In today’s fast-paced digital world, businesses rely on multiple software systems to handle everything from payroll to customer relationships. The challenge? Getting these systems to "talk" to each other seamlessly. That’s where API integration comes into play. In this blog, we’ll take a closer look at what API integration is, why it’s important, and how businesses can leverage it to streamline their operations.
Application Programming Interface (API) is a set of rules and protocols that allows different software applications to communicate and share data. In simpler terms, it’s like a bridge that connects various systems and enables them to work together. API integration allows you to connect tools and software seamlessly, reducing manual work and increasing efficiency.
Whether you know it or not, you interact with APIs every day on the web. Essentially, APIs are what makes it possible to move data between various programs quickly. Do you ever wonder how you can use your Google account to log in to new websites? You can thank APIs for that.
How do APIs work? They're created by companies leaving parts of their software “open” so other softwares can easily integrate with them and request information.
API integration offers numerous benefits to businesses, helping them scale and streamline operations. Here are some key reasons why it matters:
Efficiency and Time Savings: With API integration, businesses can automate processes that would otherwise require manual intervention. Instead of entering data across multiple systems, the data flows automatically, saving employees time and reducing the chances of human error.
Improved Accuracy: When systems are integrated through APIs, data is transferred automatically and directly between systems, minimizing the risk of errors that often come with manual data entry. This results in more accurate and up-to-date information, which is crucial for making business decisions.
Seamless User Experience: When multiple systems work together through API integration, users ranging from employees to customers or vendors experience smoother workflows. For example, an integrated HRIS (Human Resources Information System) can automatically pull data from payroll, performance management, and benefits systems, giving HR teams a unified view of employee data.
Scalability: As your business grows, so do your software needs. API integration allows you to connect new applications and systems without overhauling your existing infrastructure. This scalability is essential for businesses looking to expand and adapt to changing needs.
One of the primary ways APIs impact benefits administration is by enabling seamless data transfer between various systems involved in benefits management. In many organizations, benefits administration software involves multiple platforms, such as:
A prime example of how APIs enhance benefits administration is highlighted through BerniePortal’s partnership with Ideon. Ideon streamlines the complex process of data exchange between BerniePortal and insurance carriers. Through a single, seamless API integration, Ideon provides access to an extensive network of carriers such as Cigna, UnitedHealthcare, and BlueCross BlueShield for functions like enrollment and benefits management. Thus, the need for benefit-focused companies to establish individual connections with each carrier is eliminated.
While the insurance industry continues to lag behind other industries in technology, the use of API integrations is a step towards modernization. As more insurance, payroll, and other benefits-related organizations continue to offer API integrations, we'll see faster and more accurate transmissions of data between various parties.
Electronic Data Exchange (EDI) is simply a standard format for exchanging data from computer to computer. If you’re familiar with file feeds, then you already know what EDIs are. This is a mechanism for pushing streams of information, or data feeds, from one database to another, automatically or on demand.
While EDI is a step above manually inputting information, the process does leave room for error. The files are often difficult to interpret, and most carriers will typically only do EDI with companies that have more than 100 employees because of the error reports they generate.