RPA vs. API in 2024: What Are Their Differences and How Can They Work Together?

Hey there! If you‘re reading this, you‘re probably interested in learning more about how two of today‘s most disruptive technologies – robotic process automation (RPA) and application programming interfaces (APIs) – are transforming businesses.

With digital transformation accelerating, RPA and APIs have emerged as critical tools to drive efficiency through automation. But understanding the differences between these technologies and their applications can be confusing.

Not to worry! I‘ve put together this guide to provide clarity on everything RPA and API-related. We‘ll walk through what exactly these technologies are, their key benefits, common use cases, and most importantly, how they differ and can work together seamlessly.

I‘ll share plenty of examples and data along the way to illustrate main points. My goal is to help you learn how to leverage RPA and APIs to innovate in your organization this year and beyond. Let‘s get started!

What is RPA and What Benefits Does it Offer?

First, RPA stands for robotic process automation. It uses software "bots" to automate repetitive, rules-based tasks previously performed manually by human workers.

For example, common RPA use cases include:

• Transferring data between systems
• Filling out forms
• Copying customer information from emails into CRM systems
• Generating and sending scheduled reports

Essentially, RPA mimics the way humans interact with software through digital workers that operate at the user interface level. It allows companies to automate various back office and front office workflows.

The main benefits RPA provides are:

• Increased efficiency – Bots work much faster than humans at routine clerical tasks. RPA can reduce task times by 70% or more.
• Improved accuracy – RPA eliminates human errors in repetitive tasks. Bots reliably follow predefined business rules.
• Cost savings – RPA reduces the need for manual labor, with expected cost savings between 25-50% on automated processes.
• Regulatory compliance – Automation ensures strict adherence to policies, standards, and regulations.

According to Deloitte, RPA has become one of the highest-ROI technologies available today, with payback periods as little as 6 to 9 months.

Examples of RPA Use Cases

To understand RPA better, let‘s go through some common use cases and examples across different industries:

Finance

• Automated report generation
• Data extraction and entry from documents
• Transaction verification
• Reconciliation of accounts
• Invoice processing and posting

For example, ANZ Bank automated 200,000 manual processes for 10,000 staff members using RPA, reducing the need for data entry by 75,000 hours per year.

Supply chain/logistics

• Extraction of shipment data from emails and forms
• Inventory status checks and reporting
• Purchase order creation
• Delivery order processing
• Billing and invoicing

DHL Supply Chain decreased manual work by 85% and order processing costs by 80% with RPA.

Healthcare

• Automated appointment bookings
• Data transfer from medical devices to patient records
• Claims processing
• Report generation for compliance
• Patient communication and reminders

One healthcare provider reduced registration process time from 7 minutes to 30 seconds using RPA, a 6.5x improvement.

Customer service

• Automated responses to common customer queries
• Payment processing
• Data sync between CRM systems
• Lead generation and data capture
• Order status checks for customers

By deploying RPA for customer service, companies have increased agent productivity by 30-50% while improving accuracy.

Human resources

• Automated employee onboarding processes
• Data entry from HR forms
• Report creation
• Updating employee databases
• Generating offer letters

RPA in HR can save 4-25 minutes per request while reducing data input errors.

This list just scratches the surface of where RPA can be applied across sectors from IT to marketing and more. Any process that is repetitive, has clear rules, and uses data from digital systems is a potential automation candidate.

According to Gartner, between 60-80% of back office processes are suited for RPA, representing huge efficiency improvement potential.

And by combining RPA with AI technologies like OCR, computer vision, NLP, and machine learning, you expand possibilities into more complex document processing and decision making. This combination is known as intelligent process automation (IPA) or intelligent document processing (IDP).

For example, RPA + OCR allows automated invoice processing by digitally reading unstructured invoice formats and extracting needed data. The AI elements handle document understanding that goes beyond RPA‘s core capability.

Now let‘s shift our focus to APIs, starting with what exactly they are and why they matter.

What are APIs and Their Key Benefits?

API stands for application programming interface. APIs act as intermediaries that allow different software systems to communicate with each other.

For example, travel websites use flight data APIs to aggregate flight options across airline websites. Payment platforms use APIs to securely process transactions. Rideshare apps use map APIs to coordinate pickups and routing.

APIs eliminate the need for complex point-to-point integrations between systems. With APIs, applications can simply make requests to access functionality or data from other applications as needed.

APIs allow different software systems to seamlessly share data and capabilities.

Key benefits provided by APIs include:

• Simplified integration – APIs significantly reduce the complexity of connecting systems. They accelerate development and innovation.
• Legacy modernization – APIs allow legacy systems to interface with modern applications through a standardized gateway.
• Security – APIs enable secure data exchange through authentication and controls.
• Scalability – APIs easily scale up interactions as needs grow by adding new endpoints.
• Orchestration – APIs can sequence processes across multiple systems by calling different actions.

Gartner predicts that by 2022, APIs will be the top digital investment priority for organizations as they pursue digital business goals.

Common Use Cases and Examples of APIs

Now let‘s examine some common API examples across different business functions:

Sales and marketing

• CRM data access from mobile and web apps
• Integration of marketing automation systems
• Product data APIs for channels and partners
• APIs to integrate A/B testing results
• Customer audience segmentation APIs

Salesforce and HubSpot both offer APIs allowing customization of workflows and data flows across the customer lifecycle.

Finance

• APIs to connect core banking systems with digital channels
• Retrieve real-time quotes for trading apps
• Submit digital tax forms and payments
• Send payment data to ERP systems
• Standardized APIs for open banking

Banks like BBVA use APIs to create unified customer experiences across channels. Tax platforms like TurboTax use government APIs to file and pay electronically.

Supply chain

• APIs linking inventory, logistics, manufacturing, and sales
• IoT sensor data collection from transportation assets
• Automated purchasing based on inventory APIs
• Shipping/tracking status APIs
• Supply chain data analysis and visualization

Retailers like Walmart rely on supply chain APIs to track inventory and merchandise planning. Logistics providers like UPS and FedEx provide package tracking APIs.

Healthcare

• Patient health records access via clinical APIs
• Wearables data consumption through health APIs
• Insurance eligibility and claim submission APIs
• Remote patient monitoring APIs
• Prescription management APIs

The healthcare sector uses many APIs to consolidate information across clinics, pharmacies, labs, wearables, and insurance. FHIR APIs helphealth data exchange.

This is just a sample of API usage in business. Almost every industry leverages APIs in some way to maximize efficiency through tighter system integration. APIs remove friction associated with hard-coded point-to-point connections.

I‘ll cover API implementation later in this guide. But first, let‘s clearly outline how APIs differ from RPA at their core.

Fundamental Differences Between RPA and API Capabilities

Now that we‘ve defined RPA and API independently, let‘s discuss how they differ at a technical level:

To summarize:

• RPA automates tasks humans do via software UIs
• APIs integrate apps through invisible background data sharing

RPA operates through the front end user interface while APIs focus on back end integration.

Another way to visualize the difference:

RPA automates repetitive user actions while APIs enable system connectivity.

Although they work differently, RPA and APIs can complement each other powerfully when used together in an optimized workflow. Let‘s explore that synergistic relationship next.

How Can RPA and APIs Work Together Seamlessly?

While RPA and APIs serve distinct purposes, combining them unlocks automation possibilities greater than either can deliver independently.

RPA depends on APIs to easily obtain, deliver, transform, and apply data needed for workflows. Conversely, APIs rely on RPA to automate multi-step front end processes and decision logic around API requests and responses.

Together, they remove manual effort through seamless end-to-end automation with integrated data flows.

Here are two examples of RPA + API alignment in practice:

User onboarding workflow

1. Website visitor fills out registration form
2. Form submission triggers API call to external CRM database
3. API returns visitor data to website
4. RPA bot extracts data and populates new user account
5. Bot sends automated welcome email with data from email API

Supply chain replenishment

1. RPA bot checks inventory levels via database API
2. Seeing low inventory, bot calls supplier API to create purchase order
3. Inventory API returns confirmation that order is placed
4. Bot generates email confirmation to internal team using email API

In both workflows, APIs handle the interconnectivity while RPA enables the orchestration and end-to-end process automation.

According to Capgemini, organizations using RPA and APIs gain 53% greater benefits compared to RPA alone.

Let‘s examine a few examples of how APIs specifically help maximize RPA utility:

APIs allow RPA access to data

RPA bots rely on APIs to quickly obtain, consolidate, and normalize data from multiple sources as needed for automated workflows. For instance, RPA could gather customer data from 5 different systems through their respective APIs rather than creating a separate integration with each source.

APIs enable RPA orchestration

APIs allow RPA bots to call and sequence API capabilities as steps within an end-to-end automation routine. For example, RPA could use a series of HR, payroll, and benefits APIs to automate employee onboarding processes.

APIs standardize RPA integration

Rather than RPA needing customized connections to each application, APIs provide a consistent structured method for integration. For instance, multiple RPA bots can reuse the same set of mapped APIs.

APIs scale RPA usage

As demand for RPA expands across the enterprise, underlying APIs flexibly scale up to support higher RPA load and throughput. New RPA workflows can also leverage existing APIs.

In short, APIs + RPA together create the intelligent automation capabilities needed to streamline even complex end-to-end business processes.

Best Practices for Implementing RPA Successfully

Now that we‘ve covered RPA concepts in depth, let‘s switch gears to implementation advice.

First, focus RPA on automating repetitive, high volume tasks rather than complex workflows. Look for processes with clear business rules and little need for exception handling.

Good starting points include data transfers, report generation, email triggers, form filling, and data extraction/cleanup.

Next, thoroughly map out current workflows and tasks. Profile key automation opportunity metrics:

• Volume of tasks/requests per day/week/month
• Average time spent per task
• Frequency of task execution
• Data inputs and outputs

These metrics will help estimate workload reduction, cost savings, and ROI for automating each process.

When selecting an RPA software vendor, look for an enterprise-ready platform that:

• Integrates well with your existing landscape
• Offers options for non-developers like recorders and pre-built automations
• Provides management and analytics around bot performance
• Enables API and AI expansion

Leaders in the RPA industry include UiPath, Automation Anywhere, Microsoft Power Automate, Blue Prism, and WorkFusion.

Start with a limited pilot, measure results, and expand incrementally to prove value. Maintain collaboration between RPA and IT teams for optimal consistency and support.

Best Practices for Implementing APIs Successfully

The first step in leveraging APIs is identifying integration issues slowing down the business. These often include:

• Mobile/web access to core data or capabilities
• Connecting modern and legacy applications
• Supporting distributed multi-site processes
• Allowing partners/customers to integrate with your systems

Next, prioritize APIs delivering the most value back to the business. Consider factors like revenue potential, customer experience impact, and cost reduction opportunities.

When designing APIs, focus on usability, performance, and extensibility:

• Self-documenting – Use consistent naming conventions and structures
• Scalable – Design for spikes in usage and add capacity
• Flexible – Avoid overly restrictive endpoints and payloads
• Monitored – Track API traffic analytics and behavior

There are many API development platforms to accelerate creation such as Postman, Apigee, Kong, and Amazon API Gateway.

Be sure to thoroughly test APIs and implement versioning to support iterative improvements. Promote API usage internally and monitor analytics to drive adoption.

Maintaining APIs and encouraging utilization is key to realizing full integration benefits over time after the initial implementation.

Ready to Get Started?

Hopefully this guide provided you with a helpful introduction to RPA and API capabilities on their own as well as their powerful synergies together.

Here are some key questions to consider for getting started:

• What manual processes are draining productivity in the organization?
• What systems and data need better integration?
• What workflows have the highest automation and integration potential?
• How can we scale our automation efforts over time?

I‘m confident that with the right strategic foundations, RPA and APIs can help your business eliminate inefficiency, improve data flows, and unlock new levels of speed, agility and innovation.

If you need help navigating RPA and API platforms or implementing them successfully in your organization, please get in touch! I‘m always happy to chat.