What is an API (application programming interface)?
A standardized interface that software exposes so other systems can read data or call functions in an agreed way.
In detail
An API is like a “service counter” between systems: one system defines which requests it handles, what information it needs and what results it returns, and other systems simply follow those rules to “get things done”, without needing to know how the other side works internally.
For example
The warehouse system queries orders awaiting shipment through the ERP's API, then calls the API again after shipping to update the order status to “Shipped”.
How companies use it
When buying software, check whether it offers a complete, documented API. This determines whether it can later connect with other systems and AI applications.
Common misconceptions
Ignoring API permissions and rate limits. Poorly managed API keys can create a risk of data leaks.
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