In today’s digital world, it’s common to hear the term API.
But what does it really mean?
If you’re a Business Analyst (BA), Product Manager (PM), or Product Owner (PO), understanding APIs can give you a significant advantage in making informed decisions and driving digital product development.
APIs (Application Programming Interfaces) are crucial for building integrations between systems, enabling different software to talk to each other.
Whether it’s connecting to external data sources, integrating third-party services, or creating extensible platforms, APIs are essential to modern digital experiences.
What is an API?
At its core, an API is a set of rules and protocols that allows one software application to interact with another.
It defines how data should be requested and exchanged, and what format it should be in.
Think of an API as a waiter in a restaurant. You place an order (request) with the waiter, who then takes it to the kitchen (back-end system) and brings you back your food (response).
Let’s say you’re using Zomato to order food.
Here’s how APIs play a role:
🍴 Google Maps API: Helps you select your location for delivery.
💳 Razorpay API: Handles secure payments for your order.
📲 Twilio API: Sends real-time SMS updates for order status.
In this example, Zomato’s application integrates multiple APIs to deliver a seamless user experience, showcasing how APIs act as bridges between services.
Similarly, APIs enable the integration of various services within your product, enhancing its functionality without the need for you to develop everything in-house.
Why Should Product Managers Care About APIs?
As a product manager, understanding APIs is essential because they:
Enable Integrations
APIs are the glue that connects different systems and services, creating a seamless user experience.
Support Scalability
With APIs, you can scale a product without having to completely reinvent the wheel. You can simply plug into other services and extend your product’s functionality.
Drive Innovation
APIs give your product flexibility, enabling new features and third-party integrations that keep your product competitive.
Offer Monetization Opportunities
Exposing your product through APIs can open up revenue streams by allowing third parties to build on top of your service.
How Do APIs Work?
Imagine you’re ordering food from a restaurant.
The menu is like the API documentation. It shows you what’s available (the API endpoints) and how you can order it (the HTTP methods).
The kitchen is your back-end system, and the waiter is the API, taking your order (the request), sending it to the kitchen (the back-end), and bringing the food (the response) to your table.
In technical terms:
- Request: You (the client) make a request to the API (like asking for a burger).
- Processing: The API sends that request to the server, which processes it.
- Response: The server sends back the requested data (in this case, your burger).
Types of APIs
REST APIs
These are the most commonly used APIs today.
REST stands for Representational State Transfer, and it’s a way to structure your requests and responses in a lightweight, stateless manner.
REST APIs work over HTTP (the same protocol that powers websites).
They allow systems to communicate using simple actions like:
- GET: Retrieve data (like checking your account balance).
- POST: Send data (like placing an order online).
- PUT: Update existing data (like editing your profile details).
- DELETE: Remove data (like deleting a post).
For example, when you use Swiggy or Zomato, REST APIs fetch restaurant details (GET), place your order (POST), and update your order status (PUT).
SOAP APIs
SOAP (Simple Object Access Protocol) uses XML (a structured way of organizing data) to exchange information. It’s known for being secure and reliable, which is why industries like banking often use it.
Imagine paying your electricity bill online.
SOAP APIs securely handle the transaction, ensuring your payment details are correctly sent to your bank and then to the electricity provider’s systems for confirmation.
GraphQL APIs
GraphQL offers more flexibility by allowing clients to request only the data they need in a single query, avoiding over-fetching or under-fetching data.
For example, In an e-commerce app, a GraphQL API can fetch: Product details, user reviews, and stock availability in one request instead of multiple calls like REST.
Key Terms to Understand About APIs
Endpoint
The URL where the API request is sent (e.g., /users or /orders).
Request
A message sent to the API to perform a specific action (e.g., GET data, POST new information).
Response
The data returned from the server after processing the request.
Authentication
Ensures the API request is coming from a legitimate source (e.g., API keys, OAuth tokens).
Rate Limiting
APIs often limit the number of requests you can make in a given time to prevent overload.
JSON
A lightweight data format commonly used in APIs to exchange information.
How Do Product Managers Use APIs?
Product managers need to have a basic understanding of APIs to effectively collaborate with engineers, define product requirements, and ensure the integration of external services.
Here are some examples of how APIs are used in product management
Managing Integrations
As a PM, you might need to coordinate the integration of third-party APIs into your product. This could involve mapping out how different systems will interact or working with external teams to ensure smooth integrations.
Defining API Use Cases
You may need to identify which APIs your product will consume and define the functionality for each one. For example, if your product requires location-based services, you would specify how the app will interact with Google Maps API to fetch geographic data.
Setting Product Roadmaps
When building APIs or exposing them to third parties, the product manager needs to define the priorities for the API’s features and the product’s roadmap, balancing user needs with technical feasibility.
APIs for Internal Use
In addition to external-facing APIs, product managers might work on creating internal APIs to streamline data flow between internal systems. This can save time, increase automation, and improve the overall product development process.
API Best Practices for Product Managers
Know Your API Requirements
Understand what your product needs from the API — be it data, functionality, or speed. This will help you specify the API requirements clearly.
Work with Engineers
APIs are technical by nature, so collaborate with your development team to ensure the API will work as intended and can be scaled as needed.
User-Centered Design
APIs ultimately serve the product’s users. Whether you’re consuming an API or providing one, think about how it will impact user experience.
Final Thoughts
APIs are the backbone of modern digital products.
Understanding how they work and how to leverage them can unlock new features, integrations, and opportunities for your product.
As a product manager, knowing how to specify, integrate, and manage APIs will be a critical skill in driving your product’s success.