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
   

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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
   

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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
   

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4. SWISSCOM API JOURNEY
   FROM OPEN API TO API-AS-A-PRODUCT
   4
   

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5. 5 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch
   2013
   2014
   2015
   

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6. #1 Let’s do Open API
   6
   

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7. 120 APIs were identified to be exposed
   7
   

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8. Usability
   Micro APIs
   Highly
   specialized
   items
   Messerer Jeweler Studio, Zurich
   8
   

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9. 2013
   9 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-booklet-rc1086mmwebpdf
   

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11. HOW TO BUILD THE API, NOT!
    11 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
    

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12. #2 Let’s foster better
    and quicker apps
    12
    

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13. Getting out of the
    comfort zone
    13
    

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14. First contact …
    … with customers
    14
    

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15. First contact …
    … with customers
    That’s me
    15
    

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16. Flexibility
    Big APIs
    16
    

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17. API Design:
    Usability vs Flexibility
    17
    

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18. 2014
    18 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-api-journey2
    

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20. Something
    was missing
    20
    

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21. VALUE
    

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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
    

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23. Open API is an invitation.
    Customer decides if he accepts.
    23
    

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24. API is the interface to
    a value proposition.
    24 Source: https://www.linkedin.com/pulse/api-dead-long-live-vpi-amancio-bouza/
    

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25. VALUE PROPOSITION INTERFACE
    25 Source: https://www.amanciobouza.com/post/value-proposition-of-api
    

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26. #3 Let’s build products
    aka Impact of Open API on Business Models
    26
    

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27. 2015
    27 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch/the-swisscom-api-journey-3-upcoming
    

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28. 28 Source: http://api-as-a-product.com/
    API PPRODCUT MANAGEMENT
    

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29. 29 Source: Amancio Bouza & Andrea Zulian, Product Management Festival Europe, 2018
    

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30. SWISS NGO
    HELPING MORE PEOPLE MORE
    AT WITH API PRODUCTS
    30
    

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31. WE FOCUS ON ONE SERVICE:
    ASSISTED TRANSPORT
    32
    

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32. WHAT IS AT STAKE?
    33
    

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33. CUSTOMER BASE
    34
    

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34. CUSTOMER BASE
    35
    TOO YOUNG
    TOO YOUNG
    

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35. CUSTOMER BASE
    36
    TOO YOUNG
    TOO YOUNG
    DIE OUT
    

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36. CUSTOMER BASE
    37
    TOO YOUNG
    TOO YOUNG
    DIE OUT
    OTHER PRIORITIES
    

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37. NO SUSTAINABLE
    CUSTOMER BASE!
    38
    

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38. At least, NGO’s don’t
    #GETUBERFIED
    39
    

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39. At least, NGO’s don’t
    #GETUBERFIED
    40
    

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40. 41 Source: https://www.uber.com/de-CH/ride/uberwav/
    

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41. IN THE LAST 15 YEARS
    52% OF FORTUNE 500 COMPANIES
    HAVE GONE EXTINCT
    42 Source: Innosight
    Your company name
    could be shown here
    

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42. NOW WHAT?
    43
    

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43. MISSION:
    44
    DIGITAL
    TRANSFORMATION
    DIGITAL PRODUCTS
    & ECOSYSTEMS
    API PRODUCT
    MANAGEMENT
    HELP MORE
    PEOPLE MORE
    

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44. 46 Source: Amancio Bouza & Andrea Zulian, APIDays Paris 2018
    

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45. 1. VALUE CHAIN
    Digitalization
    47
    

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46. DESIGN SPRINT
    48
    

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47. 49
    PAIN POINT:
    RAPPORTS
    DRIVERS fill out multiple rapport
    forms for each transport
    

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48. 50
    PAIN POINT:
    RAPPORTS
    EMPLOYEES enter
    rapports into applications
    

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49. We digitalized the Green and Yellow Rapport
    RAPPORT
    APP
    51
    

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50. We digitalized the Green and Yellow Rapport
    RAPPORT
    APP
    52
    Just kidding
    

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51. API SOLUTION:
    RAPPORT API
    Create Rapports
    POST /rapports
    {startTime,
    distanceKM,
    duration}
    53
    RAPPORT APP
    

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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
    

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53. 2. PLATFORM / API PRODUCTS
    DIGITAL TRANSFORMATION
    55
    

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54. WHY
    API PRODUCT?
    56
    

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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
    

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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
    

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57. $ 11.5 M
    ARE LOST BECAUSE OF
    MISSED APPOINTMENTS
    59
    

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58. LET’S GIVE THEM $11.5 M
    AND CHARGE A FRICTION, E.G.,
    $1’000’000
    60
    

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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
    

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60. HOW TO BUILD
    API PRODUCT?
    62
    

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61. FROM
    INSIDE-OUT
    TO OUTSIDE-IN
    63
    

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62. VALUE PROPOSITION CANVAS
    64 Source: Alex Osterwalder
    

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63. VALUE PROPOSITION INTERFACE CANVAS
    65 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
    

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64. API-as-a-Product
    UBER for assisted transport
    TRANSPORT CARE
    66
    

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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
    

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66. Recap:
    Rapport App: $ 0.2M
    Transport Care: $ 1.0M
    68
    

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67. BUSINESS VALUE
    69
    

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68. View Slide

69. View Slide

70. 0
    72
    What went wrong?
    

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71. 73
    Business: Selling Apple Technology
    Revenue model: $/kg Technology to
    measure weight
    API
    

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72. DOESN’T WORK IN SPACE
    74
    

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73. 75
    Business Value
    Technology and
    promised capabilites
    smarter
    faster
    better
    cheaper
    more
    

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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!
    

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75. YOU WIN OR
    YOU ...
    77
    

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76. YOU WIN OR
    YOU LEARN
    78
    

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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
    

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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)
    

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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.
    

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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
    

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81. BACK
    UP
    83
    

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82. API is not about solving
    a Rubik’s Cube
    84
    

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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
    

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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.
    

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85. 87
    Lean Startup
    Build-Measure-Learn Cycle
    

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86. META PROCESS
    88
    Problem-Solution Fit
    validate qualitatively
    Product-Market Fit
    verify quantitatively
    Scale
    

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87. LEAN API DEVELOPMENT PROCESS
    89
    Problem-Solution Fit
    validate qualitatively
    Product-Market Fit
    verify quantitatively
    

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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/
    

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