API

API is a technical term that, simply put, describes a kind of bridge or translator between different computer programs. An API is an interface technology that allows different programs or systems to communicate with each other, exchange data, and utilize each other, without needing to understand their detailed internal structure.

Features

• Establish Connection: APIs enable different software systems to work together seamlessly.
• Exchange Data: They are the means by which information can be sent and received from one program to another.
• Automation: Many processes can be automated through APIs, reducing manual work and minimizing errors.
• Flexibility: APIs allow developers to add new functionalities to existing programs or connect them with other services.
• Security: APIs are designed to ensure secure data exchange and that only authorized programs can access specific information.

Example

Imagine a company uses an ERP system (like Microsoft Dynamics 365) to manage its inventory and write invoices. At the same time, it has an online shop where customers place orders.

For the online shop to know how many products are still in stock, and for new orders to automatically land in the ERP system, a connection between the two is needed. This is where an API comes into play:

The online shop can ask the ERP system via an API: "How many red T-shirts are still in stock?" The ERP system then sends the answer back via the API. If a customer buys a T-shirt in the online shop, the shop sends the order data to the ERP system via the API, which then automatically updates the inventory and creates an invoice.