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Competing In A Digital World
Introduction to API
William El Kaim
Global Marketing and Enterprise Strategy - Innovation Tea...
Disclaimer
This presentation is a journey into the
digital world through my personal lens.
My work as an innovator means I...
Plan
API Definition
From API to Open API
APIs Impact Your Organization
Finding The API You Need
Aggregated API as a Servic...
API Definition

CWT Company Confidential
Copyright © 2014 CWT

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Business Agility Through API

Copyright © 2014 CWT

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API Definition
Wikipedia
“A particular set of rules and specifications that a software
program can follow to access and ma...
API Values
In the dot-com era, websites were crucial for companies to reach
new customers and grow their businesses

APIs ...
Example of API Covisint SSO – Used by
CWT ToGo

Copyright © 2014 CWT

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http://developer.marvel.com/

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Example of API

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Example of API

Copyright © 2014 CWT

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Example of API

Copyright © 2014 CWT

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API Usage
An API can be seen as
A technical “plumbing” between dispersed systems
A Way to feed/extend applications/web sit...
From API to Open API

CWT Company Confidential
Copyright © 2014 CWT

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Open API
Why now?
Information is the #1 asset of business today
A new generation of business models emerged
The new golden...
API Evolved With Internet
From Closed Library To Open API

Copyright © 2014 CWT

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What is an Open API?

“Open” Means
“As Open as
You’d Like”

An open API does not mean free!
An open API means:
Openly docu...
Open APIs Are Growing & Reshaping
The Web 2.0

Copyright © 2014 CWT

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API Billionaires

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Open APIs Are Everywhere
Media & Content

SaaS Integration

Social & e-Commerce

Others

Interest is broad and deep. APIs ...
Open APIs Enable Companies to Grow
and Innovate

By giving access to what they do best and
accessing what others do best
C...
Finding Open API Via Yellow Pages
Programmable Web
ApiHUb
The right API
Mashape
Find Web API
Api for That
Exicon API direc...
The need of an API Tier

CWT Company Confidential
Copyright © 2014 CWT

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Mobile technology challenges …
User perspective
Users’ expectation of a rich experience that takes
advantage of mobile dev...
Mobile technology challenges …
Developers perspective
Hard coupling of application logic within data and
presentation laye...
Enterprises need an API tier to meet
the demands of mobile technology
An API tier is technology “super glue” that ties tog...
Enterprises need an API tier to meet
the demands of mobile technology
Mobile is pushing aging web architectures to the bri...
The New API Tier

Source: Forrester Blog

Copyright © 2014 CWT

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Full-stack JavaScript API tier
Full-stack JavaScript is the ideal solution for an API tier.
Along with the maturation of H...
Full-stack JavaScript API tier
Ex: StrongLoop – Client Tier
For mobile, the client tier is all about the user experience.
...
Full-stack JavaScript API tier
Ex: StrongLoop - Delivery tier
The delivery tier is about shortening the distance from
sour...
Full-stack JavaScript API tier
Ex: StrongLoop - Aggregation tier
Because enterprises have collected a myriad of systems
wo...
Full-stack JavaScript API tier
Ex: StrongLoop - Aggregation tier
he services tier is where legacy begins.
It’s the myriad ...
Aggregated APIs as a Service

CWT Company Confidential
Copyright © 2014 CWT

34
API Aggregation Business
These innovative businesses combine APIs from multiple
providers to build new products and servic...
1. API Aggregation for Automation
Service Offered
These API aggregators tend to have a library of SaaS and
(increasingly) ...
1. API Aggregation for Automation
Temboo

Helps programmers
connect several APIs into
an automated workflow
and then creat...
2. API Aggregation for Creative
Production
Service Offered
Creative agency uses APIs as part of their “creative pallet” to...
3. API Aggregation for Content Delivery
Service Offered
These aggregation services pull content based on relevant keywords...
4. API Aggregation for BI and Analytics
Visualization
Service Offered
This is a well-established space with multiple playe...
4. API Aggregation for BI and Analytics
Visualization

Copyright © 2014 CWT

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5. API Aggregation for Social
Engagement
Service Offered
APIs used to draw in specific account social media feeds and
busi...
5. API Aggregation for Social
Engagement

Copyright © 2014 CWT

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6. Choice and Recommendation Engines
Service Offered
These services use APIs that access open and proprietary data
sources...
6. Choice and Recommendation Engines

Copyright © 2014 CWT

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7. Single-funnel API Aggregators
Service Offered
Draw on multiple APIs and create a single API through which to
access all...
7. Single-funnel API Aggregators

Copyright © 2014 CWT

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8. Big and Personal Data API
Aggregators
Service Offered
Remix open data with proprietary sources, algorithms, and then
ad...
8. Big and Personal Data API
Aggregators

Copyright © 2014 CWT

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The Programmable Economy

CWT Company Confidential
Copyright © 2014 CWT

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The Programmable Economy

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Example: Bynd
http://byndlabs.com/get-started/

Copyright © 2014 CWT

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API Driven Companies

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API typology

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APIs help you grow your business
APIs unlock new distribution
channels & enable the
expansion of your business
beyond the ...
APIs Deliver Raw Data, Content and
Services
Create New
Distribution
Channels

Partner Up

Build an
Ecosystem

Power Mobile...
Open APIs Create Ecosystems

Copyright © 2014 CWT

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API, Product, Platform!

CWT Company Confidential
Copyright © 2014 CWT

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Four Types Of Business Apis
e.g

1

The API is the product

2

The API projects the product

3

The API promotes the produ...
Four Types Of Business Apis
Digging Deeper

1

2

3

4

Is the product

Projects the
product

Promotes the
product

Powers...
Direct Revenues

1

2

4

Enable mobile

Is the product

3
Promotes the
product

Powers and feeds
the product

• Allow dee...
Indirect Revenues

1

2

3

4

Is the product

Projects the
product

Promotes the
product

Powers and feeds
the product

•...
The API Is the Product
Core value is tied up in the API

Others

API is Core Value

Direct customer usage
Encourage resell...
The API Is the Product
Core value is tied up in the API

Copyright © 2014 CWT

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The API Projects the product
Extends availability of functionalities to new places
Mobile apps
Parties integration
Added u...
The API Projects the product

Extends availability of functionalities to new places

Copyright © 2014 CWT

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The API Promotes the product
Secondary function and indirect revenue impact

Secondary (non core) service
Designed to driv...
Netflix…

Copyright © 2014 CWT

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What if Netflix Did Not Have An API?

Copyright © 2014 CWT

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The API Powers & Feeds the product
Content acquisition via the API

Others

Content, User
information,
Ratings, comments
E...
API Business Models

CWT Company Confidential
Copyright © 2014 CWT

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The Fact ...
Value Chain has changed …
From Packaged Goods

Producer

Retail Store

Consumer

To Internet Services

Provid...
The Fact ...
Value Chain has changed …

Copyright © 2014 CWT

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Business model has changed
… Requiring More Business Agility
The new Internet is full of extraordinary companies that
look...
Implementing The Vision ...
API enables Disintermediation …
 Shift from Direct (buy from manufacturers)

From Selling in ...
API Represent a Shift In Traditional
Business Models

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API Business Models

Source: John Musser, ProgrammableWeb.com
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API Business Models
Free

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API Business Models
Free - Firehose API
Twitter API
Large scale access to API
for partners building
significant integratio...
Developer Pays

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Developer Pays
Per API Call
Twilio
Text messages sent
via an API are billed
at $0.01 per message

Pay as you Go

Rome2Rio
...
Developer Pays

Pay as you Go

AT&T Speech API
the Speech API
supports speechenabled apps that run
on virtually any cellul...
Developer Pays

Tiered Pricing

Copyright © 2014 CWT

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Developer Pays

Tiered Pricing

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Developer Pays

Freemium

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85
Developer Pays

Unit Based Pricing
DeveloperForce
API Provided to
customers to build
integrations

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8...
Developer Pays
Transaction Fee

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Developer Gets Paid

Copyright © 2014 CWT

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CPA

Copyright © 2014 CWT

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Developer Gets Paid
Example: Expedia (CPC)

Copyright © 2014 CWT

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Developer Gets Paid
Room77 Uses Expedia API (CPC)

Copyright © 2014 CWT

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Developer Gets Paid
API Value for Expedia (CPC)

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Developer Gets Paid
Google AdSense (CPC)

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Developer Gets Paid
Recurring Revenue Share

Recurring revenue every month as long as subscribers recruited by you remains...
Indirect

Copyright © 2014 CWT

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Indirect

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What API(s) for my Business Model?
Key questions to define the value
What are my core assets?
Who will use my API(s) and f...
Api Usually Mix Several Business
Models

Copyright © 2014 CWT

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Open API Business Models Examples

Bake your business model in your API

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Conclusion

CWT Company Confidential
Copyright © 2014 CWT

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Open API Is Key For Your Business!
The Web has reinvented itself
Succeeding means thinking differently about how to
innova...
An API modifies the demand/supply
pattern
From
Companies providing APIs to access their business are the supply
Developers...
Dos & Don’ts
Tips To Avoid Pitfalls
Define revenue value chain
Deploy "sense and respond" and innovation toolkits rather t...
The great list of resources used to
build this presentation

Copyright © 2014 CWT

104
This Presentation Was Built From Great
Presentations and Resources
3scale
“What is an API?” (Download PDF).
“The API Econo...
This Presentation Was Built From Great
Presentations and Resources
API Commons
“Bringing api design-out-of-the-shadows-and...
This Presentation Was Built From Great
Presentations and Resources
Layer7
“Webinar: Business ROI for APIs”, March 14th, 20...
Linkedin
http://fr.linkedin.com/in/williamelkaim
Blog
http://www.reimagine.fr/

Twitter
http://www.twitter.com/welkaim
Tra...
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API part 1 - introduction to technology and business models

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This is a introduction to API. What is an API ? What are the business models for API and whay you need an API now! It also contains a list of great resources I used to build this presentation

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Transcript of "API part 1 - introduction to technology and business models"

  1. 1. Competing In A Digital World Introduction to API William El Kaim Global Marketing and Enterprise Strategy - Innovation Team Copyright © 2014 CWT CWT - Copyright © 2011 Image from M6D
  2. 2. Disclaimer This presentation is a journey into the digital world through my personal lens. My work as an innovator means I am used to trying, testing and imagining! Most of the content of this tutorial provides from a reduced number of great resources presented at the end http://eventtoons.com/home 2
  3. 3. Plan API Definition From API to Open API APIs Impact Your Organization Finding The API You Need Aggregated API as a Service The Programmable Economy API, Product, Platform! API Business Models The great list of resources used to build this presentation Copyright © 2014 CWT 3
  4. 4. API Definition CWT Company Confidential Copyright © 2014 CWT 4
  5. 5. Business Agility Through API Copyright © 2014 CWT 5
  6. 6. API Definition Wikipedia “A particular set of rules and specifications that a software program can follow to access and make use of the services and resources provided by another particular software program that implements that API. It serves as an interface between different software programs and facilitates their interaction, similar to the way the user interface facilitates interaction between humans and computers.” An API is implemented by applications, libraries, and operating systems to determine their vocabularies and calling conventions, and is used to access their services. Copyright © 2014 CWT 6
  7. 7. API Values In the dot-com era, websites were crucial for companies to reach new customers and grow their businesses APIs unlock distribution channels by allowing data, content and services to be accessible and usable on any device, anywhere. By opening up business assets to other parties, APIs ease considerably partnership process. Potential partners are able to make use of the API to design new products and services. Copyright © 2014 CWT 7
  8. 8. Example of API Covisint SSO – Used by CWT ToGo Copyright © 2014 CWT 8
  9. 9. http://developer.marvel.com/ Copyright © 2014 CWT 9
  10. 10. Example of API Copyright © 2014 CWT 10
  11. 11. Example of API Copyright © 2014 CWT 11
  12. 12. Example of API Copyright © 2014 CWT 12
  13. 13. API Usage An API can be seen as A technical “plumbing” between dispersed systems A Way to feed/extend applications/web sites with added value services and data An API is targeted towards DEVELOPPERS or System Integrator Copyright © 2014 CWT 13
  14. 14. From API to Open API CWT Company Confidential Copyright © 2014 CWT 14
  15. 15. Open API Why now? Information is the #1 asset of business today A new generation of business models emerged The new golden rule is that those who have (and share) the best information make the rules. Market leadership is now determined by who knows how to proactively handle their enterprise data and make a compelling offering out of it. Data is most valuable when it's open, preferably community-driven. One of the most striking lessons of the Web 2.0 era was that the more you open up your data, the more valuable it gets. Organizations with the highest data and network competencies will have the advantage. The ability to get at data, secure it, open it up, govern it, engage partners, and then use it to drive revenue is key Copyright © 2014 CWT 15
  16. 16. API Evolved With Internet From Closed Library To Open API Copyright © 2014 CWT 16
  17. 17. What is an Open API? “Open” Means “As Open as You’d Like” An open API does not mean free! An open API means: Openly documented Available via self-service (i.e. developers can sign up on a website, get an API key, with no hassle) and using open Internet technologies (SOAP, REST, RSS). When opening up data through an Open API (whether it is private, partner or public), the Open API provider does the partnership work once, partners then need only onboard themselves and use their own resources as often as they like for marginal additional cost to the provider. An open API provider creates the infrastructure and then each partner does the technical, business and legal work on their end. Copyright © 2014 CWT 17
  18. 18. Open APIs Are Growing & Reshaping The Web 2.0 Copyright © 2014 CWT 18
  19. 19. API Billionaires Copyright © 2014 CWT 19
  20. 20. Open APIs Are Everywhere Media & Content SaaS Integration Social & e-Commerce Others Interest is broad and deep. APIs are currently reshaping the web, and disrupting some industries: telecoms, payments, etc! Copyright © 2014 CWT 20
  21. 21. Open APIs Enable Companies to Grow and Innovate By giving access to what they do best and accessing what others do best Copyright © 2014 CWT 21
  22. 22. Finding Open API Via Yellow Pages Programmable Web ApiHUb The right API Mashape Find Web API Api for That Exicon API directory apis.io Copyright © 2014 CWT 22
  23. 23. The need of an API Tier CWT Company Confidential Copyright © 2014 CWT 23
  24. 24. Mobile technology challenges … User perspective Users’ expectation of a rich experience that takes advantage of mobile device capabilities. Unpredictability of last-mile delivery of data and content, plus the requirement to operate offline. Propagation of existing data and services within the firewall of the enterprise and seamless integration with cloud services beyond the firewall. Need for the right granularity of content and data delivered to mobile device. Source: StrongLoop Copyright © 2014 CWT 24
  25. 25. Mobile technology challenges … Developers perspective Hard coupling of application logic within data and presentation layer. Monolithic payloads (for example, large server-side rendered web pages) that cannot be easily dissected to dynamically meet mobile use. No easy means to dynamically provision backend services to meet highly-variable demand, especially rapid scaling. Source: StrongLoop Copyright © 2014 CWT 25
  26. 26. Enterprises need an API tier to meet the demands of mobile technology An API tier is technology “super glue” that ties together endpoints of disparate enterprise systems, then exposing a uniform API to all clients. The clients include web browsers, mobile smartphones, tablets, and wearables. Each has its own set of capabilities and limitations and therefore unique user experiences. An API tier works on top of existing data and services to leverage existing systems in the context of mobile and next-generation clients. It acts as a natural bridge between front end and back end, providing for increased efficiency as well as rapid iteration to meet changing requirements. Source: StrongLoop Copyright © 2014 CWT 26
  27. 27. Enterprises need an API tier to meet the demands of mobile technology Mobile is pushing aging web architectures to the brink. The three-tier architecture built for a browser-led PC world can't flex, scale, or respond to the needs of a good mobile experience or the emerging requirements for connected products. Mobile's volatility and velocity of change require a distributed four-tier architecture that called an "engagement platform.“ The engagement platform separates technical capabilities into four parts: client, delivery, aggregation, and services. The new requirements of modern apps will force content distribution networks, application server vendors, mobile middleware vendors, platform-as-a-service suppliers, a myriad of startups, and enterprises to coalesce around this four-tier architecture. Source: Mobile Needs A Four-Tier Engagement Platform, Forrester report, October 18, 2013 Copyright © 2014 CWT 27
  28. 28. The New API Tier Source: Forrester Blog Copyright © 2014 CWT 28
  29. 29. Full-stack JavaScript API tier Full-stack JavaScript is the ideal solution for an API tier. Along with the maturation of HTML5 and CSS3, JavaScript on the front end provides a practical and attainable means to develop cross-platform hybrid mobile applications for multiple devices. Node.js on the back end provides a monoglot way to share components between back end and front end within the MVC paradigm. You can then use new Node.js middleware API Express or Koa Ultimately, business logic and application functionality can also be leveraged between back end and front end. Copyright © 2014 CWT 29
  30. 30. Full-stack JavaScript API tier Ex: StrongLoop – Client Tier For mobile, the client tier is all about the user experience. BACN (Bootstrap, Angular, Cordova, and Node) Best-of-breed fusion of frameworks for hybrid mobile apps that blurs the lines between native and mobile web apps. Copyright © 2014 CWT 30
  31. 31. Full-stack JavaScript API tier Ex: StrongLoop - Delivery tier The delivery tier is about shortening the distance from source of content to device. Much of the content displayed on mobile devices are static assets that can be cached on the device once the user updates the app to the newest version. This layer also provides the first opportunity to collect analytics by providing hooks into a quality of service (QoS) gateway through basic beaconization or instrumentation. This instrumentation can provide insight into end user behavior as well as the first layer of mobile app performance. StrongLoop has an API gateway/proxy in the works that provides reverse-proxying for AAA (authentication, authorization and auditing) plus caching and content packaging and delivery. Copyright © 2014 CWT 31
  32. 32. Full-stack JavaScript API tier Ex: StrongLoop - Aggregation tier Because enterprises have collected a myriad of systems working in concert to perform business operations, getting the necessary data and functions requires normalization to some common denominator. Think about how challenging it would be if some of the data needed by the mobile client was through a SOAP service and the rest was through a REST service hosted by an entirely different system. The LoopBack framework normalizes data from disparate systems to a common data payload easily understandable to mobile developers: the model. The developer can further define the model easily using a domain specific language called LDL (LoopBack Definition Language). This normalization and aggregation layer is called the DataSource Juggler, which can be thought of as a “modern” object-to-data mapper (ODM). Copyright © 2014 CWT 32
  33. 33. Full-stack JavaScript API tier Ex: StrongLoop - Aggregation tier he services tier is where legacy begins. It’s the myriad of systems that enterprises have within the firewall AND third-party services in the cloud. Each of these services has a different interface with its own specifications for how to access functionality and data. StrongLoop’s advocacy is to fully leverage this tier as-is. Glue, don’t replace. Use a full-stack JavaScript solution to glue or fuse these components in the services tier and surface them to the mobile client as quickly and easily as possible. Because of its technical advantages, Node.js on the back end acts as an API or services “shock absorber” to handle the deluge of requests and inter-operations from the increase of clients and a higher level of engagement in the mobile era. Copyright © 2014 CWT 33
  34. 34. Aggregated APIs as a Service CWT Company Confidential Copyright © 2014 CWT 34
  35. 35. API Aggregation Business These innovative businesses combine APIs from multiple providers to build new products and services API aggregators are focused on the business value of trying to help end users reduce the complexity that comes with API integration. Value is created by simplifying the complexity that comes from working with the multiple datasets that sit behind the APIs Avoid end users needing to learn code, help end users streamline workflows, or help move directly into analytics and engagement processes Developing viable business models will remain a key challenge. Source: ProgrammableWeb Copyright © 2014 CWT 35
  36. 36. 1. API Aggregation for Automation Service Offered These API aggregators tend to have a library of SaaS and (increasingly) IoT services that can be integrated with any other service to create an automated workflow. Behind the scenes, the business is using the external service’s APIs to create integrations that allow non-programmer customers to easily integrate APIs into a seamless workflow. API Workflow Pull API data from one source and push it to another. Monetization Predominantly subscription-based with pricing levels set by number of integrations and/or number of API calls made Examples Zapier, Itduzzit, Temboo, RunMyProcess, elastic.io. Source: ProgrammableWeb Copyright © 2014 CWT 36
  37. 37. 1. API Aggregation for Automation Temboo Helps programmers connect several APIs into an automated workflow and then creates the code snippets that a consumerdeveloper can paste into their application Source: ProgrammableWeb Copyright © 2014 CWT 37
  38. 38. 2. API Aggregation for Creative Production Service Offered Creative agency uses APIs as part of their “creative pallet” to design digital campaigns for their brand clients. Aggregation of APIs from a variety of sources to create engaging campaigns on social media or in public spaces to interact with target audiences. API Workflow Pull API data from multiple sources, combine it and then push it to output… and then loop back around based on further engagement/feedback. Monetization Consultancy-based. Examples Creative agencies (like Deportivo), Digital PR firms. Source: ProgrammableWeb Copyright © 2014 CWT 38
  39. 39. 3. API Aggregation for Content Delivery Service Offered These aggregation services pull content based on relevant keywords (or hashtags) and display it in a curated format. They use APIs to collect the data from external media sources and then package up the results, often updating real-time feeds regularly (dependent on refreshing API calls, usually around 10 minutes or so). Examples Swayy, Tagboard API Workflow Pull data from multiple APIs and push to a visual output. Monetization Subscription model. Source: ProgrammableWeb Copyright © 2014 CWT 39
  40. 40. 4. API Aggregation for BI and Analytics Visualization Service Offered This is a well-established space with multiple players vying for market share in a profitable, and growing, sector. Dashboard services like Ducksboard provide a library of the services they can draw from (behind the scenes, accessing the relevant API), alongside privately-held data to create analytics and business intelligence dashboards for end users. API Workflow Pulls data from multiple API sources and pushes to a visual output (dashboard). Monetization Subscription model. Examples Ducksboard, Adigami, Sush.io, Good Data Source: ProgrammableWeb Copyright © 2014 CWT 40
  41. 41. 4. API Aggregation for BI and Analytics Visualization Copyright © 2014 CWT 41
  42. 42. 5. API Aggregation for Social Engagement Service Offered APIs used to draw in specific account social media feeds and business intelligence sources alongside broader content feeds in order to identify opportunities for audience engagement These services may have some difficulty truly scaling as there may be some tweaking involved dependent on individual customer or campaign needs, hence the private billing approach. API Workflow Pulls data from multiple APIs to push to a visual output (dashboard). Monetization Private billing. Examples Postano. Source: ProgrammableWeb Copyright © 2014 CWT 42
  43. 43. 5. API Aggregation for Social Engagement Copyright © 2014 CWT 43
  44. 44. 6. Choice and Recommendation Engines Service Offered These services use APIs that access open and proprietary data sources alongside either personalization APIs or user input to perform calculations and return a priority list of suggested results API Workflow Pulls data from multiple APIs, analyzes and applies algorithms and pushes results to a visual output (including widgets and APIs). Monetization Affiliate commissions off recommended results. Examples CreditKarma. Source: ProgrammableWeb Copyright © 2014 CWT 44
  45. 45. 6. Choice and Recommendation Engines Copyright © 2014 CWT 45
  46. 46. 7. Single-funnel API Aggregators Service Offered Draw on multiple APIs and create a single API through which to access all the underlying data sources. Zypr’s model is particularly interesting. They offer developerconsumers a revenue-sharing model based on the search ad results that are displayed in-app as part of the API returns. API Workflow Pull data from multiple API sources and then push to one API. Monetization Varies from subscription to providing revenue-share. Examples Zypr, Segment.io, Adigami. Source: ProgrammableWeb Copyright © 2014 CWT 46
  47. 47. 7. Single-funnel API Aggregators Copyright © 2014 CWT 47
  48. 48. 8. Big and Personal Data API Aggregators Service Offered Remix open data with proprietary sources, algorithms, and then adding the end users private data via API to create personal intelligence reports. These may be in the form of apps, alerts or dashboards that help end customers take action as relevant. API Workflow Pull data from multiple (mostly open data) API sources and combine with APIs pulling from designated private accounts, analyze and combine data and push results into output (dashboards and apps). Monetization Private contracting, subscription, partnership models. Examples Yodlee, Stormpulse Source: ProgrammableWeb Copyright © 2014 CWT 48
  49. 49. 8. Big and Personal Data API Aggregators Copyright © 2014 CWT 49
  50. 50. The Programmable Economy CWT Company Confidential Copyright © 2014 CWT 50
  51. 51. The Programmable Economy Copyright © 2014 CWT 51
  52. 52. Example: Bynd http://byndlabs.com/get-started/ Copyright © 2014 CWT 52
  53. 53. API Driven Companies Copyright © 2014 CWT 53
  54. 54. API typology Copyright © 2014 CWT 54
  55. 55. APIs help you grow your business APIs unlock new distribution channels & enable the expansion of your business beyond the limits of your web site. API Deployment Focus 38% 51% 11% Multi-Channel Mobile Apps Non-Mobile Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe Copyright © 2014 CWT 55
  56. 56. APIs Deliver Raw Data, Content and Services Create New Distribution Channels Partner Up Build an Ecosystem Power Mobile Apps Serve any type of device, software, anywhere Protect IPR Rationalize & Control access to your resources Decrease your cost of serving your customer “Externalize” your R&D. Foster Innovation Lower Barriers to Integration Create New Business Models Reach More Customers Copyright © 2014 CWT 56
  57. 57. Open APIs Create Ecosystems Copyright © 2014 CWT 57
  58. 58. API, Product, Platform! CWT Company Confidential Copyright © 2014 CWT 58
  59. 59. Four Types Of Business Apis e.g 1 The API is the product 2 The API projects the product 3 The API promotes the product 4 The API powers and feeds the product Copyright © 2014 CWT 59
  60. 60. Four Types Of Business Apis Digging Deeper 1 2 3 4 Is the product Projects the product Promotes the product Powers and feeds the product • Direct revenue • Utility / Pay per transaction • Tiered pricing bands • Reach more places • Provides more utility • Enable mobile • Allow deeper integration • Biz Dev / Lead Gen • User acquisition • Advertising • Brand promotion • Affiliate programs • Content acquisition • Partner tie-in • Internal innovation Each type of API has different potential business value associated with it Copyright © 2014 CWT 60
  61. 61. Direct Revenues 1 2 4 Enable mobile Is the product 3 Promotes the product Powers and feeds the product • Allow deeper integration • Biz Dev / Lead Gen • User acquisition • Advertising • Brand promotion • Affiliate programs • Content acquisition • Partner tie-in • Internal innovation is the product The only customer experience may be via the API or via a 3rd party using the API. projects the product Billing relationship may be to the end user or the partner / distributor. e.g Whitelabel Channel “Sell Through” Channel The API as a direct revenue driver Copyright © 2014 CWT 61
  62. 62. Indirect Revenues 1 2 3 4 Is the product Projects the product Promotes the product Powers and feeds the product • Direct revenue • Utility / Pay per transaction • Tiered pricing bands • Reach more places • Provides more utility • Enable mobile • Allow deeper integration • Biz Dev / Lead Gen • User acquisition • Advertising • Brand promotion • Affiliate programs • Content acquisition • Partner tie-in • Internal innovation The API plays a supporting role – the product is the main event. The billing relationship is unlikely to be tied to the API. promotes the product feeds the product API ROI needs to be measured by product metrics. e.g “Free” Modality “Affiliate” Modality The API as a indirect revenue driver Copyright © 2014 CWT 62
  63. 63. The API Is the Product Core value is tied up in the API Others API is Core Value Direct customer usage Encourage resellers API Ecosystem Strategy e.g Build tech knowledge Enable new services Encourage 3rd party tools Brings easy access to complex Telecom technologies $ If Core service sees usage growth. Copyright © 2014 CWT 63
  64. 64. The API Is the Product Core value is tied up in the API Copyright © 2014 CWT 64
  65. 65. The API Projects the product Extends availability of functionalities to new places Mobile apps Parties integration Added utility Added to a product 3rd Others Cultivate partner ecosystem Innovation opportunities API Ecosystem Strategy e.g Build switching costs Encourage 3rd party tools Enables new services 1,700+ Apps on Force.com 50k+ Developers $ If Increasing customer spend (primary) and number of customers (secondary) for core product Copyright © 2014 CWT 65
  66. 66. The API Projects the product Extends availability of functionalities to new places Copyright © 2014 CWT 66
  67. 67. The API Promotes the product Secondary function and indirect revenue impact Secondary (non core) service Designed to drive leads/traffic Others Widget Distribute “Teaser” information Brand Diffusion API Ecosystem Strategy e.g Widgets to Whole sites powered Promote to niches Cultivate partners Improve partners Impact 10’s 1000’s of affiliates $ If Increasing customer number (primary) and spend (secondary) on core product Copyright © 2014 CWT 67
  68. 68. Netflix… Copyright © 2014 CWT 68
  69. 69. What if Netflix Did Not Have An API? Copyright © 2014 CWT 69
  70. 70. The API Powers & Feeds the product Content acquisition via the API Others Content, User information, Ratings, comments Etc. into the service Leverage social networks Brand Diffusion API Ecosystem Strategy e.g Facilitate Access Virtuous circle data in/out Improve partners & businesses Impact 13 Billion calls/day on API >75% of traffic by API 250,000 Apps (probably less now…) $ If when UGC (user generated content) brings appreciable value to the central product Copyright © 2014 CWT 70
  71. 71. API Business Models CWT Company Confidential Copyright © 2014 CWT 71
  72. 72. The Fact ... Value Chain has changed … From Packaged Goods Producer Retail Store Consumer To Internet Services Provider Developer App Consumer Source - Sam Ramji - VP Strategy, Apigee Copyright © 2014 CWT 72
  73. 73. The Fact ... Value Chain has changed … Copyright © 2014 CWT 73
  74. 74. Business model has changed … Requiring More Business Agility The new Internet is full of extraordinary companies that looked at the market from a different angle and created entirely new approaches to the changing Web. Zynga, Amazon, Netflix, Facebook and 1-800-Flowers.com have all seen and seized the massive opportunity of a new Internet driven by social networks, applications and mobile devices. Paradoxically, succeeding in the new Web doesn't mean changing everything. Find ways to reinvent existing capabilities and systems for the new market of influence and commerce, tapping into existing assets to create new business models and profit streams. How? By leveraging open APIs to bring products and services to the multichannel Web. Copyright © 2014 CWT 74
  75. 75. Implementing The Vision ... API enables Disintermediation …  Shift from Direct (buy from manufacturers) From Selling in …  To Indirect (buy from retailers/middlemen) To Selling Through …  APIs are how people get to your business. Source - Sam Ramji - VP Strategy, Apigee Copyright © 2014 CWT 75
  76. 76. API Represent a Shift In Traditional Business Models Copyright © 2014 CWT 76
  77. 77. API Business Models Source: John Musser, ProgrammableWeb.com Copyright © 2014 CWT 77
  78. 78. API Business Models Free Copyright © 2014 CWT 78
  79. 79. API Business Models Free - Firehose API Twitter API Large scale access to API for partners building significant integrations Please email api at twitter.com with your use case, a brief description of your organization, and the requested access level(s) you require. As a general rule, firehose access is rarely granted. You may want to investigate using a service such as gnip or datasift to access this data. Copyright © 2014 CWT 79
  80. 80. Developer Pays Copyright © 2014 CWT 80
  81. 81. Developer Pays Per API Call Twilio Text messages sent via an API are billed at $0.01 per message Pay as you Go Rome2Rio Each search API call cost $0,2 Pay as you Go Copyright © 2014 CWT 81
  82. 82. Developer Pays Pay as you Go AT&T Speech API the Speech API supports speechenabled apps that run on virtually any cellular network in the United States. Voice transcriptions via an API are billed at $X.XX per word Copyright © 2014 CWT 82
  83. 83. Developer Pays Tiered Pricing Copyright © 2014 CWT 83
  84. 84. Developer Pays Tiered Pricing Copyright © 2014 CWT 84
  85. 85. Developer Pays Freemium Copyright © 2014 CWT 85
  86. 86. Developer Pays Unit Based Pricing DeveloperForce API Provided to customers to build integrations Copyright © 2014 CWT 86
  87. 87. Developer Pays Transaction Fee Copyright © 2014 CWT 87
  88. 88. Developer Gets Paid Copyright © 2014 CWT 88
  89. 89. CPA Copyright © 2014 CWT 89
  90. 90. Developer Gets Paid Example: Expedia (CPC) Copyright © 2014 CWT 90
  91. 91. Developer Gets Paid Room77 Uses Expedia API (CPC) Copyright © 2014 CWT 91
  92. 92. Developer Gets Paid API Value for Expedia (CPC) Copyright © 2014 CWT 92
  93. 93. Developer Gets Paid Google AdSense (CPC) Copyright © 2014 CWT 93
  94. 94. Developer Gets Paid Recurring Revenue Share Recurring revenue every month as long as subscribers recruited by you remains Copyright © 2014 CWT 94
  95. 95. Indirect Copyright © 2014 CWT 95
  96. 96. Indirect Copyright © 2014 CWT 96
  97. 97. What API(s) for my Business Model? Key questions to define the value What are my core assets? Who will use my API(s) and for what purpose? How will I make available my API(s)? Dos & Don’ts Don’t put lipstick on a pig, it will still be a pig… Don’t just build it and think they will come… It is the organization’s core business which is valuable and the API is the channel into this. Copyright © 2014 CWT 97
  98. 98. Api Usually Mix Several Business Models Copyright © 2014 CWT 98
  99. 99. Open API Business Models Examples Bake your business model in your API Copyright © 2014 CWT 99
  100. 100. Conclusion CWT Company Confidential Copyright © 2014 CWT 100
  101. 101. Open API Is Key For Your Business! The Web has reinvented itself Succeeding means thinking differently about how to innovate quickly, cheaply and with existing resources. The winners will be those who can reach the mobile and application-driven Web with open APIs Source - Sam Ramji - VP Strategy, Apigee Copyright © 2014 CWT 101
  102. 102. An API modifies the demand/supply pattern From Companies providing APIs to access their business are the supply Developers who build against those APIs are the demand Not this way anymore To Companies providing APIs are the demand They demand developers’ attention and adoption Developers building with APIs are the supply They supply innovation and adaptation Developers now sit between you and your customers  They are like the retail store in the value chain Source - Sam Ramji - VP Strategy, Apigee Copyright © 2014 CWT 102
  103. 103. Dos & Don’ts Tips To Avoid Pitfalls Define revenue value chain Deploy "sense and respond" and innovation toolkits rather than applications with fixed functionality Propose several business models Adapted for multiple distribution channels Think DATA (Stop thinking Application/IT product) Adopt a flow based vision where real time data is valorised Implement Open API Invest on Business Analysis for finding the most valuable travel services to offer /build. Enhance User Experience Let users select their best in class solutions for each delivery channel Copyright © 2014 CWT 103
  104. 104. The great list of resources used to build this presentation Copyright © 2014 CWT 104
  105. 105. This Presentation Was Built From Great Presentations and Resources 3scale “What is an API?” (Download PDF). “The API Economy: API Provider Perspective”, Steven Willmott, EIC 2012/ Munich, Germany (Slideshare) “APIs for Biz Dev 2.0: Which Business Model?”, Guillaume Balas (Slideshare) “Winning in the API Economy. Using Software and APIs to Transform your Business, …” (Download) “How APIs are changing Application Development”, Steven Willmott (Slideshare) “The API- & APP-ification of the Web”, Steven Willmott (Slideshare) API Evangelist Roundup of 20 API Service Providers in 2012 If you build it they will come (2011) Copyright © 2014 CWT 105
  106. 106. This Presentation Was Built From Great Presentations and Resources API Commons “Bringing api design-out-of-the-shadows-and-into-the-commons” , Kim Lane (Html) “Towards an API Commons”, Kin Lane and Steven Willmott, (Slideshare) Apigee Sam Ramji presentations channel – SlideShare White Paper:” Web API Design - Crafting Interfaces that Developers Love”, Brian Mulloy (Download) FaberNovel “Six reasons why API are reshaping your business”, November 2012 (SlideShare) “Why Should I Care About APIs”, December 2013 (SlideShare) Copyright © 2014 CWT 106
  107. 107. This Presentation Was Built From Great Presentations and Resources Layer7 “Webinar: Business ROI for APIs”, March 14th, 2013 (Slideshare) “Be My API: How to implement an API strategy …”, Mike Amundsen (Slideshare, YouTube) ProgrammableWeb “Open APIs: What’s HOT, What’s NOT”, John Musser (Slideshare) “API Business Model, 20 models in 20 minutes”, John Musser, API Strategy Conference, 2013 (Slideshare) “What Makes a Great Open API?”, John Musser (Slideshare) Adam Duvander Keynote at TNW2012 (Youtube) RESTLET “Web APIs, the new language frontier”, Jérôme LOUVEL, December 2013 (Slideshare) Copyright © 2014 CWT 107
  108. 108. Linkedin http://fr.linkedin.com/in/williamelkaim Blog http://www.reimagine.fr/ Twitter http://www.twitter.com/welkaim Travel 2.0 http://www.netvibes.com/travl20 Contact: welkaim@carlsonwagonlit.com 108
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