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@ManfredBo
APIs
From Value Chains to Value Networks
Manfred Bortenschlager
I work at 3scale.net
Out-of-the-box API Management
@3scale
APIDays Mediterranea
May 30, 2014
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@ManfredBo2
What do I want to achieve?
Describe a current evolution
Highlight challenges
Suggest solutions
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@ManfredBo3
Context
Technology of APIs
Business of APIs
Politics of APIs
Source: Kin Lane
http://apievangelist.com/2014/05/06/remembering-why-this-whole-api-thing-is-working--apidays-berlin/
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@ManfredBo4
Value chains.
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1985
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@ManfredBo6
Source: Michael T. Porter (1985)
Competitive Advantage: Creating and Sustaining Superior Performance
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@ManfredBo7
Source: Gartner (2013)
Digitization
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@ManfredBo8
The establishment of value networks.
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@ManfredBo9
A value network…
…is defined as a value creating system
in which all involved stakeholders
co-produce value.
Source: Normann and Ramirez (1993)
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@ManfredBo10
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@ManfredBo11
At the center of a value network is a platform.
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Platform Business Model
Image Source: http://www.healthandcare.co.uk/
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Image Source: Wikipedia
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@ManfredBo15
The Platform Benefit
few vs. a lot
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@ManfredBo16
Benefits of Platforms
Acceleration via network effects
Increased rate of innovation
Contribution of complementary elements
Increased number of channels
Evolution and stabilizing
Increased visibility
Reduction of cost and risk
Source: Gawer & Cusumano (2002): Platform Leadership
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@ManfredBo17
APIs enable the Platform Business Model.
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@ManfredBo18
Challenges
1.Be attractive
2.Be findable
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@ManfredBo19
Challenge 1: Be Attractive
Valuable Simple
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@ManfredBo20
Open standards contribute to attractiveness.
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@ManfredBo21
http://apicommons.org/
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@ManfredBo22
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@ManfredBo23
Challenge 2: Be Findable
Connection + Gravity + Flow
Flow
how well the platform fosters exchange and co-creation of value.
Matchmaker Tools
facilitates connections between producers and consumers.
Source: Sangeet Paul Choudary (2013)
Platform Thinking
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@ManfredBo24
http://APIs.io/
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@ManfredBo25
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@ManfredBo26
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@ManfredBo28
API Management
For Developers
www.apitools.com
Out-of-the-box
API Management
For API Providers
3scale.net
apistrategyconference.com
apicodex.3scale.net
Market Education &
Evolution
APIcommons.org
APIs.io
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@ManfredBo29
Wrap-up & Take-away
Emergence of value networks due to digitization
Platforms are at the heart of value networks and allow
more efficient value co-creation.
Challenge 1: be attractive
leverage open standards / APIcommons
Challenge 2: be findable
discoverability / APIs.io
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@ManfredBo
Q&A
Manfred Bortenschlager
I work at 3scale.net
Out-of-the-box API Management
@3scale
APIs
From Value Chains to Value Networks
Challenges mainly related to API providers but that also affects consumers/developers
Business: strategy & promotion
Politics: legacy, partner ecosystem, perceptions
Diagram not important.
Linear process between discreet/closed units – within an organization or between organisations.
No feedback loop.
Businesses more and more digitized
Emergence of more and more digital services and products.
Many stakeholders in twitter network that co-create value
A great portion of the twitter traffic is actually not produced by twitter products but comes out of twitter’s value network.
If you use twitter APIs – you are a stakeholder too and co-create value too.
Vendor decides to create a Virtual or physical platforms which enable 3rd parties to leverage the assets provided by a platform
Facilitates integration and collaboration
Enable and foster co-creating of value
Railway in USA
Decide on shape, form, width of rails itself -> standard -> platform
Development of rail network spanning the USA -> platform for distribution of goods, post, people consequential economic benefit
Spotify / Airbnb / evernote
Scalability and speed –
vgl. Jordi from Redbooth (API-first business development)
Many. Intuitively clear. Backed up by research.
Highlight one: innovation
Example given by Fabernovel:Fitbit: externalised R&D via apis. 20 apps -> 1m usd. No cost for them exept api program
(Metcalfe’s law)
Code reusabilitys
Don’t re-invent the wheel
Speed
Client and server code are based on same standard
Shared tooling
This role combines parts of many conventional roles.