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 APIs.io and APIs.json)

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  • 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

    Client and server code are based on same standard
    Shared tooling
  • This role combines parts of many conventional roles.
  • APIs and Value Networks (3scale at APIdays Mediterranea)

    1. 1. @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
    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 http://apievangelist.com/2014/05/06/remembering-why-this-whole-api-thing-is-working--apidays-berlin/
    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: http://www.healthandcare.co.uk/
    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 http://apicommons.org/
    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 http://APIs.io/
    24. 24. @ManfredBo25
    25. 25. @ManfredBo26
    26. 26. @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
    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 / APIs.io
    28. 28. @ManfredBo Q&A Manfred Bortenschlager I work at 3scale.net Out-of-the-box API Management @3scale APIs From Value Chains to Value Networks