API meaning: what is an API?

An API is a kind of counter. A program opens a number of questions and commands there, for example: give me the data of this customer, or create a new task. Another program can use them according to the rules. The user notices nothing; the programs talk to each other.

The abbreviation stands for application programming interface. For an SME the meaning is mainly practical: where there is an API, programs can exchange data without anyone retyping it. A web shop can pass on orders, a CRM can pick up data from a form and a reporting tool can collect figures from your programs.

An API is something different from a ready-made connection. The API is the entry point. A connection is the work that makes sure two programs actually use that entry point, with the right fields in the right place. Someone has to set up and maintain that work. If a vendor says its program has an API, also ask whether there is a standard connection with the programs you use.

When choosing software, look at three things. Does the program have an API that can read and write data, or only read? Are there limits on how many requests you may make? And is the documentation public? Those answers decide how much you can do with the program later. This certainly applies to a SaaS service, where you cannot intervene in the software yourself.

An API often works together with a workflow: an event in one program, such as a won deal in your CRM, sets a step in motion in the other. If you want to compare CRM options, ask each candidate what its API looks like. Read compare CRM for more.