The benefits of APIs are becoming more clear in an ever-evolving tech landscape, yet ITDMs still struggle to convince executives and investors to buy into an API-first strategy. Here’s a look at the importance of APIs in a changing world, and how ITDMs can make the business case in order to secure the best API strategy for their organization.

According to Google Cloud’s new “State of the API Economy 2021” report, a majority of IT decision-makers view application programming interfaces, or APIs, as essential ingredients in improved customers experiences, expanded partner engagement, accelerated innovation, and other demands of today’s business environment. This is encouraging: APIs are how software talks to other software, and since much of digital transformation involves combining disparate data and functionality into rich user experiences and process automations, APIs are an essential ingredient in modern business strategies. 

What’s less encouraging: the research surveys primarily IT professionals, not business leaders. It’s clear that IT people see the benefits of APIs in the ever-changing tech landscape, but we still hear regular concerns from these same people that they have trouble convincing executives and investors to buy into an API-first strategy. In this article, we’ll look into why they are having these difficulties and some proven ways to successfully position an API strategy not just as a technological solution, but also as a business requirement.

The importance of APIs in a changing world

The rise of APIs has been heavily influenced by the introduction of disruptive new business models and evolving customer preferences that traditional technologies are not positioned to quickly and efficiently address. 

For example, traditionally, if your business sold tickets to events, it would build physical ticket booths and maybe a website or first-party mobile app. Today, tickets in many cases aren’t so much a physical thing presented to an usher as a digital code that an usher scans. Likewise, tickets are less-often purchased in person as opposed to online, and reliance on a first-party website can be unnecessarily restrictive. It places the burden on the business to attract customers, whereas surfacing organically in social media, search engine results, and other digital experiences lets the business meet customers where they’re already assembled. 

Moreover, as COVID-19 continues to disrupt events throughout the world, many ticket sellers—and most organizations, for that matter—have pivoted to digital-first business interactions as a matter of necessity. All of these changes in the business model, and all of the interacting systems and functionality that underpin them, rely on communication among APIs. 

Similarly, today’s banks cannot grow by simply building more branches or hiring more tellers. Instead, they need to make financial information and functionality available when and where customers require it, whether that means via an ATM, a first-party app, or within some other digital experience. Many banks also need to do more than just present this functionality, as customers are increasingly interested in the analytics and insights their spending patterns can yield. Again, all of these interactions—from customers making a purchase within an app to banks applying machine learning in order to offer customers financial insights—are enabled by APIs.     

Related: The “State of API Economy 2021” report describes how digital transformation initiatives evolved throughout 2020, as well as where they’re headed in the years to come. Download for free.

When guidance meets resistance

These examples do not illustrate technology that updates the status quo, but rather technology that unlocks business opportunities that transcend the status quo—and that help businesses to thrive even as the status quo fades into irrelevance and obsolescence. APIs are thus not just an IT topic but also important business enablers that should be understood by everyone involved with the enterprise’s investments, from internal stakeholders approving business strategies to external shareholders trying to assess an organization’s trajectory. 

The challenge for investor relations is to convey these financial and operational benefits in a way that clearly communicates the need for a new business model rather than refinements to the existing models. It’s essential that IT professionals understand APIs, but it’s also essential for business leaders to understand them too.

This is even trickier given that arguments for API investments are often based on future potential, while arguments for more conservative alternatives are based on past success. 

At a high level, the API value proposition is clear: In the past, valuable functionality and data have been encased in systems and applications, making them difficult to scale or leverage for new, evolving use cases. In contrast, APIs make functionality and data infinitely reusable, infinitely scalable, and modular such that APIs can easily be combined for new uses. All of this accrues to richer user experiences and more flexibility than ever for companies to monetize their digital assets, share them with partners, or combine them with assets from third parties. 

It’s essential that IT professionals understand APIs, but it’s also essential for business leaders to understand them too.

But investors typically want as much information as possible because their decisions can affect not just productivity and output, but company stock prices and potential future growth. High-level arguments may not be persuasive. The deeper assurances investors crave would normally come from guidance.

Guidance in this context refers to insights based on growth forecasts and customer adoption, but this can be difficult early in market entry. Robust forecasting processes need to be developed to demonstrate the efficacy and value of the API economy, which can be hard to predict: whereas APIs are well understood in some sectors, and especially among digital natives, they are in the early stages of the growth rate in other verticals, making it challenging to forecast developer adoption of a given API. And since there is a shortage of information, trying to use traditional guidance comes with a risk of being wrong and thus of little value to investors.

Related: Set your 2021 API resolutions with these top 2020 posts.

How to deliver a more useful value proposition

While guidance may be premature during the early stages of market entry, investor relations teams still need to convey the full value of an enterprise to investors. To do this, they need a value proposition that emphasizes the intrinsic value of the investment while reinforcing the benefits that can best drive business and stock growth. Considering how large an investment of time, effort, and money transitioning to an API economy can be, it is vital to convey that the benefits are substantial.

A solid value proposition should demonstrate maximum returns, and while this shouldn’t include far-fetched or unobtainable claims, it can include reasonable aspirational visions alongside statistical insights. To craft these aspirational narratives, investor relations teams should look to their organization’s existing business needs and challenges, and then demonstrate how APIs can benefit the organization in these areas. Here are some options that speak to a number of common business requirements:

• Sales channel: API investments are reusable, improve speed to market, enable automated processes and partner onboarding, and can uncover unanticipated opportunities.
• Cost: Businesses can reduce operational costs by using and reusing APIs for innovation and business development, and by using the services native to your partner’s digital surface, you can further reduce innovation costs and risks.
• Earnings: API-enabled digital ecosystems unlock a variety of partner services that leverage the business’s shared data to drive new customer acquisition, new market positions, new transaction volumes, and direct API monetization.
• Risk mitigation: By investing in a credible API, businesses can mitigate downside risks that traditional enterprises can face from market disruptors, industry-wide shifts to digital tools, and inabilities to ingest and analyze growing data sources.
• Intellectual property: Unlike project-driven innovation and customized, point-to-point integration that traps enterprise knowledge in small teams and divisional silos, APIs are reusable and modular, breaking down silos and encouraging intra-organizational collaboration.
• Speed to market: The efficient, repeatable API interface informs improvements to the fulfillment process with consistent access to data from across the organization, which drives solutions that more quickly and efficiently meet customer needs.
• Ethics: APIs offer the flexibility and economical advantages that give organizations the capacity to focus on their brand’s ethical “reason for being” beyond profitability by serving economically marginal and underserved market segments.
• Customer credibility: Organizations can deliver the extended, connected digital experiences that customers expect with the tools and flexibility included with API products.
• Employee retention: Businesses can avoid losing key employees by updating their legacy technologies with APIs, giving employees the opportunity to enhance their skills with modern technologies.
• Corporate strategy: Enterprises that use APIs’ reusable, modular structure and tools are more capable of adapting to rapid structural shifts in customer demand patterns and sectoral changes in the economy.

Whichever of these business challenges a team speaks to, it is imperative that they demonstrate the benefits of APIs, and that once they’ve determined the angle they intend to use, they keep their message consistent. While we’ve seen a number of viable ways to position APIs as a winning strategy, switching among them could make the presentation—and APIs in general—seem insubstantial and unreliable. 

This is why it’s key to decide on the most relevant business concerns, and once you’ve tailored your presentation, to make sure that you have message alignment, including buy-in and support from C-level executives. With a strong pitch built around solving existing business concerns and solidarity from relevant stakeholders, you can go into your investor meeting with the confidence to secure the best API strategy for your organization.

Strengthen your pitch with additional insights. Here are five key trends in 2021 for API-first digital transformation.

About the Author: Paul Rohan is a researcher on Open Banking and a Google Cloud solutions consultant. Paul works with banking C-Suites that are examining the impact of the Platform Economy and Digital Ecosystems on financial services industry growth, market structures and governance. Paul is the author of “PSD2 in Plain English” and “Open Banking Strategy Formation”.

Lung cancer is the leading cause of cancer death in the United States and like any cancer, early detection is crucial to survival. Screening at-risk populations is an important part of reducing mortality, and if concerning nodules are found on imaging, further testing may be required. Today, we’ll share how Northwell Health uses Google Cloud products such as Cloud Healthcare APIs and BigQuery to increase caregiver productivity and deliver better care for patients with findings that indicate potential development of lung cancer.

Northwell is New York’s largest healthcare provider

Northwell Health is New York’s largest healthcare provider with 23 hospitals and nearly 800 outpatient facilities. Northwell’s nearly 4,000 doctors care for millions of patients each year, and at this scale, there is an immense amount of healthcare data to manage. To better manage and leverage this data, Northwell Health partnered with Google Cloud starting in 2018.

Enabling caregivers to spend more time with patients

Nic Lorenzen, the lead developer of Northwell Emerging Technology and Innovation team, has a mission to put together data for caregivers in a way that makes sense. It is no secret that inefficient electronic health records systems have a negative impact on a physician’s ability to deliver quality care. Traditional EHRs have information distributed across many tabs, which forces caregivers to spend considerable time at the computer trying to find information. Moreover, speed of care matters. If care is delayed, patients may have to spend more time in the hospital and may suffer worse health outcomes.

To solve this problem, Nic’s team focused on giving caregivers the most relevant pieces of data at the right time by developing an intelligent clinician rounding app. The data needed to derive these insights can depend on the caregiver’s role–a nurse cares about different things than a cardiologist. This system aggregates multiple data sources, and provides patient-specific insights to caregivers.

This system would not have been possible before with traditional EHRs and data warehouses that have proprietary data models and rarely sync data in real time. Now with data easily accessible through Google Cloud’s Healthcare solutions, Nic’s team can deliver the right clinical information to the right people instantly. These days, Nic says, “instead of spending 75% of our time dealing with architecting the underlying platforms, we spend 75% of our time focused on  higher value use cases for clinicians and patients. Google Cloud’s Healthcare solutions have greatly improved our developer productivity and time to value.”

Caregivers have found this new system to be a game changer.Before the implementation of this system, caregivers would spend, on average, seven to nine minutes finding the data needed to make medical decisions for one patient. Now, that aggregated information is delivered to a caregiver’s mobile device in less than a second.

Ensuring patients get the right care with the power of AI

There are a number of reasons why patients might not get the care that they need. For example, patients today can go to multiple hospitals and clinics settings, and coordinating care across multiple facilities is complex. Regional hospitals and clinics have their own siloed view of their data, so pertinent information gathered by one clinic might not be seen by another. These gaps in clinical data lead to gaps in patient care.

When a patient gets radiologic imaging, they may have findings unrelated to the reason they initially got the imaging. For example, a chest CT for a car accident might reveal an incidental lung nodule that could be cancerous. Unfortunately, research shows that a large portion of patients do not get follow up for these incidental findings because it isn’t the primary reason why the patient is seeing a doctor. Moreover, social determinants of health are a factor that affects which patients receive follow-up care. Identifying these patients and providing the necessary follow up care prevents adverse events related to delayed detection of cancer.

With Cloud Healthcare solutions, Northwell built an AI model to identify these patients so that oncologists can appropriately follow up with patients who have findings suspicious for lung cancer. The AI model detects incidental pulmonary nodules in radiology reports so that doctors can then contact the patients that need follow-up care. Nic says his team was able to build this system in a week: “Google Cloud did a lot of heavy-lifting for us and allowed us to get to the AI applications much faster. It allowed us to build a platform that just works.” 

Healthcare systems can now rapidly generate healthcare insights with one end-to-end solution, Google Cloud Healthcare Data Engine. It builds on and extends the core capabilities of the Google Cloud Healthcare API to make healthcare data more immediately useful by enabling an interoperable, longitudinal record of patient data. Northwell Health uses Google Cloud as the core of their platform, enabling their developers to create solutions to the most pressing healthcare problems.

Special thanks to Kalyan Pamarthy, Product Management Lead on Cloud Healthcare and Natural Language APIs for contributing to this blog post.

While many organizations are driving digital transformation by migrating to the cloud, there are some industries, geographies, and use cases that require a different approach to cloud modernization. Regulated industries such as healthcare, insurance, pharmaceutical, energy, telecommunication, and banking have stringent data residency and sovereignty requirements. Other industries need to meet local data processing requirements, while others require real-time data processing with sub-millisecond latencies, for example to detect defects on manufacturing lines. These use cases demand a combination of edge, on-premises and cloud services for their infrastructure.

With these requirements in mind, Google Cloud launched Google Distributed Cloud powered by Anthos to extend the power of Google Cloud infrastructure and services to the edge (or closer). The underlying infrastructure for this service comes in two variants: a 42U rack filled with compute, storage, and networking devices called Google Distributed Cloud Edge Rack and a 1U appliance called Google Distributed Cloud Edge Appliance.

In this blog post, we discuss the Google Distributed Cloud Edge Appliance and how manufacturing, retail, and automotive industry verticals can use it to address common use cases.

How the appliance works

But first, let’s talk about the Google Distributed Cloud Edge Appliance itself.

Google Distributed Cloud Edge Appliances comprises two components: (1) Distributed Cloud Edge infrastructure and (2) the Distributed Cloud Edge service.

The Google Distributed Cloud Edge service runs on Google Cloud and serves as a control plane for the nodes and clusters running on your appliance. In order to perform remote management of the appliance and to collect metrics, the Distributed Cloud Edge service must be connected to Google Cloud at all times, allowing you to manage your workloads on the edge hardware through the Google Cloud Console. For customers who can’t be connected at all times for data residency or sovereignty reasons, we highly recommend that the appliance be connected to the cloud at least once a month to allow for needed security patches and updates.

Google Distributed Cloud Edge Appliances come with built-in network ports that provide connectivity to the control plane via the internet, Cloud VPN, or Dedicated Interconnect, and to your on-prem network. Each Google Distributed Cloud Edge Appliance is homed to a specific Google Cloud region but it is designed to also use any public Google Cloud endpoint to communicate with the control plane in Google Cloud, allowing you to move these appliances between different geographic locations.

There are two NFS shares on each appliance; one is offline, meaning it does not transfer data to Google Cloud, and the other is online, meaning data saved to that share is synced to Cloud Storage on Google Cloud for further processing. The appliance supports Server Message Block (SMB) and Secure File Transfer Protocols (SFTP) for communication.

Each Google Distributed Cloud Edge Appliance runs Google Distributed Cloud Virtual, enabling you to build a single-node Kubernetes cluster with access to the underlying file system of the appliance. This allows you to build containerized applications on the underlying appliance hardware to address use cases in the following verticals.

Vertical use cases

Now that you understand how Google Cloud Edge Appliance is configured, let’s consider some of the industry use cases where it can provide unique value.

Manufacturing

In the manufacturing industry, quality control and safety is a crucial factor. Businesses need to ensure products are manufactured to the highest standards to remain competitive in their markets, to retain customers, and to keep factory workers safe. To do this, manufacturers need real-time data about the products being manufactured on the production lines, ensuring quality control and gaining a real-time view of where people are on the factory floor.

In manufacturing environments, Google Distributed Cloud Edge Appliance can be used to detect hazards or manufacturing defects in real-time. Figure 1 is a reference architecture for a hazard detection solution running off a Google Distributed Cloud Edge Appliance on a factory floor.

In this architecture, cameras on the factory floor stream live video into the Google Distributed Cloud Edge Appliance. Depending on the number of cameras and appliances, cameras could be split or mapped to different appliances. This architecture makes it possible to initially transfer video data to Google Cloud using an online NFS share. Once in Google Cloud, you can use AutoML to train and build models that can be used as part of the hazard detection solution.

With these trained models, the cameras can stream video data into the appliance using the real-time streaming protocol (RTSP). You can then use AutoML inference to analyze the real-time video streaming data.

For example, in this reference architecture, if an individual comes too close to the fork lift, a function is triggered by the microservices running on the edge appliance that pushes a notification either to a messaging service, or to an enterprise resource planning tool. This alerts factory managers to factory floor hazards in real time so they can take corrective action.

You can also review messages and videos later on for preventive planning purposes, or push streamed videos to Cloud Storage for archive, to use the appliance’s storage space more efficiently.

Data transfers to Google Cloud can be done over Google Cloud Dedicated Interconnect, or VPN between the region and your site. This connectivity also allows you to send the appliance’s control-plane network traffic to the region.

You could also use the reference architecture in figure 2 for a product anomaly detection solution running off a Google Distributed Cloud Edge Appliance on a factory floor or manufacturing line. In this instance, machine learning models are trained to detect anomalies on finished products before final packaging.

Retail

In the retail industry, the Google Distributed Cloud Edge Appliance reference architecture in Figure 2 enables a number of transformative capabilities for retail operations, including:

• contactless checkout
• product scans
• mobile-scan-bag
• cashierless checkout
• unattended retail shops
• visual check-out monitoring

It does all this within a retailer’s facilities with the low latency and high throughput you need to process data locally, so you can obtain actionable insights from your data.

Or, you could use Google Distributed Cloud Edge Appliance at the edge to overhaul store management operations, for example, monitoring store occupancy, queue depth and wait times, detecting slips and falls and out-of-stock items, or monitoring inventory compliance.

Automotive

Advanced Driver Assistance Systems (ADAS) are becoming standard in modern automobiles. To successfully build and roll out continued improvements around ADAS, the automotive industry continues to run extensive tests on ADAS systems that are built into the vehicles they manufacture. Automotive companies can use Google Distributed Cloud Edge Appliance to modernize and transform how they collect data for the ADAS systems they’re developing. For example, test vehicles contain several different sensors that generate data, which can be quickly offloaded to an in-vehicle edge appliance.

Then, within the appliance, you can deploy containerized workloads to transform sensor data, infer videos and images and detect events. This alleviates the need for operators to label all events and allows development teams to quickly gather insights from the tests.

If you want to focus on a subset of information, you can transfer specific data or the entire data payload into Transfer Appliances when vehicles return to the development center. All these systems, i.e., transfer appliances and edge appliances, work in tandem to reduce local system administration and operational costs through a cloud-based control plane.

This approach allows you to deploy, track, monitor and configure services that are running in data centers or at edge locations from the cloud. From the factories, the data can be moved offline or online into Google Cloud where you can use different storage classes and processing capabilities to further process or store the data. You can also deploy newly trained models and business rules back to the edge appliances. In all this, data transfers between the cloud and the appliance are performed using end-to-end encryption, to give you control over your data.

The reference architecture in Figure 3 shows an ADAS implementation where Google Distributed Cloud Edge Appliance is being used to gather, process and transform data at the edge in the automotive industry. It could also be applied to data capture and processing use cases in manned and unmanned vehicles. Notice how the Distributed Edge Appliance extends to the cloud by sending data there, or using other cloud-based services.

We’re just getting started

These are just a few of the use cases where organizations in the manufacturing, retail and automotive industries are using Google Distributed Cloud Edge Appliance with modern and containerized applications that are powered by Google Cloud. If you’re interested in bringing the power of Google Cloud to the edge using Google Distributed Cloud Edge Appliances to transform your business, reach out to us or any of our accredited partners.