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OPEN API
AND THE IMPACT ON
BUSINESS MODELS
Amancio Bouza,
sitic, 18. September 2019, Winterthur
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
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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
SWISSCOM API JOURNEY
FROM OPEN API TO API-AS-A-PRODUCT
4
5 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch
2013
2014
2015
#1 Let’s do Open API
6
120 APIs were identified to be exposed
7
Usability
Micro APIs
Highly
specialized
items
Messerer Jeweler Studio, Zurich8
2013
9 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-booklet-rc1086mmwebpdf
10
HOW TO BUILD THE API, NOT!
11 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
#2 Let’s foster better
and quicker apps
12
Getting out of the
comfort zone
13
First contact …
… with customers
14
First contact …
… with customers
That’s me
15
Flexibility
Big APIs
16
API Design:
Usability vs Flexibility
17
2014
18 Kay Lummitsch: https://www.slideshare.net/lummitsch/swisscom-api-journey2
19
Something
was missing20
VALUE
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
Open API is an invitation.
Customer decides if he accepts.
23
API is the interface to
a value proposition.
24 Source: https://www.linkedin.com/pulse/api-dead-long-live-vpi-amancio-bouza/
VALUE PROPOSITION INTERFACE
25 Source: https://www.amanciobouza.com/post/value-proposition-of-api
#3 Let’s build products
aka Impact of Open API on Business Models
26
2015
27 Source: Kay Lummitsch: https://www.slideshare.net/lummitsch/the-swisscom-api-journey-3-upcoming
28 Source: http://api-as-a-product.com/
API PPRODCUT MANAGEMENT
29 Source: Amancio Bouza & Andrea Zulian, Product Management Festival Europe, 2018
SWISS
RED CROSS
HELPING MORE PEOPLE MORE
AT WITH API PRODUCTS
30
SWISS RED CROSS PROVIDES 30 SERVICES!
31 Source: https://www.redcross.ch
WE FOCUS ON ONE SERVICE:
ASSISTED TRANSPORT
32
WHAT IS AT STAKE?
33
CUSTOMER BASE
34
CUSTOMER BASE
35
TOOYOUNG
TOOYOUNG
CUSTOMER BASE
36
TOOYOUNG
TOOYOUNG
DIEOUT
CUSTOMER BASE
37
TOOYOUNG
TOOYOUNG
DIEOUT
OTHERPRIORITIES
NO SUSTAINABLE
CUSTOMER BASE!
38
At least, NGO’s don’t
#GETUBERFIED
39
At least, NGO’s don’t
#GETUBERFIED
40
41 Source: https://www.uber.com/de-CH/ride/uberwav/
IN THE LAST 15 YEARS
52% OF FORTUNE 500 COMPANIES
HAVE GONE EXTINCT
42 Source: Innosight
Your company name
could be shown here
NOW WHAT?
43
MISSION:
44
DIGITAL
TRANSFORMATION
DIGITAL PRODUCTS
& ECOSYSTEMS
API PRODUCT
MANAGEMENT
HELP MORE
PEOPLE MORE
MISSION:
45
DIGITAL
TRANSFORMATION
DIGITAL PRODUCTS
& ECOSYSTEMS
API PRODUCT
MANAGEMENT
HELP MORE
PEOPLE MORE
46 Source: Amancio Bouza & Andrea Zulian, APIDays Paris 2018
1. VALUE CHAIN
Digitalization
47
DESIGN SPRINT
48
49
PAIN POINT:
RAPPORTS
DRIVERS fill out multiple rapport
forms for each transport
50
PAIN POINT:
RAPPORTS
EMPLOYEES enter
rapports into applications
We digitalized the Green and Yellow Rapport
RAPPORT
APP
51
We digitalized the Green and Yellow Rapport
RAPPORT
APP
52
Just kidding
API SOLUTION:
RAPPORT API
Create Rapports
POST /rapports
{startTime,
distanceKM,
duration}
53
RAPPORT APP
Rapport API
API solution that helps to digitalize a
business process.
Cost saving as business value
54 Source: https://twitter.com/AccentureTech/status/1035528650416955393
2. PLATFORM / API PRODUCTS
DIGITAL TRANSFORMATION
55
WHY
API PRODUCT?
56
“3.6 million Americans miss their
medical appointments due to
a lack of reliable
transportation”
57
Uber Health
Source: https://www.uberhealth.com/about
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
$ 11.5 MARE LOST BECAUSE OF
MISSED APPOINTMENTS
59
LET’S GIVE THEM $11.5 M
AND CHARGE A FRICTION, E.G.,
$1’000’00060
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
HOW TO BUILD
API PRODUCT?
62
FROM
INSIDE-OUT
TO OUTSIDE-IN
63
VALUE PROPOSITION CANVAS
64 Source: Alex Osterwalder
VALUE PROPOSITION INTERFACE CANVAS
65 Source: https://medium.com/api-product-management/value-proposition-interface-canvas-d60fa7553d23
API-as-a-Product
UBER for assisted transport
TRANSPORT CARE
66
API Product for Healthcare Organizations:
TRANSPORT CARE
Manage Transports (not rapports)
POST, GET, PUT /transports
{startTime,
distanceKM,
duration,
destination,
passenger}67
ASSISTED TRANSPORT APP
Recap:
Rapport App: $ 0.2M
Transport Care: $ 1.0M
68
BUSINESS VALUE
69
070
071
072
What went wrong?
73
74
Business: Selling Apple Technology
Revenue model: $/kg Technology to
measure weight
API
DOESN’T WORK IN SPACE
75
76
Business Value
Technology and
promised capabilites
smarter
faster
better
cheaper
more
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!
YOU WIN OR
YOU ...
78
YOU WIN OR
YOU LEARN
79
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
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)
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.
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
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BACK
UP
84
API is not about solving
a Rubik’s Cube
85
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
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.
88
Lean Startup
Build-Measure-Learn Cycle
META PROCESS
89
Problem-Solution Fit
validate qualitatively
Product-Market Fit
verify quantitatively
Scale
LEAN API DEVELOPMENT PROCESS
90
Problem-Solution Fit
validate qualitatively
Product-Market Fit
verify quantitatively
3. ECOSYSTEMS
91
HOW TO SPOT
ECOSYSTEM:
BETTER TOGETHER
92
93 Source: https://www.fiveup.org/
94
“Vereinte Kompetenzen: Mit FlixBus und Uber von Tür zu Tür reisen“
95 Source: https://www.uber.com/de/blog/uber-flixbus-partnerschaft/
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/

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