APIs for Business Development 2.0

View the talk on Youtube: http://bit.ly/1cMybzO

APIs' real power comes from the way they drive innovation in new business models. With a common framework, several strategies are explained from direct pricing, through mobile platforms, to new distribution models. If you want to push the frontiers and explore how APIs can help re-imagine your business, then this talk will be your fuel.

Transcript

1. APIs for Biz Dev 2.0 Which Business Model to win in the API Economy? Mark Cheshire http://www.3scalet.net - @3scale mark@3scale.net - @MarkCheshire
2. @MarkCheshire, @3scale #nordicapis, #apise 2
3. @MarkCheshire, @3scale #nordicapis, #apise TAKE ACTION RIGHT NOW Change is Here 3
4. @MarkCheshire, @3scale #nordicapis, #apise “Software is eating the World” Marc Andreessen, WSJ, 2011 4
5. @MarkCheshire, @3scale #nordicapis, #apise 5 “APIs are eating Software” Steven Willmott, CEO at 3scale, June 2013
6. APIs are eating Software Software Before 1995 Software 1995 – 2010 Software 2010 - @MarkCheshire, @3scale #nordicapis, #apise
7. @MarkCheshire, @3scale #nordicapis, #apise API Revenue Models in 2005 7 Source: John Musser, ProgrammableWeb.com
8. @MarkCheshire, @3scale #nordicapis, #apise API Revenue Models in 2011 Source: John Musser, ProgrammableWeb.com 8
9. @MarkCheshire, @3scale #nordicapis, #apise API Revenue Models in 2013 9 Source: John Musser, ProgrammableWeb.com
10. @MarkCheshire, @3scale #nordicapis, #apise 10 From 100 APIs in 2006….. Estimate: ProgrammableWeb.com
11. @MarkCheshire, @3scale #nordicapis, #apise ….. to 10,000 APIs in 2013 11 Estimate: ProgrammableWeb.com
12. @MarkCheshire, @3scale #nordicapis, #apise 10,000 APIs: just the tip of the Iceberg 5x to 10x Private Partners Private Internal 12 5x to 10x Private Partners Private Internal 1M APIs by 2017
13. @MarkCheshire, @3scale #nordicapis, #apise 1. API IS THE PRODUCT 2. API DRIVES STRATEGIC INITIATIVES 3. API SUPPORTS CORE COMPETENCIES API-Powered Business Model Options: 13
14. @MarkCheshire, @3scale #nordicapis, #apise 1. API is the Product • Most direct and obvious business model • Be a world leader in a niche • The greater the reuse the great the opportunity • Keep the pricing model simple • Developer portal is your shop window 14
15. @MarkCheshire, @3scale #nordicapis, #apise Examples – API is the Product 15 Flight traffic data Domain name search Personal contact data
16. @MarkCheshire, @3scale #nordicapis, #apise Diversity: Business Models Less than 25% in “API is the Product” category Source: 3scale 1000 APIs Survey 2012 The Vast Majority power non-API Business Models
17. @MarkCheshire, @3scale #nordicapis, #apise What API for my Business Model? Therefore the question is… 17
18. @MarkCheshire, @3scale #nordicapis, #apise 18 2. API DRIVES STRATEGIC INITIATIVES Mobile Enablement Customer & Partner ecosystem growth Digital distribution channels Powering new business models Internal efficiency & innovation
19. @MarkCheshire, @3scale #nordicapis, #apise APIs Create Ecosystems 19 Amazon.com Mobile Apps Affiliate Sites Ancillary Services Internal Developers + API Ecosystem
20. @MarkCheshire, @3scale #nordicapis, #apise Boost Internal Efficiency & Innovation • UC Berkeley • 50,000 students • Fragmented API initiatives • Centralized API infrastructure service • Reliability and security • Publish and subscribe 20
21. @MarkCheshire, @3scale #nordicapis, #apise 3. API SUPPORTS CORE COMPETENCIES 21
22. @MarkCheshire, @3scale #nordicapis, #apise The API is “just” the channel into this. 22 Your organization’s core asset is what is valuable
23. @MarkCheshire, @3scale #nordicapis, #apise API business strategy Get the most from your API APIs enable cloud scale MVC, dematerializing distribution channels, and allowing you to focus on your core asset. 23
24. @MarkCheshire, @3scale #nordicapis, #apise API business strategy Get the most from your API ① Identify your core asset ② Choose the complementary asset which will deliver most value ③ Define the strategy to capture the value most effectively Examples of API Business Strategy Pres. Logic Data Mission ✓ Simplify the world of telecom by providing simple, powerful, pay-as- you-go IaaS ✓ Increase the world's access to music lyrics. ✓ Revolutionize the way people watch movies 24
25. @MarkCheshire, @3scale #nordicapis, #apise API delivery Get the Execution Done Right Partners Affiliates Mobile Users Internal Projects Developers Customers Your core assets Your API 25
26. @MarkCheshire, @3scale #nordicapis, #apise API delivery Address Issues Proactively Partners Affiliates Mobile Users Internal Projects Developers Customers Your content & services Your API Security? Monitoring? Access Control? User Experience? Monetizing ? Scalability? Flexibility? Reach? 26
27. @MarkCheshire, @3scale #nordicapis, #apise API Management “Managing” your API operations 27 Partners Affiliates Mobile Users Internal Projects Developers Customers Your content & services Your API API Business Engine Access Control & Security Analytics & Reporting Developer & Partner Portal Billing & Payments API Management Solution
28. @MarkCheshire, @3scale #nordicapis, #apise Conclusion • Train is leaving the station – get on now! • API-Powered Business Models – API is the Product – API drives Strategic Initiatives – API supports Core Competencies • Get Execution right for your API Delivery 28
29. @MarkCheshire, @3scale #nordicapis, #apise 29 3scale SPAIN Calle Napols 187 08013 Barcelona Spain 3scale USA 450 Townsend Street San Francisco, CA 94107 USA Thank you ! mark@3scale.net @MarkCheshire, @3scale We make awesome API Management solutions http://www.3scale.net
30. @MarkCheshire, @3scale #nordicapis, #apise Resources and Credits • http://www.3scale.net/api-economy/ebooks/ • http://www.3scale.net/wp-content/uploads/2012/06/What-is-an-API-1.0.pdf • http://www.youtube.com/watch?feature=player_embedded&v=7r7QpIDEI_o • http://donnaldanielsphd.com/classroomactivities/milliondots/11111dots.png • http://www.slideshare.net/3scale/apis-the-glue-of-cloud-computing • http://blog.programmableweb.com/2012/06/13/the-new-api-apps-partners-income/ • http://www.youtube.com/watch?v=lFv5lH7nNX8 • http://www.slideshare.net/3scale/more-than-the-sum-of-its-parts-the-apis-whole • http://blog.programmableweb.com/2011/11/03/private-api/ • http://www.slideshare.net/3scale/reaching-1-million-apis-and-what-to-do-when-we- get-there • http://blog.apievangelist.com/2011/02/28/if-you-build-it-they-will-come/ • http://www.slideshare.net/jmusser/j-musser-apishotnotgluecon2012 • http://www.3scale.net/2012/11/building-great-apis-the-api-gold-standard-part-i/ • http://www.slideshare.net/3scale/the-api-economy-api-provider-perspective- european-identity-summit-2012 30