In part 1 of this blog series, I displayed the different ways reusable assets can be valuable. I will take this one step further and introduce a simple framework for assessing the projected return on integration assets (ROIA), which can inform how your organization prioritizes integration development.
There are various sources of value that a reusable integration asset can create, however, this framework will focus on the value opportunities that stem from development and maintenance efficiencies. To learn other ways to articulate the value of integration, such as monetization potential and broader business outcomes, see our related white paper.
There are two ways to measure the value of a reusable asset from a development and maintenance perspective.
No 1. Compare API-led approach to non-API-led approach
Calculate “x – y”, where “x” = cost to develop/maintain integration without API-led approach and “y” = cost to develop or maintain integration with an API-led approach.
With this method, measure the cost difference between developing and maintaining the integration asset using a custom, point-to-point code approach to the cost of developing and maintaining the integration asset using an API-led approach.
For example, let’s assume the cost of development and maintenance for a non-API-led approach is $10,000 (x), while the cost for an API-led approach is $5,000 (y). To find the value of this asset, subtract x from y ($10,000 – $5,000) to get $5,000.
No 2. Identify cost of API-led approach
Determine “y”, where “y” = cost to develop/maintain integrations with an API-led approach.
With this method, only look at the actual cost to build and maintain the asset using an API-led approach.
For example, let’s assume the API-led approach costs $5,000 to build and maintain. The value of this asset is $5,000.
This post should have helped you assess the value of your integration assets, to drive an optimal ROIA and prioritize development. In my final blog post of the series, we’ll review a case study of how a U.S. high-tech company used this framework to generate significant value from reusable integration assets.