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Creating a Successful API Program to Drive Digital Transformation

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API management is a driving discipline in the digital transformation movement that can unlock tremendous business value. Because APIs intersect at IT and the business, it’s important to understand how they can be used. APIs can connect inventory management with resource planning for better operational efficiency, integrate with partner organizations for increased sales, and push data to and from a mobile device for the connected enterprise and consumer. The core concepts of APIs are technical in nature, but their business applications are almost limitless.

Creating a successful API program goes way beyond choosing the right tool. The supporting components and disciplines (some tried and true and some emerging) around API management are a critical component of the comprehensive picture.

In this webinar, we discussed:

-The building blocks of a strong API program
-How to get executive buy-in
-Supporting components and disciplines of API management
-How APIs help to build a world-class digital business

Published in: Technology

Creating a Successful API Program to Drive Digital Transformation

  1. 1. API Management: A Driver for Digital Transformation facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient
  2. 2. 2 Perficient is a leading technology and management consulting firm serving Global 2000 and enterprise clients throughout North America. We deliver digital experience, business optimization and industry solutions that enable clients to improve productivity and competitiveness; strengthen relationships with customers, suppliers, and partners; and reduce costs. ABOUT PERFICIENT
  3. 3. 3 PERFICIENT PROFILE Founded in 1997 Public, NASDAQ: PRFT 2014 revenue $456.7 million Major market locations: Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto Global delivery centers in China and India >2,600 colleagues Dedicated solution practices ~90% repeat business rate Alliance partnerships with major technology vendors Multiple vendor/industry technology and growth awards
  4. 4. 4 PERFICIENT’S API PRACTICE CORE FOCUS AREAS • Integration and business optimization • Strategy and architecture that support our creative agency and user experience • Envision, design, and build intuitive customer solutions that are results-focused, digital ready and grounded in architecture to enable enterprise agility.
  5. 5. 5 PRESENTERS Ed Murphy API Practice Lead Perficient Ed.Murphy@perficient.com Michael Porter Managing Principal, Strategic Advisors Team Perficient @porterondigital Michael.Porter@perficient.com
  6. 6. 6 WHAT IS DIGITAL TRANSFORMATION? “The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every point I the customer experience lifecycle” ~Altimeter
  7. 7. 7 “All I’m saying is now is the time to develop the technology to deflect an asteroid.”
  8. 8. 8 FROM DIGITAL PREY TO DIGITAL PREDATOR
  9. 9. 9 HOTEL CHAIN The Situation Think of Hilton’s competitive landscape • Part of the overall travel industry. • Airlines and rental car companies let you pick your seats and car • Part of a very competitive lodging industry • Lower margins • Heavily impacted by economic conditions • Constant and changing competitive differentiators • Heavenly Bed • Free Internet • Many travelers report issues with hotels • 30% hate waiting for a clean room • 28% dislike room location • 20% dislike room features • 2 out of 3 wish they could choose their room
  10. 10. 10 HOTEL CHAIN The Differentiator Recreate the guest experience • New and better mobile application • Pick a room the day before • Add in special room requests • Your phone if your room key • Easy check-out from the phone • With many features available on the web as well • Rolled out to • 4,000 properties • 650,000 rooms • 40 million Hilton Honors Members • 80+ countries • 18,000 team members
  11. 11. 11 HOW APIs DRIVE DIGITAL TRANSFORMATION • Role of APIs in digital transformation • Success Stories • Supporting components and disciplines • What makes a strong API program • 6 starting points to build an API program
  12. 12. 12 THE ROLE OF APIs IN DIGITAL TRANSFORMATION
  13. 13. 13 Rising Customer Expectations Amazon, Zappos, Facebook, Apple, et al are redefining service, speed and ease-of-use Continual Connectedness Adoption of digital channels is driving demand for choice and connectedness Organizational Velocity Tech lowers barriers to entry and increases speed; slow response invites disruption Abundance of Customer Data Requires competency in turning complex data into business insight THESE TRENDS DRIVE MASSIVE CHANGE “APIs enable rapid business reconfiguration and a new angle into digital business strategy” How APIs Reframe Business Strategy by Randy Heffner, June 1, 2015
  14. 14. 14 WHERE DOES API MANAGEMENT LIVE?
  15. 15. 15 WHAT DO APIs DO? • Deliver new digitally powered, multi-touchpoint customer experiences • Accelerate their ability to deliver innovation and digital operational excellence • Build new revenue, influence, and product value through an extended ecosystem Brief: Four Ways APIs Are Changing Your Business How To Design An API Strategy That Fuels Digital Business by Martin Gill and Randy Heffner with Zia Daniell Wigder and Alexander Causey; Forrester, June 2015
  16. 16. 16 HOW? • Product APIs increase product value by connecting to and expanding the ecosystem • Open web (AKA “public”) APIs expand market reach through openness and innovation • B2B (AKA “partner”) APIs optimize cross-enterprise processes and relationships • Internal (AKA “private”) APIs improve organizational agility, efficiency, and effectiveness “Brief: Four Ways APIs Are Changing Your Business” How To Design An API Strategy That Fuels DigitalBusiness by Martin Gilland Randy Heffner with Zia Daniell Wigder and Alexander Causey Forrester, June 2015
  17. 17. 17 APIs Portal Mobile CX Big Data Analytics Security “APIs are more powerful when thought of as business building blocks that open digital connections to any business asset or capability. Seen from this point of view, APIs enable a new angle for thinking about business strategy.” How APIs Reframe Business Strategy, June 2015 APIs SUPPORT A COHESIVE DIGITAL STRATEGY
  18. 18. 18 SUCCESS STORIES
  19. 19. 19 Hypermarket retailer drives multichannel growth and customer retention with SOA and API solutions A large, hypermarket retailer with a focus on fashionable, upscale, trend-forward merchandise needed an integrated, seamless shopping experience for consumers online and in stores. Perficient built an Information-as-a-Service platform, built on service-oriented architectural principles with special attention to a consistent information model, highly scalable performance, and airtight reliability and security. The digital store platform services and APIs enable new channels for revenue growth and richer experiences for retention of existing customers. To date, the program is enabling 200 unique applications with nearly 40 APIs and 800 methods or data calls.
  20. 20. 20 Medical supply company integrates surgical equipment to help reduce risk APIs integrated surgical equipment to send information to a central repository. Information is used for surgery preparation and planning as well as maintenance/replacement of equipment based on usage. APIs enable real-time risk fall assessment on this company’s internet enabled beds alerting nurses of patients falling out of bed or experiencing seizures.
  21. 21. 21 Prescription API enables consumers to refill prescriptions at the nearest store Other APIs - photo processing capabilities, health tracker, etc. – also directly engage the customer in creative ways. The API program contributed to 6X increase in in-store customer spending.
  22. 22. 22 Leading travel cruise liner enables real time inventory management with APIs The leading travel cruise liner uses several APIs to support booking, airline partner integration, inventory management and resource planning. These APIs reduce overall expense and helps their partners such as Expedia or Orbitz and airlines to be better supported. The Integration API enables the cruise line to integrate with airline partners to allow customers booking air- fare/cruise packages from their website. Ship APIs allow real time inventory management and proper resource planning.
  23. 23. 23 KICK THE TIRES “What If”: Kicking the Tires and Lighting the Fires A nationwide car repair center keeps computerized records on all cars that come in for repair. The company decides that they can expose some of this data they maintain normally via APIs and potentially create a new revenue channel. They use their data warehouse and a newly branded “KTT Rating” on cars detailing the problems they’ve encountered, the cost of repairs, etc. of the makes and models of the cars that come into their shops. The company creates an API and an app and then the API begins to be used by various vehicle sites to show the KTT rating. 010101010 API API API KickTheTires.com
  24. 24. 24 Marketing ITDevelopers CONSUMER WHO CARES?
  25. 25. 25 THE BUSINESS CASE • APIs make money even if monetization is not the direct business case • APIs make it easier for partners to work with your brands and this aids brand promotion • APIs enable ways for your customers, suppliers, and partners to interact with your business in ways they’ve come to expect • APIs open up channels and opportunities that you might not even know existed • Faster time-to-market helps capitalize on “right time” customer interactions • Business is more engaged and invested in the planning and implement ion of your API products Your APIs are a product of your business. Unlike SOA the ROI is more direct. SOA is about saving money, APIs are about making money. Why should business care? Isn’t this an IT thing?
  26. 26. 26 THE IT CASE • APIs promote reuse and agility • APIs helps with process and procedural efficiencies • APIs provide support for a culture of innovation • APIs help align business and IT goals • Support frictionless service and operation provisioning • Support flexible refactoring of backend services Plain and simple: API Management is not SOA. API Management is an extension of SOA. Why would IT want this? Isn’t this just SOA all over again?
  27. 27. 27 WHAT DOES THE C-SUITE WANT TO KNOW? • Netflix is able to stream to over 200 different device types thanks to its API. (Your partners will love you.) • 60% of eBay’s listings are done through their API. (Developers will love you.) • Twitter receives over 13 billion API calls daily. (There are no limits.) • And all this will contribute to the bottom line. The Business of APIs: What Product Managers Need to Plan For http://techproductmanagement.com/the-business-of-apis-what-product-managers-need-to-plan-for/
  28. 28. 28 WHAT DOES THE C-SUITE NEED TO KNOW? • APIs are not experimental • APIs can help internally too (this is considered by some to be the biggest use case) • APIs create channels to new customers and markets • APIs promote innovation • An API strategy provides a foundation for competitive differentiation • Partnering sometimes more sense than building in this space (as with all things) Customer expectations have changed.
  29. 29. 29 WHAT MAKES A STRONG API PROGRAM?
  30. 30. 30 YOUR CHECKLIST…  Identify your consumer and know your market  Clearly understand its value and make sure it fits your business model  Spell out what “success” means and how will you measure it  Appoint your product manager  Have a plan to engage your community  If you don’t have the expertise in-house, consider your partner wisely  Make sure lots of people are involved
  31. 31. 31 WHAT’S INVOLVED? Right Place, Right Time Accurate Customer Information Understand Customer Journey Community Outreach Agility and Responsiveness Provide the Right Capabilities AWESOME CUSTOMER EXPERIENCE CRM Data Mgmt Big Data Dev Portals Active Engagement Integration APIM Dev Ops
  32. 32. 32 Business Strategy & Design WHO’S INVOLVED? API Strategy & Design Enterprise Architecture • Business & technology capabilities • Opportunities • Strategy Application Development • API Design • Development • Portfolio Management Customer Experience • CX design for omnichannel • Extended ecosystem experience eBusiness • Business Model • API product ownership Information gathered from Forrester Research
  33. 33. 33 6 QUESTIONS TO KICK-START YOUR API STRATEGY
  34. 34. 34 Question #1 DO YOU WANT YOUR APIs TO BE PRIVATE OR PUBLIC? APIs support both IT organization and exposing your unique business value.
  35. 35. 35 Question #2 HOW DO APIs FOSTER INNOVATIVE DEVELOPMENT? APIs build external partnerships you didn’t even know existed. APIs enable your existing staff to support your future growth.
  36. 36. 36 Question #3 HOW DO YOU MAKE IT EASY FOR USERS TO ACCESS YOUR BUSINESS ASSETS AND CAPABILITIES USING APIs? Make it “frictionless” to gain access. Build a community and make sure communication is a two-way street.
  37. 37. 37 Question #4 WHAT ARE CORE CONSIDERATIONS FOR A STRONG API STRATEGY? Governance should be light and enable and agile process. Processes should be streamlined and efficient. Stakeholders across the business should be aligned and engaged.
  38. 38. 38 Question #5 WHAT WILL THE APIs CONTRIBUTE TO YOUR ORGANIZATION? Decide what it is about your business that you want to share (don’t copy competitors!) Measure it.
  39. 39. 39 Question #6 WHERE WILL YOU LEAD YOUR BUSINESS IN THE NEXT 10 YEARS? Professionals (inside your company and out) want platforms to build on. They want to be engaged. That platform involves cloud, mobile, data management, and other related technologies. APIs are the keys to unlocking potential in these areas.
  40. 40. 40 QUESTIONS? Please submit your questions in the chat box
  41. 41. 4141 FOLLOW US ONLINE • Perficient.com/SocialMedia • Facebook.com/Perficient • Twitter.com/PRFT_Transform • Blogs.perficient.com/digitaltransformation/ Registration Coming Soon… Extending Digital Transformation Across the Enterprise Thursday, November 19 | 1:00 PM CT
  42. 42. 42 Insights to Identifying and Executing a Successful API Strategy Download today: http://www2.perficient.com/ DTSeries/APIStrategy

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