Defining Business Strategy for APIs

APIs are the fastest growing channel in the marketplace today. APIs help you engage your customers how they want to be engaged, be it on a TV, in a car, or on a mobile phone or tablet. APIs allow you to source resources from a large developer and partner community in order to accomplish this. APIs become your business' external persona and become a product in their own right; therefore, you need an effective business strategy to help you achieve your API goals.

Transcript

1. © 2013 IBM Corporation Defining Your Business Strategy for APIs Laura (Olson) Heritage, Product Manager – API Management IBM menkell@us.ibm.com Session 1411
2. 2 2 © 2013 IBM Corporation Please Note IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.
3. 3 3 © 2013 IBM Corporation Agenda • The Market • What Is a Web API • The Business of APIs • Technology Behind the Business of APIs
4. 4 4 © 2013 IBM Corporation The Market Landscape
5. 5 5 © 2013 IBM Corporation The Market Pressure • The explosion of devices and channels ‒ How do you support delivery of your services and products on all of these devices? • Applications are smaller, more focused, and come and go very fast ‒ How do you keep up with the rate of change? • Competitive pressure forcing the need for faster innovation ‒ How do you foster innovation to beat out competition? • Partnerships need to be established quicker and connected quicker ‒ How do you create new partnership fast which our outside of your normal interactions? • Brand loyalty is always under attack ‒ How do you get and maintain brand loyalty?
6. 6 6 © 2013 IBM Corporation Businesses are evolving Website Smart Phone Tablet Partners Connected Appliances Connected Cars Game Consoles Internet TVs Trillions 2013 → Website Millions ~1999 - 2000 stores (800) ###s web sites Not having an API today is like not having a website in the 1990s… Consumers expect to access data any time across multiple devices Companies can re-invent interactions with customers, suppliers & partners Explosion of potential clients increases opportunity, risk and innovation
7. 7 7 © 2013 IBM Corporation The Business of APIs Grow revenues… … While reducing overhead “$7bn worth of items on eBay through APIs” Mark Carges (Ebay CTO) The API which has easily 10 times more traffic then the website, has been really very important to us.” Biz Stone (Co-founder, Twitter) “The adoption of Amazon’s Web services is currently driving more network activity then everything Amazon does through their traditional web sites.” Jeff Bar (Amazon evangelist) / Dion Hinchcliffe (Journalist)
8. 8 8 © 2013 IBM Corporation APIs are Emerging Across All Industries Energy and Utilities Government Healthcare Transportation Retail Banking Insurance Teleco Chemical/Petroleum Electronics
9. 9 9 © 2013 IBM Corporation What Is an Web API?
10. 10 10 © 2013 IBM Corporation The Basics Of an Web API What is an Web API? • An web API is a public persona for an enterprise; exposing defined assets, data or services for public consumption • An web API is simple for app developers to use, access and understand • An web API can be easily invoked via a browser, mobile device, etc What Value Does an Web API Provide? • Extends an enterprise and opens new markets by allowing external app developers to easily leverage, publicize and/or aggregate a company’s assets for broad-based consumption What “assets, data or services” are exposed via an Web API?: • Product catalogs • Phone listings • Insurance cases • Order status • Bank loan rates External App Developer 2. Builds The Enterprise
11. 11 11 © 2013 IBM Corporation Types of APIs Public, Open-To- All APIs Protected, Open- To-Partner APIs Private, Open-To- Employee APIs • APIs are open to any developer who wants to sign up • Apps are more targeted towards end consumers • The business driver is to engage customers through external developers • APIs are open to select business partners • Apps could be targeted at end consumers or business users • The business driver is usually different, based on the data and type of business of the enterprise • APIs are exposed only to existing developers within the enterprise • Apps are usually targeted at employees of the enterprise • The business driver is more around productivity of employees
12. 12 12 © 2013 IBM Corporation API Management is Adopted Across the Board From Inside to Outside the Enterprise • Today Customers Rapidly Adopting REST Internally • Want the Same Self-Service Control Model and Control as external API Management • Want the fast innovation across all areas of business • Developers like REST better then SOAP • Taking their SOA to the Next Level Enterprise APIs Partner API External API
13. 13 13 © 2013 IBM Corporation The Business Of API
14. 14 14 © 2013 IBM Corporation The Economy of API • Web APIs become like a Product in their own right and need to be nurtured • Web APIs will affect your business channel structure and you need to be aware of how • Web APIs need a business strategy
15. 15 15 © 2013 IBM Corporation Understand Value Chain In an API Economy • The Business Owner owns and understands the value of the Business Asset. Decides which assets to make available. Understands the value the web API will return End Users Business Owner Application Developer Business/IT Asset API  The Application Developer finds the web API and creates the applications. There needs to be a value for the developer to develop on your web API.  The End Users need to receive value form using the application. What do they gain?
16. 16 16 © 2013 IBM Corporation Organizationally Aligned to Support Your New Business Channel • Executive Business Owner • API Product Manager • Marketing Manager • API Evangelist • API Architect • Development Team • Operations Team • Support Team
17. 17 17 © 2013 IBM Corporation Establish the Goal or Objective for Your Web API Strategy • Drive Revenue Through New Channels • Drive Brand Recognition • Faster Integration with Partners • Faster Delivery of Mobile Apps • Increase Customer Satisfaction
18. 18 18 © 2013 IBM Corporation How do You Choose Which Business Assets To Expose? • Will this business asset support the goal or object of your web API Strategy? • Who is going to use the web API? ‒ Internal Developers, Partners, External Developers ‒ How much access do you give each of them to the web API • Why Would the Developer Want to Use this web API ‒ What value does it provide them? • What applications do you envision being created with this web API ‒ You may start off with one vision but there are very creative people in this world. • How will the exposition of this asset affect my business ‒ Will it cannibalize it? ‒ Grow it? ‒ Maybe only expose part of the asset?
19. 19 19 © 2013 IBM Corporation Where do the Business Assets that make up Web APIs come from? Core Systems Data SOA Services Enterprise Apps (SAP) Legacy Web APIs SaaS
20. 20 20 © 2013 IBM Corporation What Business Model Will You Choose • Drives Adoptions of APIs • Typically low valued assets • Drive brand loyalty • Enter new channels For Free Developer Pays Developer Gets Paid Tiered  Provides incentive for developer to leverage web API  Ad placements  Percentage of revenue sold product or services  Offer varying service levels and capabilities  Free up to a point then paid Developer Pays  Business Asset must be of high value to the Developer  For example, marketing analytics, news,  Capabilities such as credit checks
21. 21 21 © 2013 IBM Corporation API Business Models Are Even More Granular John Musser – API Business Models
22. 22 22 © 2013 IBM Corporation How do You Define Your Entitlements • Do you have multiple entitlement options? ‒ Platinum ‒ Gold ‒ Bronze • How do your measure consumption per entitlement? ‒ Data transferred  # of files  # of GB ‒ Number of Calls ‒ Time of day ‒ Completed sales transactions • Do you prioritize based on entitlement level? ‒ In high traffic times give Platinum transaction priority?
23. 23 23 © 2013 IBM Corporation What Quality of Service will You Support • Availability 24/7 • Scheduled Maintenance Windows / Downtimes • Performance • API Lifecycle ‒ 6 months to move to the next version
24. 24 24 © 2013 IBM Corporation Do Understand the Legal Side of Exposing Web APIs • What Are the Terms and Conditions For Use of the web API ‒ The web API provider company logo must be displayed with the content ‒ The content must be displayed in Full ‒ The web API provider reserves the rights to revoke access • How will you enforce the Terms and Conditions • Other Legal Conversations ‒ Sharing of personal information ‒ Import / Export regulations
25. 25 25 © 2013 IBM Corporation How Do You Evaluate Success? • It Depends On your Business Strategy for Your Web APIs ‒ Number of transaction through the web API ‒ Number of clicks through to your website ‒ Number of Ads that were displayed via the web API ‒ Revenue generated from products or services sold over the web APIs ‒ Increase in customer satisfaction of your services ‒ Increase in brand recognition ‒ Number of partners you were able to on board quickly ‒ Revenue generated by use of the web APIs themselves Define the success metrics at the start and have a mechanism to capture and report them!
26. 26 26 © 2013 IBM Corporation Socialize, Market and Drive Adoption of the Web APIs • The “Alpha” Application Developer ‒ Highly motivated ‒ Short on time ‒ Use to the internet and getting things quickly and leveraging social networks ‒ Won’t read massive amounts of documentation to do a task they deem should be simple ‒ Doesn’t like marketing Know Who You Are Trying to Attract!!
27. 27 27 © 2013 IBM Corporation Socialize, Market and Drive Adoption of the Web APIs  Understand developer motivation for using your web API  Make the web API easy to find for the intended audience  Supply supporting documentation and the ability to raise issues, request help  Provide Tools such as testing tools, Widget Generators  Provide ideas for possible apps and socialize successful apps  Establish a community – use Social Media Go Where the Developer Hang Out  Assign a Product Manager for your web APIs who is business savvy and technically knowledgeable  Have resources from your project team to focus on driving adoption How to Attract the “Alpha” Application Developer
28. 28 28 © 2013 IBM Corporation Plan for The Future and Adjust • Web APIs are like a product. ‒ You can’t just let them sit there if you want your business to grow • Other companies are competing for your Application Developers ‒ You need to provide the application developer the web API with the most value • Use analytics to help you adjust ‒ Understand the five W’s of your web APIs usages  Who, What, Where, When and Why
29. 29 29 © 2013 IBM Corporation Technology Behind the Business of APIs
30. 30 30 © 2013 IBM Corporation Apps, APIs and API Mgmt… Business Owner IT Developer Consumers New business opportunities • New markets • Increase customers • Enhance branding • Competitive advantage Extend development team •Increase innovation •Increase scale Partner/supplier alignment Benefits Challenges Business strategy Infrastructure • Security • Creation • Scalability Operational control • Publish • Analyze • Monitor
31. 31 31 © 2013 IBM Corporation Performance and scalability are table stakes • High Scalability – will your API handle un-expected load? • Secure – is it secure for common attacks?
32. 32 32 © 2013 IBM Corporation Lessons learned • Business driven, IT owned Design from the outside-in, not inside-out More than a security gateway New question everyday: strong analytics is a must • Design for rapid change Rapid development, independently from core systems Minimize coding Manage the asset, not the code • Move quickly, think strategically Easy to create, hard to retire Where are your developers? Create your own practice
33. 33 33 © 2013 IBM Corporation Success Requires Addressing Needs of Multiple Stakeholders Business User • How can I rapidly release & update my APIs? • How do I publicize my API? • How do I measure success? IT Operations • How do I assemble APIs? • How do I manage security? • How will my infrastructure scale? • How do I measure performance? App Developer • Where do I access APIs? • How do I understand the APIs? • How do I measure success?
34. 34 34 © 2013 IBM Corporation Connectivity & Integration • A single, comprehensive solution to create, socialize, and manage APIs  Grow your business by entering the fastest growing channel of APIs quickly.  Increase speed of innovation by sourcing all types of developers internally and externally.  Connect to business partners in a matter of days not months.  What’s new: – New On-Premise API Management – Ability to edit an API implementation while its running and then reactivate to push changes – First class support for creating new REST APIs from SOAP based services – Support Standard Security Mechanisms for API Management such as Oauth and Basic Auth – Enhanced operational metrics – Can leverage existing DataPower XI52s or XG45s Reach new markets Engage with partners, customers, and employees Innovate faster IBM API Management v2.0 Extend Your Services Beyond Your Enterprise Secure Powered by DataPower
35. 35 35 © 2013 IBM Corporation Expanding your Enterprise to new heights IBM Offering - API Centric Architecture Assessment Roadmap What’s New? – A methodical process of evaluating the existing API Centric Architecture of an organization – An assessment approach to determine the alignment of existing API strategy with the business strategy, objectives, and needs along with the technical architecture & capabilities – Deliverables 1. An API Architecture Baseline Assessment 2. An API Management and Governance Model 3. API Capabilities (Current & Future) 4. API Transition Plan 5. Executive Briefing Package IBM Confidential until April 24, 2012 Driving market demands and challenges in deploying a strategy and roadmap for API Economy Connectivity & Integration Promotions Payment API Service Management API API API Commerce Mobile Social Loyalty Monitoring Throttling Governance API-Catalog API API API The API Economy Services Pattern Value-added Solutions Bank Telco Retail Enterprise Capabilities Enterprise Capabilities Enterprise Capabilities API API Enterprise Partners API API The API Centric Assessment and Roadmap offering is a prescriptive analysis for both Business and IT, which guides and helps determine the deployment and management of an API Centric Architecture to determine the API roadmap for enterprises, in support of their business objectives.
36. 36 36 © 2013 IBM Corporation Extend Your Services Beyond Your Enterprise IBM Software Services for API Management IBM Confidential until April 24, 2013 Connectivity & Integration Get API Management operational rapidly while ensuring best practices are applied  Get API management operational and make APIs available rapidly  Learn and apply best practice for API design and exposure  Ensure your APIs are well secured, managed, and analyzed  Educate your team on APIs and API management New Software Services: Our practitioners will work collaboratively with you to – Install, configure, test, and validate IBM API Management environments and ensure production readiness. – Design, expose, manage, secure, and analyze your APIs – Assemble new APIs from existing resources – Construct your developer portal and socialize your APIs – Transfer API management expertise to your team
37. 37 37 © 2013 IBM Corporation Expanding to APIs – IBM Services has the Expertise to Ensure Your Success 3 7 • What should my API Strategy be? • How are APIs being used in my industry? • What is needed to expose and manage APIs? • What security do I need? • Who are my target developers? • How do I delivery and measure business value? • How do I get IBM API Management setup quickly? • Help me design my APIs? • How do I expose my backends as APIs? • Help me secure and scale my APIs? • How do I deliver reports to my management? • How do I integrate with existing infrastructure? API Centric Architecture Assessment Roadmap IBM Software Services for API Management For more information contact us at ibmapi@us.ibm.com
38. 38 38 © 2013 IBM Corporation Key API Management Sessions at IMPACT • 1416 Introduction to IBM API Mgmt & What's New ‒ Mon 1:00 ; Lando 4301B ‒ Thu 1:00 ; Marcello 4401A • 2678 Introduction to Web APIs ‒ Mon 2:30 ; Lando 4305 ‒ Tue 5:15 ; Lando 4305 • 2763 Extending Enterprise Integration with IBM API Mgmt ‒ Mon 4:00 ; Lando 4305 • 2372 Recommended Practices for Designing a Web API ‒ Tue 4:00 ; Lando 4305 • 1411 Defining Your Business Strategy for APIs ‒ Tue 2:30 ; Lando 4305 • 1576 SOA & APIs ‒ Tue 10:15 ; Palazzo P • 2731 API Management Security ‒ Tue 10:15 ; Lando 4305 • 1500 Hands-On Lab: Building a Web API Management Solution with Cast Iron Web API Tue 8:30 -11:15 ; Murano 3303
39. 39 39 © 2013 IBM Corporation We love your Feedback! Don’t forget to submit your Impact session and speaker feedback! •Your feedback is very important to us – we use it to improve next year’s conference •Go to the Impact 2013 SmartSite (http://impactsmartsite/com): ‒ Use the session ID number to locate the session ‒ Click the “Take Survey” link ‒ Submit your feedback
40. 40 40 © 2013 IBM Corporation
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