A mobile device, an Internet connection, and a few mobile applications are all you need to live productively in this modern era. Whether you want to book a cab, pay for cable services, or buy books, you can do it with a few clicks. This has made life simpler for all of us, and made huge successes of digital native companies such as Uber, Paypal, and Amazon.
One of the key reasons these companies can successfully simplify the user experience is because they use Application Programming Interfaces (APIs) to collect information from different sources. APIs are a powerful set of tools that help different businesses entities connect with each other to share valuable information. They are set to revolutionize the Consumer Packaged Goods (CPG) Industry.
If youre in the CPG industry, APIs can help you significantly overhaul your business model.Here are a few interesting ways your company can take advantage of APIs in todays modern business environment:
- Improving brand experience and sales by building the direct-to-consumer connect:Modern consumers are confident about adding products to their shopping carts once theyve found the right information. APIs can be used to provide product and nutritional information, deliver push notifications to consumer applications, and breathe new life into contests and loyalty programsall of which build a more direct relationship with the consumer.
- Sharing data with suppliers, retailers, distributors, and other partners in real time:CPG companies rely on their partner network to reach their end consumers. Using APIs allow them to seamlessly exchange information with their partners, in real-time, and generate quick insights. This information can help the partner network manage their inventories better and maximize product sales.
- Developing manufacturing intelligence:An increasing number of CPG companies are building smarter factories with sensors in every piece of machinery. APIs can be used to monitor their manufacturing process in real-time. This will optimize their production schedules and monitor the health of their equipment for timely maintenance. Businesses can also use APIs from social feeds and partner channels to better forecast the future demand and manage inventories more efficiently.
- Creating opportunities for business model innovation:In the modern business environment, CPG companies are looking to expand their reach and improve their business models. APIs can help them develop their own mobile apps, web-based B2C sites, and find new consumers by exploring symbiotic partnerships with established platforms. CPG companies may also encourage developers to innovate by granting them access to special APIs.
APIs help build a digital business that make the most of the new opportunities available to CPG companies. Leveraging APIs to build a better experience, often at lower prices, through a variety of initiatives, can go a long way to retain customers and earn their loyalty. When backed by a strategy that keeps the long-term goals of the company in focus, it can help them leapfrog into the next generation of digital business and truly wow their customers.
Sujatha Gopal is a Senior Enterprise Architect and Competency Lead at the Next Generation Architecture Services practice within TCS’ Consulting and Enterprise Solutions Unit. She has over 17 years of global industry experience, spanning business and IT transformation, digital strategy, enterprise architecture, operating model redesign, technology, and architecture consulting.
Rajiv Rao is a Business Consultant with the Next Generation Architecture Services practice within TCS’ Consulting and Enterprise Solutions Unit. He has over eight years of experience in different sectors including consumer goods, banking, and infrastructure spanning multiple roles across enterprise architecture, pre-sales and business analysis.