API Days Why do companies build APIs? Alex Wilson CISSP Snr - - PowerPoint PPT Presentation

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API Days Why do companies build APIs? Alex Wilson CISSP Snr - - PowerPoint PPT Presentation

May 31, 2023 215 likes •935 views

API Days Why do companies build APIs? Alex Wilson CISSP Snr Principal Consultant - CA Technologies The API Academy A small group of authors, speakers and researchers Focused on API-centric software Strategy Design

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API Days Why do companies build APIs?

Alex Wilson – CISSP Snr Principal Consultant - CA Technologies

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The API Academy

  • A small group of authors, speakers and

researchers

  • Focused on API-centric software

– Strategy – Design – Operations – Implementation – Organization – Culture

http://www.apiacademy.co/

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Why do companies build APIs?

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Why build an API?

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Case Studies Disclaimer

  • Examples are used only to illustrate API business drivers
  • These case studies are not an endorsement of any products,

companies or services

  • These case studies are (mostly) speculative and based on

publicly available information

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API Driver Revenue

  • Not just general revenue related activity
  • Deriving revenue directly from use of the API
  • Developers pay to use the API

“How can we make money from our data and APIs?”

DEFINITION

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Pricing and Revenue

  • Developers pay to utilize API at runtime
  • Developing the right pricing structure is important
  • Two primary models:

– Tiered – Metered

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Tiered Pricing Example: Addressify API

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Metered Pricing Example: Twillio API

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Startups don’t fail because their technology doesn’t work, they fail because nobody wants what they are trying to build.

“ ”

Eric Reiss Lean Startup Creator

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Revenue Based APIs The most important question to ask:

Is your service and data worth paying for?

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Revenue Driver Case Study

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Twilio’s Product: APIs

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Big Valuation and Big IPO

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Twilio in Context

  • Operates in a crowded marketplace
  • Not always the cheapest price
  • Large investment in developer engagement and experience
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Internal Revenue Models

  • Internal/Private APIs may adopt a revenue style model
  • Usually not “green dollars”
  • Usually incorporates a “chargeback model“
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API Driver Revenue

  • Treat the API like a product
  • Success attracts new entrants
  • API User Experience is key differentiator.

KEY TAKEAWAYS

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API Driver: Reach

  • Reach existing customers
  • Build new user experiences
  • Increase the contact surface for products (e.g. omnichannel)

“How can we provide great experiences to all of our users?”

DEFINITION

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Reactive interfaces There is no universal platform There is no standard screen size

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Consumer experiences are fragmented

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Reach Software, Media and Social Communities

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Platforms are not forever!

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Why is Reach Difficult?

  • Good UX is a high investment, highly contextual activity
  • User touchpoints have proliferated
  • Reaching all users is too costly
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Reach Case Study

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Reach Case Study

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Reach Case Study

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Reach Case Study

https://community.commbank.com.au/t5/Mobile/NetBank-API/td-p/27585

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Mobile OS Marketshare

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A Windows Phone App

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API Driver: Reach

  • Consumers expect you to extend experiences to their

platforms

  • An open API model is cost effective, but reduces brand and

experience control

  • For open models: benefit to developer must outweigh cost of

development

KEY TAKEAWAYS

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API Driver Compliance

  • Mandated API implementation

“How should we comply?”

DEFINITION

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Compliance Examples

  • Mergers and acquisitions
  • Open Data initiatives
  • Regulatory requirements
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Open Data

  • Democratization of data
  • What information is available? What do you know about me?
  • Governments are acting…
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Compliance

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Open Data is not the same as Open APIs

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APIs are needed to make data more consumable

Open Data APIs Client Applications

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Compliance - enhanced

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Compliance Directives

  • Open data initiatives are seeping into the private sector
  • Example: EU: Right to be Forgotten
  • Compliance is (generally) high cost, low benefit
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Driver Meet Requirements Exceed Requirements M&A One time data-merge, big- bang cutover API for continued inter-op. Open Data Export data file Provide API Regulatory Email/file transfer API for on-demand reporting

Compliance: Cost-Benefit

  • Do as little as possible
  • Increase compliance while minimizing cost
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API Driver Compliance

  • Driver is usually out of our control
  • Tactical approach is to comply as cheaply as possible
  • Strategic approach is to utilize budget to fulfil other drivers

KEY TAKEAWAYS

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API Driver Innovation

  • Facilitating innovation activities

“How can we continue to deliver the most valuable products and experiences?”

DEFINITION

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A Recipe for API-Centric External Innovation ① Open an API to expose data and services ② Run a “hackathon” ③ See what blooms and profit

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Typical Results

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If you never want to be criticized, for goodness sake don’t do anything new.

“ ”

Jeff Bezos Founder of Amazon

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Innovation Case Study

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William Hill

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William Hill : 10 APIs

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William Hill: Fostering Innovation from the Outside

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API Driver Innovation

  • Open APIs can acts as an idea engine for an innovation

process

  • API-centric architectures can increase speed within

enterprises

  • Focus on usability of APIs to accelerate innovation potential

KEY TAKEAWAYS

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API Driver Growth

  • Acquiring new customers and users
  • Including marketing & advertising

“How do we increase our product’s user base?”

DEFINITION

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Growth Case Study

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Uber Native Experiences

  • Mobile App and convenience focus
  • “Just push a button”
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Uber: Deep Linking

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Uber API

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Uber API

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API Driver Growth

  • Focus on high adoption of API
  • Focus on targeted adoption of API
  • Reduce monetary and time cost barriers

KEY TAKEAWAYS

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API Driver: Intelligence

  • The API as a vehicle for data collection
  • Data Sources:

– Users – Applications – Systems

“How can we collect more and better data?”

DEFINITION

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Amazon: Crowd sourcing price data

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API Driver: Intelligence

  • APIs can be designed to facilitate data mining
  • APIs must provide value in exchange for data
  • Data collection may be negatively perceived

KEY TAKEAWAYS

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Six Business Drivers

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Amazon utilizes all six drivers

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Google Maps – Combined Growth, Intel. and Revenue Drivers

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Summary

  • 1. Understand the drivers and business model
  • 2. When you know WHY you can identify WHO
  • 3. Implement user-centric APIs to succeed
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Thankyou

Alexb.wilson@ca.com