The hype topic APIs is everywhere obvious. In this presentation, I demonstrate the importance of platform-based business models and the connection to the growing API space. APIs are a foundation for enabling a platform-based business.

2. © 2017 by ArtOfArc
ArtOfArc
The Art of Architecting Your Business & IT
Carsten Sensler, CEO
T:!+49!171!832!4185
M:!cse(at)artofarc(dot)com
DIGITALISIERUNG@FULL SPEED
APIS ALS ENABLER PLATTFORMBASIERTER GESCHÄFTSMODELLE
https://www.linkedin.com/in/csensler/

3. Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc

4. Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc

5. Pipe-based Business Models
© 2017 by ArtOfArc

6. Pipe-based Business Models
TV/
Radio
(traditional
) Education ...
TV/ Radio Education Manufactoring
© 2017 by ArtOfArc

7. Pipe
Producer Consumer
Product moving
through the pipe
Linear business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
Pipe-based Business Models
© 2017 by ArtOfArc

8. Platform-based Business Models
© 2017 by ArtOfArc

9. Source: The Platform Manifesto, Sangeet Paul Choudary, Geoffrey Parker and Marshall Van Alstyne
Platform-based Business Models
© 2017 by ArtOfArc

10. Udacity AirBnB Youtube ...
Platform-based Business Models
Udacity Airbnb Youtube
© 2017 by ArtOfArc

11. What Are The Core Capabilities of a
Platform-based Business Model?
Matching Interaction Integration
© 2017 by ArtOfArc

12. Platform-based Business Models
Platform
Value
Producer Consumer
Dynamic business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
© 2017 by ArtOfArc

13. Super Examples ☺
Apple Google
„App Stores“
© 2017 by ArtOfArc

14. Pipe- & Platform-based Business on 1 Chart ☺
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/
© 2017 by ArtOfArc

15. Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc

16. © 2017 by ArtOfArc, Carsten Sensler
An API is a defined business capability designed and implemented
for a broad use in- and outside your companies’ borders.
… pretty close to SOA, isn’t it?

17. … but…
© 2017 by ArtOfArc

18. SOA vs. API
Unique to
SOA
Unique to
API
• Efficiency
• Application Integration
• Internal view
• API as a product
• Product LifeCycle Mgt
• External view
Governance
Platform
Strategy
Versioning
...
© 2017 by ArtOfArc

19. ▪ 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.
„API as a product“
public private
internalOpen B2BB2C
© 2017 by ArtOfArc

20. API is Business
Direct & Indirect Monetization
customer satisfaction, brand
recognition, image, ...
PayPerUse/ Transaction based,
commission model, internal cross chargingdirect monetization
indirect monetization
© 2017 by ArtOfArc

21. API is Business
Direct vs. Indirect Monetization
public API private API
PayPerUse/ Transaction based,
commission model, internal cross charging
direct monetization
indirect monetization
customer satisfaction, brand recognition, etc
internal
Open
B2BB2C
© 2017 by ArtOfArc

22. A Standardised Method to Design an API Helps a Lot.
© 2017 by ArtOfArc
API Business Design Canvas (providing API only)

23. © 2017 by ArtOfArc, Carsten Sensler
„Digitalisation is the new black“ -
Need for Change?

24. © 2017 by ArtOfArc, Carsten Sensler
Drivers for The Digital Enterprise
Customer
Behaviour/
Expectations
New enabling
Technologies
Existing
Legacy IT
External
Market
Force

25. Adaptable Business Model(s)
Focus on The Critical Success Factors to
Become a Digital Enterprise.
Powerful & Efficient IT
Open For PartnerCustomer Centric
Culture &
Organisation
© 2017 by ArtOfArc

26. … and APIs?
© 2017 by ArtOfArc

27. … just a sec…
© 2017 by ArtOfArc
…I put on my EA hat …

28. Building Blocks of a Digital Enterprise.
External Partner/
APIs
Data Intelligence Plane
POSAppWebChannels: …
Operational PlaneDigital Service Plane
Party Engagement Plane
3rd party/
Social Media
Integration
Plane
© 2017 by ArtOfArc

29. 3 Core Enterprise Capabilities of a „Platform“
External Partner/
APIs
Data Intelligence Plane
POSAppWebChannels: …
Operational PlaneDigital Service Plane
Party Engagement Plane
3rd party/
Social Media
Integration
Plane
© 2017 by ArtOfArc
InteraktionInteraktion
MatchingMatching
Integration
Matching

30. External Partner/
APIs
Data Intelligence Plane
POSAppWebChannels: …
Operational PlaneDigital Service Plane
Party Engagement Plane
3rd party/
Social Media
Integration
Plane
API
Mgt.
… APIs are the Glue.
© 2017 by ArtOfArc
Integration

31. © 2017 by ArtOfArc, Carsten Sensler
Today we Are Talking About...
Pipes & Platforms APIficationAPI & Digital Era

32. APIfication as a Means to Gain
More Flexibility And Agility in
Your Business Design.
© 2017 by ArtOfArc

33. Let’s Put it Together – Pipe/Platform Based
Business And APIfication.
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
© 2017 by ArtOfArc

34. Seven Required Enterprise Capabilities For
Implementing Successfully the APIfication.
API Business
Design
API Product
Management
API Design,
Implementation
& Testing
API Platform
API Security &
Privacy
Management
API
Governance
API Metrics &
Measurement
© 2017 by ArtOfArc

35. Digital Transformation Survey 2017 –
ArtOfArc, Teavaro, THASCO, et al.
23%
Experts
>1xx responses
12
countries
77%
Management
61%
large
Enterprises
64%
non IT
36 %
IT
39%
Medium/
small
Enterprises
preview
© 2017 by ArtOfArc

36. Key Measurements of Successful Digital
Player in The API Space*.
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, THASCO, et al.
preview
© 2017 by ArtOfArc

37. Five Selected Best Practices for
Implementing an APIfication.
© 2017 by ArtOfArc

38. Start with a simple 2x2 grid
to drive strategic discussions
© 2017 by ArtOfArc
1

39. Start with API First approach
to get speed.
© 2017 by ArtOfArc
2

40. Look inside-out and outside-in
for designing an API (product)
© 2017 by ArtOfArc
3

41. Use the API Business Design Canvas
with business & IT experts.
© 2017 by ArtOfArc
4

42. © 2017 by ArtOfArc
5 Ask me! ☺

43. DIGITALISIERUNG@FULL SPEED
APIs as Enabler
For Platform-based
Business Models

44. „Lerne von anderen Branchen, denn genau die Quereinsteiger aus
anderen Bereichen untergraben am Ende etablierte
Geschäftsmodelle.“
(Dr. Steffen Roehn)
Foto,CarstenSensler,Norddeich
THE END!
© 2017 by ArtOfArc

45. More information
Entwickler Magazin Spezial, API entwickler.press, 2015
Carsten Sensler, Thomas Grimm
Focus: Digital Transformation
Mail:!cse@artofarc.com
Mobile:!+49!171!8324185
Carsten Sensler, CEO ArtOfArc
© 2017 by ArtOfArc

46. Carsten Sensler ist Mitgründer der ArtOfArc und berät Kunden im Kontext ihrer Transformation in
den verschiedensten Dimensionen und Ausprägungen. Davor war Carsten bis Ende 2013 Angestellter
eines großen Telekommunikationskonzerns. Dort war er als Vice President „Technology, Architecture
and Operation“ Mitgründer eines strategischen Konzerngeschäftsfelds. Vorher arbeitete er in dem
Konzern als Group-Enterprise-Architekt für den CIO. Carsten war für die Ausgestaltung der
Konzernzielarchitektur und deren internationales Alignment verantwortlich, zuvor verantwortete er
innerhalb der Enterprise-Integration die konzernweite Standardisierung einer SOA-Infrastruktur
sowie der entsprechenden SOA Governance. Seine Karriere begann er als Consultant für neue
Technologien. Neben seinen beruflichen Herausforderungen konnte Carsten an der Henley Business
School (UK) erfolgreich den Masterstudiengang in „Enterprise Information Management“
absolvieren. Carsten teilt sehr gerne sein Wissen und seine Erfahrungen mit anderen, indem er
Fachartikel veröffentlicht, auf Konferenzen referiert oder als Gastdozent Lehrveranstaltungen gibt.
T:!+49!171!832!4185
M:!cse(at)artofarc(dot)com
© 2017 by ArtOfArc
https://www.linkedin.com/in/csensler/