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How an API Product Transformes the Business Model of an NGO

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How can NGOs help more people more? We believe that digital transformation is key and build customer-centric digital products and ecosystems around customer journeys. API product management is the key to achieve that.

In this talk, we present how we built an API product from a digitalized NGO service. This enables new business and revenue models besides the traditional revenue from donations.z

Published in: Internet

How an API Product Transformes the Business Model of an NGO

  1. 1. API PRODUCT MANAGEMENT HELPING MORE PEOPLE MORE Dr. Amancio Bouza APIDays Zurich, 2019
  2. 2. Author of “API Product Management – Product Strategy and Execution for the Digital Economy” https://leanpub.com/apiproductmanagement Your 1st Follower of Crazy Ideas 2 Dr. Amancio Bouza, Principal Consultant at ipt
  3. 3. Once upon a time, when I was in 5th grade… 3
  4. 4. 4
  5. 5. MINDSET: DECISIONS NEED CONSENT DECISIONS MUST BE RIGHT 5
  6. 6. SWISS RED CROSS PROVIDES 30 SERVICES! 6 Source: https://www.redcross.ch
  7. 7. WE FOCUS ON ONE SERVICE: ASSISTED TRANSPORT 7
  8. 8. WHAT IS AT STAKE? 8
  9. 9. CUSTOMER BASE 9
  10. 10. CUSTOMER BASE 10 TOOYOUNG TOOYOUNG
  11. 11. CUSTOMER BASE 11 TOOYOUNG TOOYOUNG DIEOUT
  12. 12. 12 Source: https://www.weforum.org/agenda/2016/11/what-do-young-people-care-about-we-asked-26-000-of-them/
  13. 13. CUSTOMER BASE 13 TOOYOUNG TOOYOUNG DIEOUT
  14. 14. CUSTOMER BASE 14 TOOYOUNG TOOYOUNG DIEOUT OTHERPRIORITIES
  15. 15. NO SUSTAINABLE CUSTOMER BASE! 15
  16. 16. At least, NGO’s don’t #GETUBERFIED 16
  17. 17. At least, NGO’s don’t #GETUBERFIED 17
  18. 18. 18 Source: https://www.uber.com/de-CH/ride/uberwav/
  19. 19. IN THE LAST 15 YEARS 52% OF FORTUNE 500 COMPANIES HAVE GONE EXTINCT 19 Source: Innosight
  20. 20. NOW WHAT? 20
  21. 21. TEAM 21 Source: https://www.computerworld.ch/business/business-it/srk-erfolgreich-am-hackathon-ipt-1548337.html ANJA MARCIN AMANCIO DANIEL CDO at Swiss Red Cross
  22. 22. MISSION: 22 DIGITAL TRANSFORMATION DIGITAL PRODUCTS & ECOSYSTEMS API PRODUCT MANAGEMENT HELP MORE PEOPLE MORE
  23. 23. MISSION: 23 DIGITAL TRANSFORMATION DIGITAL PRODUCTS & ECOSYSTEMS API PRODUCT MANAGEMENT HELP MORE PEOPLE MORE
  24. 24. 24 Source: Amancio Bouza & Andrea Zulian, APIDays Paris 2018
  25. 25. 1. VALUE CHAIN Digitalization 25
  26. 26. DESIGN SPRINT 26
  27. 27. 27 PAIN POINT: RAPPORTS DRIVERS fill out multiple rapport forms for each transport
  28. 28. 28 PAIN POINT: RAPPORTS EMPLOYEES enter rapports into applications
  29. 29. API SOLUTION: RAPPORT API Create Rapports {startTime, distanceKM, duration} 29 RAPPORT APP
  30. 30. Rapport API is an API solution that helps to digitalize a business process. Cost savings without potential for novel business models 30 Source: https://medium.com/api-product-management/two-breeds-of-api-api-products-and-api-solutions-fa726213ecea
  31. 31. HOW TO BUILD THE API, NOT! 31 Inside-out! Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
  32. 32. API is not about solving a Rubik’s Cube 32
  33. 33. HOW TO BUILD THE API, NOT! 33 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
  34. 34. “Ultimately, the API is the Interface to the Value Proposition, not to the Application” 34 Source: https://www.linkedin.com/pulse/api-dead-long-live-vpi-amancio-bouza/
  35. 35. 35 The 2nd Breed of API: API Product Source: https://medium.com/api-product-management/two-breeds-of-api-api-products-and-api-solutions-fa726213ecea
  36. 36. 2. PLATFORM-LED DIGITAL TRANSFORMATION 36
  37. 37. WHY API PRODUCT? 37
  38. 38. “3.6 million Americans miss their appointments due to a lack of reliable transportation” 38 Uber Health Source: https://www.uberhealth.com/about
  39. 39. 0.085 M miss appointment in Switzerland $135/15min cost of missed appointment $11.5 M total loss because of missed appointments Source: https://www.expatistan.com/price/doctor/zurich 39 “3.6 million Americans miss their appointments due to a lack of reliable transportation” USA Population: 327.2 M Source: https://en.wikipedia.org/wiki/United_States SWITZERLAND Population: 8.5 M Source: https://en.wikipedia.org/wiki/Switzerland 3.6 M miss appointment in the USA => Source: https://www.uberhealth.com/about
  40. 40. $ 11.5 MARE LOST BECAUSE OF MISSED APPOINTMENTS 40
  41. 41. LET’S GIVE THEM $11.5 M AND CHARGE A FRICTION, E.G., $1’000’00041
  42. 42. CHF '1.00 CHF 200'001.00 CHF 400'001.00 CHF 600'001.00 CHF 800'001.00 Rapport App (API Solution) Transport Care (API Product) API PRODUCT BEATS API SOLUTION 42 Revenue $1’000’000 Revenue $200’000 5x Source: https://www.digital.redcross.ch/: Assumption: 12 customers, 1000 drivers => $204k
  43. 43. HOW TO BUILD API PRODUCT? 43
  44. 44. Director Product Management at Amazon in Seattle 44 Source: https://www.linkedin.com/feed/update/urn:li:activity:6392958411058798592 Continuous Innovation Workshop Outlearn Your Competition and Build Products That Matter.
  45. 45. 45 Lean Startup Build-Measure-Learn Cycle Source: https://medium.com/api-product-management/lean-api-product-development-3f2787e2f941
  46. 46. META PROCESS 46 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively Scale Source: https://medium.com/api-product-management/lean-api-product-development-3f2787e2f941
  47. 47. LEAN API PRODUCT DEVELOPMENT 47 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively Source: https://medium.com/api-product-management/lean-api-product-development-3f2787e2f941
  48. 48. FROM INSIDE-OUT TO OUTSIDE-IN 48
  49. 49. VALUE PROPOSITION CANVAS 49 Alex Osterwalder: Value Proposition Canvas: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
  50. 50. VALUE PROPOSITION INTERFACE CANVAS 50 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
  51. 51. API-as-a-Product UBER for assisted transport TRANSPORT CARE
  52. 52. API PRODUCT: TRANSPORT CARE Manage Transports {startTime, distanceKM, duration} 52 ASSISTED TRANSPORT APP
  53. 53. API PRODUCT VISION BOARD: TRANSPORT CARE Regional Swiss Red Cross associations (i.e., KVs) Small local NGOs: Spitex & Nachbarschaftshilfe Travel Agencies/Industry? Medical Facilities Business Goals (SRK) Help more people more Standardization of Assisted Transport Volunteer satisfaction and lifetime value API economy for Platform Stay relevant for Next Gen. Reduce effort for rapporting and controlling Help customers to travel from A to B Volunteer appreciation Use the time of doctors most efficient Needs Business Context Adjacent Product: Supports Fahrdienst service Digitalize and scale existing Assisted Transport service Get patients on time, no delay or missed appointments Simple management and coordination of transports Data-driven volunteer appreciation (e.g., stats) Value Proposition Benefits Time saving for rapport controlling and increased quality Simple management of transports, less phone calls Improved volunteer experience Manage and organize transports Get real-time transport info (e.g., transport distance) Volunteer and transport analytics Features Costs Continuous API management lifecycle and Integration Operations and Customer Support Customer
  54. 54. Volunteer Appreciation Use volunteer’s stats for personalized appreciation and show volunteer’s impact. Cost Reduction Effortless rapporting and controlling. Less effort for call center because of instant transport request Standardized Transport Service Efficiency and focus on one best transport service. Be where the customer is API Economy and become part of the customer journey. Volunteer Experience Volunteering without administration Fault Prevention Trust volunteers. Uncommon rapports are automatically identified and flagged for manual inspection. BENEFITS The 5 Key Benefits of Transport Care for the Swiss Red Cross PAINRELIEVERSGAINCREATORS
  55. 55. KPI OF API PRODUCT SUCCESS: MEASUREMENT OF HOW WELL THE API PRODUCT DELIVERS ON THE VALUE PROPOSITION 55
  56. 56. TRANSPORT CARE: TOTAL NUMBER OF MINUTES DELAYED 56 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
  57. 57. API PRODUCT: TRANSPORT CARE Manage Transports {startTime, distanceKM, duration} 57 ASSISTED TRANSPORT APP
  58. 58. API PRODUCT: TRANSPORT CARE Manage Transports {startTime, distanceKM, duration, expectedDeliveryTime, deliveryTime} 58 ASSISTED TRANSPORT APP Extend API Specification to facilitate analytics
  59. 59. GOAL-ORIENTED ROADMAP: TRANSPORT CARE Q2/2019 Q3/2019 tbd tbd V1 (MVP) V1.1 V2 V3 Reduce effort of SRK employee to check rapports Full management of transports Smart Alert for uncommon distance and duration data Enable coordination between SRK, volunteer, and beneficiary ● Retrieve transports assigned to a driver ● Get details about a transport ● Update transport with rapport relevant info (e.g., distance, duration) ● Attach expenses to a transport ● Create new transports ● Assign transport to a volunteer ● Retrieve all transports ● Filter all transports based on status ● Identify uncommon transport rapports ● Notify employee for manual inspection ● Get personal stats of current year ● Get stats of all volunteers assigned to a KV or other customers ● Effort of rapport checks reduced by 50% ● # of not-in-time rapports decreased by 50% ● Transport coordination and disposition reduced by 50% 95% of uncommon rapports identified # of usages in volunteer appreciations # of social media shares
  60. 60. RELEASE BACKLOG & IDEAS Goal Why is this release built Features What are the top features of the release Metric How is success of the release measured? Self-Service to save administration effort ● Get details of a volunteer ● Update volunteer info ● 50% of info mutations (e.g., address change) are done by volunteers them self ● 80% of new volunteers use self-service Smart Expenses ● Expense costs are automatically retrieved from expense attachment (OCR, Deep Learning) ● Costs are correctly extracted from 90% of expenses Expense Management ● Upload expense tickets for a specific transport ● Retrieve expense tickets ● Delete expense ticket ● Create expense ticket ● 80% of expenses are submitted via App or API Smart Alert ● Distance estimation of transport ● Duration estimation of transport ● Identification of unexpected and significant difference between estimated and reported values Real-Time Intelligence ● Real-Time Monitoring of transports, distance, and duration
  61. 61. 3. ECOSYSTEMS 61
  62. 62. 62 Source: https://www.fiveup.org/
  63. 63. 63
  64. 64. “Vereinte Kompetenzen: Mit FlixBus und Uber von Tür zu Tür reisen“ 64 Source: https://www.uber.com/de/blog/uber-flixbus-partnerschaft/
  65. 65. WRAP UP 65
  66. 66. PYRAMIDE OF DIGITALIZATION 66 3. TRANSPORT CARE 2. RAPPORT API 1. RAPPORT APP
  67. 67. API PRODUCT MANAGEMENT 67 Source: http://api-as-a-product.com/
  68. 68. TAKE AWAYS 1. API is not about Integration 2. API is the Interface to a Value Proposition 3. Build API Products, not APIs. Ask: Is it the best possible service? 4. Good KPI shows how well an API product delivers on the value proposition 5. Understand the customer journey and build the ecosystem around it. 5th Element: Customer Obsession 68
  69. 69. Get in touch 69
  70. 70. #WHO Amancio Bouza, PhD Intrapreneur, API & AI Enthusiast, Speaker & Author Principal Consultant at ipt Let’s connect: https://ch.linkedin.com/in/amanciobouza Follow me: https://twitter.com/AmancioBouza
  71. 71. BACK UP 71
  72. 72. TRANSPORT CARE APIs Latest Version: https://app.swaggerhub.com/apis-docs/amanciobouza/Transport/1.0.0#/ More at the SRK API Developer Portal: https://developer.redcross.ch/
  73. 73. API STAKEHOLDERS 73
  74. 74. VALUE PROPOSITION INTERFACE 74
  75. 75. WHAT IS AN API? 75
  76. 76. CONTINUOUS INNOVATION
  77. 77. 77
  78. 78. 78
  79. 79. “Our success at Amazon is a function of how many experiments we run every year, month, week, and days.” – Jeff Bezos, CEO of Amazon 79
  80. 80. NUMBER OF EXPERIEMENTS PER YEAR 80 0 20000 40000 60000 80000 100000 120000 Netflix Intuit Amazon P&G Google Facebook Experiments 100k+
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