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ArtOfArc
The	Art	of	Architecting	
Your	Business	&	IT	
APIfication as	Enabler	of	platform-based	
business	models
©	2017	by	ArtOfArc,	Carsten	Sensler
Carsten	Sensler
T:	+49	171	832	4185
M:	cse(at)artofarc(dot)com
19.09.2017
Today	we	Are	Talking	About...
©	2017	by	ArtOfArc,	Carsten	Sensler
APIfication
Pipes &
Platforms
API &
Digital Era
Today	we	Are	Talking	About...
©	2017	by	ArtOfArc,	Carsten	Sensler
APIfication
Pipes &
Platforms
API &
Digital Era
©	2017	by	ArtOfArc,	Carsten	Sensler
Let‘s dive into the topic....
https://mag.e-180.com/wp-content/uploads/2015/08/16745881498_06c28e62ba_o-1170x780.jpg
Pipe-based	Business	Models
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe
Producer Consumer
Product	moving	
through	the	pipe
Linear	business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
Examples:
Pipe-based	Business	Models
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe
Producer Consumer
Product	moving	
through	the	pipe
Linear	business
TV/	Radio
(traditional)	
Education
Manu-
factoring
...
©	2017	by	ArtOfArc,	Carsten	Sensler
§ The	world’s largest taxi firm,	Uber,	owns no cars.	
§ The	world’s most popular media company,	Facebook,	creates no content.	
§ The	world’s largest accommodation provider,	Airbnb,	owns no property.
§ Udacity,	LinkedIn,	...
Platform-based Business?
©	2017	by	ArtOfArc,	Carsten	Sensler
Source:	http://www.independent.co.uk/news/business/comment/hamish-
mcrae/facebook-airbnb-uber-and-the-unstoppable-rise-of-the-content-non-generators-
10227207.html
Platform-based	Business	Models
©	2017	by	ArtOfArc,	Carsten	Sensler
Plattform
Value
Producer Consumer
Dynamic	business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
Examples:
Platform-based	Business	Models
©	2017	by	ArtOfArc,	Carsten	Sensler
Plattform
Value
Producer Consumer
Dynamic	business
Udacity AirBnB Youtube ...
Super	Examples J
©	2017	by	ArtOfArc,	Carsten	Sensler
Apple Google
„App	Stores“
§ A	“platform	driver”	serves	as	a	curator	between	producer	and	
consumer	based	on	gathered	data
§ The	roles	of	producer	and	consumer	are	fluent	and	not	fixed
§ There	is	a	living	community	around	the	platform	as	part	of	the	
business
§ The	platform	provides	some	kind	of	easy	integration	capabilities
What	Are	The	Core	Criteria	of	a	Platform-
based	Business	Model?
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe- &	Platform-based Business	on	1	Chart	J
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe Platform
Business	Design	Flexibilitylow high
high
low
Customer	
Insight
Eco-System	
Driver
Omni-Channel
Business
Supplier business Modular
Producer
http://sloanreview.mit.edu/article/thriving-in-an-increasingly-digital-ecosystem/
Today	we	Are	Talking	About...
©	2017	by	ArtOfArc,	Carsten	Sensler
APIfication
Pipes &
Platforms
API &
Digital Era
©	2017	by	ArtOfArc,	Carsten	Sensler
https://static1.squarespace.com/static/5564e82de4b0edcadf828dc3/t/56f72490746fb9cb2677328e/1459037406513/?format=1500w
SOA	as	a	Means	to	Gain	More	Flexibility	And	
Agility	in	Your	Business	Design.
©	2017	by	ArtOfArc,	Carsten	Sensler
SOA	as	a	Means	to	Gain	More	Flexibility	And	
Agility	in	Your	Business	Design.
©	2017	by	ArtOfArc,	Carsten	Sensler
APIfication as	a	Means	to	Gain	More	
Flexibility	And	Agility	in	Your	Business	Design.
©	2017	by	ArtOfArc,	Carsten	Sensler
SOA	vs.	APIfication
©	2017	by	ArtOfArc,	Carsten	Sensler
SOA API
• Efficiency
• Application Integration
• Internal	view
• API	as a	product
• Product LifeCycle	Mgt
• External view
Governance
Platform
Strategy
...
...
§ A	API	taxonomy	supports	you	in	
§ Designing	business	models
§ Defining	Governance	rules	and	Design	Guidelines
§ Communicating	the	API	strategy
§ Structuring	discussions	with	all	disciplines	across	all	levels
A	API	taxonomy	is	One	of	Only	Few	Critical	Success	
Factors	When	Introducing	API	Management.
©	2017	by	ArtOfArc,	Carsten	Sensler
„API as a product“
public private
internalOpen B2BB2C
API	is	Business:	
Direct	vs.	Indirect	Monetization
©	2017	by	ArtOfArc,	Carsten	Sensler
customer	satisfaction,	brand	recognition,	
image,	...
PayPerUse/	Transaction	based,
commission	model,	internal	cross	chargingdirect	monetization
indirect	monetization
API	is Business:	
Direct vs.	Indirect Monetization
©	2017	by	ArtOfArc,	Carsten	Sensler
public API private	API
PayPerUse/	Transaction	based,
commission	model,	internal	cross	charging
direct	monetization
indirect	monetization
customer	satisfaction,	brand	recognition,	etc
internal
Open
B2BB2C
Overview	About	Different	Types	of	AP-based	
Business	Models.
©	2017	by	ArtOfArc,	Carsten	Sensler
public API private	API
PayPerUse/	Transaction	based,
commission model,	internal	cross charging
direct	monetization
indirect monetization
customer satisfaction,	brand recognition,	etc
BM-Type:
Direct Sales
BM-Type:	
Internal	
Efficiency
BM-Type:	
Reselling
BM-Type:
Shared P&L
BM-Type:	
Added Value
BM-Type:	
Digital	Enabler
BM-Type:
Free	API
BM-Type	=	Business	Model	Type
©	2017	by	ArtOfArc,	Carsten	Sensler
The	Broader Context of
APIfication in	The	Digital	Era.
http://www.esa.int/Our_Activities/Human_Spaceflight/International_Space_Station/International_Space_Station_Agency_Heads_Joint_Statement
My	Definition	of	Digitalisation	From	a	
Traditional,	Large	Enterprise	View.
©	2017	by	ArtOfArc,	Carsten	Sensler
Establish the	digital	interface	to	the	customer	and	foster	real	omni-channel	business	
with	a	maximized	personal	customer	engagement
Design	and	Implement	Platform-based	business	models	with	a	more	openess outside	
of	your	enterprise‘	borders
Forster	automatization,	scalability	and	efficiency	in	your	core	IT	of your	traditional	
business	models.
Ramp	up	data	intelligence	to	use	your	data	valueable ,	acting	as	enabler	for	the	
personalized	customer	engagement	or	any	kind	of	predictive	analytics.
Building	Blocks	of an	Enterprise	in	The	Digital	
Era.
©	2017	by	ArtOfArc,	Carsten	Sensler
External	Partner/	
APIs
Data	Intelligence	Plane
POSAppWebChannels: …
Operational	PlaneDigital	Service	Plane
Party	Engagement	Plane
3rd	party/	
Social	Media
Integration	
Plane
©	2017	by	ArtOfArc,	Carsten	Sensler
External	Partner/	
APIs
Data	Intelligence	Plane
POSAppWebChannels: …
Operational	PlaneDigital	Service	Plane
Party	Engagement	Plane
3rd	party/	
Social	Media
API	Management	
Solution
Integration	
Plane
API
Mgt.
Today	we	Are	Talking	About...
©	2017	by	ArtOfArc,	Carsten	Sensler
APIfication
Pipes &
Platforms
API &
Digital Era
Pipe- &	Platform-based Business	on	1	Chart	J
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe Platform
Business	Design	Flexibilitylow high
high
low
Customer	
Insight
Eco-System	
Driver
Omni-Channel
Business
Supplier business Modular
Producer
http://sloanreview.mit.edu/article/thriving-in-an-increasingly-digital-ecosystem/
Let‘s	Put	it	Together	– Pipe/Platform-based	
Business	And	APIfication.
©	2017	by	ArtOfArc,	Carsten	Sensler
Pipe Plattform
Business	Design	Flexibilitylow high
high
low
Customer	
Insight
Eco-System	
DriverOmni-Channel
Business
Supplier Modular
Producer
More	like	a	SOA	
approach
Focus	on	
integrating	APIs
Focus	on	
providing APIs
Defining	
standards	for	
integrating	APIs	&	
providing	APIs
Time	x Time	x	+	years
Required	Enterprise	Capabilities	For	
Establishing	a	API	Management
©	2017	by	ArtOfArc,	Carsten	Sensler
API	Business	
Design
API	Product	
Management
API		Design,	
Implementation	
&	Testing
API		Platform
API		Security	&	
Privacy	
Management
API	Governance
API	Metrics	&	
Measurement
APIfication as Enabler for Platform-based
Business	– API	Economy
©	2017	by	ArtOfArc,	Carsten	Sensler
External	Partner/	
APIs
Data	Intelligence	Plane
POSAppWebChannels: …
Operational	PlaneDigital	Service	Plane
Party	Engagement	Plane
3rd	party/	
Social	Media
Integration	
Plane
The	roles	of	producer	and	
consumer	are	fluent	and	
not	fixedA	platform	driver	serves	as	a	
curator	between	producer	
and	consumer	based	on	
gathered	data
The	platform	provides	
some	kind	of	easy	
integration	capabilities
A	platform	driver	serves	as	a	
curator	between	producer	
and	consumer	based	on	
gathered	data
There	is	a	living	community	
around	the	platform	based	
business	as	part	of	the	
business
€
Digital	Transformation	Survey	2017	–
ArtOfArc,	Teavaro,	et	al.
©	2017	by	ArtOfArc,	Carsten	Sensler
23%
Experts
>1xxresponses
12
countries
77%
Management
61%
large	Enterprises
64%
non IT
36 %
IT
39%
Medium/ small
Enterprises
preview
Key	Measurements	of	Successful	Digital	
Player	in	The	API	Space*.
©	2017	by	ArtOfArc,	Carsten	Sensler
73%
01
72%
03
82%
04
Marketplaces and
Business partner
integration are
very important.
Have a
standardized
Integration of 3rd
Party Services
.	
Their operational
IT provides
encapsulated
business
functions
Have highly
automated and
integrated
business
processes
80%
02
*)	Digital	Transformation	Survey	2017,	ArtOfArc,		Teavaro,	et	al. preview
Some Best	Practices	for building an	API	
Economy
©	2017	by	ArtOfArc,	Carsten	Sensler
Start	with	a	simple	strategic	grid	
to	drive	structured	discussions	
when	defining	business	models
Define	your	taxonomy	to	ease	
the	discussion	across	all	
disciplines	and	all	levels	of	
expertise
APIfication can	only	be	
successful,	if	you	define	the	
strategy	jointly	between	
business	and	IT.
Start	with	API	First	approach	to	
get	pace.
Look	inside-out	and	outside-in	
at	the	same	time,	when	defining	
a	API	(product)
Ask	me!	J
Build	up	and	establish	the	
required	enterprise	capabilities
More	information
©	2017	by	ArtOfArc,	Carsten	Sensler
Entwickler	Magazin	Spezial,	API entwickler.press,	Carsten	Sensler,	
Thomas	Grimm
Focus:	Digital	Transformation
Mail:	cse@artofarc.com
Mobile:	+49	171	8324185
Carsten	Sensler,	CEO	ArtOfArc
„Lerne	von	anderen	Branchen,	denn	genau	die	Quereinsteiger	aus	anderen	
Bereichen	untergraben	am	Ende	etablierte	Geschäftsmodelle.“	
(Dr.	Steffen	Roehn)
Foto,CarstenSensler,Norddeich
THE END!
Carsten	Sensler berät	Kunden	im	Kontext	ihrer	Transformation.	
Bis	Ende	2013	arbeitete	er	bei	einem	DAX-30-Konzern	als	VP	
„Technology,	Architecture and Operation“	für	ein	strategisches	
Geschäftsfeld.	Zuvor	war	er	als	Group-Enterprise-Architekt	tätig	
und	für	die	Ausgestaltung	der	Konzernzielarchitektur	
verantwortlich.	Außerdem	kümmerte	er	sich	um	die	
internationale	Standardisierung	einer	SOA	(Infrastruktur	und	
Governance).	
T:	+49	171	832	4185
M:	cse(at)artofarc(dot)com

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