the fundamentals of platform strategy: creating genuine value with apis
TRANSCRIPT
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The Fundamentals of Platform Strategy: Creating Genuine Value with
APIsSteven Willmott, @njyx, [email protected]
@3scale @RedHatNews
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3scale now part of Red Hat Inc. - www.3scale.net
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apistrat logo.png
http://boston2016.apistrat.com API Strategy & Practice Conference, Boston MA, 2-4th November
CODE: APIWorld1630, 30% next 2 weeks
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Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)Images copyright of the creators
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Platforms: huge opportunity for value – and for wasted resource
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MISSION CRITICALBIG INITIATIVES
GENUINE NEED
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EXAMPLE:UBER
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EXAMPLE: “APPLE TV-OS READY” IN 2 WEEKS
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APIS DON’T WORKAPIS ARE NOT USED
TEAM ISN’T RESOURCED
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THE VALUE OF PLATFORMS
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“Jeff Bezos Moment” (thank you @frankarr)
)
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Platform Value
• Individual APIs can have tremendous value• Underpin products, enable new business
channels, provide an abstraction layer• Core value almost always revolves
around: Agility
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COMMON ERRORS
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Common Errors in Platform Beginnings
• Try something peripheral and low risk• Replace multiple core systems at once• Have a platform team build everything• Top down design a uniform approach
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TIMING & MOTIVATION ARE CRITICAL
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Best time to begin
• When you have one or more driving initiatives• When IT teams are ready to rethink
some infrastructure• When the goal is not too abstract
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THREE PRINCIPLES FOR SUCCESS
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IDENTIFY YOUR TRUE USERS
FOCUS ON TRUE VALUE
SHARE THE BURDEN
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#1: FOCUS ON TRUE VALUE
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A Map of Expectations
Prohibited Design
Firedrill Innovation
Expected
Unexpected
DesirableUndesirable
Thor Mitchel, 2014
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Questions to Ask
• Who is the customer?• Where is their value?• If we create this, will you use it?• What is the complete use case?
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Walked th
rough
all major p
rocesses
Calculated co
st
benefit
EXAMPLE:MAPS CREDIT UNION
Loren Paulson, APIStrat, 2015
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API for product listingBut not pricing or transacting
Almost null utilityEXAMPLE:MID-SIZED ECOMMERCE COMPANY
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Key Strategy
Deliver value: one API and one use-case at a time
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#2: FIND YOUR TRUE USERS
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We have great developer experience … what happened?
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Warning: Blasphemy Alert
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Developer Experience is Overrated
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Questions to Ask
• When Developer Experience is not enough • How do the APIs need to be consumed?• Who else might consume them? • Where do their effects propagate to? • What additional value can we add?
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Web Ranking API
Realized plugins were
criticalPlugins now drive
majority of businessEXAMPLE:SIMILAR WEB
Noahm Schwartz, APIStrat, 2015
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Millions of devices syncing
Robust libraries & dev
collaboration
Randomized back off
EXAMPLE:FITBIT
Jeremiah Lee, San Francisco, 2016
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Amazon Alexa App
Query order is not
optimized for Voice
Secondary query rank in
client added EXAMPLE:CRUNCHBASE
Nicolas Greenie, San Francisco, 2015
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Key Strategy
The API is not the key thing – the Value is the key thing
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#3: SHARE THE BURDEN
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Questions to Ask
• How to split Dev, Ops, Management?• What do we automate? • What do we monitor? • Which APIs do we focus on first?• How will we manage change?
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Vicious Circle
Virtuous Cycle
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Hairy Panic!
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1-1 IT
Need for software innovation drives deep integrations
Inte
rnal
Sys
tem
s
Appl
icatio
ns
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1-N IT
Governance and APIs create reusable anchor points
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N-N IT
Common governance rules can apply to APIs from anywhere
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Key Strategy
N-N >>>>> 1-N
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Platform value is “co-creation” of value between providers and
consumers
(buyers & sellers)(you & partners / customers)
(mode 1 & mode 2)
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Governance + Support must be Spread
e.g. tools, platforms, guides, design sages
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BONUS #4: MEASURING IMPACT
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• Very hard work• Unglamorous• It is not a big bang (big bet)• People get upset at rules and
restrictions • But … hugely rewarding
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Recommendation:
Focus on Business(es) enabled (number, revenue)
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TAKE AWAYS
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Your company NEEDS your platform strategy to succeed
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Even if you have a “Bezos Moment” – Keep focused on the value you
are delivering piece by piece
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Try to empower both API creation and usage
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API Owners Manual
http://www.3scale.net@njyx @3scale
http://bit.ly/APIOwners
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Images (Copyright Authors)• Apple TV Image, Apple.com: https://
support.apple.com/library/content/dam/edam/applecare/images/en_US/appletv/apple-tv-3gen-home-screen.jpg
• Amazon Echo: Amazon stock marketing image• Bay Bridge: https://unsplash.com/photos/0iAzHzjeYRk • Jeff Sheldon https://unsplash.com/photos/o6Y9E-DdG6w• Taras Perevarukha https://500px.com/photo/215416/-by-taras-perevarukha• Richard Bland https://
500px.com/photo/89775589/coming-for-you-by-richard-bland?ctx_page=2&from=search&ctx_q=platform&ctx_type=photos&ctx_sort=relevance
• Kaleb Nimz: https://unsplash.com/photos/-5rA4DRrEXU• Seabags Creative: https://unsplash.com/photos/U3m4_cKbUfc• Todd Quankenbush https://unsplash.com/photos/IClZBVw5W5A• Hairy Panic http://
theconversation.com/what-is-the-hairy-panic-tumbleweed-that-has-buried-a-small-australian-city-55074
• Welder: Uğur Gürcüoğlu https://unsplash.com/@sharkdesignstudio?photo=s1M0ncSl9l4 • TrainTracks: Redd Angelo: https://unsplash.com/@reddangelo16?photo=60fa9BMxvpE