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Driving Digital Innovation with a Layered API Design Approach

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In this webinar, Akana’s guest speaker, Randy Heffner of Forrester Research, will describe the principles of layered API design and why it is critical for your API strategy. Alistair Farquharson, CTO at Akana, will describe the concept of federated APIs and how an API Management platform can be effectively used to deliver layered API design. Included will be:

- Why businesses undergoing digital transformation need to design for multiple channels.
- The principles of layered API design.
- What federated APIs are.
- How an API Management platform can be leveraged to deliver layered API Design.

Published in: Internet
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Driving Digital Innovation with a Layered API Design Approach

  1. 1. © 2015 Akana., Inc All Rights Reserved. Driving Digital Innovation with a Layered API Design Approach
  2. 2. © 2015 Akana., Inc All Rights Reserved. Our speakers Randy Heffner @BizTech21 Alistair Farquharson @afarqu
  3. 3. Driving Digital Innovation with a Layered API Design Approach Randy Heffner, VP and Principal Analyst June 17, 2015
  4. 4. © 2015 Forrester Research, Inc. Reproduction Prohibited 4 Mobile needs APIs News flash: APIs enable much more than mobile.
  5. 5. © 2015 Forrester Research, Inc. Reproduction Prohibited 5 APIs are much more strategic than many think APIs Mobile Web, kiosks, call center, etc. Multi- touchpoint foundation Open web developers Enterprise agility Value chain optimization Customer process optimization Connect products to ecosystems Turn hidden assets into products Turn core capabilities into services Enter completely new markets
  6. 6. © 2015 Forrester Research, Inc. Reproduction Prohibited 6 Source: June 2015, “How APIs Reframe Business Strategy” Forrester report APIs reframe business strategy Business Customers Channels Where design for external integration begins Efficiency Partners Competencies Ecosystems Relationships Leverage Connections Traditional business Open business
  7. 7. © 2015 Forrester Research, Inc. Reproduction Prohibited 7 Trading platform Source: June 2015, “How APIs Reframe Business Strategy” Forrester report Digital disruption and a European bank’s open business APIs Institutional customers Web Custom UX White label UX • Turn a core business capability into a revenue source. • Decouple innovation by the bank and its customers. • The bank wins from customer innovation. The shift • Is the bank’s value-add the trading platform? • Is the bank’s value-add the trading UX? • Is it both? • From where will the next unbundling come? The questions “If we don’t disrupt our own business, then someone else will — out of the blue.” — CIO, European bank • Craft loosely- coupled strategies for each core asset and capability. • API-enable more and more of them. • Disrupt where possible, react when needed. The strategy European bank
  8. 8. © 2015 Forrester Research, Inc. Reproduction Prohibited 8 Source: June 2013 “Establish Your API Design Strategy” Forrester report Forrester’s four categories of APIs Open web APIs Tech-savvy consumers B2B APIs Internal APIs Product APIs Value-add innovators Digital disruptors Suppliers Distribution partners Digital experiences (mobile, web, etc.) Enterprise applications (custom, off-the-shelf, cloud, on-premise) Products (software, physical products, services) Enterprise customers Web site developers Your enterprise Your products Tech-savvy consumers Product ecosystem Wide-open to innovation Optimized business Build product ecosystems Enterprise customers 1 2 3 4 JavaScript API JavaScript API / SDK Prebuilt integration
  9. 9. © 2015 Forrester Research, Inc. Reproduction Prohibited 9 Source: June 2014 “Brief: Product APIs Create Distinct Customer Value And Opportunity” Forrester report Product APIs › APIs designed to . . . • directly control a product, • or facilitate its integration into an ecosystem of related products, • whether it is a physical product, digital product, or service. › Hotel example: • Internal, open web, or B2B APIs: Reserve a hotel room • Product APIs: Control the hotel room itself › Every product or service either: • Is already digital • Can have a digital proxy
  10. 10. © 2015 Forrester Research, Inc. Reproduction Prohibited 10 APIs have varied key success factors • Collaborate with devices to deliver engaging user experience. • Allow many data and transaction paths through the experience. APIs for . . . Key roles and success factors Single touchpoints • Provide familiar user experience across all touchpoints. • Allow individual touchpoints to vary when appropriate. Multitouchpoint strategy • Match between business drivers and potential open web value. • Clear understanding of the types and styles of open web API applications. Open web developers Enterprise agility • Common definitions of enterprise transactions and data. • Coherent portfolios of services for each major business domain. Product ecosystems • Create value-add in a constantly shifting community of related products. • Support strategic business partnerships and ecosystems. B2B • Provide cross-organization process integrity. • Support cross-organization security federation.
  11. 11. © 2015 Forrester Research, Inc. Reproduction Prohibited 11 Reference: March 5, 2015, “How To Design APIs For Mobile” Forrester report With API layering, a coherent portfolio serves many Business APIs ====================== Consistent business results Multitouchpoint experience APIs ====================== Familiarity across touchpoints Touchpoint-specific APIs ====================== Technical adaptations Mobile apps Business APIs ====================== Consistent business results B2B APIs ================== Partner business rules Presentation layer Business service layer Partners and suppliers Web apps Kiosks Public ecosystem APIs ================== Open web business rules Open web APIs ================== Caching and security Public developers
  12. 12. © 2015 Forrester Research, Inc. Reproduction Prohibited 12 One enterprise may have many API user communities Open web API portal (division 1) Your organization Open web developers Customers B2B API portal Open web API portal (division 2) Internal developers API portal Product design API portal Business API portfolioUX API portfolio Open web developers Suppliers Resellers Adjacent products Market- placesOpen web developers Mobile devs Process devs BI devs
  13. 13. © 2015 Forrester Research, Inc. Reproduction Prohibited 13 Forrester recommendations • “Out of the blue” digital disruption demands business agility. • API-enabled capabilities allow rapid business reconfiguration. • Don’t short change the importance of business APIs. • Use service portfolio management for lightweight governance. • Business scenarios determine quality-of-service and security demands. • API users determine how easy the API must be to use. Treat API strategy as business strategy Use layered design to evolve coherent API portfolios Design for business scenarios and API users
  14. 14. Thank you Randy Heffner @BizTech21 rheffner@forrester.com
  15. 15. © 2015 Akana., Inc All Rights Reserved. Core Capabilities for Layered APIs
  16. 16. © 2015 Akana., Inc All Rights Reserved. API Platform Capabilities When building or buying an API Platform, there are typically 3 high-level requirements/capabilities: API Portal Developer engagement experience Gateway Security, Management, Orchestration/Mediation Lifecycle DevOps, SDLC Integration, Automation
  17. 17. © 2015 Akana., Inc All Rights Reserved. API Portal API Portal Search Documentation Licensing Partner Mgmt. Provisioning Federation Analytics Groups Social
  18. 18. © 2015 Akana., Inc All Rights Reserved. Different Audiences Most enterprises are striving towards a layered API strategy • Different requirements – Number of APIs – Security – enterprise LDAP vs. OpenID Connect – Workflow – Internal vs. B2B vs. consumer • Different audience = Different user experience • Your API Portal therefore needs to be built with these different audiences in mind this will affect: – User experience – search/catalog/complexity – Branding/Marketing
  19. 19. © 2015 Akana., Inc All Rights Reserved. Different Providers Large organizations may also have different API Providers internally: • LoB, Group, Division or Geography will affect who is providing the API • If each provider wants their own portal, a federated approach becomes important • Centralized end-user experiences • Distributed control
  20. 20. © 2015 Akana., Inc All Rights Reserved. API Gateway Quota Mgmt. PCI Compliance Policy Mgmt. Monitoring OAuth Security Authentication Protection IAM Integration Encryption Mediation Quality of Service Paging/Caching Orchestration Scripting
  21. 21. © 2015 Akana., Inc All Rights Reserved. API Gateway API Gateways should provide : • Non functional requirements such as security/monitoring etc. –– at each point within a layered architecture • Aggregation/orchestration of APIs between layers to create channel/touchpoint-specific APIs
  22. 22. © 2015 Akana., Inc All Rights Reserved. Lifecycle • Each API Layer and each user community could have different lifecycles: – Different development teams and SDLCs – Different DevOps processes and tools • Organizations will have to determine how to control dependencies during development and at runtime while remaining agile.
  23. 23. © 2015 Akana., Inc All Rights Reserved. Example - Retail Bank • Business Objective : strengthen relationship with the Bank’s partners to bring in innovation form outside • Challenge : create a platform to automate onboarding of partners • Four different divisions are exposing APIs via a multi-tenant, federated deployment: – Departments 1 & 2 : Java and .NET shop with Oracle, Oracle repository and Oracle ESB – Department 3 : Java and .NET shop with Tibco and Oracle ESBs. – Department 4 : Smaller Java shop
  24. 24. © 2015 Akana., Inc All Rights Reserved. Example - Retail Bank • Solution : – To preserve the brand, a federation was created – All departmental APIs are be controlled by the members of the federation – A single UI will aggregate the content from all the departmental developer portals into a single UI – Control of ‘shared, enterprise’ APIs can be centrally controlled
  25. 25. © 2015 Akana., Inc All Rights Reserved. Summary • As organizations see the development of a layered API portfolio across different channels and lines of business they need to consider: – User Experience - how the audience affects it – Tooling – how to manage/secure/orchestrate the APIs in the portfolio – The effect on SDLC and DevOps processes
  26. 26. © 2015 Akana., Inc All Rights Reserved. Thank You • Randy Heffner @BizTech21 rheffner@forrester.com • Alistair Farquharson @afarqu alistair.farquharson@akana.com

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