Today's enterprise strives to deliver exceptional customer experience, business process efficiency, and customer profitability. Given an enterprise's existing set of products, how do you define a portfolio of digital products to drive innovation and deliver real business results? How does business strategy shape a digital products portfolio? What technical and organizational processes & structures are common among successful digital products? Join Michael Leppitsch and Dan Tortorici for a discussion of what a digital products portfolio looks like, how a portfolio is shaped by your business strategy and by your consumer, and how a robust digital products portfolio leads to customer adoption, satisfaction, and profitability. Join to discuss: - Digital products and how they shape customer experience and behavior - Influences that inform and shape successful digital product portfolios - Common traits and patterns in successful digital products

1. Digital Strategy Webcast
Building a Products Portfolio for Real Business Results

2. Dan Tortorici
@dantortorici
Jeremy Anticouni
@JeremyAnticouni

3. Social Content Channels
YouTube
Slideshare
http://youtube.com/apigee
http://slideshare.com/apigee
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4. I Love APIs Conference 2013
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5. Building a Digital Product Portfolio
Introduction
5
d

6. Powered by Apigee
;
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7. Agenda
• Digital products
• Business models and monetization
• Digital product design and development
• Final thoughts
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8. Digital Success Model
Digital Strategy
Initiative
Metrics
Digital Products
Insights
Apps
Business
Channel
Customer
Analytics
Digital Ecosystem
Recruitment
Support
Ecosystem
Analytics
Transformations
Platform
Analytics
Community
Digital Platform
Blueprint
Service Level
Management
IT Architecture
IT Resources
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Security & Privacy
Operations Model
Operational
Analytics
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9. Digital products, what are they?
• Media
• Mobile Apps
• Tablet Apps
• Next generation devices
• Any device specific to your business
– Auto dash and telematics
• Devices and the IOT
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10. A new opportunity
• Ability to repurpose and combine
existing assets in a new and compelling
way
– Extending service
– Increasing customer interaction
• Increased synergy with partners to
provide products and value beyond
enterprise walls
• Crowd sourced innovation that can
deliver products that were previously
unimaginable
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11. Characteristics of digital products
• For the App user
– Easy to use as dictated by device form factor
– Provide fast access to useful information and services
– Provide value relevant to target device
– Consumer expectations raise the bar
• For the business
– Extend backoffice, frontoffice, transactional systems in new ways not
previously possible
– Employ a business model aligned with business goals
– Achieve ‘impulse interaction’ with customer for greater mindshare
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12. The API: Key to unlocking digital business
A hotel guest needs access to
desired services
Seeks the help of a concierge that
simplifies access to services
Which are available from
Service Providers
Dining
Events
Golf
An App needs access to
desired services
Seeks the help of an API to
simplify access to services,
Which are available from all
kinds of Service Providers
managed by an API Platform
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13. The API product and team
• API product
– Treat the same as you would any other software product
– Design API products for the developers you need to target
– Design for an ‘Open API’ even though initial use may be internal
• API team
– Cross functional team that covers all aspects of product lifecycle
– Business, product management, marketing, IT operations, engineering etc.
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14. Agenda
• Digital products
• Business models and monetization
• Digital product design and development
• Final thoughts
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15. Aligning business model with goals
• Business and IT need to be in alignment with both business and
technical visions
• Business objectives are powerful driver to business model
• Increasing revenue
– Through imagining existing product in digital world (locators, upsell, crosssell, distribution partners)
– New products that leverage existing ones and combine with compelling
digital added value (partner synergy, social community)
– Extending reach to connect with new sources of prospects
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16. Business goals driving digital business
• Customer investment
– Increasing customer interaction with additional points of contact
– Increasing services available to the customer
– Loyalty programs that leverage social and mobile
• Internal efficiency and productivity
– Eliminating partner integrations
– Increasing enterprise agility and flexibility
– Enabling greater value of company information
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17. World Bank: Extending reach
• Extending reach and impact through
mobile
• Enabling external innovation with
Open API and contests
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18. OnStar: Increase services available to the customer
Needed to expand use of OnStar network for
greater value beyond existing services offered
•
•
Partner API enabled RelayRides to offer unique
car rental service
Partner API also used with B2B Smart Grid
electric companies for efficient Chevy Volt
charging scheduling
“We feel that opening up our proprietary API to
developers will ensure that OnStar continues
to keep customers connected in ways they
never thought possible..”
- Eric Litt, CIO
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19. Business models for API monetization
Free
Revenue Sharing
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Fees
Charging
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20. Business models for API monetization
Free
Fees
Revenue Sharing
Charging
Duration
One off
Fixed Revenue
Transaction volume
Quantity
Recurring
Share bands
Custom attribute
Product specific
Flat rate
Tax model
Flexible banded
Group /company
Virtual currency
Combination
Group /company
Product specific
Bundled
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21. Best practices
• Model and monetization are specific to each API product
• Business model
– Align with business goals which will determine developer community
– If external developers are involved, keep a free API for fast learning
– Business models evolve: Netflix changed to a partner model which
drove client availability
• Monetization
– Needs to be a win-win for you and your developers
– Often the best strategy is an extension of your current revenue strategy
– Monetizing the API itself not recommended, too much differentiation and
value required
© 2013 Apigee Corp. All Rights Reserved

22. Agenda
• Digital products
• Business models and monetization
• Digital product design and development
• Final thoughts
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23. Who are the developers?
Who uses the API?
App Types
Internal Developers
(Internal API)
B2E, S2S
B2B, B2C,
Partner Developers
(Partner API)
B2C
Developers Anywhere
(Open API)
B2C
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Examples

24. Design: Data, transaction, access
• Data is the link across all your touchpoints and should enable
consistent service and reflect customer relationship
• Transactions may be within the App for greater impulse purchases
or the App may be used to driver greater sales through normal
channels
• Easy access to service of value is an important hurdle to overcome
to keep customers engaged
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25. Design: Brand, metrics, marketing
• Apps provide another channel to reinforce brand
• Can help demonstrate the uniqueness of your brand as well
• The digital economy provides many data points to measure:
–
–
–
–
Awareness: Page views and general API traffic
Registrations: Converting awareness to interest
Downloads: Product trials and evaluations
App purchases: Revenue associated with the digital channel
• API programs and Apps need marketing like any other product
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26. Best practices for mobile app design
• Wireframing & Prototyping
– UX design and validation are critical to the success of an app.
– Cutting corners here often leads to significantly longer development.
• Limited Real Estate
– Mobile devices have limited real estate.
– Ensure that your UI elements are properly sized and have a need to exist.
• Less Is More
– Complicated interfaces are easy.
– Crafting a beautiful UI that is intuitive and simple: far more challenging.
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27. Best practices for developers
• External Developers
• Streamline the process, if they can’t self-service register they will go
elsewhere
• The ‘Time to First Response’ is critical!
• ‘Learn by trying’ environment simplifies learning
• ‘Free’ access encourages taking the next step
• Sample code makes it easy to experience success
• Example Apps show functionality in context
• Available docs answer any corner cases
• Access to support eliminates obstacles
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28. Agenda
• Digital products
• Business models and monetization
• Digital product design and development
• Final thoughts
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29. Final thoughts
• Digital products enable business solutions for all the classic business
challenges
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30. Final thoughts
• Digital products enable business opportunity for all the classic
business challenges
• Well designed products enable opportunities unique to the digital
economy
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31. Final thoughts
• Digital products enable business opportunity for all the classic
business challenges
• Well designed products enable opportunities unique to the digital
economy
• Business models need to fit the characteristics and business goals of
the API
© 2013 Apigee Corp. All Rights Reserved
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32. Final thoughts
• Digital products enable business opportunity for all the classic
business challenges
• Well designed products enable opportunities unique to the digital
economy
• Business models need to fit the characteristics and business goals of
the API
• Design and development best practices provide the foundation for
ease of use and customer satisfaction
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33. I Love APIs Conference 2013
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34. Questions
Dan Tortorici
@DanTortorici
Jeremy Anticouni
@JeremyAnticouni

35. Thank you
youtube.com/apigee!
slideshare.com/apigee!
linkedin.com/company/apigee!