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What is the Business Model of your API?

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This is a session given by Matthias Biehl at Nordic APIs 2016 Platform Summit on October 25th, in Stockholm Sweden.

Description:
APIs come from the technology side. But quite recently APIs have evolved from “something that the techies do” to a product with serious business value. The IPOs of API-based companies, such as Twilio, are examples of that mind shift.

So when designing new APIs we have to stop seeing APIs as merely cool technology. We have to design APIs as products for customers with needs, wants and desires.

In this talk I will show you how we use approaches from Design Thinking to elicit the needs of API customers and identify valuable APIs. But we should not stop there, we also want to find a viable business model for the API. We use the Business Model Canvas as a methodology for describing the business model of the API and iterate over several business models quickly, until we find the one that works.

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What is the Business Model of your API?

  1. 1. What is the Business Model of your API? Matthias Biehl www.api-university.com @mattbiehl
  2. 2. API
  3. 3. 3 API Consumer
  4. 4. View of API Consumer
  5. 5. 5
  6. 6. eMail-API Payment-API Voice-APIMaps-API Location-API View of API Consumer
  7. 7. 7 API Provider
  8. 8. View of the API Provider
  9. 9. 9 Consumer and Provider in the API Value Chain
  10. 10. Value Chain API Provider API API Consumer = App Developer App End User Business Asset
  11. 11. 11 Challenges for API Providers
  12. 12. 3 Challenges for Business with API How can I make my API easy to use? How can I make money with my API? Am I building an API that developers need?
  13. 13. 3 Challenges for Business with API • Challenge 1: Identify APIs that Developers need • Challenge 2: Find a Business Model for APIs • Challenge 3: Build APIs that People Want to Use Methods and Tools to support us in all 3 Challenges
  14. 14. 14 Challenge 1 Identify APIs that People Need
  15. 15. Challenge 1 - Identifying APIs that People Need How? Design Thinking
  16. 16. 16 Challenge 2 Make Money with APIs
  17. 17. Challenge 2: Making Money with APIs Business Drivers for APIs • Revenue • Reach • Innovation • Growth • Compliance • Insight
  18. 18. CRM System Telco Infrastr. Billing Infrastr. Operations Maintenance Extensions Billing Phone Service + Mobile Data Subscription Extention Offers + Phone Upgrade Private Customers Business Customers Network Infrastructure Freq. Licenses Leasing Infrastructure Staff Usage Flatrate Retail Partner Telco Business 18
  19. 19. CRM System Telco Infrastr. Billing Infrastr. Freq. Licenses Leasing Infrastructure Staff Usage Flatrate API Business Payment API HTTP API PortalSoftware DevelopmentSoftware Companies Software Infrastructure Online Shops 19
  20. 20. Business Models in the API Value Chain 20 API API Business Model of API Consumer Business Model of API Provider Value Chain
  21. 21. 21 Challenge 3 Build APIs that People Want to Use 21
  22. 22. Challenge 3: Building APIs that People Want to Use • Focus: Developer Experience, Experience of the API Consumer • Tools: • API Developer Portal • API Architecture • API Description Languages • RESTful API Design • Lots of Resources that can help you • E.g. at www.api-university.com/books
  23. 23. 23 Summary 23
  24. 24. 3 Challenges for Business with API • Challenge 1: Identify APIs that Developers need • Challenge 2: Find a Business Model for APIs • Challenge 3: Build APIs that People Want to Use REST Developer Portal
  25. 25. Thank You Matthias Biehl www.api-university.com @mattbiehl

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