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Accelerating Innovation with APIs

Accelerating Innovation with APIs

by Jeff Meisel @ Apistrat NYC (Feb. 2013)

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  1. Time Magazine, July 2010 …a minor invention every 10 days

    and a big thing every 6 months or so. “ “
  2. Traditional  Approach:   Not  Software   Our  Approach:   Flexible

     software  with  modular  hardware   Software  Company  Proofpoint:    ~78%  gross  margins   6.12  cubic  ft   .67  cubic  ft  
  3. POWERED BY PXI  and  Modular   Instruments   Desktops  and

        PC-­‐Based  DAQ   NI  CompactRIO  and   Custom  Designs   Test   Monitor   Embedded   Control   Mechatronics   Open  Connectivity     With  Third-­‐Party  I/O  
  4. In  our  favor:     ¡  Aligned  with  our  vision

      ¡  Strong  history  of  partnering   Challenges:   ¡  Ownership  lies  across  org  boundaries   ¡  Monetization  /  value  creation   ¡  ROI  compare  vs.  other  business  units   ¡  What  about  culture?    
  5. High  school  students  competing  in  FIRST   Robotics  Competition  build

     fully   functioning,  human-­‐sized  robots  in  just  six   weeks  using  the  NI  graphical  system  design   platform.    
  6. “I'd  like  for  NI  to  give  us  its   blessing

     to  create  such  tools   [with  APIs],  so  that  we  don't   feel  like  renegade  outlaws   and  can  feel  comfortable   sharing  them  with  others…   the  current  position  from  NI   seems  to  be  that  it  doesn't   exist.”     -­‐  Developer  forum  post  with   corresponding  image   Jan  21,  2009  
  7. 1.      Develop  IP       2.  

      Integrate  with   LabVIEW  APIs     3.       Produc@ze     Add-­‐on  or  App      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000     Partner     R&D  Spend   Total  NRE:     $80k   Total  NRE:     $60k   Total  NRE:     $40k  
  8. Total  NRE:     $80k  $20K    $-­‐    

         $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000      $-­‐          $10,000      $20,000      $30,000      $40,000     1.      Develop  IP       2.     Integrate  with   LabVIEW  APIs     3.       Produc@ze     Add-­‐on  or  App   Total  NRE:     $60k  $42.5K   Total  NRE:     $40k  $27.5K   Partner     R&D  Spend     Partner     R&D  Reduc@on  
  9. Source:        Overall  Ecosystem  Participation   Metcalfe  was

     right!     Positive  network  effects  create     very  close  to    n^2  behavior    
  10. Programmable Compute Engines: DUT Control Frequency Triggering Test Sequencing Protocol

    Aware ATE Vector Signal Analyzer Power Level Servoing Noise Correction Software Defined Radio Channel Emulation Vector Signal Generator 3rd  Party  Apps   Multicore   Processor   FPGA   Applications: FPGA  
  11. 2012 NI Vector Signal Transceiver + 802.11ac 200X Faster Early

    2000s Traditional Rack and Stack 802.11a + b + g Semiconductor  characterization  test  time     reduced  from  4  weeks  to  ~  1  day.  
  12. ¡  API  strategy  must  fit  into  company  vision  and  

    culture.    Transition  from  private  to  public  APIs  is   a  challenge.   ¡  Keys  to  API  program  success  are:  lowering   barriers  of  entry,  monetization,  and  enabling   network  effects.     ¡  API’s  that  exploit  Moore’s  Law  from   computational  point  of  view  can  cause  major   disruption.