Competitive advantage has traditionally been deeply rooted in industry structure. But the growing importance of digitization and informational assets has blurred industry boundaries, driving businesses to operate in unfamiliar yet thriving digital ecosystems. And it’s the API that has provided businesses the building blocks to transform and compete in this new interconnected world. Join Mohan Subramaniam, Associate Professor of Strategy, Carroll School of Management and Harvard Business Review author, to discuss this paradigm shift from industries to ecosystems, the importance of informational assets vs. physical assets, and why APIs are key drivers for capturing value in this new digital marketplace. For more information, please visit http://cainc.to/Nv2VOe

1. Business Transformation: Reframing Strategic
Advantage through APIs
Mohan Subramaniam
DevOps: API Management and Application Development
Carroll School of Management Boston College
Associate Professor of Strategy
DO3X101S
@emsub57
#CAWorld
Email: mohan.subramaniam@bc.edu

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Abstract
Business Transformation: Reframing Strategic Advantage through APIs
Competitive advantage has traditionally been deeply rooted in industry
structure. But the growing importance of digitization and informational
assets has blurred industry boundaries, driving businesses to operate in
unfamiliar yet thriving digital ecosystems. And it’s the API that has
provided businesses the building blocks to transform and compete in
this new interconnected world. Join Mohan Subramaniam, Associate
Professor of Strategy, Carroll School of Management and Harvard
Business Review author, to discuss this paradigm shift from industries
to ecosystems, the importance of informational assets vs. physical
assets, and why APIs are key drivers for capturing value in this new
digital marketplace.
Mohan
Subramaniam
Associate Professor
of Strategy
Carroll School of
Management
Boston College

4.  Theodore Levitt’s famous question
50 years back … and his counsel to
avoid marketing myopia
What business
are you in?

5. What Industry
are you in?
 Steam engine industry?
 Or the transportation industry?

6. What Business
are you in?
 Video rental industry?
 Or something broader???

7. What is your Canvas
for Strategy?
 For several decades it has been
our Industry

8.  Competitive advantage is rooted in industry structure
 Internal strengths (activities or capabilities) are the
fundamental drivers of advantage
 Growth through diversification or acquisition was
usually restricted to opportunities closely related to
core competencies
Deep Rooted Assumptions

9. Growing Importance of Informational rather than Physical Assets
 Strengths come from external … not just internal sources
 Rising significance of relationships with external actors
 The rise of ecosystems where thousands of organizations can come
together to share and co-create new value
And ...
The silent surge of APIs as a strategic resource
What is different?

10. The Transformational
Powers of Digitization
See https://hbr.org/2015/04/are-you-using-apis-to-gain-competitive-advantage
 Informational Assets are
valuations are skyrocketing
 Informational assets can create a
platform to draw on external
resources through APIs

11. The Upsurge
of Complementors Vacation Properties
Taxi Services
See https://hbr.org/2015/06/corporate-alliances-matter-less-thanks-to-apis
 Digitization allows for leveraging
value from complementors at an
unprecedented scale
 Why Ally when you can API?

12. Opportunities from
Technological Turbulence
 Complementors do not remain stable
 Unprecedented pace of change
in complementarities
 APIs provide flexibility of partners and
fluidity of business goals
See https://hbr.org/2015/06/corporate-alliances-matter-less-thanks-to-apis

13. Apple
Twitter
Intel
Microsoft
IBM
Google
Sony
Paypal
Netflix
Amazon Samsung
AT&T
Facebook
Adobe

14. Ted Levitt’s famous question
50 years back has a new
meaning today …
 What Ecosystem
are you in??

15. And the Key to That Answer ...
is in APIs!!

16. Unlocking the
Strategic
Potential of APIs
for Ecosystems
Intra-firm
Interface
Ecosystem
Interface
Supply Chain
Interface
Leveraging
Internal
Competencies
Leveraging
External
Competencies
Growth
© Iyer and Subramaniam

17. Informational Assets
For Service Variety
Low High
Low
High
InformationalAssets
ForDomainVariety
Hybrid
Ecosystem
Value
Chain/Alliance
Ecosystem
Domain Variety
Ecosystem
Service Variety
Ecosystem
High Reliance on
Physical Assets
High Reliance on
Informational Assets
High Reliance on
Informational Assets
Number of complementors
Numberofcomplementors
© Iyer and Subramaniam
Shaping
Ecosystem
Strategy
Through APIs

18. Driving an Ecosystem
Strategy with APIs
 Collect
 Share
 Act
© Iyer and Subramaniam

19. • Digitization is transforming
industries into ecosystems
• In ecosystems, significant
growth opportunities
come from leveraging
external resources
• APIs can power the
harnessing of such
external strengths
and drive greater
growth opportunities
• APIs allow firms to extend
their traditional assets into
informational assets and
facilitate the construction
of Industrial Platforms.
• Such API enabled
industrial platforms
empower firms to grow
far beyond the contours
of their internal
core competencies.
• Firms can unlock the
potential of APIs in 3 levels
• At they third level APIs
shape a firm’s ecosystem
strategy as domain variety,
service variety or
hybrid ecosystems
• APIs power this strategy
through 3 gears: collection
at the edge, peer to peer
sharing &
learning/decision making
Summary

20. • How much is digitization
already impacting
your business?
• How fast and how
significantly do you think
digitization will impact
your business?
• How high is your reliance
on your current traditional
or industrial assets?
• To what extent have
you extended your
traditional/industrial
assets into
informational assets?
• At what level are you
using APIs?
• What is the current
shape of your
ecosystem strategy?
• How well are your
APIs powering the 3
gears driving your
ecosystem strategy?
Key Take Away Questions

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Q & A

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Recommended Sessions
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of Our Things
11/19/2015 at 3:45 pm
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11/19/2015 at 4:30 pm

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Must See Demos
Unlock the
Value of APIs
API Developer Portal
Theater 3
Build Digital
Ecosystems
Internet of Things
Theater 3
Accelerate
Mobile/IoT
Development
Mobile App Services
Theater 3
Extend Existing
Architectures
API Gateway
Theater 3

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For More Information
To learn more, please visit:
http://cainc.to/Nv2VOe
CA World ’15