Darwin's Finches, 20th Century Business, and APIs
Upcoming SlideShare
Loading in...5
×
 

Darwin's Finches, 20th Century Business, and APIs

on

  • 91,667 views

APIs are transforming the web economy and forcing changes in Web business models. Darwin's imperative - adapt or perish - has never been more apt. Much like the changes from direct to indirect ...

APIs are transforming the web economy and forcing changes in Web business models. Darwin's imperative - adapt or perish - has never been more apt. Much like the changes from direct to indirect channels in 20th century business, APIs represent an indirect channel to customers, led by developers and applications. Learn about successful adaptations to this environment and how to help others understand the API imperative.

Statistics

Views

Total Views
91,667
Views on SlideShare
35,714
Embed Views
55,953

Actions

Likes
136
Downloads
1,188
Comments
12

223 Embeds 55,953

http://blog.apigee.com 14222
http://techcrunch.com 9378
http://jp.techcrunch.com 8585
http://samus.typepad.com 4217
http://enda.goblogmedia.com 4106
http://www.google.com 2374
http://www.techcrunch.com 1602
http://www.readwriteweb.com 1594
http://braindev.herokuapp.com 1532
http://www.wiseweb.fr 1500
http://thestartupmagazine.co.uk 1059
http://classes.windley.com 763
http://app.braindu.com 516
http://readwrite.com 507
http://steveofg.com 489
http://www.mindtouch.com 257
http://blog.sonoasystems.com 224
http://www.robzazueta.com 189
https://blog.apigee.com 175
http://feedspot.com 165
http://feeds.feedburner.com 133
http://abhijitdhakne.blogspot.com 124
http://maxmzd.com 119
http://www.newsblur.com 106
http://blog.thesoundhorizon.com 102
http://www.joiningdots.com 97
http://www.slideshare.net 92
http://uran.mont.ru 87
http://bucket.pdp.crl.sony.co.jp 76
http://www.linkedin.com 74
http://seo-lpo.net 74
http://blog.mashape.com 70
http://meme-shift.posterous.com 70
http://newsblur.com 60
http://www-ig-opensocial.googleusercontent.com 60
http://www.mashup.se 55
http://www.pulse.me 51
http://dev.newsblur.com 51
http://technewsi.altervista.org 47
http://s23a121.dm1.oii.oki.co.jp 45
https://twitter.com 44
http://www.web2expo.com 43
http://jetblk.collected.info 29
http://bizbytez.com 29
http://bikashmaharjan.com.np 29
http://wp-brandme.rhcloud.com 26
http://translate.googleusercontent.com 26
http://soshitech.com 25
http://localhost 25
http://news.infoseek.co.jp 23
More...

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

CC Attribution-ShareAlike LicenseCC Attribution-ShareAlike License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

110 of 12 Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • By far the best presentation I've come across so far. Kudos and thank you very much indeed!
    Are you sure you want to
    Your message goes here
    Processing…
  • Sam, great presentation. I particularly like slide 133 - 'developers now sit between you and your customers, they are like the retail store in the value chain.' I am really excited by the rapid innovation occurring through the use of APIs. This presentation frames APIs in a way that will be useful when speaking to those who are yet to see the importance of APIs.
    Are you sure you want to
    Your message goes here
    Processing…
  • how does OAuth help in B2B, how does a company check on its API usage by another B2B
    Are you sure you want to
    Your message goes here
    Processing…
  • Based on further questions and feedback on this presentation, I collaborated with Michael Hart and Dan Jacobson of Netflix to build a practical companion to the Darwin's Finches deck. You can find it here: http://www.slideshare.net/samramji/punctuated-equilibrium-celestial-navigation-and-ap-is
    Are you sure you want to
    Your message goes here
    Processing…
  • Nice presentation, good overview of the evolution...
    Are you sure you want to
    Your message goes here
    Processing…

110 of 12

Post Comment
Edit your comment
  • Creative Commons Attribution-Share Alike 3.0 United States License
  • http://www.csuchico.edu/~curban/DarwinSP2002Phil108.htmUse at beginning to set up story – 1,2,3 are the same genus – adaptation to a competitive environment (island)
  • http://newdesktopwallpapers.info/The%20best%20of%20summer%20-%20Islands%20and%20Tropical%20Paradise/Islands/slides/Coastal%20View,%20Galapagos%20Islands.html
  • http://visibleearth.nasa.gov/view_rec.php?id=5517
  • http://maps.google.com/maps?ftr=earth.promo&hl=en&utm_campaign=en&utm_medium=mapshpp&utm_source=en-mapshpp-na-us-gns-erth&utm_term=evl
  • http://www.csuchico.edu/~curban/DarwinSP2002Phil108.htm
  • http://www.csuchico.edu/~curban/DarwinSP2002Phil108.htm
  • http://www.reproductive-revolution.com/charles-darwin.html
  • http://www.reproductive-revolution.com/charles-darwin.html
  • Avery, MacLeod, and McCarty
  • http://bbruner.org/bitn/bitn_fig/dna.gif - http://www.genome.gov/glossary/index.cfm?
  • Avery, MacLeod, and McCarty
  • Avery, MacLeod, and McCarty
  • http://ephemeralnewyork.wordpress.com/tag/old-signs/
  • http://wirednewyork.com/forum/showthread.php?p=299745
  • http://s.wsj.net/public/resources/images/PT-AK559_Suburb_G_20081224174421.jpg
  • http://www.laapush.org/environmentalspectrum_files/images/000001ad.jpg
  • http://media.photobucket.com/image/new%20york%201950/guaporense/midtown1955.jpg
  • http://s.wsj.net/public/resources/images/PT-AK559_Suburb_G_20081224174421.jpg
  • http://www.springfieldrewind.com/photos/sears70a.jpg
  • http://farm5.static.flickr.com/4072/4338895970_56d7989798_o.jpg
  • http://bbruner.org/bitn/bitn_fig/dna_repl.gif - http://www.genome.gov/glossary/index.cfm?
  • OpenTable, MovieTickets, TaxiMagic, Citysearch, Yelp, Yahoo Local, Gayot, Rotten Tomatoes, NYTimes.com, WeatherBug, AllMenus, StubHub, LiveKick, Maponics, Nuance and TrueKnowledge - http://blogs.zdnet.com/semantic-web/?p=333&tag=col1;post-333
  • NPR, New York Times, MTV Networks, Finance, Healthcare, Manufacturing; “Some of these businesses have been around for 5 years, others for 100”
  • http://www.britannica.com/EBchecked/topic-art/197367/74641/Fourteen-species-of-Galapagos-finches-that-evolved-from-a-common
  • http://en.wikipedia.org/wiki/Punctuated_equilibriumWe are in an epoch of change – no longer copying Amazon’s 1-click model – rapid speciation
  • Cloud computing doesn’t have to mean moving your datacenter to AmazonIt can be about enabling cloud consumers to access your business via your API so that your business is everywhere – mobile and social, and underneath a thousand apps.
  • http://www.britannica.com/EBchecked/topic-art/197367/74641/Fourteen-species-of-Galapagos-finches-that-evolved-from-a-common
  • http://www.britannica.com/EBchecked/topic-art/197367/74641/Fourteen-species-of-Galapagos-finches-that-evolved-from-a-common
  • Respect the patterns – use REST, make it human-readable if possiblegraph.facebook.com is a great example of a clean REST API
  • http://www.insidefurniture.com/.shared/image.html?/photos/uncategorized/predictions_crystal_ball.jpg
  • http://www.mun.ca/biology/desmid/brian/BIOL2060/BIOL2060-20/2027.jpg
  • Don’t break the developer’s ability to do a “sign in with Twitter” or “Facebook Connect” authentication schemeClone similar APIs as appropriate (Tumblr)
  • GameSpy OpenOpen APIs for data and development services, making it easier for its partners on all platforms to add compelling online features to games, measure game performance and audience engagement, and collaborate with their communities.  1. one api for head and tail 2.  for the tail - different policies - :  give limited/metered access to long tail, self-service, provisioniong 3 using the tail to drive data! 
  • Helping your (finches) application ecosystem succeed
  • Helping your (finches) application ecosystem succeed
  • Don’t have a meltdown!
  • Get everyone on the same page – you need business metrics, a picture of what success looks like, and executive buy-in and report-outs
  • http://www.avc.com/a_vc/2009/10/business-model-jujutsu.html
  • “But it’s not enough to just have one. Everyone has or will have one, just like everyone had a website. So this is the new competitive landscape. And developers are your new indirect channel. You need to address, motivate, and sustain your indirect channel. The companies that thrive in THIS transition will write the rules for everyone else.”
  • NPR, New York Times, MTV Networks, Finance, Healthcare, Manufacturing; “Some of these businesses have been around for 5 years, others for 100”
  • http://www.britannica.com/EBchecked/topic-art/197367/74641/Fourteen-species-of-Galapagos-finches-that-evolved-from-a-common

Darwin's Finches, 20th Century Business, and APIs Darwin's Finches, 20th Century Business, and APIs Presentation Transcript

  • Darwin’s Finches,20th Century Business,and APIs
    Evolve Your Business Model
    Sam Ramji @sramji
    VP Strategy, Apigee
  • DARWIN’S FINCHES
  • These birds
  • live in this paradise right here
  • so what’s the problem?
  • The problem is
  • they’re on a small island chain
  • a long way from anywhere else
  • that’s a lot of environmental pressure
  • so these finches
  • are actually terrific competitors
  • and their differences
  • were defined by this man
  • as successful adaptations.
  • The ones you don’t see today
  • had unsuccessful adaptations
  • and died out.
  • A century after
  • a team of scientists identified the mechanism of adaptation and evolution
  • Twenty years later
  • called out the gene
    as the atomic unit of competition.
  • From the perspective of the gene
  • the gene is successful
    if the organism that carries it is successful.
  • Switching gears
  • 20th CENTURY
    BUSINESS
  • In 1910 business was mostly direct
  • By the 1930s there was a lot of competition
  • But after World War II, there were new environmental pressures
  • Many businesses died out.
  • Business went from direct to indirect.
  • Those businesses who thrived in this transition
  • Shared a set of successful adaptations
  • 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
  • Unified by one idea
  • It was not just about selling in
  • It was not just about selling in
    It was about selling through.
  • From the perspective of the business
  • The business is successful
    If the retailer that it sells through is successful.
  • The real world went from direct to indirect
  • It went beyond the corner store.
  • The web world is going from direct to indirect.
  • It is going beyond the browser.
  • That takes us to
  • APIs

  • Robert Scoble
    Author of tech blog Scobleizer
  • Why?
  • Because in a web beyond the browser
  • APIs are how people get to your business.
  • You need to see things
    from the perspective of the gene.
  • The gene is successful
    if the organism that carries it is successful.
  • You need to see your business
    from the perspective of the API.
  • The API is successful if
    the application that carries it is successful.
  • Successful applications will use many different APIs.
  • and they will carry those APIs everywhere
  • z
  • taking your business with them.
  • For the successful companies, 80% of traffic will be coming from beyond the browser.
  • Everyone else will have to play in the world that the winners make.
  • One last thought on evolution
  • Adaptive Radiation in Twitter Applications
    Visualization by Sonoa
    Classifications by Oneforty.com
  • CURRENTENVIRONMENTAL PRESSURES
  • Mobile
    Social
    Cloud
  • They can be independent or they can support each other.
    It is up to you to decide if there’s harmony.
  • 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.
  • 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.
  • Cloud computing is not about Amazon.
  • Cloud computing is not about Rackspace.
  • Cloud computing is not about Microsoft.
  • Cloud computing is not about Google.
  • Cloud computing is about
    how you reach your customers
  • We’ve gone from libraries to APIs.
    In a cloud computing world people access library-like functionality via an API.
    These services are the unit of programming.
    Make your API useful and it will be carried to customers you’ve never met.
  • CHANGE AGENCY
  • I know you get all this already
    But how do you get your colleagues to join you in the journey to APIs?
  • What’s so damn wrong with the current model?
    I like it and it’s working for me.
    Plus, I understand it.
  • Actually, it’s not working.
  • Populations, societies, and markets are becoming more specialized and differentiated.
  • Consumer interest groups are fragmented.
  • Consumer interest groups are increasingly fragmented.
  • Markets are changing so fast that you can’t spend the time to “market size,
    focus group,
    plan,
    develop,
    launch,
    measure and
    sustain”
    because the market niche may be gone or fundamentally changed
  • A rapidly expanding range of computing platforms are needed to reach consumers.
  • Mary Meeker, Morgan Stanley
  • This is not a solvable problem nor a winnable game.
  • The only way to win is to change the game.
  • Thousands of people,
    who are not on your payroll,
    who are intimately part of each of these changing interest groups and niches,
    must be convinced to carry
    your product there for you
    in a way that adapts to the dynamic environment
  • Thousands of people,
    who are not on your payroll,
    who are intimately part of each of these changing interest groups and niches,
    must be convinced to carry
    your brand there for you
    in a way that adapts to the dynamic environment
  • Thousands of people,
    who are not on your payroll,
    who are intimately part of each of these changing interest groups and niches,
    must be convinced to carry
    your experience there for you
    in a way that adapts to the dynamic environment
  • It’s a competition for ideas
  • Enable your business to adapt into niches
  • Only 1 of 100 will be successful – not a failure rate that you can withstand and remain in business.
    You need to encourage that to happen “out there” where the cost structures and speed of business are synchronized.
    Be ready to reward or acquire the winners.
  • SUCCESSFULAPI ADAPTATIONS
  • Realizing that developers are your channel
    Being recombinant and easily mixed
    Unlocking your legacy data into open APIs
    Driving new data into your system via open APIs
    Supporting your application ecosystem
  • developers
    Why do you need to attract developers?
  • developers
    Because applications are the fastest growing and fastest changing organisms in this environment
    and they’re built by developers
  • developers
    Unsuccessful adaptations to this world are based on the following conventional wisdom
  • developers
    Companies providing APIs to access their business are the supply
    Developers who build against those APIs are the demand
  • developers
    This is exactly wrong.
  • developers
    Companies providing APIs are the demand
  • developers
    Companies providing APIs are the demand
    They demand developers’ attention and adoption
  • developers
    Developers building with APIs are the supply
  • developers
    Developers building with APIs are the supply
    They supply innovation and adaptation
  • developers
    Developers now sit between you and your customers
    They are like the retail store in the value chain
  • Packaged Goods
    Consumer
    Retail Store
    Producer
    Internet Services
    App
    Developer
    Consumer
    Provider
  • SUCCESSFULAPI ADAPTATIONS
  • recombinant
    Two rules for marketing your API to developers
    1. Don’t assume that developers are clamoring for your API.
    2. Don’t assume that developers will want to use your API alone.
  • recombinant
    Be robust so that your API is recombinant

  • 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
  • Visualization by Apigee
  • recombinant
    Rules for robustness
  • recombinant
    REST first, everything else second
    Nothing weird: straight XML, straight JSON
    Keep responses small
    Keep calls granular
    No custom security schemes: use OAuth
    Don’t make the developer deal with PCI-compliance
    Sample code wins every time
    You’ll get it wrong the first time – so listen well
  • recombinant
    Be remixable so that your API is recombinant
  • recombinant
    Rules for miscibility
  • recombinant
    Observe your adjacencies
    Don’t break social sign-on
    Don’t require session management
    Provide sample code for expected remixes
    Reward creativity through promotion
  • SUCCESSFULAPI ADAPTATIONS
  • legacy data
    Unlocking your legacy data into open APIs
  • legacy data
    Open APIs for your legacy data means innovation can happen out there
  • legacy data
    Product Catalogs that integrate with your backend
    Customer Preferences based on your interactions
    Historical Purchases through your existing sites
    Logistics Information about your supply chain
    Seasonality on purchases of goods and services
    Location of historical purchases
    User Recommendations of good and services
    Service Providers that you have transacted with

  • SUCCESSFULAPI ADAPTATIONS
  • new data
    Driving new data into your system via open APIs
  • new data
    Data is the new business model
    Each new user makes the service better
    Use the tail to feed the head
  • new data
    GameSpy Open
    One single API for the head and the tail
    Tail policy:  limited access for free
    Head policy: unlimited access for fee
  • Data from Programmable Web
  • Data from Wikipedia
  • SUCCESSFULAPI ADAPTATIONS
  • Helping your finches succeed
  • Help your application ecosystem succeed
  • application ecosystem
    An app is only as strongas its weakest API call
    Your API is a product like any other product
    Design for scale of business processes
    There is a huge gap between a feature and a business

  • John Musser
    Founder, Programmable Web
  • Programmable Web
  • application ecosystem
    It is not just about selling in
    It is about selling through.

  • Fred Wilson
    Union Square Ventures
  • InCLOSING
  • John Musser
    Founder, Programmable Web
  • Dion Hinchcliffe
    Dachis Group
  • THANK YOU
    Questions and ideas to:
    @sramji
    sramji@apigee.com