Open API and the Impact on Business Models [Keynote]

In this keynote, you'll see the difference between just APIs and API-as-a-Product, which have a significant impact on business models and value creation.
Open API is the foundation of API products. The API is the interface to a value proposition. This approach leads to new business models, digital platforms, digital ecosystems.
I present the API-as-a-Product stories of Swisscom and the Red Cross and show how the organization and culture has an essential impact on how technological capabilities impact the business value.

- More info: https://www.amanciobouza.com
- Let's connect: https://www.linkedin.com/in/amanciobouza/
- Follow me: https://twitter.com/AmancioBouza

Transcript

1. OPEN API AND THE IMPACT ON BUSINESS MODELS Amancio Bouza, sitic, 18. September 2019, Winterthur
2. @AmancioBouza Amancio Bouza API is the interface to a value proposition API & AI Enthusiast, Dot Connector, Author of API Product Management • Principal Consultant, ipt • Digital Catalyst, The Digital Journeymen 2 amanciobouza @amancio.bouza amanciobouza.com
3. Open API has an impact on Business Models My promise: You’ll understand what it takes to build a successful business model based on Open API A preview: Two Stories: The Swisscom API Journey and API Product Management at an NGO. 3
4. SWISSCOM API JOURNEY FROM OPEN API TO API-AS-A-PRODUCT 4
5. 5 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch 2013 2014 2015
6. #1 Let’s do Open API 6
7. 120 APIs were identified to be exposed 7
8. Usability Micro APIs Highly specialized items Messerer Jeweler Studio, Zurich 8
9. 2013 9 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-booklet-rc1086mmwebpdf
11. HOW TO BUILD THE API, NOT! 11 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
12. #2 Let’s foster better and quicker apps 12
13. Getting out of the comfort zone 13
14. First contact … … with customers 14
15. First contact … … with customers That’s me 15
16. Flexibility Big APIs 16
17. API Design: Usability vs Flexibility 17
18. 2014 18 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-api-journey2
20. Something was missing 20
21. VALUE
22. 22 #1 Let’s do Open API #2 Let’s foster better and quicker apps Still missing! Source: Amancio Bouza, Institute of Product Leadership: https://youtu.be/LKwtHaPxrhU
23. Open API is an invitation. Customer decides if he accepts. 23
24. API is the interface to a value proposition. 24 Source: https://www.linkedin.com/pulse/api-dead-long-live-vpi-amancio-bouza/
25. VALUE PROPOSITION INTERFACE 25 Source: https://www.amanciobouza.com/post/value-proposition-of-api
26. #3 Let’s build products aka Impact of Open API on Business Models 26
27. 2015 27 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch/the-swisscom-api-journey-3-upcoming
28. 28 Source: http://api-as-a-product.com/ API PPRODCUT MANAGEMENT
29. 29 Source: Amancio Bouza & Andrea Zulian, Product Management Festival Europe, 2018
30. SWISS NGO HELPING MORE PEOPLE MORE AT WITH API PRODUCTS 30
31. WE FOCUS ON ONE SERVICE: ASSISTED TRANSPORT 32
32. WHAT IS AT STAKE? 33
33. CUSTOMER BASE 34
34. CUSTOMER BASE 35 TOO YOUNG TOO YOUNG
35. CUSTOMER BASE 36 TOO YOUNG TOO YOUNG DIE OUT
36. CUSTOMER BASE 37 TOO YOUNG TOO YOUNG DIE OUT OTHER PRIORITIES
37. NO SUSTAINABLE CUSTOMER BASE! 38
38. At least, NGO’s don’t #GETUBERFIED 39
39. At least, NGO’s don’t #GETUBERFIED 40
40. 41 Source: https://www.uber.com/de-CH/ride/uberwav/
41. IN THE LAST 15 YEARS 52% OF FORTUNE 500 COMPANIES HAVE GONE EXTINCT 42 Source: Innosight Your company name could be shown here
42. NOW WHAT? 43
43. MISSION: 44 DIGITAL TRANSFORMATION DIGITAL PRODUCTS & ECOSYSTEMS API PRODUCT MANAGEMENT HELP MORE PEOPLE MORE
44. 46 Source: Amancio Bouza & Andrea Zulian, APIDays Paris 2018
45. 1. VALUE CHAIN Digitalization 47
46. DESIGN SPRINT 48
47. 49 PAIN POINT: RAPPORTS DRIVERS fill out multiple rapport forms for each transport
48. 50 PAIN POINT: RAPPORTS EMPLOYEES enter rapports into applications
49. We digitalized the Green and Yellow Rapport RAPPORT APP 51
50. We digitalized the Green and Yellow Rapport RAPPORT APP 52 Just kidding
51. API SOLUTION: RAPPORT API Create Rapports POST /rapports {startTime, distanceKM, duration} 53 RAPPORT APP
52. Rapport API API solution that helps to digitalize a business process. Cost saving as business value 54 Source: https://twitter.com/AccentureTech/status/1035528650416955393
53. 2. PLATFORM / API PRODUCTS DIGITAL TRANSFORMATION 55
54. WHY API PRODUCT? 56
55. “3.6 million Americans miss their medical appointments due to a lack of reliable transportation” 57 Uber Health Source: https://www.uberhealth.com/about
56. 0.085 M miss appointment in Switzerland $135/15min cost of missed appointment $11.5 M total loss because of missed appointments Source: https://www.expatistan.com/price/doctor/zurich 58 “3.6 million Americans miss their appointments due to a lack of reliable transportation” USA Population: 327.2 M Source: https://en.wikipedia.org/wiki/United_States SWITZERLAND Population: 8.5 M Source: https://en.wikipedia.org/wiki/Switzerland 3.6 M miss appointment in the USA => Source: https://www.uberhealth.com/about
57. $ 11.5 M ARE LOST BECAUSE OF MISSED APPOINTMENTS 59
58. LET’S GIVE THEM $11.5 M AND CHARGE A FRICTION, E.G., $1’000’000 60
59. CHF '1.00 CHF 200'001.00 CHF 400'001.00 CHF 600'001.00 CHF 800'001.00 Rapport App (API Solution) Transport Care (API Product) API PRODUCT BEATS API SOLUTION 61 Revenue $1’000’000 Revenue $200’000 5x Source: https://www.digital.redcross.ch/: Assumption: 12 customers, 1500 drivers => $204k
60. HOW TO BUILD API PRODUCT? 62
61. FROM INSIDE-OUT TO OUTSIDE-IN 63
62. VALUE PROPOSITION CANVAS 64 Source: Alex Osterwalder
63. VALUE PROPOSITION INTERFACE CANVAS 65 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
64. API-as-a-Product UBER for assisted transport TRANSPORT CARE 66
65. API Product for Healthcare Organizations: TRANSPORT CARE Manage Transports (not rapports) POST, GET, PUT /transports {startTime, distanceKM, duration, destination, passenger} 67 ASSISTED TRANSPORT APP
66. Recap: Rapport App: $ 0.2M Transport Care: $ 1.0M 68
67. BUSINESS VALUE 69
68. 0 70
69. 0 71
70. 0 72 What went wrong?
71. 73 Business: Selling Apple Technology Revenue model: $/kg Technology to measure weight API
72. DOESN’T WORK IN SPACE 74
73. 75 Business Value Technology and promised capabilites smarter faster better cheaper more
74. 76 Business Value Social Context smarter faster better cheaper more Technology and promised capabilites Boosts or blocks the impact of technological capabilities on the business value!
75. YOU WIN OR YOU ... 77
76. YOU WIN OR YOU LEARN 78
77. PYRAMIDE OF DIGITALIZATION 79 Digital Transformation is about setting the social context right to leverage the benefits promised by a technology. Source: https://medium.com/api-product-management/what-is-digital-transformation-digitalization-and-digitization-c76277ffbdd6
78. Digital Transformation Framework* Eliminate Blockers to remove obstacles that hinder success Establish Enablers to boost the effect of techn. capabilities on the business value Next Action: Get an API product manager and a dedicated team. Give teams responsibility and accountability IT/API Governance 80 Observation Swisscom NGO Make or Break API as a Product Approach Yes No Enabler API as a Project Approach No Yes Blocker API Product Manager Yes No Enabler Budget No No Enabler Integration Layer Yes No Enabler Product Manager Yes Yes Stakeholder manag. No Responsibility in Team No Yes Blocker No Accountability No Yes Blocker Account Manager Yes No Enabler Sales Force Yes No Enabler Developer Portal Yes No Enabler No Ops No Yes Blocker DevOps Yes No Enabler BizDevOps Yes No Enabler API Management Platform Yes Yes Enabler * an early stage idea. that should make clear what is part of your digital transformation roadmap form a social context. (organization)
79. Take Away 81 Open API is an Invitation API is the interface to a value proposition API-as-a-Product to do the right thing that customers love Adapt the social context! That’s the transformation challenge.
80. @AmancioBouza Amancio Bouza API is the interface to a value proposition API & AI Enthusiast, Dot Connector, Author of API Product Management • Principal Consultant, ipt • Catalyst, The Digital Journeymen 82 amanciobouza @amancio.bouza amanciobouza.com
81. BACK UP 83
82. API is not about solving a Rubik’s Cube 84
83. 85 The 2nd Breed of API: API Product Source: https://medium.com/api-product-management/two-breeds-of-api-api-products-and-api-solutions-fa726213ecea
84. Director Product Management at Amazon in Seattle 86 Source: https://www.linkedin.com/feed/update/urn:li:activity:6392958411058798592 Continuous Innovation Workshop Outlearn Your Competition and Build Products That Matter.
85. 87 Lean Startup Build-Measure-Learn Cycle
86. META PROCESS 88 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively Scale
87. LEAN API DEVELOPMENT PROCESS 89 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively
88. API Product Management Product Strategy and Execution for the Digital Economy The API Product Management book is the state-of-the-art guide to creating, launching, and running API products that customers love. In this book, we offer best- practices, tactical and practical approaches, and real-world examples. It helps you to adapt it in your context. 90 http://api-as-a-product.com/