You have probably witnessed the use of the term digital transformation to signify different rites of passage in technology over the past couple of decades. When technology is evolving so fast, it’s only natural that digital transformation could denote a different thing each time we talk about it. The role of ever-expanding digitalization is growing by the minute, becoming increasingly significant for businesses across various industries.
We have so conveniently implemented digital products that enable us to shop, bank, and go about our daily activities that functioning without them is no longer an option. Customer expectations have started to shift as technology evolves: the simple web commerce experience progressed to omnichannel-enabled mobile apps and voice search, plus now we have multiple digital product platforms. Companies keep developing top-of-the-line products that will meet the expectations and demand, as well as boost long-term returns.
Generating new revenue streams can only go so far without implementing novel technologies that transform the process itself and the results. If you have been thinking about leveraging digital transformation to advance your business, the options for new revenue streams are abundant.
Leveraging API Solutions
Thanks to the API economy, development teams can cut laborious manual processes by accessing and exchanging a wide array of open source and paid API solutions. All of those apps and web platforms that make our day-to-day life easier can flawlessly integrate good design and user experience with an abundance of different functions. Developing applications and services used to be a lengthy and expensive process that required an experienced team and virtually limitless funding. However, companies that started integrating API solutions wherever possible have significantly cut costs and production time.
Short for application programming interface, APIs are used to link many different software functions into one product. Companies in the technology sector integrate into a business ecosystem using APIs. They can be private and used for internal company operations, partner APIs, implemented only between specific business partners, or public APIs, some of which require customer status validations or API tokens. The customizable software interfaces enabled by APIs make them an unparalleled tool in the digital economy.
API Development and Monetization
Because of the exponential qualities and potential of API interfaces, developers have been using APIs to create multifaceted products. Besides implementing them, many companies and developers have resorted to developing APIs, whether specifically for an internal company function or for a particular application. Some companies provide their APIs to consumers free of charge to enable the best experience for end-users. However, there are ways to collect revenue from API consumers.
Monthly or yearly subscription models with different tiers require a lot of upfront planning, so many prefer pay-as-you-go models, charging per API call, time, data processed, or storage time. Sometimes, API providers can share revenue with their consumers, like those offering referral affiliate programs or advertisements as part of their APIs. Ad shares are a great way to incentivize the use of your API while boosting traffic and revenue. Furthermore, enterprise pricing and freemium monetization models are other common ways to offer payment solutions.
Create New Products and Services
When it comes to digital transformation, introducing new lines of products or services is one of the best ways to upgrade your business plan. They say necessity is the mother of invention, so developing one service could often prove the need for several other features. By releasing new, upgraded versions of your product, you will discover new points of sale while improving your scope of activities.
Predictive Insights and Long-Term Revenue Opportunities
One of the pinnacles of digital transformation nowadays is the availability of machine learning and artificial intelligence. It is easier than ever to gauge performance in different sectors and periods thanks to an abundance of advanced analyses tools. We can obtain predictive insights about the future of a company by providing details about past data. Pinpointing potential sources of difficulties before they arise has never been easier, and long-term revenue opportunities are finally within reach.
Your Business Architecture and Looking Ahead
The time for digital transformation has just begun, and companies around the world are preparing themselves for the changes about to come. By introducing new opportunities for revenue income, you can go over your business plan and see what novelties you can implement without resistance. It is important to remember that sometimes it takes time to see results after adjusting for transformation. Slow and steady wins the race, so ensure your business architecture is ready to withstand potential changes. No matter the obstacles that come up on the road to creating new revenue streams, digital transformation is a worthwhile investment for any company in the long run.