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Matching your API Business Model to your Company Strategy
Paul GreenwellPlatform Strategy Manager, MYOB
10.02.2015
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Why do we want to have an API?
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API Objectives
1. Increase number of Online subscriptions
2. Increase retention of Online subscriptions
3. Develop new market opportunities through increased innovation
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Who is the customer?
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What is the service or products we are offering?
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APIs only succeed if they offer something of “value”
Service Data Function
Audience Marketplace Access
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Service Data Function
Audience Marketplace Access
APIs only succeed if they offer something of “value”
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What are the revenue sources from the API program?
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API revenue models
Primary focus of developer program(↑ Subscriptions, ↑ Retention)
AP
I
User pays
Subscription (Content or Service)
Transaction costs (value based)
Developer pays
Subscription (Content or Service)
Transaction costs
Access to market
Pay for add-on Products & services
Business pays
Referral/Sales
Transaction revenue share
3rd party paysAccess to
market/data
Future: i.e. payments, bank feeds
Does not support program goals & different competitive environment.
Bundling developer solutions
Product entitlements, support, events & marketing
Pay for partner referrals
Future: i.e. 3rd party APIs like logistics
Future: i.e. consolidated / big data
Developer Program
Does not support program goals & different competitive environment.
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Why?Who? What?
$
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Acknowledgements and Inspiration
• Mashery strategy services, Devon Biondi & Chuck Freeman
• “API Business Models, 20 models in 20 minutes” John Musser, Programmable Webhttp://www.slideshare.net/jmusser/j-musser-apibizmodels2013
• “Why you probably don’t need an API strategy” Daniel Jacobson, Netflixhttp://thenextweb.com/entrepreneur/2013/09/15/why-you-probably-dont-need-an-api-strategy/
• “API Monetization” Kin Lane, API Evangelisthttp://monetization.apievangelist.com/
• “Winning in the API Economy” Steven Willmott & Guillaume Balas, 3scalewww.3scale.net/wp.../Winning-in-the-API-Economy-eBook-3scale.pdf
• “The API-Driven Business Model” 2013 IBM Corporationhttp://www.slideshare.net/ibmapimgmt/the-api-driven-business-model
• “Measuring the Economic Impact of the Sharing Economy” Tim O’Reilly, O’Reilly Media http://www.slideshare.net/timoreilly/measuring-the-economic-impact-of-the-sharing-economy