I ♥ APIs 2014 kicked off with Chet Kapoor’s keynote.
Chet talked about how businesses get digital ready. But more than that, he spoke to how businesses need to become adaptive digital businesses. He defined a digital business as one that increases profits by increasing the use of digital assets. Business have to be adaptive to survive.
Chet defines APIs as the price of entry to the digital world, and he argued that the second big step toward digital success is how well a business gleans value from big data.
8. Digital businesses increase profits by expanding their use
of digital assets
use new touch points to
reach more customers
create personalize customer new partnerships
journey
8
11. US Smartphone Market Share by Platform
50%
40%
30%
20%
10%
0%
Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14
Source: ChangeWave, BI Intelligence, IDC, Apigee Institute analysis
11
12. 0%
Percent Change Since January 1, 2012
10%
20%
30%
40%
50%
Apigee Customers Lead The Pack
Apigee Customers
Dow Jones
Industrial
Average
18. prescription api
balance reward api
Walgreens
Customers who
engage with
Walgreens in person,
online, and via mobile
apps spend
6 times those that
only visit the stores
QuickPrints api
18
19. Swisscom
Digital is changing the
very DNA of the
company
More than 120 APIs
exposed to developers
19
22. Independence
Blue Cross
Huge reduction in
Medicare complaints
6x more effective than
traditional approaches
Transformation from
reactive to proactive
customer service
23. Kaiser
Permanente
Largest US managed
care organization with 9
million members
Interchange empowers
developers to build new
experiences
Merging APIs and data
in wearables
23
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this is a call out
39. Digital Transformation: From Project to
Platform
Abhi Dhar: CTO, Walgreens
Jin Lee: Senior Managing Director, Accenture Mobility
Dan Raju: CEO, Tradier
Editor's Notes
…Demands that old technology solutions can’t help you meet.
IT is working non-stop to satisfy everything the business needs and make sure you’re capitalizing on cloud and mobile, but in many cases they lack the tools they need or they’re still bogged down with a long list of other demands.
So much work and planning goes into ensuring that even a single app keep up with evolving needs and capabilities. What happens when it needs to scale or when you add another app or 5 more ? Or when you need to find a way to use all the data the app generates to better predict customer behavior?
To do this right – you need technology that can address the whole digital value chain. Let me explain.
Between the end-user and the back-end systems lie several important participants and pieces of technology, all of which need to work together seamlessly.
Any and all apps, the developers who build them, the API they use, the API team—all of these things have requirements that can only be addressed by an “integrated” platform.
You can’t bolt any of these pieces on as an afterthought. As we discussed, it might work for one apps, might, but it will start failing at scale and then gets worse with multiple features.
Developers are very important to how well this is going to turn out. Developer that work for you, your partners and ones that are using your digital assets to provide value to your customers. The platform needs to make it easy for them to do their work and do it well, or you’re not going to get the business value you’re looking for. Without them, you’re certainly not going to provide the customer or partner experience you need.
On the other hand, when you get this right, it can make an enormous difference for your business.
Lets look at some examples.
Walgreens has said that it intends “to put an API around its stores.” And it’s well on its way…
Walgreens has tapped the power of developers – and APIs - to build an ecosystem. Its APIs like Balance Rewards, Prescription Refill and QuickPrints have extended the company’s presence well outside of its own brand
Today, Walgreens’ API program has grown to more than 100 development partners, exposing services across its business -
Its commitment to an expansive omnichannel presence is paying off – customers who engage with Walgreens in person, online and via mobile apps spend 6 times more than those that only visit the stores.
Swisscom. Their digital transformation journey is so fundamental that it is changing the way the company does business internally and with its customer and partners.
Swisscom employs more than 20,000 people, and their API program involves every layer of the corporation.
They are exposing more than 120 APIs to developers -- including SMS, Payment, Identity and Age Check services.
Swisscom is a prime example of a company that is embracing a digital first culture to distinguish itself as a leader.
Securely exposing data through APIs is the ticket to admission for a digital business.
But to be truly adaptive - organizations must also embrace the explosion of data growing from every digital endpoint.
To do that you need to expand the Digital Value chain to for Big Data.
You need more visibility into the customer journey from all sources – enterprises data, the web data and your API stream and make it available to business users and developers. Yes developers, because as we mainstream big data / predictive analytics these technologies have to be available to developers that are building apps.
In practice, this can make a transformative difference for your organization.
Lets look at some examples.
Independence Blue Cross is one of the largest Medicare payers in the US
Using predictive analytics, IBC has significantly reduced Medicare complaints
It has moved from simply answering customers’ calls about their Medicare Advantage plans – to identifying likely problems in advance and reaching out proactively before there are issues.
This has proven to be 6 times more effective than traditional approaches
Kaiser is the first major healthcare provider to embrace APIs and data.
Its Interchange platform helps software developers build new and innovative Total Health apps using public Kaiser data.
It’s also a first-mover in data and the Internet of Things. Recognizing the huge potential of wearables, Kaiser has integrated APIs and data in a new project that helps diabetics communicate and track their glucose levels through a wristband.
This powerful connected app has the promise to empower patients, reduce the number of office visits, and over time create a massive amount of predictive intelligence to enhance the treatment of diabetes.
Many of the world’s largest brands – companies like TD Ameritrade, Marks and Spencers, Target, AT&T -- are well on their way to becoming digital businesses.
You will hear -- and learn from many of them at the conference this week.
These stories demonstrate that the tools you need to become more adaptive already exist; there’s nothing holding you back from a technology perspective. So if things still aren’t working, what’s holding you back?
For a lot of businesses, the real challenge doesn’t lie in the technology; it lies with the people who have to make it work.
Every part of the organization—from the business to IT, even to individual developers—is critical to getting the organization digital ready.
So what can you do, in each of your roles, to make that happen? Obviously, this may vary a bit depending on your business and where you’re at in your transformation, but here’s what we believe should be the top priority for each role this next year.
Businesses can make big headway by focusing on:
Declare and take accountability for digital transformation by appointing a C-level transformation leader
IT’s role is just as important. To help the organization get business ready, you should:
Master two-speed IT, a “first gear” for system of record and a “top gear” for delivering system of engagement at the new pace of the market
As the importance of digital grows—and more and more of your interactions with customers and partners take place through technology—developers will play an increasingly vital role to your success.
For those developers in the audience, you should:
Innovate and Iterate by understanding the customer journey using Analytics