API Platform Business Model Requirements by Gary Wetzel

API Platform Business Model Requirements by Gary Wetzel


  1. API Strategy & Practice Friday, November 20, 2015 Gary Wetzel

    API Platform Business Model Requirements
  2. Business Plan Requirements: …includes every aspect of your business Define:

    busi·ness mod·el • A plan implemented by a company to generate revenue and make a profit from operations, including the functions of the business, as well as the revenues it generates and the expenses it incurs.
  3. Business Plan Requirements: …defined Product and Market Focus Narrow Range

    Of Customers - Narrow Range Of Products Broad Range of Customers - Broad Range of Products Narrow Range Of Customers - Broad Range of Products Broad Range of Customers - Narrow Range of Products Narrow Target Broad Range Broad Range Narrow Target Market Product Who's your target customer? Niche players? mass market audience? What customer problem or challenge do you solve? What value do you deliver? Angular React HTML Front End Application Dev.s Web Developers Software Developers Market Funnel
  4. Business Plan Requirements: …Identify Position on Product Life Cycle 4

    ` ` ` Internet of Things Angular JS RESTful APIs ` Big Data 2009 2009 2011 2011 2011 2013 2013 2013 2009 2009 2011 2013 2007 Growing Demand Customer Mandate  Modernize legacy applications  APIs are growing rapidly
  5. Business Plan Requirements: …Competitive playing field, dynamics, status, and position

    Forms Builders API Platforms  A highly networked playing field  MUST fit well with other suppliers  Cooperation vs. competition (“Coopetition”)  Must lead the interfaces and integrations  Fill gaps in delivery / solutions
  6. Business Plan Requirements: …Razor sharp product function definition  Must

    focus on core competencies  Clear definition value chain participation  Process disaggregation service models apply  Clear solution delivery boundaries  Cooperative interfaces with other providers  Differentiation from direct competitors
  7. Adoption Trial Evaluation Interest Awareness Form Builder Module (OSS) Form

    Renderer Module (OSS) • Services User Portal Page Server Side Client Side • Services • Services • Services Core API Platform (OSS) • Services User Portal Page • Services • Services • Services Business Plan Requirements: …Balance Open-Source (OSS) vs. proprietary offering Conversion Funnel  Robust OSS Offering  Committed to OSS Community
  8. Business Plan Requirements: …Deployment flexibility matches market requirements Healthcare Platforms

    Industrial Enterprise Education Platforms ISV’s Platforms HC1 HC2 HC3 HC4 HC5 ISV’s Platforms ISV1 ISV2 ISV3 ISV4 ISV5 ISV’s Platforms Direct Direct Direct Direct Direct Ed1 Ed2 Ed3 Ed4 Ed5  Control  Compliance  Security  Cost  Integration
  9. Business Plan Requirements: …Pricing model enabling trial, and tiered us,

    Enterprise  SaaS , PaaS, IaaS Pricing models  Monthly recurring fees / revenue  Freemium Model – unlimited free trial periods  Tiered Pricing with matching tiered services  Submissions, Connections, Users, Storage Free $$ $$$ $$$$ $ $ Enterprise
  10. Business Plan Requirements: …Defined pathways for Scalability and Growth Product

    Growth Sources Market Segment Growth Sources Channel Partner Growth Sources Open Source Direct Sales Microsoft, Google, IBM Dev. Shops & Resellers Combined Form and API layer Governance, Data Management Hosting and Support Services Analytics and Reporting, 3rd-party integration Salesforce/Dropbox Platform Interfaces Legacy Integrations Revenue, Applications, Customers, Users The Business model must contemplate growing into the future.
  11.  Solutions must focus, focus, focus on narrow target customer

    groups  API market is early-stage, large, and growing  Market requirements are evolving, providing new opportunities  New entrant solution providers are arriving on the scene  Clear competitive positioning is a must – Coopetition vs. Competition  Product / service offering must network/integrate with other solutions  Extensible, Scalable, Deployable (Hosted & On-prem) platforms are critical  Freemium & tiered pricing enables ease-of-trial and pathway to growth  Genuine commitment to Open Source Community is a requirement  Grow with customer groups, market verticals, and channel partners Business Plan Requirements: …Summary
  12. Gary Wetzel Thank You!