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The Business of the Digital Ecosystem
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The Business of the Digital Ecosystem

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Presented by Michael Leppitsch from Apigee during Mobile Day Mexico 2014.

Presented by Michael Leppitsch from Apigee during Mobile Day Mexico 2014.

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  • Main Points:Apigee is the leader, and a worthy guide.Sequential Story: To embark on the exploration and decision making in the app economy, you need the thought leader.NEXT: What will we do today?Script:Review the numbers.Personal Validation, put them in my shoes: Where did I come from – enterprise, big data, strategic initiatives, transformation.What did I personally find compelling about Apigee – comprehensive technology, customer focus.Background Info:None
  • Point of the slide: show who the main players are in today’s new ecosystem. A company that wants to excel should keep in mind: the customers and the developers: internal, external and partners. Script:You need to have tools to be able to create successful Apps that your customers will love to use. Apigee provides you with the right set of tools to build the best Apps and analyze the data that come in-and-out, leveraging a unique API creation tools. These tools will help to grow your business. Our App Services and Developer Channel are essential tools in today’s new eco system. We will get into the products later [say that only if you are going to show the products’ slides]
  • Script:Today’s technology’s building blocks of the ecosystem contain three main components: Apps, Data, and APIs and this is what our business delivers. Apps are where your customers are. Data is the key to maximizing the potential of your digital ecosystem.APIs are the backbone of digital business. They securely enable enterprise assets for app creation and enrich the enterprise with ecosystem data. Only the combination of Apps, Data, and APIs will lead your business to succeed. [use an example to make the above clearer. For example use Product Catalog]
  • Script:Apigee technology delivers the products you need to shine in the App Economy. Our goal is grow businesses while making app developers life easier when they create apps, easily analyze the data that come in-and-out, and work effectively with APIs. Additionally, we provide monetization tools to grow you’re your revenue from you API-based digital initiatives. *****Tech aspect: You need to use APIs to create apps. These APIs allow you to capture data which will help you to build a better app and better products. Apigee technology combines all three. *****
  • Script:Apigee technology delivers the products you need to shine in the App Economy. Our goal is grow businesses while making app developers life easier when they create apps, easily analyze the data that come in-and-out, and work effectively with APIs. Additionally, we provide monetization tools to grow you’re your revenue from you API-based digital initiatives. *****Tech aspect: You need to use APIs to create apps. These APIs allow you to capture data which will help you to build a better app and better products. Apigee technology combines all three. *****
  • Main Points: Big Picture - the App Economy Success Model, used by Apigee to organize concerns and focus efforts on Customer Success.
  • Transcript

    • 1. The Business of the Digital Ecosystem A Guide to Rapid Evolution in the Digital Economy
    • 2. Proprietary Material Copyright Apigee 2014 All industries are in the process of a major transformation to software-driven, digital businesses.
    • 3. Proprietary Material Copyright Apigee 2014 Apigee leads enterprises in transition to digital world The leader in API technology and services for enterprises and developers Billions of API calls per day Over 100,000 developers in the community Hundreds of enterprise customers worldwide across all industries Over 50% of world’s top 10 telcos and retailers Thought leader with over 100 webcasts, e-books, white papers, courses
    • 4. Proprietary Material Copyright Apigee 2014
    • 5. Proprietary Material Copyright Apigee 2014 Global Digital Ecosystem US Digital Ecosystem Mexico Digital Ecosystem
    • 6. Proprietary Material Copyright Apigee 2014 Two-thirds of the 140 million U.S. adults with smartphones state they are more likely to shop at a store with an app. Q: How much more or less likely are you to shop at a store that offers an app with a searchable product catalog, featured sales, and a store locator? Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 19 36 25 18 11 66 84 67 66 65 0 50 100 Total Top App Users Millenials 18-49 $50K + More Likely Much More Likely
    • 7. Proprietary Material Copyright Apigee 2014 Mobile apps are a necessity now Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 15 32 14 15 14 81 92 78 79 79 0 50 100 Total Top App Users Millenials 18-49 $50K + Changed how I do this Completely changed how I do this Q: How much has having a smart phone or tablet changed the way you shop?
    • 8. Proprietary Material Copyright Apigee 2014 Nine out of ten smartphone users expect mobile to have changed their shopping behavior by 2015. Q: Thinking of the next two years, how much do you expect smart phones, tables, and apps to change how you shop? Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 90 99 90 89 89 50 100 Total Top App Users Millenials 18-49 $50K +
    • 9. Proprietary Material Copyright Apigee 2014 Majority expect stores to have “key services and functions available by app” today, rising to two-thirds by 2015. 52 57 47 46 49 53 67 49 47 47 67 81 69 64 64 66 77 59 61 62 0 50 100 Total Top App Users Millenials 18-49 $50K + Total Top App Users Millenials 18-49 $50K + TOTAL Within 2 years Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 Department Store Grocery Store Q: Do you currently expect any of the following to have key services or functions available by app? Of those you did not select, do you expect any to provide key services or functions available by app within the next 2 years?
    • 10. Proprietary Material Copyright Apigee 2014 The implications of failing to meet rising expectations and changing behavior are dire 19 36 25 18 11 66 84 67 66 65 0 50 100 Total Top App Users Millenials 18-49 $50K + More Likely Much More Likely Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 Q: How much more or less likely are you to shop at a store that offers an app with a searchable product catalog, featured sales, and a store locator?
    • 11. Proprietary Material Copyright Apigee 2014 Digital leaders outperform market on KPIs 71 53 75 55 79 65 80 55 0 50 100 Outperformed a lot Outperformed a little Digital leaders, about 43% of all companies. Above average score deploying apps, using data analytics, and operating APIs today. Digital laggards, about 57% of all companies. Below average score deploying apps, using data analytics, and operating APIs today. Analysis of 1,321 companies from 3 Institute surveys from April 2013, Sept. 2013 and January 2014 Across surveys of 1,321 large companies, we have found that companies who outperform on big data analysis, API development, and app deployment have seen report significantly better market returns. Margin Market Share Gross Revenue Customer Satisfaction
    • 12. Proprietary Material Copyright Apigee 2014 The pattern holds true with retail interviews 71 53 75 55 79 65 75 55 0 50 100 Outperformed a lot Outperformed a little Analysis of 57 Retail companies from 3 Institute surveys The retail data, while a smaller sample, follows the same pattern as the rest of the marketplace. Margin Market Share Gross Revenue Customer Satisfaction Digital leaders, about 50% of all retailers. Above average score deploying apps, using data analytics, and operating APIs today. Digital laggards, about 50% of all retailers. Below average score deploying apps, using data analytics, and operating APIs today.
    • 13. Proprietary Material Copyright Apigee 2014 Across the board, owners embrace smartphones and apps with intense favorability 16 75 61 79 72 17 39 17 0 50 100 Aggregate Store Favorability Your Smart Phone Your Apps Smart Phones Very Favorable Favorable Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 Q: I'd like to rate your feelings toward some brands, people and things, where 100 means you have a VERY WARM, FAVORABLE feeling, 0 means you have a VERY COLD, UNFAVORABLE feeling, and 50 means you're not particularly warm or cold.
    • 14. Proprietary Material Copyright Apigee 2014 Apps are an influential engagement channel 67 90 50 100 Very favorable (75+) scores of 10 well known large national stores with apps Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 80 57  Mean Favorability Score  Q: I'd like to rate your feelings toward some brands, people and things, where 100 means you have a VERY WARM, FAVORABLE feeling, 0 means you have a VERY COLD, UNFAVORABLE feeling, and 50 means you're not particularly warm or cold. with apps without apps
    • 15. Proprietary Material Copyright Apigee 2014 Even for frequent shoppers, favorability is 5% higher with who use the store’s app compared to those who do not Very favorable (75+) scores of 10 well known large national stores with apps  Mean Favorability Score  Q: I'd like to rate your feelings toward some brands, people and things, where 100 means you have a VERY WARM, FAVORABLE feeling, 0 means you have a VERY COLD, UNFAVORABLE feeling, and 50 means you're not particularly warm or cold. 77 74 25 50 50 100 84 80 61 52 Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 Frequent Shoppers Infrequent Shoppers with apps without apps with apps without apps
    • 16. Proprietary Material Copyright Apigee 2014 Top app users enthuse about benefits from their smartphone including access, information, connectedness and ease Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 Q: In your own words, what has changed most in your life due to getting a smart phone?
    • 17. Proprietary Material Copyright Apigee 2014 Leverage mobile apps to drive action and build engagement 43 46 93 68 56 92 0 50 100 Watch City Council Session Provide comments or response to a proposed project in your town Report a pothole or other need for city services All Consumers Top App Users Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1 PercentageGrowth In each case, being able to perform each action using a mobile app significantly increased respondent’s stated likelihood of performing each action.
    • 18. Proprietary Material Copyright Apigee 2014 Place bets beyond table stakes 0 10 20 30 40 50 60 70 80 Top App Users Consumers Easily usable interface A store-finder feature Customer service access The ability to buy items (delivery) The ability to buy items (pick-up) Seamless app/tablet/PC connection Seamless app/in-store connection An attractive design Personalized services based on previous purchases Connection to other apps Percentwhoreportfeatureiscritical Q: Thinking of retail store apps, please categorize the following feature in one of the following buckets: Critical for any retail app, desirable, ambivalent, or undesirable Source: Apigee Institute Survey of 1,000 US Smartphone owners, November 26-30, 2013; margin of error +/- 3.1
    • 19. Proprietary Material Copyright Apigee 2014 Achieving return on innovation requires strategic execution. The beginning steps that must be forcefully executed are: Business Alignment: portfolio / roadmap for digital products Program Organization: platform roadmap to support product strategy Program Execution: mobilize platform and product teams to deliver the roadmap
    • 20. Proprietary Material Copyright Apigee 2014 Changing How You Change CHANGE AGILITY • Organization • Product Management • Architectures • Timelines • Marketing • Markets • Consumers • Partners • Offerings • Satisfaction After CONTROL RIGIDITY Before Culture Result
    • 21. Proprietary Material Copyright Apigee 2014 Digital Value Creation BRAND / HALOS BUSINESS / CUSTOMER PROCESSES DIGITAL PRODUCTS User Experience (UX) Revenue Generation Vanity Apps
    • 22. Proprietary Material Copyright Apigee 2014 Customers Partner Developers Internal Developers External Developers Digital Assets
    • 23. Proprietary Material Copyright Apigee 2014 Apps APIs Data Digital Assets
    • 24. Proprietary Material Copyright Apigee 2014 Apps Grow APIs Data Digital Assets
    • 25. Proprietary Material Copyright Apigee 2014 API Digital Assets
    • 26. Proprietary Material Copyright Apigee 2014 Marketing Services 9% Education 5% Entertainment 15% Publishing 10% Financial 10% Travel & Hospitality 8% Public Sector 8% Transportation & Logistics 13% Healthcare 3% Real Estate 2% Retail 10% Telco 7% Source: ProgrammableWeb data 7-25-13 10,000 Open APIs ~ 4% of APIs are open • Open • Diverse • Adaptive • Comprehensiv e • Competitive • Dynamic • Iterative • Easy to Use
    • 27. Proprietary Material Copyright Apigee 2014 Core Enterprise Assets App App App Partner Partner App Partner BusinessDemand App Time App
    • 28. Proprietary Material Copyright Apigee 2014 Impact to cycle times and costs “<Top 5 operator> expects that APIs can reduce its application development cycle from 12 – 18 months to less than 6 months. Assuming each API initiative is reused at least one more time in addition to the original use, there’s an estimated $100 – 200M in IT capital cost savings in 2012 and over $500M by 2015.” Telecommunications Technology Transformation Market Research 2013 Coding reduction 50,000 LOC 4,000 LOC Onboarding reduction 12 WEEKS 4 HOURS Greater reach 5K DEVS 150K DEVS
    • 29. Proprietary Material Copyright Apigee 2014 end-to-end solution end-to-end solution Technology Platform Consumption exposes the core assets and applications as a consistent externally addressable system. enables interaction with the enterprise assets in a controlled manner from any app or device regardless of type or language. provides leverage for development of first-party end-to-end experiences and for deriving value from partners and customers. Silo Solutions Compute Resources Compute Resources Enterprise Assets Digital Asset Finished App Partner Finished App Customer Finished App Digital Asset Exposure TRADITIONAL ENABLED Enable innovation by exposing digital assets
    • 30. Proprietary Material Copyright Apigee 2014 Digital Business Success Model Digital Business Mission + strategy Outcomes + KPIs Governance Digital ecosystems Product lifecycle APIs for products Monetization API lifecycle Developers + partners API Team Style of API programs Developer community Developer support Developer analytics Logical architecture API facades + policies API analytics Lifecycle support BaaS and other services Security + auditing Infrastructure architectures Performance + scale Security + identity Availability + continuity Analytics + diagnostics IT change management Digital Products Developer Ecosystem API Services IT Architecture Context and insights KPIs + metrics Data science Big data + fast data Realtime consumer Behavior Insights Executive Workshop Ecosystem Package Governance Package
    • 31. Proprietary Material Copyright Apigee 2014 Example of an Enabled Organization Field Service Partner Business Retail Business Chief Digital Officer API Team CEO CIO IT Core Systems IT Integration IT Platforms App Development Revenue, Ecosystem Speed, User Experience, Innovation Security, Reliability, Cost App Development App Development App Development Vision and Influence ServiceService Control Control Service Control
    • 32. Proprietary Material Copyright Apigee 2014 Software Engineers Profile of an API Team Operations Solution Architects QA UX API Product Manager API Designer API Gateway Operations Executive Sponsor Developer Community Manager Partner Support Business Liaisons Technical skills for API Team are similar to that of a solid web team Strong software product management skills Strong web-centric data architecture skills In depth platform expertise Evolves into Chief Digital Officer Social, technical, ev angelist Internal transformation and development skills Creative, hands-on business development skills
    • 33. Proprietary Material Copyright Apigee 2014 Context is key to understanding customers Customer Experience Partner Interactions Enterprise Services Location Time Weather Habits Social Prior Purchases Discounts Brand Affiliation Promotions Integration Logic DeveloperUser APIApp API Team Backend
    • 34. Proprietary Material Copyright Apigee 2014 Deliver & Collect analyze behavior across digital channels generate new class of data Enrich add relevant surround data for context internal and external Adapt optimal contextual experience real time
    • 35. Proprietary Material Copyright Apigee 2014 Deliver & Collect analyze behavior across digital channels generate new class of data Enrich add relevant surround data for context internal and external Adapt optimal contextual experience real time w/ APIs w/ Big Data & Earned Data w/ Predictive Analytics Digital AssetsAPI API API API
    • 36. Proprietary Material Copyright Apigee 2014 All New Businesses are built on APIs
    • 37. Proprietary Material Copyright Apigee 2014 Composite of New Revenue Channels
    • 38. Proprietary Material Copyright Apigee 2014 About the research This report is based on two sources of data. The information regarding the enterprise results is based on a database of 1,321 interviews amongst executives and IT decision makers at companies with more than $500 million in annual revenue. The data is compiled from three surveys: 200 interviews from an April 2013 survey, 321 interviews from a September-October 2013 survey and 800 interviews from a January 2014 survey. All three surveys were conducted online via verified double-opt-in panel. The consumer data came from an Apigee Institute survey of 1,000 US smartphone owning adults conducted via a verified double-opt-in panel. The survey was conducted November 26-30, 2013 and has a margin of error of +/- 3.1. The demographics were weighed to match The Pew Research Internet Project’s October 2013 poll of smartphone owners.

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