Business Transformation: Reframing Strategic Advantage through APIs

1. Business Transformation: Reframing Strategic Advantage through APIs Mohan Subramaniam DevOps: API Management and Application Development Carroll School of Management Boston College Associate Professor of Strategy DO3X101S @emsub57 #CAWorld Email: mohan.subramaniam@bc.edu

2. 2 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD © 2015 CA. All rights reserved. All trademarks referenced herein belong to their respective companies. The content provided in this CA World 2015 presentation is intended for informational purposes only and does not form any type of warranty. The information provided by a CA partner and/or CA customer has not been reviewed for accuracy by CA. For Informational Purposes Only Terms of this Presentation

3. 3 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Abstract Business Transformation: Reframing Strategic Advantage through APIs Competitive advantage has traditionally been deeply rooted in industry structure. But the growing importance of digitization and informational assets has blurred industry boundaries, driving businesses to operate in unfamiliar yet thriving digital ecosystems. And it’s the API that has provided businesses the building blocks to transform and compete in this new interconnected world. Join Mohan Subramaniam, Associate Professor of Strategy, Carroll School of Management and Harvard Business Review author, to discuss this paradigm shift from industries to ecosystems, the importance of informational assets vs. physical assets, and why APIs are key drivers for capturing value in this new digital marketplace. Mohan Subramaniam Associate Professor of Strategy Carroll School of Management Boston College

4.  Theodore Levitt’s famous question 50 years back … and his counsel to avoid marketing myopia What business are you in?

5. What Industry are you in?  Steam engine industry?  Or the transportation industry?

6. What Business are you in?  Video rental industry?  Or something broader???

7. What is your Canvas for Strategy?  For several decades it has been our Industry

8.  Competitive advantage is rooted in industry structure  Internal strengths (activities or capabilities) are the fundamental drivers of advantage  Growth through diversification or acquisition was usually restricted to opportunities closely related to core competencies Deep Rooted Assumptions

9. Growing Importance of Informational rather than Physical Assets  Strengths come from external … not just internal sources  Rising significance of relationships with external actors  The rise of ecosystems where thousands of organizations can come together to share and co-create new value And ... The silent surge of APIs as a strategic resource What is different?

10. The Transformational Powers of Digitization See https://hbr.org/2015/04/are-you-using-apis-to-gain-competitive-advantage  Informational Assets are valuations are skyrocketing  Informational assets can create a platform to draw on external resources through APIs

11. The Upsurge of Complementors Vacation Properties Taxi Services See https://hbr.org/2015/06/corporate-alliances-matter-less-thanks-to-apis  Digitization allows for leveraging value from complementors at an unprecedented scale  Why Ally when you can API?

12. Opportunities from Technological Turbulence  Complementors do not remain stable  Unprecedented pace of change in complementarities  APIs provide flexibility of partners and fluidity of business goals See https://hbr.org/2015/06/corporate-alliances-matter-less-thanks-to-apis

13. Apple Twitter Intel Microsoft IBM Google Sony Paypal Netflix Amazon Samsung AT&T Facebook Adobe

14. Ted Levitt’s famous question 50 years back has a new meaning today …  What Ecosystem are you in??

15. And the Key to That Answer ... is in APIs!!

16. Unlocking the Strategic Potential of APIs for Ecosystems Intra-firm Interface Ecosystem Interface Supply Chain Interface Leveraging Internal Competencies Leveraging External Competencies Growth © Iyer and Subramaniam

17. Informational Assets For Service Variety Low High Low High InformationalAssets ForDomainVariety Hybrid Ecosystem Value Chain/Alliance Ecosystem Domain Variety Ecosystem Service Variety Ecosystem High Reliance on Physical Assets High Reliance on Informational Assets High Reliance on Informational Assets Number of complementors Numberofcomplementors © Iyer and Subramaniam Shaping Ecosystem Strategy Through APIs

19. • Digitization is transforming industries into ecosystems • In ecosystems, significant growth opportunities come from leveraging external resources • APIs can power the harnessing of such external strengths and drive greater growth opportunities • APIs allow firms to extend their traditional assets into informational assets and facilitate the construction of Industrial Platforms. • Such API enabled industrial platforms empower firms to grow far beyond the contours of their internal core competencies. • Firms can unlock the potential of APIs in 3 levels • At they third level APIs shape a firm’s ecosystem strategy as domain variety, service variety or hybrid ecosystems • APIs power this strategy through 3 gears: collection at the edge, peer to peer sharing & learning/decision making Summary

20. • How much is digitization already impacting your business? • How fast and how significantly do you think digitization will impact your business? • How high is your reliance on your current traditional or industrial assets? • To what extent have you extended your traditional/industrial assets into informational assets? • At what level are you using APIs? • What is the current shape of your ecosystem strategy? • How well are your APIs powering the 3 gears driving your ecosystem strategy? Key Take Away Questions

22. 22 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Recommended Sessions SESSION # TITLE DATE/TIME DO3X98S Case Study: Unum Group Shares Lessons Learned from Four Years of Implementation Success in API Management 11/19/2015 at 2:00 pm DO3X97S Home Under Siege – How APIs Will Secure the Internet of Our Things 11/19/2015 at 3:45 pm DO3T30T TechTalk: Unlock the Value of APIs through Direct and Indirect Business Models with CA API Management 11/19/2015 at 4:30 pm

23. 23 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Must See Demos Unlock the Value of APIs API Developer Portal Theater 3 Build Digital Ecosystems Internet of Things Theater 3 Accelerate Mobile/IoT Development Mobile App Services Theater 3 Extend Existing Architectures API Gateway Theater 3