Widely diversified corporate networks and value chains have given rise to even closer cooperation among various organizations and partners today with the purpose of boosting business potential and driving innovation. Surveys show that top management is radically rethinking how they do business. In addition to advancing digitization, they have named internal and external interconnectivity as a central goal. And a one key way to leverage this interconnectivity is through the use of application programming interfaces.

APIs at a glance

Application programming interfaces (APIs) are anything but new. However, due to the extremely high demand for interconnectivity, interaction, and communication in today’s world they are gaining ground. APIs enable organizations to securely exchange data via standards and platforms that are easy to use and help them use common applications to work together, both of which are cornerstones of successful partnerships.

Looking toward the future

The automotive industry is currently breaking new ground in how APIs are used. Numerous companies are expanding the scope of their initiatives so they can take full advantage of powerful APIs. These interfaces are much more than simple tools used by application developers and data scientists. They open doors to new opportunities in transforming business models and enhancing customer experiences.

APIs in everyday use

The advantage of APIs when it comes to mobile apps is obvious. A good example is a consumer who can configure a dream car from the living room sofa in just a few clicks. In this scenario, the API ensures that all of the required information is channelled into one convenient app environment, which is designed to convince users that they have selected the right brand and strengthen customer loyalty.

Another critical element is the Internet of Things (IoT) which manufacturers, suppliers, and distributors can all use to drive their digital strategy. Take the following examples from the automotive industry.

  • An integrated car assistance service sends information via an API to update the GPS technology and maps in a vehicle.
  • An interconnected car sends data about the driving behaviour of the car owner to an insurance company via an API.
  • Integrated sensors from various vehicle components transfer data to the manufacturer, where it is then evaluated and checked for potential problems. Using an API, the manufacturer can proactively forward this information to the driver and an authorized repair shop before the problem becomes acute and customer satisfaction is negatively impacted.

APIs and the interconnected car

Connected car scenarios that are supported by APIs are providing extremely exciting ground-breaking possibilities that, on the one hand optimize internal business models, and on the other hand, create an enhanced experience for the customer. In these cases, APIs serve as the bridgehead for connecting services provided by multiple separate providers and merge their respective data and capabilities into a unified whole.

Examples of API-supported scenarios are remote functions and servicing for vehicle control systems, location and navigation services, and a full range of concierge services that use integrated components to ensure that all elements work together seamlessly and bring real added value to the customer.

API Scenarios in the Automotive Industry

The car is no longer a mere means of transportation. It is also designed to make a driver’s daily life easier and offer intelligent comfort.

Our solutions for your industry

Microsoft is a change agent for the automotive industry and helps companies find ways to leverage immense opportunities with new and innovative solutions in the API economy. We offer API integration and management, and our cloud platform provides comprehensive APIs for services that support cutting-edge applications.

Microsoft security experts are responsible for the development, integration, and expansion of APIs, and our technology consultants offer broad knowledge and a wealth of experience to help you reach your goals. The benefits for you are a cost-effective, interconnected environment without risks and the need for expensive in-house developments.

Read more about concrete application scenarios.