What is API?
- Application Programmable Interface
- It’s a contract between applications allowing them to talk to each other
- This contract is like English language. Everyone knows it.
- API input/output is machine readable
- The API we are talking about is mainly Web API, that is over the internet
(rather than a device like iPhone)
- To support someone else’s product
- Goal: Growth and Adoption (e.g. Twitter and all the third-party clients it has)
- Governance: Control over API
- To support our own product
- Goal: Reduces the cost of integration (Internal Payment Gateway)
- Governance: Control over Product
- Built to support known products
- Can be consumed by known entities (Integration with known third-parties)
- Goal: Increase growth/reduce cost/use their resources and competitive advantage
- Governance: Control over API and relationship
- It is bringing $$ home
- API is an interface/contract between machines so it is as good as it’s
- It helps us to provide value to the community and instead foster
innovation, adoption, engagement
- API governance is important to protect our IP
- Open platform beats closed products every single time
This presentation is intended to iluustrate the business value of API for business people.
This is a product
Product is a black box. We don’t know what is happening in there. It just works until it doesn’t and that is the story for another night.
The scope of what a product can do is very well defined and normally decided based on mindset of one or more people inside the company.
Product lifetime about 100 years
Change in functionality: 0. Impossible.
This is a platform
Has a layer of abstraction around it. It means we don’t care how it works. But we want to have some of those functionality in our application without implement/reverse engineer them by ourselves.
The existence of APIs helps us in transformation of a product to platform and create an ecosystem around it.
The product evolves by every new app.
The scope and potential of platform is only limited by how easy it is to use it’s API
Not usable by third parties.
The UI is separate. The data is standard and machine readable. So our FrontEnd app can parse it and populate fields.
Since UI is separate and they all understand the shared language (data type) all other applications can integrate and use the functionality without knowing how that data is actually gathered. Probably with lots of sensors and complicated calculations.
Public: Twitter’s UI was not up to standards until recently, however, there were thousands of apps available by public. Some were so good that twitter had to buy them (TweetDeck)
Private: A starting point for breaking down the application structure into microservices and decouple them.
Partner: 90% of Netflix consumtion is through their partner API. A majority of Salesforce revenue is through their API.
The impact on Exponential Organisation MTP factors:
Great impact on Community & Crown (Public API)
Great impact on Engagement (Partner API)
Enabler of Dashboards, Interfaces
A gateway to share the potential of Algorthms.