An API integration is worth exactly as much as the manual time it removes, plus the value of fewer errors. If you count the hours per week that are currently spent on moving data by hand, use an hourly cost and compare it to what the integration costs, you will quickly see if it pays off. In many cases, an integration pays for itself in a few months and then continues to save time every week.

What is an API integration, in short?

API stands for "application programming interface" and is a way for two programs to talk to each other automatically. An integration is the very connection you build between them. In practice, this means that information that today is moved manually – an order, a customer, an invoice – is instead sent by itself between the systems. Simile: instead of carrying each bucket of water by hand, you run a hose between the well and the tank.

Where does the value really lie?

In three places, and all of them can be counted on:

  • Time saved:no one sits and copies information between systems anymore.
  • Fewer errors:manual input sometimes produces errors, and errors cost time to find and correct – sometimes even money (wrong order, wrong invoice).
  • Speed ​​and happier customers:things happen immediately rather than "when someone is ready", which often results in better service.

The easiest to put numbers on is time saved, so we'll start there.

Calculation example: an online store and an accounting system

Say that a company today manually transfers every order from the online store to the accounting system. We use simple, conservative assumptions:

  • 50 orders a week.
  • 3 minutes per order to transfer by hand and reconcile.
  • That will be 150 minutes a week = 2.5 hours.
  • Calculated on an internal hourly cost of SEK 400, it becomes SEK 1,000 a week.

Per year: 2.5 hours × approximately 50 working weeks = 125 hours, which corresponds to around SEK 50,000 per year - just in pure hands. And then we haven't factored in the time to correct wrong entries.

How quickly does the integration pay for itself?

Say such an integration costs SEK 25,000 to build (a one-time cost, the figure varies with how complicated the systems are). With SEK 50,000 saved per year, the integration is repaid in about six months. After that, it continues to save around SEK 50,000 a year, year after year, with little running cost.

This is the point of counting: a cost that at first looks like an expense turns out to be an investment that returns money every month after the payback point.

How do I calculate my own case?

Use this simple formula. Write down your own numbers:

  • Step 1:How many times a week does someone do the manual task? (number)
  • Step 2:How long does each time take? (minutes)
  • Step 3:Multiply together and divide by 60 = hours saved per week.
  • Step 4:Repeat with your hourly cost = kroner saved per week.
  • Step 5:Multiply by about 50 = saved per year.
  • Step 6:Divide the one-time cost of the integration by the annual savings = how many years (or months) to pay back.

If the repayment period is less than a year, it is almost always worth taking a closer look. If it is less than three months, it is usually a matter of course.

What more than time should I consider?

Some things that make the value even higher but are more difficult to put an exact figure on: reduced risk of expensive mistakes, that staff avoid boring routine work and can do other things, and that the business becomes less vulnerable if a certain person is ill or quits. Also factor in a small ongoing cost of running and maintaining the integration – it's usually small compared to the savings, but it's there.

When is it not worth it?

Be honest in the calculation. If the task is done infrequently, takes a few minutes, and almost never goes wrong, the manual route may be cheaper than building and maintaining an integration. That's exactly why you count first. A good partner should tell you if an integration isn't worth it - not sell it anyway.

Do you want to know if an integration is worth it for you?

At ZORC, we build API integrations between the systems Swedish companies actually use – online stores, accounting, business systems, CRM and more. We first help you figure out if it's worth it, honestly, and only build if the numbers hold. Get in touch with which systems you move data between today, and we will make a simple calculation example for your particular situation.