OpenAPI, The Gateway to the Next Frontier in Online Business

By Brett Johnson
Senior Strategist, RDI

You may have heard the term “API” once or twice.  An acronym for “Application Programming Interface,” it’s really a fancy way of saying “data access,” and more and more data-laden companies are opening their hard drives to the public.  Although APIs are typically written for programmers and developers, it isn’t difficult to learn how to work with this type of information.   APIs rely on standardized web technologies, and are fairly consistent in the way that information is requested and delivered.  There are some restrictions placed on what can be accessed and sometimes what can be done with that information.  But generally, an open API is a way that data can be freely shared, transformed and presented in a completely new light.  In a sense, it is a socket that allows programmers to plug in and create their own interface and functionalities.  Multiple APIs can be combined to create an entirely new experience, commonly referred to as a “mashup.”  This practice swept the internet in ’05, lending mainstream credence to the concept of Web 2.0.

Perhaps the most common example of an open API is Google Maps.  When you see a map, inside a non-Google website, particularly when there is associated information, such as ‘dog friendly hotels, restaurants, shopping, atms, etc’, specific to that site, you are seeing an example of an API-driven mashup.  Government datasets, traditionally behind closed doors or relegated to hard copy documentation, are becoming increasingly available.  In the UK, the Guardian recently published a Content API that will allow over one million articles to be published anywhere on the web.  Their PoliticsAPI gives the developers a free shot at presenting 2010 election data as they see fit, providing more opportunities for the general public to view, interpret and interact with the information.  In San Francisco, perhaps the coding capital of the world, the local government has opened several APIs including transportation and utilities.  As a result, a person can open an app on their phone and view the location of the nearest train station or bus stop, and the time of the next arrival.  Using a combination of APIs busses can even be tracked in real time.  No more cutting that last email or presentation short in order to make the bus, only to stand in the cold and wait an extra fifteen minutes. 

The open sharing of data has become increasingly important to businesses as they struggle to meet growing consumer expectations and stay ahead of the competition.  Mastercard recently announced that desktop and mobile developers will have access to their API by the end of 2010.  By opening its technology MasterCard hopes to compete with bigger and more advance rivals, Visa and Paypal.  Putting the opportunity for their company’s expansion into the creative hands of developers is not only cost effective, but it allows experts from large institutions to niche services to take advantage of making online payment services.  It’s a ‘win-win’ for both the business offering customers the opportunity to pay online or by mobile phone and for MasterCard.  Other businesses poised to take advantage of the rapidly expanding technology are NPR and Blurb.  NPR plans to leverage its archive of over 250,000 stories while Blurb, the popular online book publishing platform, will give developers the ability to create software that will programmatically publish to the platform. 

For many businesses the opportunities provided in OpenAPI are astounding.  For example, what if car manufacturers opened the doors on their datasets?  Can you imagine using your mobile phone to purchase an upgrade to your car that would remap the fuel and ignition and give you more power?  Or how about being able to monitor all of your driving behaviors and comparing them against yourself and any other drivers of that same vehicle?  How about being able to take a picture of another car at a stoplight and hearing what they’re listening to on their radio, and then downloading the song or instantly being able to retrieve specification, pricing and the nearest dealer?  Ok, a bit scary, but very possible.  In more practical application, an API provides a mean for companies to bridge the gap between the latest in technology, the current level of user expectation and the online channel, all for the purpose of generating revenue.  It also provides a sophisticated mean of crowd-sourcing, or listening to the demands of your consumers and reciprocating in venue suitable to their specific needs.  And while the planning and setup will take some work, the opportunity to reap the benefits are as big as the web itself.

Tags: API, APIs, brett johnson, openAPI, red door interactive