Introduction to API

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This is a introduction to API. What is an API and an Open API ? What are the business models for API and why do you need an API now!
It also contains a list of great resources I used to build this presentation

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  • When opening up data through an API (whether it is private, partner or public), the API provider
    does the partnership work once, partners then need only onboard themselves and use their
    own resources as often as they like for marginal additional cost to the provider.
    An API provider creates the infrastructure and then each partner does the technical,
    business and legal work on their end.
    Source: Dion Hinchcliffe, Open APIs Mature Into a Next-Generation Business Model
    Thanks to APIs, companies can benefit from other companies’ core
    business to support their own business.
  • These four categories have distinct revenue models. Some APIs combine elements of several classes.
  • This breakdown is not 100% comprehensive, but many currently public APIs can be classified against it. We use this at 3scale to identify the primary areas of value being created by an API.
  • Kickapps provides 100% whitelabel social tools/widgets for websites and directly charges partners using it’s service – users of the sites may be unaware that KickApps is in use.

    Skype enables partners to put “Skype everywhere” (such as on Samsung TVs) but retains brand control and skype users login via third parties.
  • The twitter API is free to use, benefits accrue to twitter via the content which is uploaded, other indicators have to be used to measure revenue impact. Oodle.com is a large affiliate driven marketplace, the API allows high levels of custom content display on third party sites to drive traffic to Oodle. Note though that twitter also sells access to it’s firehose API – but this isn’t yet the core value of the API.
  • This category uses the API as a dynamic promotion channel – providing useful but limited content / features to third parties in order to promote usage of the core service. eBay, Amazon and others engage in this through affiliate programs – the API “supports” the affiliate program by allowing third parties to “suck out” exactly the right product meta data to display to their users. Amazon also exposes valuable product popularity data in order to help partners what to display.
  • This category uses the API as a dynamic promotion channel – providing useful but limited content / features to third parties in order to promote usage of the core service. eBay, Amazon and others engage in this through affiliate programs – the API “supports” the affiliate program by allowing third parties to “suck out” exactly the right product meta data to display to their users. Amazon also exposes valuable product popularity data in order to help partners what to display.
  • This category uses the API as a dynamic promotion channel – providing useful but limited content / features to third parties in order to promote usage of the core service. eBay, Amazon and others engage in this through affiliate programs – the API “supports” the affiliate program by allowing third parties to “suck out” exactly the right product meta data to display to their users. Amazon also exposes valuable product popularity data in order to help partners what to display.
  • Introduction to API

    1. 1. Introduction to APIs William El Kaim Oct. 2016 - V 2.2
    2. 2. This Presentation is part of the Enterprise Architecture Digital Codex http://www.eacodex.com/Copyright © William El Kaim 2016 2
    3. 3. Plan API Definition • From API to Open API • The Programmable Economy • The Four Types of Business APIs • API Business Models • How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 3
    4. 4. Business Agility Through API Copyright © William El Kaim 2016 4
    5. 5. API Definition: Wikipedia “A particular set of rules and specifications that a software program can follow to access and make use of the services and resources provided by another particular software program that implements that API. It serves as an interface between different software programs and facilitates their interaction, similar to the way the user interface facilitates interaction between humans and computers.” An API is implemented by applications, libraries, and operating systems to determine their vocabularies and calling conventions, and is used to access their services. Copyright © William El Kaim 2016 5
    6. 6. API Values APIs unlock distribution channels by allowing data, content and services to be accessible and usable on any device, anywhere. By opening up business assets to other parties, APIs ease considerably partnership process. Potential partners are able to make use of the API to design new products and services. In the dot-com era, websites were crucial for companies to reach new customers and grow their businesses Copyright © William El Kaim 2016 6
    7. 7. Example of an API Copyright © William El Kaim 2016 7
    8. 8. Example of an API http://developer.marvel.com/Copyright © William El Kaim 2016 8
    9. 9. API Typology Copyright © William El Kaim 2016 9
    10. 10. API Usage • An API can be seen as • A technical “plumbing” between dispersed systems • A Way to feed/extend applications/web sites with added value services and data • An API is targeted towards DEVELOPPERS or System Integrator Copyright © William El Kaim 2016 10
    11. 11. Plan • API Definition From API to Open API • The Programmable Economy • The Four Types of Business APIs • API Business Models • How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 11
    12. 12. Open API: Why now? • Information is the #1 asset of business today • A new generation of business models emerged • The new golden rule is that those who have (and share) the best information make the rules. • Market leadership is now determined by who knows how to proactively handle their enterprise data and make a compelling offering out of it. • Data is most valuable when it's open, preferably community-driven. • One of the most striking lessons of the Web 2.0 era was that the more you open up your data, the more valuable it gets. • Organizations with the highest data and network competencies will have the advantage. • The ability to get at data, secure it, open it up, govern it, engage partners, and then use it to drive revenue is key Copyright © William El Kaim 2016 12
    13. 13. API Evolved With Internet From Closed Library To Open API Copyright © William El Kaim 2016 13
    14. 14. What is an Open API? • An open API does not mean free! • An open API means: • Openly documented • Available via self-service (i.e. developers can sign up on a website, get an API key, with no hassle) • And using open Internet technologies (SOAP, REST, RSS). • When opening up data through an Open API (whether it is private, partner or public), the Open API provider does the partnership work once, partners then need only onboard themselves and use their own resources as often as they like for marginal additional cost to the provider. • An open API provider creates the infrastructure and then each partner does the technical, business and legal work on their end. “Open” Means “As Open as You’d Like” Copyright © William El Kaim 2016 14
    15. 15. Open APIs Are Everywhere Interest is broad and deep. APIs are currently reshaping the web, and disrupting some industries: telecoms, payments, etc! Media & Content Social & e-Commerce Others SaaS IntegrationSearching for Open APIs • Apis.io • Api for That • Mashape marketplace • Programmable Web Copyright © William El Kaim 2016 15
    16. 16. Open API Billionaires Copyright © William El Kaim 2016 16
    17. 17. Open APIs Enable Companies to Grow and Innovate By giving access to what they do best and accessing what others do best Copyright © William El Kaim 2016 17
    18. 18. Open API: Legal Considerations • Like in any business, platform providers should ensure due diligence on the legal side of the API. • Issues like misuse of the API and data stored in the platform by third party providers and the associated legal ramifications. • Issues like the contract between the service providers and developers and potential legal wars associated with it. • These are some of the legal problems that could spring up while opening up the API for a platform. Copyright © William El Kaim 2016 18
    19. 19. Open API: No Copyright! • US • “So long as the specific code used to implement a method is different, anyone is free under the Copyright Act to write his or her own code to carry out exactly the same function or specification of any methods used in the Java API. It does not matter that the declaration or method header lines are identical.” • EU • [... the Court holds that neither the functionality of a computer program nor the programming language and the format of data files used in a computer program in order to exploit certain of its functions constitute a form of expression. Accordingly, they do not enjoy copyright protection.] Copyright © William El Kaim 2016 19
    20. 20. Plan • API Definition • From API to Open API The Programmable Economy • The Four Types of Business APIs • API Business Models • How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 20
    21. 21. The Programmable Economy Copyright © William El Kaim 2016 21
    22. 22. Rise of API Driven Companies Copyright © William El Kaim 2016 22
    23. 23. Example: Bynd http://byndlabs.com/get-started/ Copyright © William El Kaim 2016 23
    24. 24. APIs to Help You Grow Your Business APIs unlock new distribution channels & enable the expansion of your business beyond the limits of your web site. Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe 51% 11% 38% API Deployment Focus Multi- Channel Copyright © William El Kaim 2016 24
    25. 25. APIs Deliver Raw Data, Content and Services Create New Distribution Channels Partner Up Power Mobile AppsBuild an Ecosystem Protect IPR Decrease your cost of serving your customer Serve any type of device, software, anywhere “Externalize” your R&D. Foster Innovation Lower Barriers to Integration Create New Business Models Rationalize & Control access to your resources Reach More Customers Copyright © William El Kaim 2016 25
    26. 26. Open APIs Create Ecosystems Copyright © William El Kaim 2016 26
    27. 27. Plan • API Definition • From API to Open API • The Programmable Economy The Four Types of Business APIs • API Business Models • How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 27
    28. 28. Four Types of Business APIs Examples The API is the product1 The API projects the product2 The API powers and feeds the product4 The API promotes the product3 Copyright © William El Kaim 2016 28
    29. 29. 1 2 3 4 The Four Types of Business APIs Each type of API has different potential business value associated with it ! Copyright © William El Kaim 2016 29
    30. 30. is the product projects the product The only customer experience may be via the API or via a 3rd party using the API. Billing relationship may be to the end user or the partner / distributor. Whitelabel Channel “Sell Through” Channel Examples The Four Types of Business Apis Direct Revenues Copyright © William El Kaim 2016 30
    31. 31. promotes the product feeds the product The API plays a supporting role – the product is the main event. The billing relationship is unlikely to be tied to the API. API ROI needs to be measured by product metrics. “Free” Modality “Affiliate” Modality Examples The Four Types of Business Apis Indirect Revenues The API as a indirect revenue driver Is the product Projects the product Promotes the product Powers and feeds the product 1 2 3 4 Copyright © William El Kaim 2016 31
    32. 32. Others Brings easy access to complex Telecom technologies Ex. Ecosystem Strategy Direct customer usage Encourage resellers Build tech knowledge Encourage 3rd party tools Enable new services $ If Core service sees usage growth. API API is Core Value The API Is the Product Core Value Is Tied Up In The API Copyright © William El Kaim 2016 32
    33. 33. The API Is the Product Core Value Is Tied Up In The API Copyright © William El Kaim 2016 33
    34. 34. 1,700+ Apps on Force.com 50k+ Developers Ex. Ecosystem Strategy Cultivate partner ecosystem Innovation opportunities Build switching costs Enables new services Encourage 3rd party tools $ If Increasing customer spend (primary) and number of customers (secondary) for core product The API Projects the product Extends Availability of Functionalities To New Places Others Mobile apps 3rd Parties integration Added utility Added to a product API Copyright © William El Kaim 2016 34
    35. 35. The API Projects the product Extends Availability of Functionalities To New Places https://developer.sabre.com/Copyright © William El Kaim 2016 35
    36. 36. The API Projects the product Extends Availability of Functionalities To New Places https://developer.airfranceklm.com/Copyright © William El Kaim 2016 36
    37. 37. Ecosyste m Strategy Distribute “Teaser” information Brand Diffusion Promote to niches Improve partners Impact Cultivate partners 10’s 1000’s of affiliates Widgets to Whole sites powered e.g Others $ If Increasing customer number (primary) and spend (secondary) on core product API Secondary (non core) service Designed to drive leads/trafficWidget The API Promotes the product Secondary Function And Indirect Revenue Impact Copyright © William El Kaim 2016 37
    38. 38. The API Promotes the product Example: Netflix Copyright © William El Kaim 2016 38
    39. 39. The API Promotes the product What if Netflix Did Not Have An API? Copyright © William El Kaim 2016 39
    40. 40. 13 Billion calls/day on API >75% of traffic by API 250,000 Apps (probably less now…) Ex. Others Ecosystem Strategy Leverage social networks Brand Diffusion Facilitate Access Improve partners & businesses Impact Virtuous circle data in/out $ If when UGC (user generated content) brings appreciable value to the central product API Content, User information, Ratings, comments Etc. into the service The API Powers & Feeds the product Content acquisition via the API Copyright © William El Kaim 2016 40
    41. 41. Plan • API Definition • From API to Open API • The Programmable Economy • The Four Types of Business APIs API Business Models • How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 41
    42. 42. Value Chain has changed … ConsumerRetail StoreProducer From Packaged Goods To Internet Services ConsumerDeveloperProvider App Source - Sam Ramji - VP Strategy, ApigeeCopyright © William El Kaim 2016 42
    43. 43. Value Chain has changed … Copyright © William El Kaim 2016 43
    44. 44. Business model has changed … Requiring More Business Agility • The new Internet is full of extraordinary companies that looked at the market from a different angle and created entirely new approaches to the changing Web. • Zynga, Amazon, Netflix, Facebook and 1-800-Flowers.com have all seen and seized the massive opportunity of a new Internet driven by social networks, applications and mobile devices. • Paradoxically, succeeding in the new Web doesn't mean changing everything. • Find ways to reinvent existing capabilities and systems for the new market of influence and commerce, tapping into existing assets to create new business models and profit streams. • How? By leveraging open APIs to bring products and services to the multichannel Web. Copyright © William El Kaim 2016 44
    45. 45. Implementing The Vision ... API enables Disintermediation …  Shift from Direct (buy from manufacturers) From Selling in …  To Indirect (buy from retailers/middlemen) To Selling Through …  APIs are how people get to your business. Source - Sam Ramji - VP Strategy, Apigee Copyright © William El Kaim 2016 45
    46. 46. API Represents a Shift In Traditional Business Models Copyright © William El Kaim 2016 46
    47. 47. API Business Models Source: John MusserCopyright © William El Kaim 2016 47
    48. 48. API Business Models: Free Copyright © William El Kaim 2016 48
    49. 49. Developer Pays Source: John MusserCopyright © William El Kaim 2016 49
    50. 50. Developer Pays: Pay as you Go • Twilio • Text messages sent via an API are billed at $0.01 per message • Rome2Rio • Each search API call cost $0,2 Copyright © William El Kaim 2016 50
    51. 51. Developer Pays: Tiered Pricing Copyright © William El Kaim 2016 51
    52. 52. Developer Pays: Tiered Pricing Copyright © William El Kaim 2016 52
    53. 53. Developer Pays: Freemium Copyright © William El Kaim 2016 53
    54. 54. Developer Pays: Unit Based Pricing https://developer.salesforce.com/fr/ Copyright © William El Kaim 2016 54
    55. 55. Developer Pays: Transaction Fee Copyright © William El Kaim 2016 55
    56. 56. Developer Gets Paid Source: John MusserCopyright © William El Kaim 2016 56
    57. 57. Developer Gets Paid: Cost Per Action (CPA) Copyright © William El Kaim 2016 57
    58. 58. Developer Gets Paid: Cost Per Click Example: Expedia (CPC) Copyright © William El Kaim 2016 58
    59. 59. Developer Gets Paid Example: Room77 Uses Expedia API (CPC) Copyright © William El Kaim 2016 59
    60. 60. Developer Gets Paid Example: API Value for Expedia (CPC) Copyright © William El Kaim 2016 60
    61. 61. Developer Gets Paid Example: Google AdSense (CPC) Copyright © William El Kaim 2016 61
    62. 62. Developer Gets Paid Recurring Revenue Share Recurring revenue every month as long as subscribers recruited by you remains Copyright © William El Kaim 2016 62
    63. 63. Indirect Revenues Copyright © William El Kaim 2016 63
    64. 64. Indirect Revenues Copyright © William El Kaim 2016 64
    65. 65. What API(s) for my Business Model? • Key questions to define the value • What are my core assets? • Who will use my API(s) and for what purpose? • How will I make available my API(s)? • Dos & Don’ts • Don’t put lipstick on a pig, it will still be a pig… • Don’t just build it and think they will come… • It is the organization’s core business which is valuable and the API is the channel into this. Copyright © William El Kaim 2016 65
    66. 66. API Usually Mix Several Business Models Copyright © William El Kaim 2016 66
    67. 67. Open API Business Models Examples Bake your business model in your API Copyright © William El Kaim 2016 67
    68. 68. How to Find the Best Businsess Model? Use the API Model Canvas Source: NordicApisCopyright © William El Kaim 2016 68
    69. 69. How to Find the Best Businsess Model? Use the API Model Canvas Source: 3ScaleCopyright © William El Kaim 2016 69
    70. 70. Plan • API Definition • From API to Open API • The Programmable Economy • The Four Types of Business APIs! • API Business Models How to Use an API? • Conclusion • Resources Copyright © William El Kaim 2016 70
    71. 71. Start with a REST client • Apigee Console • Insomnia • Paw (for Mac Only) • Postman • Quadrillian • RestClient.net • SoapUI • Tibco ActiveMatrix BusinessWorks V6 Copyright © William El Kaim 2016 71
    72. 72. Ex: PostMan REST Client https://www.getpostman.com/Copyright © William El Kaim 2016 72
    73. 73. Use APITools to See API Calls https://www.apitools.com/ https://www.apitools.com/Copyright © William El Kaim 2016 73
    74. 74. Use TemBoo to get client code https://www.temboo.com/Copyright © William El Kaim 2016 74
    75. 75. Lear To code and Go to Hackathons • Learn how to code with codeAcademy API Track • You can do it yourself at home: • Choose an API randomly (via API Randomizer, code here) • And start coding. • Some Dedicated sites: • Hackerleague.org: Power Hackathons for companies trusting Hacker League to handle hackathon planning and organization. • Hackathon.io: Join Hackathon.Io To Discover Hackathons Or Create Your Own • Hackathonhero.com: Directory listing of Hackatons • Try a Google News Search of past hackathon winners. Copyright © William El Kaim 2016 75
    76. 76. Plan • API Definition • From API to Open API • The Programmable Economy • The Four Types of Business APIs! • API Business Models • How to Use an API? Conclusion • Resources Copyright © William El Kaim 2016 76
    77. 77. Open API Is Key For Your Business! • The Web has reinvented itself • Succeeding means thinking differently about how to innovate quickly, cheaply and with existing resources. • The winners will be those who can reach the mobile and application-driven Web with open APIs Source - Sam Ramji - VP Strategy, ApigeeCopyright © William El Kaim 2016 77
    78. 78. An API modifies the demand/supply pattern • From • Companies providing APIs to access their business are the supply • Developers who build against those APIs are the demand • Not this way anymore • To • Companies providing APIs are the demand • They demand developers’ attention and adoption • Developers building with APIs are the supply • They supply innovation and adaptation • Developers now sit between you and your customers • They are like the retail store in the value chain Source - Sam Ramji - VP Strategy, ApigeeCopyright © William El Kaim 2016 78
    79. 79. What / Who / How … Copyright © William El Kaim 2016 79
    80. 80. Dos & Don’ts: Tips To Avoid Pitfalls • Define revenue value chain • Deploy "sense and respond" and innovation toolkits rather than applications with fixed functionality • Propose several business models • Adapted for multiple distribution channels • Think DATA (Stop thinking Application/IT product) • Adopt a flow based vision where real time data is valorised • Implement Open API • Invest on Business Analysis for finding the most valuable travel services to offer /build. • Enhance User Experience • Let users select their best in class solutions for each delivery channel Copyright © William El Kaim 2016 80
    81. 81. Plan • API Definition • From API to Open API • The Programmable Economy • The Four Types of Business APIs! • API Business Models • How to Use an API? • Conclusion Resources Copyright © William El Kaim 2016 81
    82. 82. This Presentation Was Built From Great Presentations and Resources • 3scale • “What is an API?” (Download PDF). • “The API Economy: API Provider Perspective”, Steven Willmott, EIC 2012/ Munich, Germany (Slideshare) • “APIs for Biz Dev 2.0: Which Business Model?”, Guillaume Balas (Slideshare) • “Winning in the API Economy. Using Software and APIs to Transform your Business, …” (Download) • “How APIs are changing Application Development”, Steven Willmott (Slideshare) • “The API- & APP-ification of the Web”, Steven Willmott (Slideshare) • API Evangelist • Roundup of 20 API Service Providers in 2012 • If you build it they will come (2011) Copyright © William El Kaim 2016 82
    83. 83. This Presentation Was Built From Great Presentations and Resources • API Commons • “Bringing api design-out-of-the-shadows-and-into-the-commons” , Kim Lane (Html) • “Towards an API Commons”, Kin Lane and Steven Willmott, (Slideshare) • Apigee • Sam Ramji presentations channel – SlideShare • White Paper:” Web API Design - Crafting Interfaces that Developers Love”, Brian Mulloy (Download) • FaberNovel • “Six reasons why API are reshaping your business”, November 2012 (SlideShare) • “Why Should I Care About APIs”, December 2013 (SlideShare) Copyright © William El Kaim 2016 83
    84. 84. This Presentation Was Built From Great Presentations and Resources • Layer7 • “Webinar: Business ROI for APIs”, March 14th, 2013 (Slideshare) • “Be My API: How to implement an API strategy …”, Mike Amundsen (Slideshare, YouTube) • ProgrammableWeb • “Open APIs: What’s HOT, What’s NOT”, John Musser (Slideshare) • “API Business Model, 20 models in 20 minutes”, John Musser, API Strategy Conference, 2013 (Slideshare) • “What Makes a Great Open API?”, John Musser (Slideshare) • Adam Duvander Keynote at TNW2012 (Youtube) • RESTLET • “Web APIs, the new language frontier”, Jérôme LOUVEL, December 2013 (Slideshare) Copyright © William El Kaim 2016 84
    85. 85. Twitter http://www.twitter.com/welkaim SlideShare http://www.slideshare.net/welkaim EA Digital Codex http://www.eacodex.com/ Linkedin http://fr.linkedin.com/in/williamelkaim Claudine O'Sullivan Copyright © William El Kaim 2016 85

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