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APIs and Value Networks (3scale at APIdays Mediterranea)


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This talk was delivered by Manfred Bortenschlager from 3scale at the APIdays Mediterranea event in Barcelona on May 30.

Manfred described the emergence of value networks (rather than value chains) supported by an increasing digitization of businesses. At the core are platforms-based business models. Access to assets is facilitated via APIs.
Two main challenges were discussed:
1. Be attractive: open standards contribute (like APIcommons)
2. Be findable: describe and publish API descriptions in API search engines (like and APIs.json)

Published in: Software
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APIs and Value Networks (3scale at APIdays Mediterranea)

  1. 1. @ManfredBo APIs From Value Chains to Value Networks Manfred Bortenschlager I work at Out-of-the-box API Management @3scale APIDays Mediterranea May 30, 2014
  2. 2. @ManfredBo2 What do I want to achieve?  Describe a current evolution  Highlight challenges  Suggest solutions
  3. 3. @ManfredBo3 Context Technology of APIs Business of APIs Politics of APIs Source: Kin Lane
  4. 4. @ManfredBo4 Value chains.
  5. 5. 1985
  6. 6. @ManfredBo6 Source: Michael T. Porter (1985) Competitive Advantage: Creating and Sustaining Superior Performance
  7. 7. @ManfredBo7 Source: Gartner (2013) Digitization
  8. 8. @ManfredBo8 The establishment of value networks.
  9. 9. @ManfredBo9 A value network… …is defined as a value creating system in which all involved stakeholders co-produce value. Source: Normann and Ramirez (1993)
  10. 10. @ManfredBo10
  11. 11. @ManfredBo11 At the center of a value network is a platform.
  12. 12. Platform Business Model Image Source:
  13. 13. Image Source: Wikipedia
  14. 14. @ManfredBo15 The Platform Benefit few vs. a lot
  15. 15. @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
  16. 16. @ManfredBo17 APIs enable the Platform Business Model.
  17. 17. @ManfredBo18 Challenges 1.Be attractive 2.Be findable
  18. 18. @ManfredBo19 Challenge 1: Be Attractive Valuable Simple
  19. 19. @ManfredBo20 Open standards contribute to attractiveness.
  20. 20. @ManfredBo21
  21. 21. @ManfredBo22
  22. 22. @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
  23. 23. @ManfredBo24
  24. 24. @ManfredBo25
  25. 25. @ManfredBo26
  26. 26. @ManfredBo28 API Management For Developers Out-of-the-box API Management For API Providers Market Education & Evolution
  27. 27. @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 /
  28. 28. @ManfredBo Q&A Manfred Bortenschlager I work at Out-of-the-box API Management @3scale APIs From Value Chains to Value Networks