is a set of rules that allows software systems to exchange information and request actions from each other. API stands for Application Programming Interface. For example, it can connect an online shop with a company’s business system.
Companies often use APIs to transfer orders, stock levels and customer information between applications. This can reduce manual data entry and keep records consistent. However, the connection needs clear data rules, access controls and checks for failed transfers.
An ERP system can use APIs to connect sales channels, banks, machines and other business tools. It can receive information, update records and pass results back to the connected system. This helps teams work with shared data across different applications.