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The Fundamentals of Platform Strategy: Creating Genuine Value with APIs

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APIWorld 2016 presentations on how to succeed in building a platform for your company. Focusing on how to create value, identify true users and scale. By Steven Willmott

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The Fundamentals of Platform Strategy: Creating Genuine Value with APIs

  1. 1. The Fundamentals of Platform Strategy: Creating Genuine Value with APIs Steven Willmott, @njyx, steve@3scale.net @3scale @RedHatNews
  2. 2. Steven Willmott, @njyx, steve@3scale.net @3scale @RedHatNews
  3. 3. 3scale now part of Red Hat Inc. - www.3scale.net
  4. 4. apistrat logo.png http://boston2016.apistrat.com API Strategy & Practice Conference, Boston MA, 2-4th November CODE: APIWorld1630, 30% next 2 weeks
  5. 5. Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) Images copyright of the creators
  6. 6. Platforms: huge opportunity for value – and for wasted resource
  7. 7. MISSION CRITICAL BIG INITIATIVES GENUINE NEED
  8. 8. EXAMPLE: UBER
  9. 9. EXAMPLE: “APPLE TV-OS READY” IN 2 WEEKS
  10. 10. APIS DON’T WORK APIS ARE NOT USED TEAM ISN’T RESOURCED
  11. 11. THE VALUE OF PLATFORMS
  12. 12. “Jeff Bezos Moment” (thank you @frankarr) )
  13. 13. Platform Value • Individual APIs can have tremendous value • Underpin products, enable new business channels, provide an abstraction layer • Core value almost always revolves around: Agility
  14. 14. COMMON ERRORS
  15. 15. Common Errors in Platform Beginnings • Try something peripheral and low risk • Replace multiple core systems at once • Have a platform team build everything • Top down design a uniform approach
  16. 16. TIMING & MOTIVATION ARE CRITICAL
  17. 17. Best time to begin • When you have one or more driving initiatives • When IT teams are ready to rethink some infrastructure • When the goal is not too abstract
  18. 18. THREE PRINCIPLES FOR SUCCESS
  19. 19. IDENTIFY YOUR TRUE USERS FOCUS ON TRUE VALUE SHARE THE BURDEN
  20. 20. #1: FOCUS ON TRUE VALUE
  21. 21. A Map of Expectations Expected Unexpected DesirableUndesirable Thor Mitchel, 2014
  22. 22. Questions to Ask • Who is the customer? • Where is their value? • If we create this, will you use it? • What is the complete use case?
  23. 23. EXAMPLE: MAPS CREDIT UNION Loren Paulson, APIStrat, 2015
  24. 24. EXAMPLE: MID-SIZED ECOMMERCE COMPANY
  25. 25. Key Strategy Deliver value: one API and one use-case at a time
  26. 26. #2: FIND YOUR TRUE USERS
  27. 27. We have great developer experience … what happened?
  28. 28. Warning: Blasphemy Alert
  29. 29. Developer Experience is Overrated
  30. 30. Questions to Ask • When Developer Experience is not enough • How do the APIs need to be consumed? • Who else might consume them? • Where do their effects propagate to? • What additional value can we add?
  31. 31. EXAMPLE: SIMILAR WEB Noahm Schwartz, APIStrat, 2015
  32. 32. EXAMPLE: FITBIT Jeremiah Lee, San Francisco, 2016
  33. 33. EXAMPLE: CRUNCHBASE Nicolas Greenie, San Francisco, 2015
  34. 34. Key Strategy The API is not the key thing – the Value is the key thing
  35. 35. #3: SHARE THE BURDEN
  36. 36. Questions to Ask • How to split Dev, Ops, Management? • What do we automate? • What do we monitor? • Which APIs do we focus on first? • How will we manage change?
  37. 37. Vicious Circle Virtuous Cycle
  38. 38. Hairy Panic!
  39. 39. 1-1 IT Need for software innovation drives deep integrations InternalSystems Applications
  40. 40. 1-N IT Governance and APIs create reusable anchor points
  41. 41. N-N IT Common governance rules can apply to APIs from anywhere
  42. 42. Key Strategy N-N >>>>> 1-N
  43. 43. Platform value is “co-creation” of value between providers and consumers (buyers & sellers) (you & partners / customers) (mode 1 & mode 2)
  44. 44. Governance + Support must be Spread e.g. tools, platforms, guides, design sages
  45. 45. BONUS #4: MEASURING IMPACT
  46. 46. • Very hard work • Unglamorous • It is not a big bang (big bet) • People get upset at rules and restrictions • But … hugely rewarding
  47. 47. Recommendation: Focus on Business(es) enabled (number, revenue)
  48. 48. TAKE AWAYS
  49. 49. Your company NEEDS your platform strategy to succeed
  50. 50. Even if you have a “Bezos Moment” – Keep focused on the value you are delivering piece by piece
  51. 51. Try to empower both API creation and usage
  52. 52. API Owners Manual http://www.3scale.net @njyx @3scale http://bit.ly/APIOwners
  53. 53. Images (Copyright Authors) • Apple TV Image, Apple.com: https://support.apple.com/library/content/dam/edam/applecare/images/en_US/appletv/apple-tv-3gen- home-screen.jpg • Amazon Echo: Amazon stock marketing image • Bay Bridge: https://unsplash.com/photos/0iAzHzjeYRk • Jeff Sheldon https://unsplash.com/photos/o6Y9E-DdG6w • Taras Perevarukha https://500px.com/photo/215416/-by-taras-perevarukha • Richard Bland https://500px.com/photo/89775589/coming-for-you-by-richard- bland?ctx_page=2&from=search&ctx_q=platform&ctx_type=photos&ctx_sort=relevance • Kaleb Nimz: https://unsplash.com/photos/-5rA4DRrEXU • Seabags Creative: https://unsplash.com/photos/U3m4_cKbUfc • Todd Quankenbush https://unsplash.com/photos/IClZBVw5W5A • Hairy Panic http://theconversation.com/what-is-the-hairy-panic-tumbleweed-that-has-buried-a-small- australian-city-55074 • Welder: Uğur Gürcüoğlu https://unsplash.com/@sharkdesignstudio?photo=s1M0ncSl9l4 • TrainTracks: Redd Angelo: https://unsplash.com/@reddangelo16?photo=60fa9BMxvpE

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