Disrupting the Value Chain

By Laura Heritage @ API Strategy & Practice Conference
San Francisco, October 23-24-25, 2013

Transcript

1. © 2013 IBM Corporation Disrupting the Value Chain
2. © 2013 IBM Corporation 2
3. © 2013 IBM Corporation 3 Online Travel Site (15%) Customer Hotel $100 $85 Current Value Chain
4. © 2013 IBM Corporation 4 Vision Value Chain Customer Hotel $100
5. © 2013 IBM Corporation #APIs 5
6. © 2013 IBM Corporation 6
7. © 2013 IBM Corporation 7 Proposed Value Chain Customer Hotel $100 $97 3%
8. © 2013 IBM Corporation Potential Impact of This Solution •  Increase direct sales •  Increase customer loyalty rewards program •  Increase innovation - get startup appeal from the future leaders •  Market the fact they are supporting communities and educating etc.. •  Disrupted the value chain. 8
9. © 2013 IBM Corporation “Sometimes it requires unconventional thinking from outside sources.” 9
10. © 2013 IBM Corporation The Current Value Chain 10 Auto Repair Customer Insurance Manufacture Auto Repair
11. © 2013 IBM Corporation 11 Auto Repair Auto Repair Chain can provide accurate predictions about probability of car problems based on age/mileage
12. © 2013 IBM Corporation 12 Insurers Websites Smartphones Tablets Connected Cars Trillions 2013+ Spare parts Suppliers Dealers Industry hub Insurers can provide new insurance product based on likelihood of car failures, and driving pattern Dealers have access to mileage data for the cars they sold, and make proactive maintenance and buyback offers to owner Cars can warn drivers about potential failures before they happen Spare part suppliers understand actual cars mileage, locations and likelihood of failures, and can finetune forecast APIs APIs
13. © 2013 IBM Corporation 13 “Realize the value of the asset with respect to the value chain.”
14. © 2013 IBM Corporation Ground Transit 14
15. © 2013 IBM Corporation The Ground Transit Co. 15 Delivery Plumber ?
16. © 2013 IBM Corporation Lesson 3 16 “APIs provide a way to pivot your business”
17. © 2013 IBM Corporation pause for a moment of reflection 17
18. © 2013 IBM Corporation 18 Inside the Enterprise Outside API Ecosystem
19. © 2013 IBM Corporation 19 “APIs like SOA services can proliferate in and outside the enterprise”
20. © 2013 IBM Corporation What Does the Future Look Like? §  There is a lot to come for the Global 2000 §  2013 and 2014 are the defining years “ I can see my competitors are are experimenting with APIs. I don’t think they have figured it out yet, but I know I can’t wait until they do before I start “ VP at A Large Australian Bank