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Changing the Face of Transport via APIs. Talk at APIDays Paris 2014

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This is Manfred's talk at APIDays Paris on December 3, 2014. He talked about opportunities and challenges in the transport industry and the role of APIs. He discussed five typical API use cases with examples of organisations from the transport industry. He also talked about platform economics such as n-sided business models.

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Changing the Face of Transport via APIs. Talk at APIDays Paris 2014

  1. 1. Dubai Smart Gates Dubai Airport introduces Smart Gates 1 @ManfredBo Src: Flickr
  2. 2. @ManfredBo Changing the Face of Transport via APIs Manfred Bortenschlager I work for 3scale.net API Management @3scale APIdays Paris, December 3, 2014
  3. 3. Outline 1. Opportunities and Challenges in Transport 3 @ManfredBo 2. Five API Use Cases 3. API Economics 4. Wrap-up and take-aways
  4. 4. International travel contributed $6.9tr to global GDP Transport industry accounts for 4.5% of total employment International trade growth forecast 8% Growing hyperconnectivity: people, places, machines Smart navigation systems reduce travel time by 18% 4 @ManfredBo Src: WEF, EC, Flickr
  5. 5. Traffic congestion effects reduce GDP by $200bn in EU and US Transport accounts for ¼ of EU’s emissions 71% of EU car drivers criticize convenience of PT Saturation of EU skies, freight traffic to grow 125% Growth rates  energy ? 5 @ManfredBo Src: WEF, EC, Flickr
  6. 6. The solution to all this ? Application Programming Interfaces …because APIs are interfaces that allow systems to work – frictionless. 6 @ManfredBo
  7. 7. Five API use cases 1. Enabling mobile channels 2. Growing ecosystem 7 @ManfredBo 3. Increasing reach 4. Powering business models 5. Driving innovation www.3scale.net
  8. 8. 1. Enabling mobile channels Open data for multi-modal travel throughout UK Open data for Smart Cities 8 @ManfredBo Including transport data Adopted by many mobile apps
  9. 9. 2. Growing ecosystems 9 @ManfredBo Carma Easily find matches for carpooling Exposes same functionality via API
  10. 10. 3. Increasing reach From service to platform Opening up an API […] embeds them in a wider range of apps […] and increases their sales potential because they have more channels. (Gartner) Src: http://bostinno.streetwise.co/2014/08/20/uber-api-open-uber-api-launch-partners-include-starbucks- 10 @ManfredBo united-airlines/
  11. 11. 4. Powering business models Aggregation of various transport-related 11 @ManfredBo data feeds Freemium price plan for API access
  12. 12. 5. Driving innovation Free access to data from multitude of sources: Lines, times, fares, points of interests, bikes, traffic jams, speed cameras, electric car charge points… Encourage mashups and innovation 12 @ManfredBo
  13. 13. But what really is the power of APIs ? 13 @ManfredBo
  14. 14. APIs enable the creation of platforms. 14 @ManfredBo
  15. 15. …A "platform" is a system that can be […] customized by outside developers -- users -- and in that way, adapted to countless needs and niches that the platform's original developers could not have possibly contemplated. Src: http://www.valuewalk.com/
  16. 16. APIs enable the creation of platforms. Platforms enable 2-sided business models. (aka Asymmetric Business Models) 16 @ManfredBo
  17. 17. Asymmetric Business Models 17 @ManfredBo Side 1 Type “Home” market Primary Side 2 Type “Victimized” market Secondary Drives the primary
  18. 18. Platform economics 18 @ManfredBo Price Q1 P1 P1 Q1 Price Quantity Home Market Victimized Market Platform Src: wikipedia
  19. 19. Platform economics 19 @ManfredBo Price Q2 P2 Q2 P2 Price Quantity Home Market Victimized Market Platform P1  P2 (free)
  20. 20. Platform economics: examples 20 @ManfredBo Price Q2 P2 Q2 P2 Price Quantity Home Market Victimized Market Platform
  21. 21. APIs enable the creation of platforms. …can serve n home and victimized markets ! A Platform… …adapted to countless needs and niches… 21 @ManfredBo
  22. 22. Platform and the five API use cases 1. Enabling mobile channels 2. Growing ecosystem 22 @ManfredBo 3. Increasing reach 4. Powering business models 5. Driving innovation
  23. 23. Nearly 4/5 of the CEOs identified technological advances such as the digital economy, … 23 @ManfredBo
  24. 24. Take-aways There are tremendous opportunities in transport. Several socio-economic, structural and technical challenges need to be overcome. APIs (will) play an essential role. Five API use cases can be identified. All relate to platform economics. 24 @ManfredBo
  25. 25. The next miracle to come from transportation 25 @ManfredBo
  26. 26. @ManfredBo Changing the Face of Transport via APIs Q&A Manfred Bortenschlager manfred@scale.net I work at 3scale.net API Management @3scale

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