Digital Business Models for APIs
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APIs come from the technology side. But quite recently APIs have evolved from "something that the techies do" to a product with serious business value. The IPOs of API-based companies, such as Twilio, are examples of that mind shift. So when designing new APIs we have to stop seeing APIs as merely cool technology. We have to design APIs as products for customers with needs, wants and desires. In this talk I will show you how we use approaches from Design Thinking to elicit the needs of API customers and identify valuable APIs. But we should not stop there, we also want to find a viable business model for the API. We use the Business Model Canvas as a methodology for describing the business model of the API and iterate over several business models quickly, until we find the one that works. Learn more at http://www.api-university.com
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Digital Business Models for APIs
- 1. What is the Business Model of your API? Matthias Biehl www.api-university.com @mattbiehl
- 2. API
- 4. View of API Consumer
- 5. 5
- 8. View of the API Provider
- 9. 9 Consumer and Provider in the API Value Chain
- 10. Value Chain API Provider API API Consumer = App Developer App End User Business Asset
- 12. 3 Challenges for Business with API How can I make my API easy to use? How can I make money with my API? Am I building an API that developers need?
- 13. 3 Challenges for Business with API • Challenge 1: Identify APIs that Developers need • Challenge 2: Find a Business Model for APIs • Challenge 3: Build APIs that People Want to Use Methods and Tools to support us in all 3 Challenges
- 14. 14 Challenge 1 Identify APIs that People Need
- 15. Challenge 1 - Identifying APIs that People Need How? Design Thinking
- 16. 16 Challenge 2 Make Money with APIs
- 17. Challenge 2: Making Money with APIs Business Drivers for APIs • Revenue • Reach • Innovation • Growth • Compliance • Insight
- 18. CRM System Telco Infrastr. Billing Infrastr. Operations Maintenance Extensions Billing Phone Service + Mobile Data Subscription Extention Offers + Phone Upgrade Private Customers Business Customers Network Infrastructure Freq. Licenses Leasing Infrastructure Staff Usage Flatrate Retail Partner Telco Business 18
- 19. CRM System Telco Infrastr. Billing Infrastr. Freq. Licenses Leasing Infrastructure Staff Usage Flatrate API Business Payment API HTTP API PortalSoftware DevelopmentSoftware Companies Software Infrastructure Online Shops 19
- 20. Business Models in the API Value Chain 20 API API Business Model of API Consumer Business Model of API Provider Value Chain
- 21. 21 Challenge 3 Build APIs that People Want to Use 21
- 22. Challenge 3: Building APIs that People Want to Use • Focus: Developer Experience, Experience of the API Consumer • Tools: • API Developer Portal • API Architecture • API Description Languages • RESTful API Design • Lots of Resources that can help you • E.g. at www.api-university.com/books
- 23. 23 Summary 23
- 24. 3 Challenges for Business with API • Challenge 1: Identify APIs that Developers need • Challenge 2: Find a Business Model for APIs • Challenge 3: Build APIs that People Want to Use REST Developer Portal
- 26. 26 Open Innovation: Leverage Community & Ecosystem
- 27. CRM System Telco Infrastr Betrieb Netzausbau Abrechnung Mobile Telephony + Mobile Data Vertragsverlä ngerung + Phone Upgrade RES SME ENT Netz Infrastr. Freq.Lizenzen Miete Infrastruktur Mitarbeiter Usage Flatrate Swisscom (trad.) Retail Partner, z.B. Mobilezone Retention API API Portal Swisscom Digital (2) SW Dev. IPT Online API Infrastr.
- 28. Challenge 2: Building APIs that People Want to Use What, Why and How? • Focus: Developer Experience, Experience of the API Consumer • Best Practices • Tools: • API Engagement Platform, Developer Portal • API Architecture • API Description Languages • RESTful API Design
- 29. Challenge 3: Making Money with APIs Successful Digital Business Models
- 30. Challenge 3: Making Money with APIs Successful API Business Models
Notas do Editor
- How can I make money with my API? Not as easy as sticking a price tag on the API
- Was ist ein API? API is a reusable building block exposing a piece of the software’s internal data and functionality to the outside world in a controlled way Baustein für digitale Lösungen Bei der Swisscom sind APIs auf der gleichen Stufe wie die Cloud
- How does the API consumer see the API?
- Aus Sicht unserer Kunden, ist ein Lego Baustein = API und der Baustein ist nur dazu da, etwas zu bauen, z.B. ein Haus. Oder das API ist dazu da, moderne Apps zu bauen. Beispiel: Uber ist in erster Linie ein API Nutzer. Verwenden APIs von unterschiedlichen Quellen bauen auf diese Weise schnell ein innovatives Produkt benötigen intern keine tiefen Kompetenzen in Payment Processing, SMS Versand, denn sie haben ja die Bausteine... Fokus daher auf dem Endkunden. Als API Consumer bediene ich mich aus dem Portfolio!
- Uber als bekanntes Beispiel: Eine Veränderung die momentan passiert Put yourself into the shoes of tomorrow’s innovator... aren’t busy reinventing the wheel aren’t recruiting experts in technology fields dont build their technologies from the ground up orchestrating existing services services of market leaders who they can trust are doing their job, just like six to create an exceptional user experience minimal investment in resources. The secret to their success is the use of APIs. Building blocks: positioning via OS (iOS, Android); route calculation and maps are provided by MapKit and Google Maps; Cloud Messaging enables the push notifications; payment is handled by Braintree receipt is sent via Mandrill, cloud hosting services like Amazon Web Services (AWS) ensure consistent performance. Each one of these components is highly complex and would require a great deal of time and investment if they had to be developed by a startup from scratch. specialized players have come along who now provide the functions of each one of these components and make them available to other companies via an API
- Uber ist aus vielen APIs aufgebaut Zusätzlich wird das gesamte Uber Produkt wieder als API angeboten Business Value für API Consumer Technologie ist einfach zu integrieren Fokus auf End User Experience Schneller Go-To Market Kein detailliertes Wissen zu den Komponenten nötig
- How does the API provider see the API?
- There are slight variations, but this is the basic setup ---- you enable App Developer to make money by allowing them to use your API links: Aussensicht des Kunden: was ermöglicht das API, was kann ich damit Bauen rechts: Innensicht des Unternehmens das die API bereitstellt: wie setzen wir es um und wie verdienen wir Geld
- As an API provider: what challenged so we have to deal with? We think we have to deal with one challenge but in reality, we have to deal with another challenge. Applies to an enterprise setting Startups may be able to learn form it as well
- As an API provider: what challenged so we have to deal with? We think we have to deal with one challenge but in reality, we have to deal with another challenge. Applies to an enterprise setting Startups may be able to learn form it as well
- Actually Business Model So much more than making money
- A business model describes how an organization creates, delivers, and captures value
- which delivery channel do API Consumers use? Options: -their own delivery channel -market place of API Provider Address Long Tail Market Niches and Business Moments Do this efficiently: Build a Plattform: APIs + Portal Build a Community and Ecosystem Leverage Community: Use Innovation and Creativity of Community Innovation by Co-Creation: Hackathons Startups Partners
- As an API provider: what challenged so we have to deal with? We think we have to deal with one challenge but in reality, we have to deal with another challenge. Applies to an enterprise setting Startups may be able to learn form it as well
- outside in approach, leverage ecosystems, build new apps, deliver a solution let people in ecosystem create their own business model people outside the organization create their own business models, business moments, long tail (platform model) need to study value chain