API
Definition
An API (Application Programming Interface) is a set of rules that lets two software systems exchange data without human intervention. A web shop, for example, uses an API to pull prices and stock directly from the ERP.
A fixed language between two systems
An API describes what data a system requests or sends, and in what format. Without an API, employees have to manually retype data between, for example, an ERP and a web shop.
Standard versus custom API
Some platforms offer ready-made API connections with common ERPs such as Business Central or SAP. Other situations call for a custom API, with a higher development budget and longer lead time.
Practical example
When a customer places an order in the web shop, an API automatically sends that order to the ERP, which updates stock and generates the invoice.
Related terms
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