Successful API product thinking and monetization models require the fulfillment of a key characteristic—that the API in question creates value for a particular group of stakeholders. In today’s digital firms, APIs are the encapsulation of intellectual property. In this session, we’ll take a unique look at value chains and how value flows in the API supply chain for products. We’ll introduce the concept of Value Programming Interfaces as APIs that promote value. And we’ll look at the network effect of value, aka platforms, in the form of marketplaces. Welcome to the future of digital business. Watch the session on-demand here: https://wso2.com/library/summit-2020/emea/moving-to-a-value-chain-from-a-supply-chain/

1. Keynote - Moving to a Value Chain from a
Supply Chain
API economics for a successful API strategy

3. The best selling products of all time!

4. Product launch blunders, usatoday.com: https://www.usatoday.com/story/money/2018/07/11/50-worst-product-flops-of-all-time/36734837/

5. APIs are the Products of the 21st Century
● APIs are how digital value is delivered
● Monetized either directly or indirectly
● Increasingly intermediated, traded and marketed
● Not just between organisations but within
organisations as well

6. Products of the 21st Century
6
External Marketplace/Portal
DirectMonetization
B2B/Internal Marketplace/Portal
In-DirectMonetizationor
backbone

7. 13 Notable Transportation APIs
https://www.programmableweb.com/news/13-notable-transportation-apis/brief/2019/05/24

9. Value APIs
Value ChainsValue Networks
Value APIs
API Value
Chain
API Value
Networks
APIs and
Services

10. APIs that
provide
Value

11. The Economics of APIs - Principle #1
Focus on VPIs = Value Programming
Interfaces

13. Source: https://www.visualcapitalist.com/apis/

14. The Economics of APIs - Principle #2
“APIs are the encapsulation of
Intellectual Property”

15. https://www.ideabiz.lk/store/
In the first 18 months, 2500 developers created 3300 apps

16. APIs encapsulate
Intellectual Property
Organizations have different forms of
data and technology assets
Technology assets need to be built for
use and reuse
Reuse has a compound effect on
technology ROI
APIs thus are an encapsulation of the
organizations intellectual property

17. The Economics of
APIs - Principle #3
The API
Value Chain
Value increases as
it flows through
the digital supply
chain

18. Healthcare {Integrated} Supply Chain
18
Provider
Payer
Patient
PBM
Supplier
Vendor
Vendor

19. 19
Healthcare {Integrated} API Value Chain
Provider
Payer
Patient
PBM
Supplier
Vendor
Vendor

20. 20
API Devops &
Management
API Insights & Monetization
API Product
Management
API
Integration
21st Century Integrated Supply Chain for APIs
Integrated
Supply Chain
for APIs
Flow of Value
SAP, Salesforce, legacy
integration
Industry adapters (HL7, FHIR, EDI)
Data integration
Event and Streaming Integration
Monitoring
Billing & Monetization
Analytics
Tracing
Integration with
subscription platforms
Reporting
CI/CD pipelines
Kubernetes, multi-cloud and
hybrid deployment
Microgateway
Onboarding of APIs from
multiple systems
Blue/Green and Canary
deployment
Developer and user onboarding
Subscriptions
SSO for developers
API Documentation
API marketplaces
API Design and Product
Creation
Lifecycle management
Market testing

21. ValueFlow

22. API Marketplace
and Platforms
lead to
sustainable
ecosystems and
network growth
The Economics of APIs - Principle #4
API Value Networks

23. 23
Source: David Sacks, Yammer on Uber’s business model valuation

24. More Buyers/Consumers means
more users, better prices, more
incentives for better products/APIs
More Sellers/Producers means
more products, better
competition, incentives for more
buyers
Same side
network effects
Same side
network effects
Cross
side
network
effects

25. 25
Healthcare API Marketplace
Provider
Payer
Patient
PBM
Supplier
Vendor
Vendor
App Marketplace
Icons source: https://www.flaticon.com/authors/monkik"
Healthcare Apps
Digital healthcare
companies

26. 26
API-centric Architecture
https://github.com/wso2/reference-architecture
Centralized Decentralized

27. 27
Design Center Engagement
Monitoring, Management and
Analytics
Runtime
DevOps Identity &
Access
Integration Studio Streaming Editor
API Design &
Mocking
API Publisher
API Portal API Marketplace
Connector Store
Monetization &
Billing
API
Administration
API Analytics
Integration
Dashboard
Tracing and
Monitoring
API Gateway
Micro Integrator Micro Gateway
Traffic Manager
Streaming
Integrator
Key Manager
Kubernetes Operators
Identity Manager
Access
Management
Single Sign-on
MFA & Adaptive
Auth
WSO2 Managed
Cloud
CI/CD
WSO2 Update
Manager
WSO2 CLI
Toolkits
WSO2 - a full featured API (and Integration) Platform
OnPrem Hybrid WSO2 Cloud AWS Azure Pivotal CF Kubernetes

28. Key Takeaways
● APIs are not just a technical resource - they’re important products that
encapsulate your Intellectual Property - and should be treated as Value APIs
● A good, integrated value chain, and value network effects via API platforms will
compound your API growth and lead to sustainable platforms
● All of this is true regardless of whether you’re building the next big business
platform or exposing an internal API platform
● You cannot achieve this vision without a platform that scales, that is flexible,
specialised with the scars to prove it and has all the components required to
build a digital platform
● Look no further than WSO2! (duh!)

29. Technology Partner for your API Strategy and Implementation
29
https://wso2.com/contact/
https://wso2.com/solutions/healthcare/
mifan AT WSO2.com
https://www.linkedin.com/in/mifan/
@mifanc
Images copyright my kids :-)