Exploring business drivers of monetization

Enterprises must adopt a mindset of innovation to survive in the market. Hence, they must be responsive to the demands of the business and create products that showcase their unique brand and expertise. There are several reasons for an enterprise to expose business functionality or render a digital service through an API that can be monetized. The main business drivers for this approach are explained in the following sections.

Expand the channels of revenue streams

By monetizing APIs, enterprises can create a new opportunity to generate revenue. APIs can deliver a virtual service or business functionality for a price. The consumers of the APIs will be charged based on their consumption of these APIs, and the revenue collected through the use of the APIs will add to the revenue stream of the enterprise.

Some companies have totally transformed their businesses and sell API products like Software-as-a-Service (SaaS) products. There...