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APIs Reshaping the Dynamics of the Utility Sector
By Utilities Tech Outlook | Friday, August 02, 2019
Modern APIs provides a more flexible, scalable, cost-effective, and high-performance application portfolio within the business software portfolio of the utilities.
FERMONT, CA: A blend of socioeconomic drivers and innovation in technology is forcing the transformation of utilities into digital companies. These trends should be assessed by utility CIOs as inputs to digital technology and factors for the future digital company and business models in the utility industry. At the same moment, regulatory frameworks are evolving: businesses need to boost customer decision and value while leveraging more from their current resources in generation and distribution. Application Programming Interfaces (APIs) provide a set of processes that access crucial software system's characteristics, information, or libraries. For instance, a utility can use APIs to integrate its Customer Information System (CIS) with a platform for customer engagement, as well as a field service/workforce management solution, as they share common data.
The advent of APIs has altered the dynamics of software decisions for energy and water utilities, promoting streamlined integration among otherwise disparate software alternatives. APIs allow the implementation and well-integration of "Best of Breed" systems, undermining the "One Stop Shop" approach that previously pervaded criteria for selecting software. APIs are not new to the inclusion of solutions in the utility sector, but the API economy is increasingly standardized. It is no longer essential and often not convincing to want a single supplier to fulfil requirements across various organizations and company functions of a utility. The API facilitates the sharing of standard information and access to appropriate functional capacities, enabling the utilities to select the alternatives best suited to the requirements of each company unit and organizational needs.
APIs facilitate a more comfortable transition to alternative alternatives and upgrades as they minimize cumbersome flat files and custom integration. As a consequence, the platform offers scalability and reduces obstacles for the introduction of new techniques and solutions, adapting to prevent obsolescence over time. If a software provider fails to satisfy expectations, it is possible to replace a component without disrupting the entire business software environment. APIs simplify and enhance software implementation and subsequent upgrades as a component of a base solution.
Furthermore, the API facilitates alliances and cooperation among the finest suppliers of breed software. These relationships provide the potential for lowering expenses, driving innovation, improving efficiency, and providing improved user experience by allowing automation and decreasing manual duties that are cumbersome and time-consuming. Motivated partners also lower development expenses, sharing API alignment, and validation efforts with key apps.
A one-stop shop to do everything or having redundant modules may not be the best option for developing utilities. As new digital products and services are needed to address both disruptive and enabling technology, the API economy will continue to expand, manage infrastructure, ensure system integrity, and meet customer self-service standards through multi-channel platforms.
The utility organization is becoming progressively conscious of technology's advantages to its workers. This is the perfect time to make this knowledge work for the sector and provide fresh broad-based advantages with decreased expenses, enhanced ability, improved compliance and service consistency.