API Management: A Driver for
Digital Transformation
facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient

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Perficient is a leading technology and
management consulting firm serving
Global 2000 and enterprise clients
throughout North America.
We deliver digital experience, business optimization
and industry solutions that enable clients to improve
productivity and competitiveness; strengthen
relationships with customers, suppliers, and
partners; and reduce costs.
ABOUT PERFICIENT

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PERFICIENT PROFILE
Founded in 1997
Public, NASDAQ: PRFT
2014 revenue $456.7 million
Major market locations:
Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus,
Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee,
Minneapolis, New York City, Northern California, Oxford (UK), Southern
California, St. Louis, Toronto
Global delivery centers in China and India
>2,600 colleagues
Dedicated solution practices
~90% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards

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PERFICIENT’S API
PRACTICE
CORE FOCUS AREAS
• Integration and business optimization
• Strategy and architecture that support our creative agency and
user experience
• Envision, design, and build intuitive customer solutions that are
results-focused, digital ready and grounded in architecture to
enable enterprise agility.

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PRESENTERS
Ed Murphy
API Practice Lead
Perficient
Ed.Murphy@perficient.com
Michael Porter
Managing Principal, Strategic Advisors Team
Perficient
@porterondigital
Michael.Porter@perficient.com

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WHAT IS DIGITAL TRANSFORMATION?
“The realignment of, or new investment in,
technology and business models to more
effectively engage digital customers at every
point I the customer experience lifecycle”
~Altimeter

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“All I’m saying is now is the time
to develop the technology to
deflect an asteroid.”

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FROM DIGITAL PREY TO DIGITAL PREDATOR

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HOTEL CHAIN
The Situation
Think of Hilton’s competitive landscape
• Part of the overall travel industry.
• Airlines and rental car companies let you pick your seats
and car
• Part of a very competitive lodging industry
• Lower margins
• Heavily impacted by economic conditions
• Constant and changing competitive differentiators
• Heavenly Bed
• Free Internet
• Many travelers report issues with hotels
• 30% hate waiting for a clean room
• 28% dislike room location
• 20% dislike room features
• 2 out of 3 wish they could choose their room

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HOTEL CHAIN
The Differentiator
Recreate the guest experience
• New and better mobile application
• Pick a room the day before
• Add in special room requests
• Your phone if your room key
• Easy check-out from the phone
• With many features available on the web as well
• Rolled out to
• 4,000 properties
• 650,000 rooms
• 40 million Hilton Honors Members
• 80+ countries
• 18,000 team members

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HOW APIs DRIVE DIGITAL
TRANSFORMATION
• Role of APIs in digital transformation
• Success Stories
• Supporting components and disciplines
• What makes a strong API program
• 6 starting points to build an API program

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THE ROLE OF APIs IN
DIGITAL TRANSFORMATION

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Rising Customer
Expectations
Amazon, Zappos, Facebook,
Apple, et al are redefining
service, speed and ease-of-use
Continual
Connectedness
Adoption of digital channels is
driving demand for choice and
connectedness
Organizational
Velocity
Tech lowers barriers to entry
and increases speed; slow
response invites disruption
Abundance of Customer
Data
Requires competency in turning
complex data into business
insight
THESE TRENDS DRIVE MASSIVE CHANGE
“APIs enable rapid business reconfiguration and a new angle into
digital business strategy” How APIs Reframe Business Strategy
by Randy Heffner, June 1, 2015

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WHERE DOES API MANAGEMENT LIVE?

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WHAT DO APIs DO?
• Deliver new digitally powered, multi-touchpoint customer experiences
• Accelerate their ability to deliver innovation and digital operational excellence
• Build new revenue, influence, and product value through an extended ecosystem
Brief: Four Ways APIs Are Changing Your Business
How To Design An API Strategy That Fuels Digital Business
by Martin Gill and Randy Heffner with Zia Daniell Wigder and Alexander Causey;
Forrester, June 2015

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HOW?
• Product APIs increase product value by connecting to and expanding the ecosystem
• Open web (AKA “public”) APIs expand market reach through openness and innovation
• B2B (AKA “partner”) APIs optimize cross-enterprise processes and relationships
• Internal (AKA “private”) APIs improve organizational agility, efficiency, and effectiveness
“Brief: Four Ways APIs Are Changing Your Business”
How To Design An API Strategy That Fuels DigitalBusiness
by Martin Gilland Randy Heffner with Zia Daniell Wigder and Alexander Causey
Forrester, June 2015

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APIs
Portal
Mobile
CX
Big Data
Analytics
Security
“APIs are more powerful
when thought of as business
building blocks that open
digital connections to any
business asset or capability.
Seen from this point of view,
APIs enable a new angle for
thinking about business
strategy.”
How APIs Reframe Business Strategy, June 2015
APIs SUPPORT A COHESIVE DIGITAL STRATEGY

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SUCCESS STORIES

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Hypermarket retailer drives
multichannel growth and customer
retention with SOA and API solutions
A large, hypermarket retailer with a focus on
fashionable, upscale, trend-forward merchandise
needed an integrated, seamless shopping
experience for consumers online and in stores.
Perficient built an Information-as-a-Service platform,
built on service-oriented architectural principles with
special attention to a consistent information model,
highly scalable performance, and airtight reliability
and security. The digital store platform services and
APIs enable new channels for revenue growth
and richer experiences for retention of existing
customers. To date, the program is enabling 200
unique applications with nearly 40 APIs and 800
methods or data calls.

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Medical supply company integrates
surgical equipment to help reduce risk
APIs integrated surgical equipment to send
information to a central repository. Information is
used for surgery preparation and planning as well
as maintenance/replacement of equipment based
on usage.
APIs enable real-time risk fall assessment on this
company’s internet enabled beds alerting nurses of
patients falling out of bed or experiencing seizures.

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Prescription API enables consumers to
refill prescriptions at the nearest store
Other APIs - photo processing capabilities, health
tracker, etc. – also directly engage the customer in
creative ways. The API program contributed to 6X
increase in in-store customer spending.

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Leading travel cruise liner enables
real time inventory management
with APIs
The leading travel cruise liner uses several APIs
to support booking, airline partner integration,
inventory management and resource planning.
These APIs reduce overall expense and helps
their partners such as Expedia or Orbitz and
airlines to be better supported. The Integration
API enables the cruise line to integrate with
airline partners to allow customers booking air-
fare/cruise packages from their website. Ship
APIs allow real time inventory management and
proper resource planning.

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KICK THE TIRES
“What If”: Kicking the Tires and Lighting the Fires
A nationwide car repair center keeps computerized
records on all cars that come in for repair. The
company decides that they can expose some of this
data they maintain normally via APIs and potentially
create a new revenue channel. They use their data
warehouse and a newly branded “KTT Rating” on cars
detailing the problems they’ve encountered, the cost of
repairs, etc. of the makes and models of the cars that
come into their shops.
The company creates an API and an app and then the
API begins to be used by various vehicle sites to show
the KTT rating.
010101010
API API API
KickTheTires.com

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Marketing ITDevelopers
CONSUMER
WHO CARES?

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THE BUSINESS CASE
• APIs make money even if monetization is not the direct business case
• APIs make it easier for partners to work with your brands and this aids brand promotion
• APIs enable ways for your customers, suppliers, and partners to interact with your business in ways
they’ve come to expect
• APIs open up channels and opportunities that you might not even know existed
• Faster time-to-market helps capitalize on “right time” customer interactions
• Business is more engaged and invested in the planning and implement ion of your API products
Your APIs are a product of your business. Unlike SOA the ROI is more direct. SOA is about saving
money, APIs are about making money.
Why should business care? Isn’t this an IT thing?

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THE IT CASE
• APIs promote reuse and agility
• APIs helps with process and procedural efficiencies
• APIs provide support for a culture of innovation
• APIs help align business and IT goals
• Support frictionless service and operation provisioning
• Support flexible refactoring of backend services
Plain and simple: API Management is not SOA. API Management is an extension of SOA.
Why would IT want this? Isn’t this just SOA all over again?

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WHAT DOES THE C-SUITE WANT TO KNOW?
• Netflix is able to stream to over 200 different device types thanks to its API.
(Your partners will love you.)
• 60% of eBay’s listings are done through their API.
(Developers will love you.)
• Twitter receives over 13 billion API calls daily.
(There are no limits.)
• And all this will contribute to the bottom line.
The Business of APIs: What Product Managers Need to Plan For http://techproductmanagement.com/the-business-of-apis-what-product-managers-need-to-plan-for/

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WHAT DOES THE C-SUITE NEED TO KNOW?
• APIs are not experimental
• APIs can help internally too (this is considered by some to be the biggest use case)
• APIs create channels to new customers and markets
• APIs promote innovation
• An API strategy provides a foundation for competitive differentiation
• Partnering sometimes more sense than building in this space (as with all things)
Customer expectations have changed.

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WHAT MAKES A STRONG
API PROGRAM?

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YOUR CHECKLIST…
 Identify your consumer and know your market
 Clearly understand its value and make sure it fits your business model
 Spell out what “success” means and how will you measure it
 Appoint your product manager
 Have a plan to engage your community
 If you don’t have the expertise in-house, consider your partner wisely
 Make sure lots of people are involved

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WHAT’S INVOLVED?
Right Place,
Right Time
Accurate
Customer
Information
Understand
Customer
Journey
Community
Outreach
Agility and
Responsiveness
Provide
the Right
Capabilities
AWESOME
CUSTOMER
EXPERIENCE
CRM
Data Mgmt
Big Data
Dev Portals
Active
Engagement
Integration
APIM
Dev
Ops

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Business Strategy
& Design
WHO’S INVOLVED?
API
Strategy
&
Design
Enterprise Architecture
• Business & technology capabilities
• Opportunities
• Strategy
Application Development
• API Design
• Development
• Portfolio Management
Customer Experience
• CX design for omnichannel
• Extended ecosystem experience
eBusiness
• Business Model
• API product ownership
Information gathered from Forrester Research

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6 QUESTIONS TO
KICK-START YOUR API
STRATEGY

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Question #1
DO YOU WANT YOUR APIs TO BE PRIVATE OR
PUBLIC?
APIs support both IT organization and exposing
your unique business value.

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Question #2
HOW DO APIs FOSTER INNOVATIVE
DEVELOPMENT?
APIs build external partnerships you didn’t
even know existed.
APIs enable your existing staff to support
your future growth.

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Question #3
HOW DO YOU MAKE IT EASY FOR USERS TO
ACCESS YOUR BUSINESS ASSETS AND
CAPABILITIES USING APIs?
Make it “frictionless” to gain access.
Build a community and make sure
communication is a two-way street.

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Question #4
WHAT ARE CORE CONSIDERATIONS FOR
A STRONG API STRATEGY?
Governance should be light and enable and
agile process.
Processes should be streamlined and efficient.
Stakeholders across the business should be
aligned and engaged.

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Question #5
WHAT WILL THE APIs CONTRIBUTE TO
YOUR ORGANIZATION?
Decide what it is about your business that you
want to share (don’t copy competitors!)
Measure it.

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Question #6
WHERE WILL YOU LEAD YOUR BUSINESS
IN THE NEXT 10 YEARS?
Professionals (inside your company and out)
want platforms to build on. They want to be
engaged.
That platform involves cloud, mobile, data
management, and other related technologies.
APIs are the keys to unlocking potential in
these areas.

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QUESTIONS?
Please submit your questions in
the chat box

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• Perficient.com/SocialMedia
• Facebook.com/Perficient
• Twitter.com/PRFT_Transform
• Blogs.perficient.com/digitaltransformation/
Registration Coming Soon…
Extending Digital Transformation Across the Enterprise
Thursday, November 19 | 1:00 PM CT

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Insights to Identifying and
Executing a Successful API
Strategy
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http://www2.perficient.com/
DTSeries/APIStrategy