5 Reasons You Need Tech Tools With an Open API
In the heavy-asset industry, the shift towards digitalization has been occurring steadily. Many small companies dip their toe in and update systems as they scale. Large companies in asset-heavy sectors may incorporate technology to increase efficiencies, reduce errors, and gain a competitive advantage. This can range from ERP systems to IIoT to robotics and automation.
Often, this piecemeal approach leads to a hodgepodge of systems. The mix may include legacy systems, outdated technology, and reliance on manual data analysis. Integrating every device, application, and process offers multiple benefits.
If you’re under pressure to deliver projects on time and on budget—from maintenance to turnarounds and outages—you’ll need technology that integrates and has an open API for your greatest chance at success.
Why Technology and Systems Should Integrate
Navigating a digital roadmap can be challenging for many in the heavy-asset industries, such as refineries, paper mills, utilities, and mines. Determining which tech options to integrate and mixing them with manual solutions may lessen the benefits of some solutions. Integration typically creates complexity, increases cost, and makes it challenging to streamline processes.
The term Industry 4.0 is "synonymous with smart manufacturing” and “… is the realization of the digital transformation of the field.” In essence, it represents the tangible execution of the digital evolution within the sector.
According to Manufacturing Dive, “Manufacturing IT teams face ongoing challenges as organizations embark on Industry 4.0 initiatives to digitalize the existing infrastructure to adapt to new products and markets dynamically.”
Connecting each system to create an end-to-end (E2E) digital transformation via digital technologies can significantly boost the bottom line. McKinseysays it “can improve average earnings before interest, taxes, depreciation, and amortization (EBITDA) by 8.5 to 16.0 percentage points.”
Clearly, interconnectivity is valuable. So, asset-heavy industries have their marching orders. As they integrate new technology, they must ensure each system connects with the others.
Seems simple enough – right?
What is an Open API?
An open API is an application programming interface made publicly available to software developers.
While the directive for seamless tech integration in asset-heavy industries is clear, its practical implementation is far from simple. The challenge arises because there are a limited number of software systems that perform all the tasks your business needs to accomplish. And the systems most applicable to performing the exact tasks may fail the connectivity test. If your ERP, CMMS, access control, HR/payroll, etc. systems don’t connect, the new technology could be a hindrance.
When choosing new systems for your asset-heavy-industry business, leaders should choose software that integrates and has an open API.
Note integration and API are not the same, but both are critical for data access. “APIs often enable the transfer of data between systems. “… systems also use APIs more broadly to enable one system to access another for non-data transfer reasons. As a result, some APIs do not enable integrations,” explains Prismatic, a software development company. Open APIs, as opposed to closed APIs, enable integration.
5 Benefits of An Open API
Let’s review some of the benefits of an open API.
1. Integration and Interoperability: One of the primary benefits of open APIs is seamless communication and data sharing between systems. Systems and applications that have open APIs can communicate and share data seamlessly. This empowers businesses to maximize the value of their data.For example, an automotive manufacturing plant may use asset management software, a maintenance system, and a scheduling system. Without integration, the three systems operate in isolation, which could cause problems if the equipment is overused and breaks down.
In this case, you’ll gain better asset utilization and reduced downtime because the information flows between systems.
And if data is siloed? Data that stays in one department/area is limited in its value and impact.
2. Scalability: Transitioning from legacy systems or outdated technology to more modern systems can be expensive and complex. The process may happen slowly due to a few factors, including cost and the time it takes companies to realize the full benefits and recognize the potential gains. Transitions tend to be bumpy.
For example, Boeing, one of the world's largest aerospace manufacturers, faced a substantial challenge when it decided to upgrade its manufacturing systems. Their legacy systems were a patchwork of outdated hardware and software that couldn't keep up with the increasing complexity of designing and producing modern aircraft. Today, they are the epitome of a smart factory.
As your asset-heavy business grows and/or you determine it's necessary to integrate more technology into your processes, a plan is essential. Ensuring that each component of the tech stack will have an open API will make it easier (and less costly) to scale in the long run.
Open APIs also make it easier to scale and add new features without disrupting existing operations. This scalability can be crucial for companies dealing with large and complex operations
Why? Sunk costs. Replacing useful and costly technology is a tough call. Therefore, businesses may stick with technology until they feel they’ve recouped their investment. If, for example, a closed API ERP does not integrate with other technology, such as used for HR/payroll, teams may hold off on buying new technology and continue to rely on dated systems.
On the other hand, open APIs enable asset-heavy organizations to stay competitive by adopting new technologies and innovations quickly. Businesses can integrate cutting-edge solutions and adapt to industry trends without a complete software overhaul.
4. Cost-Efficiency: In an era of escalating costs, open APIs offer cost-saving advantages. Anything that can help maintain or even reduce budgets is most welcome.Open APIs can lead to cost savings by reducing the need to develop and maintain custom, in-house software solutions. Developing an in-house solution is time-consuming and costly, and it results in an unproven product that typically has a short shelf life. This is a poor return on workforce resources that have a limited amount of time. Putting a workforce in the best position to succeed lowers costs.
For example, BP and Chevron leaned into digital twins with open APIs for their digital transformation.
Instead of reinventing the wheel, asset-heavy companies can leverage existing software platforms and build on them through API integrations. This takes less time and is more likely to result in a long-lasting and useful product.
5. Data Accessibility and Analysis: Data is invaluable for its insights. Why do companies crave data? It’s the insights that can be gleaned which can impact decisions, both major and minor. Data can help asset-heavy companies be more proactive, rather than reactive, and proceed in a more beneficial direction for the business. That’s why, in the case of access to data, “the more the merrier” is not a trite saying.Open APIs facilitate access to valuable data stored within different systems, enabling better data analysis, reporting, and decision-making. This can result in improved asset management, predictive maintenance, and resource optimization.
Decision-makers can move forward with more confidence because there are few surprises. They’ve made the decision based on all available data and analysis.
Elevate Your Business with myTrack’s Open API Integration
Open API is more than just a feature--it's a critical consideration for asset-heavy businesses. Especially when your business needs to harness its data more effectively. With Open APIs, you can feed data into analytics platforms or use it to fuel AI and machine learning models for insights that drive efficiency and cost reductions.
An open API is one of the many valuable features of the myTrack platform. We know this is important to our customers who support numerous ERP, CMMS, access control, human resources/payroll, A/R and A/P, security, and other vital systems. To work successfully within this system's framework, our platform easily integrates with all leading ERP and CMMS systems, such as SAP®, Indus, Primavera®, Maximo, and many more. We do this via certified interfaces.
Check out myTrack to learn how it integrates with other systems, allowing you to maximize its benefits.
