Third-Party Systems Integration and the Role of API Governance

Abstract With the aggressive demand on digital solutions, it is impossible to cover an end-to-end business process efficiently, utilizing one single system. So, integrating multiple services within a collaborative environment is becoming much more appealing as a way to acquire quick wins offering more agility toward digital transformation and automation. A major tool for enabling a true integration is Application Programable Interface (API), governed properly to ensure adherence to standards and business continuity. An API is an intermediary program that connects different software and allows them to interact. When a user interacts with an application, it sends data to a server. The server receives that data, performs certain actions, and returns a response. Then, the app interprets the response and presents it in a way the user can understand. Companies have developed systems and applications, and utilize third-party applications independently; however, the need for integrating these systems is clear. A journey was started by integrating an in-house application into one single environment for better performance and more agile development. While developing APIs for integration, it was notable that governing the API development process was crucial, not only of a successful development project and avoiding rework, but also for the sustainability of these APIs, and their proper maintenance and updates. API integration is required on many different levels, starting from basic data integration and exchange to process and workflow integration, including application integration and front-end integration. Security compliance and technological interoperability are mandatory dimensions for ensuring effectiveness. Third parties were invited to participate in such an integration project where common APIs were developed jointly to allow seamless data and application integration, and offering the utilization of any service output artifact directly by any other system within that collaborative environment. Technological compliance and security measures are essential for a successful API development project, and for a true seamless integration of different systems and service. An integrated environment was introduced to allow full integration of in-house developed systems and third-party systems while maintaining secured data access and adhering to technology standardization and compliance requirements.