The days when we could rely on predictable customer behaviours and the good old brick-and-mortar model are long gone. Uncertainty is the new normal as retailers are facing a plethora of challenges: technological whirlwinds, shifting consumer preferences, supply chain complexities, and macroeconomic and geopolitical conditions disrupting the industry — leaving companies with tough decisions to make. Retailers have become risk-averse, and hesitant regarding which direction to follow. With several of them falling under private equity groups who aim to cost cut and revitalise the business for future tactics, there is also the issue of reduced spending power and no desire to replace legacy systems. This environment is compelling retailers to adapt, innovate, and strategise like never before to thrive in an era where uncertainty is always looming. One way to combat this uncertainty is by having a MACH approach, using API-first principles to realise the value of your technology assets.
What uncertainty are we facing today?
As per a recent survey by McKinsey, in the current landscape of uncertainties facing retailers, geopolitical tensions in Europe and the Middle East, coupled with strained international relations, take centre stage as the number-one concern for fashion industry executives entering 2024. This apprehension is closely followed by worries about economic volatility and inflation, with 62 %of executives identifying geopolitical instability as the top risk to growth in a survey conducted in September. The challenges are further underscored by economic volatility (55 %) and inflation (51 %). In this climate of uncertainty, executive perspectives on the industry’s prospects are notably divided, marking a departure from previous years. Against this backdrop, an API-first design proves to be a strategic advantage for retailers navigating through turbulent times. By prioritising an API-first approach, retailers can streamline their operations, enhance adaptability, and efficiently integrate emerging technologies. This not only equips them to weather the economic uncertainties but also positions them for resilience and growth, ensuring a competitive edge in the ever-evolving retail landscape.
API-First Approach: What Does it Mean for a Company?
In the face of these challenging circumstances, it is necessary for industry leaders to innovate with technology to navigate the turbulent market.
With the adoption of API-first design, a technology strategy that can prove invaluable in addressing the sector’s ongoing challenges. By prioritising an API-first approach, companies can streamline their technology operations, enhance flexibility, and improve their ability to adapt swiftly to changing market conditions.
API-first design involves building applications and systems with a primary focus on Application Programming Interfaces (APIs) from the outset. These APIs act as the connective tissue that enables various software components, platforms, and even business partners to communicate seamlessly. In the context of the fashion industry, API-first design can help in several ways:
- Removes the need to migrate business-critical legacy systems such as the ERP to evolve: By adopting an API-led approach, businesses can avoid the costly and time-consuming process of migrating legacy systems. This ensures that core systems, like the ERP, can continue to function seamlessly while modernizing other aspects of the business.
- Enables agility and scale for a business in a state of flux: An API-led approach offers the flexibility needed to adapt to changing market conditions and ownership structures. It not only allows for performance tuning but also facilitates rapid changes, ensuring that the business can pivot and grow as required.
- An API-led approach enables composability and value in incremental building blocks: The incremental nature of API-based solutions makes it easier to build and expand. This approach breaks down complex systems into manageable components, enhancing the ability to upgrade and adopt new solutions as technology evolves.
- Adding modern functionality to an aging stack: Incorporating microservices and cloud-based APIs allows businesses to infuse new technologies like AI into their existing stack. This method leverages external services to handle resource-intensive tasks, reducing the burden on the existing infrastructure.
- Separating the stack into modular capabilities: Through API-based architecture, businesses can break down their monolithic systems into modular capabilities. This not only enhances the overall efficiency but also creates the potential for selling or supporting these modules independently, which can be valuable in the event of an acquisition.
- Enabling business teams to connect to existing systems in new ways: Embracing an API-led approach empowers different business teams to interact with existing systems more effectively. It promotes data democracy and encourages the use of APIs to connect front-end and back-end systems. For instance, it allows digital teams to seamlessly integrate their applications with the current back-office systems, facilitating a more unified and efficient operation.
A MACH based, API-first approach reflects a commitment to modernising and future-proofing your technology infrastructure while maintaining flexibility, adaptability, and a focus on efficient integration. It positions APIs as a central element in achieving these objectives and offers numerous benefits in terms of scalability, resilience, and the ability to leverage emerging technologies for a more reliable technology presence.
For example: a struggling large retailer aims to boost revenue through headless commerce and omnichannel capabilities. They’re hindered by an outdated, heavily customised eighteenyearold ERP with limited integration options, tailored to their legacy operations. Recently acquired by a private equity group, they seek transformation without overhauling their systems through a costly, multi-million-pound project.
API – First Approach
Instead of attempting a complete overhaul overnight, our approach focuses on constructing a series of APIs to link our current infrastructure with cutting-edge, cloud-native, best-in-class platforms.
Companies can work with AbsoluteLabs to implement this in strategic phases that deliver tangible business value with each release.
How you can ensure value with an API First design?
Every architecture design choice should be guided by measurable business results. Value is unlocked through the reuse of these APIs and the adoption of these connectors, which spark fresh ideas and enhance existing connections. In situations of uncertainty, there’s minimal margin for error, making the success or failure of any implementation a critical concern. Teams must be empowered to create clear objectives and understand how to experiment with new approaches and technologies even if they come with some level of risk. As value is not always initially apparent, this will help to ensure buy-in from businesses leaders.
In the ever-evolving business landscape, it’s crucial to consider not only revenue generation and sales conversion but also the cultural aspects of API adoption. Establish robust monitoring for both internal and external API usage, providing valuable KPIs and key metrics to engage stakeholders at higher levels. Create communities of practice, to foster a deeper understanding of the benefits of an API-led approach, reducing the need for constant validation. Effective API governance ensures consistency in implementation, especially in scenarios with separate teams. Recognizing both successes and failures is essential to embracing a test-and-learn mindset, vital in times of uncertainty and experimentation. Given the rapid changes in the industry, staying on the cutting edge, particularly in areas like AI, is paramount for differentiation and maintaining a competitive edge. Time to market and staying ahead of the curve are now also pivotal priorities when combatting uncertainty.
In the dynamic world of retail, uncertainty is the new constant. Retailers grapple with evolving technology, changing consumer preferences, and complex supply chains. Private equity ownership often restricts expensive system replacements. The API-first approach offers a lifeline.
API-first design, centred on APIs, streamlines operations and connectivity, modernises without migrating legacy systems, and fosters adaptability. It breaks complex systems into manageable blocks. This strategy is more than technology; it’s about futureproofing and adding value.
By empowering teams to experiment, monitor success and failure, and set clear objectives, retailers can thrive in a rapidly changing market. In a constantly evolving industry, an API-first approach ensures that you stay ahead of the uncertainty.
How does AbsoluteLabs create API-first design?
In the ever-evolving landscape of uncertainty, AbsoluteLabs emerges as a transformative force, offering a lifeline to consumer goods and other industry clients through a cutting-edge API-first design roadmap. As a 360-degree consultancy, we excel in navigating the complexities of retail technology and digitalisation, delivering bespoke solutions that redefine industry standards. Our commitment extends beyond immediate challenges, as we specialise in implementing MACH principles seamlessly, ensuring that your technology infrastructure not only adapts to change but thrives in it. AbsoluteLabs empowers businesses to stay resilient and competitive, offering a strategic advantage in the face of constant disruption.
Explore the transformative potential of API-first design and MACH principles with AbsoluteLabs – your trusted partner in achieving technological excellence and future-proofing your business against the uncertainties of tomorrow.
Our experts are ready to guide you through the implementation of API-first strategies and MACH principles, ensuring your business remains at the forefront of innovation.
Contact us for a personalised consultation and unlock the full potential of your technology infrastructure. Choose AbsoluteLabs as your strategic ally in navigating uncertainty, and let’s build a future-ready foundation for your success.