API Strategy Practice I

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API STRATEGY AND PRACTICE

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“Whatever is worth doing at all, is worth doing well.” - Philip Dormer Stanhope

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“We are building the road, not just some rukos.” - Ryu Kawano Suliawan

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“Veritrans is a Payment UX.” - Ryu Kawano Suliawan

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DARWIN FINCHES

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Live in this paradise right here

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So what’s the problem?

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They’re on a small island chain

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a long way from anywhere else

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that’s a lot of environmental pressure

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so these ﬁnches

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are actually terriﬁc competitors

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and their differences

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were deﬁned by this man

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as successful adaptations

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the ones you don’t see today

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had unsuccessful adaptations

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and died out.

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a century after

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a team of scientists identiﬁed the mechanism of adaptation and evolution

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Twenty years later

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called out the gene as the atomic unit of competition.

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From the perspective of the gene

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the gene is successful if the organism that carries it is successful.

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20TH CENTURY BUSINESS

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In 1910 business was mostly direct

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By the 1930s there was a lot of competition

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But after World War II, there were new environmental pressures

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Many business died out.

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Business went from direct to indirect

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Those business who thrived in this transition

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Shared a set of successful adaptations

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Broad consumer marketing and branding Distribution exclusives in territory and product allocation Special makes for select retailers Retailer incentives - slotting fees, joint marketing, tiered volume discounts Consumer incentives - coupons, in-store events, limited time discounts

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Uniﬁed by one idea

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It was not just about selling in

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It was not just about selling in It was about selling through.

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From the perspective of the business

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The business is successful If the retailer that it sell through is successful

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The real world went from direct to indirect

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It went beyond the corner store.

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The web world is going from direct to indirect.

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It is going beyond the browser

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That takes us to

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APIs

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“Web 1994 was the ‘get me a domain and a page’ era. Web 2000 was the ‘make my page(s) interactive and put people on it’ era. Web 2010-now is the ‘get rid of pages and glue APIs and people together’ era.” - Robert Scoble

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Why?

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Because in a web beyond the browser

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APIs are how people get to your business.

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You need to see things from the perspective of the gene

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The gene is successful if the organism that carries it is successful.

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You need to see your business from the perspective of the API.

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The API is successful if the application that carries it is successful.

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Many successful applications are using many different APIs.

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and they will carry those APIs everywhere

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taking your business with them.

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For the successful companies, 80% of trafﬁc will be coming from beyond the browser.

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Everyone else will have to play in the world that the winners make.

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One last thought on the evolution

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Current Environmental Pressures

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Mobile Cloud Social

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They can be independent or they can support each other. It is up to you to decide if there’s harmony.

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Mobile Cloud Social

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Your company may be very well adapted to the web, but is it adapted to mobile? Mobile devices have limited storage and processing and need to be tied in to real- world and social dimensions. They use APIs to get at location, maps, social graphs, and events.

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Social sites are data services with a critical mass of users, where each new user makes the service better. You can’t build a new Facebook or Twitter. But you need to access them, so you use their APIs.

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Cloud computing is not about Amazon.

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Cloud computing is not about Rackspace.

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Cloud computing is not about Microsoft.

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Cloud computing is not about Google.

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Cloud computing is not about how you reach your customers

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Mobile Cloud Social APIs

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We’ve gone from libraries to APIs. In a cloud computing world people access library-like functionality via an API. There services are the unit of programming. Make your API useful and it will be carried to customers you’ve never met.

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Successful API Adaptations

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Realizing that developers are your channel Being recombinant and easily mixed Driving new data into your system via open APIs Supporting your application ecosystem

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Why do you need to attract developers?

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Because applications are the fastest growing and fastest changing organisms in this environment and they’re built by developers

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Unsuccessful adaptations to this world are based on the following conventional wisdom

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Companies providing APIs to access their business are the supply Developers who build against those APIs are the demand

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This is exactly wrong.

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Companies providing APIs are the demand

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Companies providing APIs are the demand They demand developers’ attention and adoption

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Developers building with APIs are the supply

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Developers building with APIs are the supply They supply innovation and adaptation

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Developers now sit between you and your customers They are like retail store in the value chain

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“This is all about the customers. We allow developers to integrate the Netﬂix service into apps with full control over the user experience. So we are able to outsource innovation … and that’s a great thing.” Michael Hart Director of Engineering, Netﬂix

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In Closing

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“Whatever is worth doing at all, is worth doing well.” - Philip Dormer Stanhope

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“We are building the road, not just some rukos.” - Ryu Kawano Suliawan

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“Veritrans is a Payment UX.” - Ryu Kawano Suliawan

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Thank you, Panggi Libersa Jasri Akadol Adapted from Apigee’s slides with some changes http://blog.apigee.com/detail/full_talk_and_slides_darwins_ﬁnches_20th_century_business_and_apis_evolve