optimizing data integration using APIs.
• Cost-Effectiveness: Balance the cost of using the API against the value it brings to your data integration project. Affordable, efficient APIs contribute to a more sustainable and successful integration effort.

Prioritizing Authentication and Security

Security cannot be overstated in the realm of data integration using APIs. Implement comprehensive security measures to safeguard your data:

• Robust Authentication: Employ strong authentication protocols like OAuth or JWT to ensure only authorized entities can access your data. Authentication is a critical barrier against unauthorized data integration using APIs.
• Granular Authorization: Use ACLs or RBAC to fine-tune access rights, ensuring users can only interact with data pertinent to their role, thus enhancing the security of data integration using APIs.
• Data Encryption: Protect data in transit and at rest with encryption, using HTTPS for secure data transfer and AES for storage to prevent unauthorized access during data integration using APIs.
• Audit Trails: Maintain detailed logs of API interactions to monitor for unusual activity and support investigations in case of a breach. This transparency is vital for secure data integration using APIs.
• Proactive Threat Management: Deploy IDS, IPS, and SIEM tools to detect and neutralize threats promptly, safeguarding your data integration process against evolving security risks.

Mastering Data Transformation and Mapping

Transforming and mapping data is essential for aligning disparate data formats and schemas:

• Construct Detailed Data Maps: Draft comprehensive mappings between source and destination systems to guide the transformation process, ensuring data is accurately translated and integrated.
• Execute Data Transformations: Utilize tools and techniques to convert data to the required formats, addressing data quality and compatibility issues to streamline data integration using APIs.
• Schema Alignment: Harmonize the data structure between systems, adjusting tables, fields, and relationships to ensure seamless data flow and integration.
• Enrich and Validate Data: Augment data with external sources and conduct thorough validation to enhance its value and integrity, ensuring data integration success using APIs.

By methodically addressing these aspects, organizations can effectively harness APIs for data integration, paving the way for enhanced operational efficiency, improved decision-making, and a competitive edge in the digital landscape. This manual simplifies the complexities of data integration using APIs and equips teams with the knowledge to execute their projects confidently and precisely.

Advantages of Harnessing APIs for Data Integration

Embracing data integration through APIs furnishes organizations with myriad benefits, from streamlined workflows to deeper insights, propelling them towards a more agile and informed operational stance. This strategic approach optimizes internal processes, enhances the customer experience, and ensures compliance with stringent security standards. Here, we delve into the significant advantages that underscore the value of leveraging APIs for comprehensive data integration.

1. Instantaneous Data Access: APIs stand at the forefront of facilitating instantaneous data exchanges between diverse systems and platforms. This capability ensures organizations have access to real-time data, empowering them to make swift, informed decisions and adapt to market shifts with agility.
2. Elevated Data Precision: Automating data transfers via APIs significantly mitigates the risk of human error, enhancing the accuracy and consistency of data across systems. This precision is crucial for keeping the integrity and reliability of organizational data.
3. Boosted Productivity: By automating data-centric tasks such as synchronization and validation, data integration using APIs frees up organizational resources, allowing teams to devote more time to strategic initiatives that drive value and innovation.
4. Amplified Insights and Analytics: By consolidating data from multiple sources, APIs enable a holistic view of organizational data. This unified perspective is instrumental in uncovering actionable insights, identifying trends, and informing strategic decisions.
5. Accelerated Time-to-Value: Using APIs expedites the data integration, offering ready-made solutions for connecting disparate systems. This efficiency significantly shortens the timeline from integration to realizing benefits, enhancing the organization's competitive edge.
6. Enhanced Organizational Flexibility: Data integration using APIs allows organizations to swiftly adjust to evolving business needs and technology landscapes. The modular nature of APIs allows for scalable and flexible integration strategies that can grow with the organization.
7. Unmatched Compatibility Across Platforms: APIs facilitate seamless data flow across various platforms and devices, bridging technological divides and ensuring interoperability. This compatibility is essential for leveraging comprehensive data assets and fostering a cohesive technology ecosystem.
8. Operational Cost Reduction: APIs streamline data management processes, thereby reducing the labor and costs associated with manual data handling. Moreover, leveraging existing APIs allows organizations to capitalize on their current technology investments, avoiding the need for costly custom solutions.
9. Superior Customer Experiences: By enabling real-time data integration, APIs allow organizations to offer personalized, timely interactions across customer touchpoints. This responsiveness enhances customer satisfaction and loyalty, driving long-term business success.
10. Robust Compliance and Security: APIs are critical in securing data exchanges and ensuring the adherence to governance and regulatory standards. Organizations can safeguard sensitive information and maintain compliance through controlled access mechanisms and data management protocols.

The strategic application of APIs for data integration streamlines operations enhances analytical capabilities, and positions organizations for growth and innovation in a data-driven landscape. By recognizing and leveraging these benefits, businesses can confidently navigate the complexities of today's digital economy, achieving a sustainable competitive advantage.

Exemplifying API Integration Across Industries

API integration is a pivotal strategy for organizations across various sectors, aiming to harmonize disparate systems and streamline operations. Through real-world API integration examples, we observe how API integration catalyzes efficiency, enhances customer experiences, and fosters innovation. Let's delve into specific instances across diverse industries to understand the transformative impact of API integration.

E-commerce Streamlining via API Integration

In e-commerce, integration with payment gateways, shipping services, and inventory systems is crucial. Shopify, a leading e-commerce platform, exemplifies this by integrating financial conduits like PayPal and Stripe alongside logistics partners such as UPS and FedEx. This orchestration provides a frictionless shopping experience, ensuring efficient order processing, inventory updates, and delivery tracking, all facilitated by robust API integration.

Healthcare Systems Cohesion Through APIs

The healthcare sector leverages API integration to enhance patient care and operational efficiency. Epic Systems, renowned for its Electronic Health Records (EHR) software, employs APIs to bridge patient data with external applications and devices. This interoperability extends to telemedicine platforms and health monitoring devices, improving patient outcomes and streamlining healthcare delivery through effective data integration using APIs.

Financial Services Integration via APIs

Financial institutions and fintech firms utilize APIs for secure, efficient data exchange and transaction processing. Plaid's APIs are a conduit for accessing and sharing financial information with third-party services, such as account balances and transaction histories. This integration facilitates a seamless financial ecosystem, enabling personalized banking experiences and robust financial management through the strategic use of APIs.

Travel and Hospitality Connectivity Through APIs

APIs revolutionize the travel industry by integrating booking systems, airline reservations, and hotel management platforms. Expedia's APIs, for instance, allow travel agencies and online platforms to access an expansive inventory of travel services. This integration empowers customers with diverse travel options, optimizing the booking process and enhancing the overall travel experience through efficient data integration using APIs.

Retail Operations Optimization with APIs

Integrating point-of-sale (POS) systems, inventory management, and CRM systems via APIs is vital to delivering personalized shopping experiences in the retail sector. Salesforce Commerce Cloud showcases this by enabling retailers to connect their e-commerce platforms with CRM systems through APIs. This integration allows tracking customer interactions and analyzing purchase behaviors, facilitating targeted marketing campaigns, improving inventory management, and elevating retail experience through strategic data integration using APIs.

Manufacturing Efficiency via API Integration

Manufacturers use API integration to streamline their supply chains, enhance product tracking, and automate order processing. For example, SAP's APIs enable manufacturers to connect their ERP systems with suppliers, logistics providers, and production line machinery. This connectivity ensures real-time data sharing, optimizing production schedules, reducing inventory costs, and improving order fulfillment through effective data integration using APIs.
The strategic application of API integration across industries underscores its capacity to bridge the gap between disparate systems, enhancing operational efficiency, customer engagement, and competitive advantage. From e-commerce and healthcare to financial services, travel, retail, and manufacturing, the examples highlighted demonstrate API integration's versatility and transformative potential. As organizations navigate the intricacies of digital transformation, embracing API integration will be vital to unlocking innovation, driving growth, and achieving sustainable success in the digital era. Through the lens of these real-world applications, it's clear that data integration using APIs is not just a technical endeavor but a strategic imperative for businesses aiming to thrive in today's interconnected, data-driven marketplace.

Elevate Your Digital Strategy with Data Integration API

Unlock the full potential of your digital landscape with our state-of-the-art data integration using API solutions. At DATAFOREST, we specialize in elevating operational performance and productivity through API-enabled data sharing and synchronization. Our data integration API streamlines the exchange of data across various applications and web systems and ensures that your business stays ahead in the rapidly evolving digital arena.
Discover how data integration API can transform your operational dynamics by automating processes and enhancing application logic, thus allowing your applications to communicate more effectively and efficiently. 

Incorporating data integration API into your business strategy enables seamless sync and connectivity between disparate data sources and databases, fostering a more integrated and cohesive digital ecosystem. Whether you want to enhance data sharing between web-based applications or streamline the connection between your database and external web systems, our data integration API solutions are designed to boost your productivity and operational performance.
Our experts at DATAFOREST are committed to providing you with the best data integration API services that allow your businesses to automate complex workflows, thus freeing up valuable developer resources. 

For personalized consultation and to learn how our data integration API solutions can be tailored to meet your unique business needs, don't hesitate to contact us at Contact Us. Our team of experts is ready to assist you in navigating the complexities of API-enabled data integration, ensuring your business leverages the full spectrum of benefits our services offer.
Embrace the future of data integration today. Let data integration API by DATAFOREST catalyze your business's digital transformation, driving innovation and operational excellence. Connect, communicate, and sync your data sources with unparalleled efficiency and explore the vast array of integration examples that demonstrate the power of API-enabled data integration in revolutionizing businesses across industries. Contact us!

FAQ

How do I ensure data security when using APIs for integration?

Deploying robust authentication protocols like OAuth or API keys is paramount when safeguarding data in data integration using API. Encrypting data transfers with HTTPS and instituting stringent access controls are critical to thwart unauthorized access. Furthermore, the vigilant updating of API versions and diligent vulnerability monitoring are fundamental practices to uphold data security amidst API and data integration endeavors.

What is the role of data transformation in API data integration?

Data transformation ensures seamless compatibility between disparate systems within API data integration. This process concerns the meticulous conversion of data from one format to another, encompassing the translation of data structures, the standardization of data formats, and the enrichment of data. Such transformations are vital for effectively processing and utilizing data exchanged through data integration APIs, ensuring that data integration using API transcends mere connectivity to enhance functionality and value.

Can I integrate data from legacy systems using APIs?

Integrating data from legacy systems into contemporary platforms via data integration using API is not only feasible but also a strategic move to leverage existing data assets. Many legacy systems provide direct API support or can be interfaced with through middleware facilitating API connections. This approach allows for extracting and integrating valuable data from legacy systems into modern applications, highlighting the versatility and power of data integration APIs in bridging historical data with future possibilities.

What is the role of data mapping in API data integration?

In the intricate process of data integration using API, data mapping emerges as a critical step to define how data elements correspond between source and target systems. This crucial phase involves delineating data fields, articulating transformation rules, and safeguarding data consistency and integrity. Through effective data mapping, API and data integration transcends technical execution to ensure data flows seamlessly between systems, enhancing interoperability and efficiency across the API integration landscape.

Can API data integration be used for connecting on-premises and cloud-based systems?

API data integration is a robust solution for linking on-premises and cloud-based systems, showcasing the adaptability and reach of data integration using API. APIs facilitate a cohesive network between on-premises applications and cloud services by providing a standardized interface for system interaction. This capability demonstrates the strategic importance of data integration APIs in crafting a unified operational framework that supports data exchange and process automation throughout an organization's entire technological ecosystem, reinforcing the transformative power of API and data integration.