Open API and the Impact on Business Models
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In this keynote, you'll see the difference between just APIs and API-as-a-Product, which have a significant impact on business models and value creation. Open API is the foundation of API products. The API is the interface to a value proposition. This approach leads to new business models, digital platforms, digital ecosystems. I present the API-as-a-Product stories of Swisscom and the Red Cross and show how the organization and culture has an essential impact on how technological capabilities impact the business value.
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Open API and the Impact on Business Models
- 1. OPEN API AND THE IMPACT ON BUSINESS MODELS Amancio Bouza, sitic, 18. September 2019, Winterthur
- 2. Amancio BouzaAPI is the interface to a value proposition API & AI Enthusiast, Dot Connector, Author of API Product Management • Principal Consultant, ipt • Catalyst, The Digital Journeymen 2 htt ps: //w ww htt ps: //t wit htt ps: // me htt ps: // http s:// ww htt ps: //
- 3. Open API has an impact on Business Models My promise: You’ll understand what it takes to build a successful business model based on Open API A preview: Two Stories: The Swisscom API Journey and API Product Management at Swiss Red Cross. 3
- 4. SWISSCOM API JOURNEY FROM OPEN API TO API-AS-A-PRODUCT 4
- 5. 5 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch 2013 2014 2015
- 6. #1 Let’s do Open API 6
- 7. 120 APIs were identified to be exposed 7
- 8. Usability Micro APIs Highly specialized items Messerer Jeweler Studio, Zurich8
- 9. 2013 9 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-booklet-rc1086mmwebpdf
- 10. 10
- 11. HOW TO BUILD THE API, NOT! 11 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
- 12. #2 Let’s foster better and quicker apps 12
- 13. Getting out of the comfort zone 13
- 14. First contact … … with customers 14
- 15. First contact … … with customers That’s me 15
- 17. API Design: Usability vs Flexibility 17
- 18. 2014 18 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-api-journey2
- 19. 19
- 21. VALUE
- 22. 22 #1 Let’s do Open API #2 Let’s foster better and quicker apps Still missing! Source: Amancio Bouza, Institute of Product Leadership: https://youtu.be/LKwtHaPxrhU
- 23. Open API is an invitation. Customer decides if he accepts. 23
- 24. API is the interface to a value proposition. 24 Source: https://www.linkedin.com/pulse/api-dead-long-live-vpi-amancio-bouza/
- 25. VALUE PROPOSITION INTERFACE 25 Source: https://www.amanciobouza.com/post/value-proposition-of-api
- 26. #3 Let’s build products aka Impact of Open API on Business Models 26
- 27. 2015 27 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch/the-swisscom-api-journey-3-upcoming
- 28. 28 Source: http://api-as-a-product.com/ API PPRODCUT MANAGEMENT
- 29. 29 Source: Amancio Bouza & Andrea Zulian, Product Management Festival Europe, 2018
- 30. SWISS RED CROSS HELPING MORE PEOPLE MORE AT WITH API PRODUCTS 30
- 31. SWISS RED CROSS PROVIDES 30 SERVICES! 31 Source: https://www.redcross.ch
- 32. WE FOCUS ON ONE SERVICE: ASSISTED TRANSPORT 32
- 33. WHAT IS AT STAKE? 33
- 34. CUSTOMER BASE 34
- 39. At least, NGO’s don’t #GETUBERFIED 39
- 40. At least, NGO’s don’t #GETUBERFIED 40
- 42. IN THE LAST 15 YEARS 52% OF FORTUNE 500 COMPANIES HAVE GONE EXTINCT 42 Source: Innosight Your company name could be shown here
- 43. NOW WHAT? 43
- 44. MISSION: 44 DIGITAL TRANSFORMATION DIGITAL PRODUCTS & ECOSYSTEMS API PRODUCT MANAGEMENT HELP MORE PEOPLE MORE
- 45. MISSION: 45 DIGITAL TRANSFORMATION DIGITAL PRODUCTS & ECOSYSTEMS API PRODUCT MANAGEMENT HELP MORE PEOPLE MORE
- 46. 46 Source: Amancio Bouza & Andrea Zulian, APIDays Paris 2018
- 48. DESIGN SPRINT 48
- 49. 49 PAIN POINT: RAPPORTS DRIVERS fill out multiple rapport forms for each transport
- 50. 50 PAIN POINT: RAPPORTS EMPLOYEES enter rapports into applications
- 51. We digitalized the Green and Yellow Rapport RAPPORT APP 51
- 52. We digitalized the Green and Yellow Rapport RAPPORT APP 52 Just kidding
- 53. API SOLUTION: RAPPORT API Create Rapports POST /rapports {startTime, distanceKM, duration} 53 RAPPORT APP
- 54. Rapport API API solution that helps to digitalize a business process. Cost saving as business value 54 Source: https://twitter.com/AccentureTech/status/1035528650416955393
- 55. 2. PLATFORM / API PRODUCTS DIGITAL TRANSFORMATION 55
- 57. “3.6 million Americans miss their medical appointments due to a lack of reliable transportation” 57 Uber Health Source: https://www.uberhealth.com/about
- 58. 0.085 M miss appointment in Switzerland $135/15min cost of missed appointment $11.5 M total loss because of missed appointments Source: https://www.expatistan.com/price/doctor/zurich 58 “3.6 million Americans miss their appointments due to a lack of reliable transportation” USA Population: 327.2 M Source: https://en.wikipedia.org/wiki/United_States SWITZERLAND Population: 8.5 M Source: https://en.wikipedia.org/wiki/Switzerland 3.6 M miss appointment in the USA => Source: https://www.uberhealth.com/about
- 59. $ 11.5 MARE LOST BECAUSE OF MISSED APPOINTMENTS 59
- 60. LET’S GIVE THEM $11.5 M AND CHARGE A FRICTION, E.G., $1’000’00060
- 61. CHF '1.00 CHF 200'001.00 CHF 400'001.00 CHF 600'001.00 CHF 800'001.00 Rapport App (API Solution) Transport Care (API Product) API PRODUCT BEATS API SOLUTION 61 Revenue $1’000’000 Revenue $200’000 5x Source: https://www.digital.redcross.ch/: Assumption: 12 customers, 1000 drivers => $204k
- 62. HOW TO BUILD API PRODUCT? 62
- 64. VALUE PROPOSITION CANVAS 64 Source: Alex Osterwalder
- 65. VALUE PROPOSITION INTERFACE CANVAS 65 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
- 66. API-as-a-Product UBER for assisted transport TRANSPORT CARE 66
- 67. API Product for Healthcare Organizations: TRANSPORT CARE Manage Transports (not rapports) POST, GET, PUT /transports {startTime, distanceKM, duration, destination, passenger}67 ASSISTED TRANSPORT APP
- 68. Recap: Rapport App: $ 0.2M Transport Care: $ 1.0M 68
- 70. 070
- 71. 071
- 73. 73
- 74. 74 Business: Selling Apple Technology Revenue model: $/kg Technology to measure weight API
- 75. DOESN’T WORK IN SPACE 75
- 76. 76 Business Value Technology and promised capabilites smarter faster better cheaper more
- 77. 77 Business Value Social Context smarter faster better cheaper more Technology and promised capabilites Boosts or blocks the impact of technological capabilities on the business value!
- 78. YOU WIN OR YOU ... 78
- 79. YOU WIN OR YOU LEARN 79
- 80. PYRAMIDE OF DIGITALIZATION 80 Digital Transformation is about setting the social context right to leverage the benefits promised by a technology. Source: https://medium.com/api-product-management/what-is-digital-transformation-digitalization-and-digitization-c76277ffbdd6
- 81. Digital Transformation Framework* Eliminate Blockers to remove obstacles that hinder success Establish Enablers to boost the effect of techn. capabilities on the business value Next Action: Get an API product manager and a dedicated team. Give teams responsibility and accountability IT/API Governance 81 Observation Swisscom SRK Make or Break API as a Product Approach Yes No Enabler API as a Project Approach No Yes Blocker API Product Manager Yes No Enabler Budget No No Enabler Integration Layer Yes No Enabler Product Manager Yes Yes Stakeholder manag. No Responsibility in Team No Yes Blocker No Accountability No Yes Blocker Account Manager Yes No Enabler Sales Force Yes No Enabler Developer Portal Yes No Enabler No Ops No Yes Blocker DevOps Yes No Enabler BizDevOps Yes No Enabler API Management Platform Yes Yes Enabler * an early stage idea. that should make clear what is part of your digital transformation roadmap form a social context. (organization)
- 82. Take Away 82 Open API is an Invitation API is the interface to a value proposition API-as-a-Product to do the right thing that customers love Adapt the social context! That’s the transformation challenge.
- 83. Amancio BouzaAPI is the interface to a value proposition API & AI Enthusiast, Dot Connector, Author of API Product Management • Principal Consultant, ipt • Catalyst, The Digital Journeymen 83 htt ps: //w ww htt ps: //t wit htt ps: // me htt ps: // http s:// ww htt ps: //
- 84. BACK UP 84
- 85. API is not about solving a Rubik’s Cube 85
- 86. 86 The 2nd Breed of API: API Product Source: https://medium.com/api-product-management/two-breeds-of-api-api-products-and-api-solutions-fa726213ecea
- 87. Director Product Management at Amazon in Seattle 87 Source: https://www.linkedin.com/feed/update/urn:li:activity:6392958411058798592 Continuous Innovation Workshop Outlearn Your Competition and Build Products That Matter.
- 89. META PROCESS 89 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively Scale
- 90. LEAN API DEVELOPMENT PROCESS 90 Problem-Solution Fit validate qualitatively Product-Market Fit verify quantitatively
- 91. 3. ECOSYSTEMS 91
- 92. HOW TO SPOT ECOSYSTEM: BETTER TOGETHER 92
- 94. 94
- 95. “Vereinte Kompetenzen: Mit FlixBus und Uber von Tür zu Tür reisen“ 95 Source: https://www.uber.com/de/blog/uber-flixbus-partnerschaft/
- 96. API Product Management Product Strategy and Execution for the Digital Economy The API Product Management book is the state-of-the-art guide to creating, launching, and running API products that customers love. In this book, we offer best- practices, tactical and practical approaches, and real-world examples. It helps you to adapt it in your context. 96 http://api-as-a-product.com/