api amplification

1. API Amplification – Read Me First
Al Liubinskas
VP – NA Cloud Integration Lead, Capgemini
San Francisco AIE
December 7th, 2017

2. Global Companies are facing disruption from rising customer
expectations, relentless cost pressures and Tech Savvy Start-Ups
Tech Savvy Companies are embracing API strategies to prepare for significant future
disruption such as the entry of “BigTech” and/or extensive “platformification”
 Traditional firms must improve on delivering positive moments-of-truth –
customers indicated significantly low levels of overall positive experience
 Gen Y and tech-savvy customers offer higher long-term revenue potential
 Traditional firms have become more open to partnerships with the cloud
based tech providers (ex. Banking - Fintechs)
 Analytics is not a batch process anymore! Real-Time customer focused
promotions are a reality
 The rise of savvy tech start ups have been aided by a perfect storm of
increasing customer expectations, expanding VC funding, reduced barriers to
entry and increased pace of technological evolution
 Fintech is setting the bar higher for the entire Banking industry according
to nearly 70% of banking executives
 Many companies are building in-house capabilities to directly compete
 Companies need to drive innovation in a systematic and methodical way
• Product and Service
Explosion
• Demand Peaks and
Valleys
• New Markets and
agile business models
Agility
Globalization
• Buying Power
Shifts
• One size fits
• Informed Risk
Virtualization
• Virtual
Collaboration
• Always Connected
• Device Proliferation

3. Company
Services & Data
3rd Party
Apps
Widgets
Gadgets
Social
Network
Mobile
Apps
APIs Connect Anything & Everything

4. Why should Companies leverage the API driven economy?
High Touch Channels
Desired Customer Segment
$$$ (High Cost to serve)
Digital Products and Services
Untapped Customer Segments
API as a channel
$ (Low Cost to serve)
By leveraging API as a channel , Companies can generate additional revenue by offering
their unbundled products to untapped customer segments

5. Most enterprises focus on one or two primary API-amplification
strategies
Revenue /
Channel
Expansion
Greater
Innovation
Better
Collaboration
Speed &
Agility
Decoupling &
Resiliency
Mobile, IoT
& Network of
Everything
1.Revenue / Channel Expansion: Leverage APIs to
increase reach and depth of business channels and provided
additional revenue growth for the company. API channels can
create nonlinear growth at very high margins.
2.Greater Innovation (Internally & Externally):
Create more internal and external innovation by allowing other
Bus, partners, suppliers & collaborators to innovate on top of
your platform services.
3.Better Collaboration (with Partners, Suppliers
& Ecosystem): Create closer collaboration with your
partners, suppliers and ecosystem by allowing them to directly
integrate with and access your services.
4.Speed & Agility: Significantly increase speed and agility
by using APIs to create looser contractual based coupling
5.Decoupling & Resiliency: Increase resiliency by
leveraging APIs to decrease architectural coupling allowing for a
more robust and independently scalable platform.
6.Mobile, IoT & Network of Everything: Enable
mobile, IoT & Network of Everything strategies and capabilities
for your business through device independent APIs
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6. Most companies are struggling to make progress monetizing APIs
Key Business Questions
 How can we enable new business models and leverage
Digital innovation?
 How do we use APIs to create new revenue streams?
 New products
 New markets
 How do we use APIs to amplify existing revenue
streams?
 Close more business
 Add more value
 What monetization models are appropriate?
 How do we select and reach out to customers?
 How can we increase our market profile/brand
position?
 With or without, APIs how do we defend against
disintermediation?
API plans are now CEO and Board topics, no longer the sole domain of the CIO/CTO
The Company

7. We have a variety of experience in API implementations across
multiple sectors
Enabling a Digital Supply Chain for
their Beverage Dispensing Platform
Driving API enablement to allow
Brand Acquisition not to be impacted
by IT Constraints
Transform Fast Food Industry by
Enabling Kiosks, Mobile On-Line
Ordering & Delivery
Using Restful APIs to enable Beer
Management IOT and Customer’s
Spike Demands
Embracing Cloud and API
Technology, a divestiture was able to
re-platform their global operations
Using external facing APIs to
unbundle banking products
API-enabled business processes and
business entities. Exposed data for
consumer services
Centralizing all training and
certification programs for their
Customer’s Network Engineers
Using APIs to enable business
partner collaboration across their
three global ERP Zones
Evaluate existing portal and
determine how to use APIs to enable
access for corporate clients

8. API-amplification as an external channel
Select &
validate
Design &
prototype
DeployMarket &
manage
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Extend
API
lifecycle
Ideation,
prioritization, and
business development
will continuously occur
throughout all Channel
activity
Within that continuous
loop, top-priority
functionality will be
developed, deployed,
and grown

9. API Economy: Four Basic Monetization Models
API
monetization
models
Free
Partner
pays
Partner
gets paid
Indirect
Influence
Pay as you
go
Tiered
Freemium
Transaction
Fee
Revenue
Share
Affiliate
Service
Awareness
Consumer
Facing
Internal
Usage
Pay as you go , No minimum fee
First 10 calls free, Tiered pricing for every bucket of 100 calls
Free for basic, More information premium pricing
One time fee + % of transaction
Share of revenue flows
One Time acquisition costs and option to recur monthly
Awareness of banking services (ATM locations)
Services for consumer facing apps (interest rates)
Mobile app consumption

10. Key Lessons Learned…
Need to develop
a "Try, Test and
Adapt" mindset
(Nimble product
teams)
Automated
Provisioning of
Environments is
critical
Security is a big
deal. Involving
Risk and
Compliance is
important
Analytics of what
is being used
should drive new
product features
Soft releases
with pilot
customers gives
better insights
Engaging
Developer
community is
different; Think
about
Distribution
strategy
API Pricing is a
constant
evolution

11. Within 8-10 weeks you can develop a roadmap with prioritized
set of API monetization opportunities
Business Questions
These deliverables rapidly focus and mobilize API investments
How do we
prioritize
API
monetization
opportunities?
What is the
roadmap?
Which specific
APIs
should be
developed?
 Business Strategy implications for API strategy and priorities
 Innovation ecosystem map showing potential API consumers, competitors, and other ecosystem participants
 Evaluation of potential process/data assets and their value to the external API ecosystem
 Summary of internal Business Technology capabilities to develop, launch and operate API-based services
 12-18 month roadmap
 Develop, launch and evaluate APIs
 Build supporting internal Business Technology capabilities
 60 day mobilization plan
 Prioritized list of potential APIs
 Internal/external value proposition (e.g. direct monetization, indirect brand) impact
 Commercial model (e.g. open/closed, be paid, pay, revenue share)
Outcome
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12. 12Presentation Title | Author | Date © 2017 Capgemini. All rights reserved.