IPA IP 2023 Question 31
A question IPA Japan published in 令和5年度 ITパスポート試験 公開問題 問31, translated into English. ITPEC is based on the same exams.
Which of the following is the most appropriate term to express a mechanism that expands business through means such as mutually using data and software via published interfaces that link the systems of various companies, and creating new services while promoting collaboration with those companies?
Explanation
API economy — the term for growing business by publishing APIs, so that companies use each other’s data and software and create new services together.
An API (Application Programming Interface) is the interface through which one program uses the functions or data of another. When a company publishes its APIs, other companies can link their systems to it and reuse its data and functions, for example a map, payment or authentication service built into another firm’s app. Combining such published functions lets partners create new services quickly, and every party gains users and revenue: an economic sphere that grows around the APIs.
Answer (a)
Why not others:
- •(b) Outsourcing — entrusting part of a company’s own work or systems to an outside contractor; it does not create new services through published interfaces
- •(c) Sharing economy — individuals and companies lend idle assets such as cars, rooms or skills to others through a matching service
- •(d) Process innovation — a fundamental change in how products or services are produced or delivered, as opposed to product innovation
Key rule: Published APIs, data and software shared between companies, new services built together: that is the API economy; a bank’s version of it in fintech is Open API.
Business Industry · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.