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API -talous - kultamuna vai hypekupla?

API -talous - kultamuna vai hypekupla?

Content in English. Presented at SAP seminar 25.10.2018 in Helsinki

Jarkko Moilanen, PhD

October 25, 2018
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  1. Jarkko Moilanen (PhD), Author of API Economy book
    [email protected] @kyyberi
    +358 40 535 9066
    kultamuna vai
    hypekupla?
    API -talous

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  2. Jarkko Moilanen, APItalisti.fi @kyyberi
    “What API Economy?
    Sounds like total
    Hardcore API developer and app
    wizard Viljami Kuosmanen

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  3. Jarkko Moilanen, APItalisti.fi @kyyberi
    We tend to
    overestimate the
    effect of a
    technology in the
    short run and
    underestimate the
    effect in the long
    run.
    Roy Amara
    ICT first - business follows
    Developers
    Most business
    people

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  4. Jarkko Moilanen, APItalisti.fi @kyyberi
    2000
    Roy Fielding,
    (dissertation)
    Architectural Styles and
    the Design of
    Network-based Software
    Architectures

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  5. Jarkko Moilanen, APItalisti.fi @kyyberi
    2002
    Jeff Bezos,
    “API Mandate”
    “All teams will
    henceforth expose
    their data and
    functionality through
    service interfaces.
    Anyone who doesn’t do this
    will be fired.”

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  6. Jarkko Moilanen, APItalisti.fi @kyyberi
    but what the heck is API Economy Forbes writes about?

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  7. Jarkko Moilanen, APItalisti.fi @kyyberi
    API Economy definition
    Company utilizes
    digital resources
    efficiently and
    quickly to create
    added value for
    own customers.
    Considering application
    developers as primary customers
    Building blocks utilized are own
    APIs and open APIs provided by
    other organizations (free or
    commercial)
    Source: Moilanen Jarkko et al, 2018, API-talous
    101, Alma Talent
    1
    2
    3

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  8. Jarkko Moilanen, APItalisti.fi @kyyberi
    App - API - integration
    INTEGRATION
    Low level specific
    integrations or
    internal APIs
    No interest to let
    even partners
    access this far.
    Integration platform
    APP
    Tablet
    APP
    APP
    Tablet
    APP
    API
    Public
    Partner
    GET
    /products
    POST
    /order
    API
    Public
    Partner
    GET
    /products
    POST
    /order
    Tablet
    APP
    ERP, sales management,
    warehouse system,
    logistics
    system/provider
    Enduser applications
    and services developed
    internally or by 3rd
    parties
    Web
    app
    AR
    VR
    AI

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  9. Jarkko Moilanen, APItalisti.fi @kyyberi
    Open data
    interface
    Internal and
    private APIs
    Open API
    Public
    API
    Partner
    API
    Yes
    Yes
    No
    No
    Yes
    Yes
    Yes
    No
    Yes
    Maybe
    Maybe
    No
    Yes
    Maybe
    No
    No
    Available for
    anyone to
    register?
    Public support
    available for
    adopting API?
    Pay for usage? Open license
    for data?
    Marjukka Niinioja & Jarkko Moilanen, API-talous 101 (2018)
    Let’s play API
    darts!

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  10. Jarkko Moilanen, APItalisti.fi @kyyberi
    Hidden under the surface
    Public APIs (30 000)
    Partner APIs (“300 000”)
    Private APIs (millions)
    As API provider,
    treat them all alike
    - security
    - documentation
    - onboarding
    - support
    - tools
    Programmable
    Web 24.10.2018
    20360 APIs

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  11. Jarkko Moilanen, APItalisti.fi @kyyberi
    2015
    A lot of APIs,
    so what?
    Can you
    make money
    with APIs?

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  12. Jarkko Moilanen, APItalisti.fi @kyyberi
    Pacman index - Revenue through APIs
    Is API Economy big?
    80% 60% 90%
    but can you make money with just 1 API?

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  13. Jarkko Moilanen, APItalisti.fi @kyyberi
    100 000 businesses as
    customers,
    handles 100 billion
    worth transactions,
    creates 1,5 billion
    revenue with 1 API
    Is API Economy big?
    allows individuals and
    businesses to receive payments
    over the Internet. Stripe
    provides the technical, fraud
    prevention, and banking
    infrastructure required to
    operate on-line payment
    systems
    Est. 2010

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  14. Jarkko Moilanen, APItalisti.fi @kyyberi
    Developers are lazy bastards.
    Developers love tools.
    There’s never enough tools.
    Continual peer 2 peer learning is a
    way of life
    About developers...

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  15. Jarkko Moilanen, APItalisti.fi @kyyberi
    API consumer segments (and roles)
    chasm

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  16. Jarkko Moilanen, APItalisti.fi @kyyberi
    "API Economy contains love story.
    Developers in other companies
    are creating APIs for other
    developers"
    Business to Developer (B2D)
    Hardcore API developer and app wizard

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  17. DX – focus on app developer needs
    API must have
    • Efficient (response time + purpose)
    • Reliable (performance + product future)
    • Easy onboarding (self service expected)
    • Getting started (console, examples)
    • Uptodate documentation
    • Support
    Jarkko Moilanen, APItalisti.fi @kyyberi
    Primary customer
    is developer,
    Secondary is the
    management

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  18. Jarkko Moilanen, APItalisti.fi @kyyberi
    Business around APIs
    Components, APIs, CLI apps
    API development (APIOps)
    Automation (DevOps)
    IaaS/PaaS platforms
    Community management
    Marketing, API Catalogs
    API management, Training
    APIs
    (Results)
    Developer tools
    Sometimes free & open source with intention to
    lure in developers
    API management
    market size 2016 was
    600 millions

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  19. Jarkko Moilanen, APItalisti.fi @kyyberi
    API catalogs are becoming new platforms
    Catalog provides API
    discovery
    API catalogs contain more
    and more features found
    often in API management:
    • Developer relations
    • Tool marketing
    • API key management
    • Monetization
    • Documentation management
    • …

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  20. Visible API Economy Trends
    Jarkko Moilanen, APItalisti.fi @kyyberi
    Design-First
    approach &
    Business driven
    Event-Driven APIs -
    subscribe patterns
    Demand based
    APIs - GraphQL
    Developer
    eXperience &
    relations rising

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  21. Jarkko Moilanen (PhD),
    Author of API Economy book
    [email protected]
    @kyyberi
    +358 40 535 9066
    apitalous101.fi apitalisti.fi/podcast

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