How APIs Are Driving the New Commerce Landscape
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Transcript of How APIs Are Driving the New Commerce Landscape
How APIs are Driving the New Commerce Landscape
August 22 2017
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Kelly Goetsch
Chief Product Officer
What is an API? A Contract
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Producer Consumer
• Functionality
• Data
• SLA
APIs separate the producer from the consumer
Business Benefit of APIs: Separation of Concerns
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Systems IntegratorCreative Agency 3rd Party DeveloperConsultant
Internal
External
Software is Increasingly Being Consumed In Pieces
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Your CodeHighly innovative, differentiated, etc
AWS Console
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Building Block
Where you’re not
differentiating,
consume building
blocks from 3rd
party cloud vendor
Expectation That Payment Should Match Value
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This is how
people expect to
buy software
Real Omnichannel Finally Becoming a Reality
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“Commerce” “eCommerce”
Commerce
“Commerce”
Brands/Retailers Increasingly Building Software
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75% By 2020, 75 percent of application purchases supporting digital business will be "build," not "buy.”
Forecast Analysis: Enterprise Application Software, Worldwide, 2Q15 Update.
Legacy Monolithic Commerce Platforms are Dying
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Digital commerce is rapidly evolving
and the future landscape will include
API orientation at its core. Businesses
embracing this approach will be well
positioned to embrace the API
economy, conversational interfaces,
and other capabilities that could confer
business advantage.
GartnerIT Market Clock for Digital Commerce 2016*
“
”
* Gartner IT Market Clock for Digital Commerce 2016, Mike Lowndes, 29 September 2016
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Today’s Dominant Monolithic Commerce Platforms Emerged in the Mid 1990’s
1995 1996 1997
Analysts Agree – APIs are Transformational
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API-based commerce will be critical for the future of "commerce that comes to you," whereby commerce functions occur in the customer's context wherever and using whatever channels are most convenient to them. Commerce journeys will become more fragmented and an API-based approach is a fundamental enabler for cross-channel experiences.
Mike Lowndes
July 31st 2017
Hype Cycle for Digital Commerce, 2017
Gartner“
”
Marketing Should Own Experiences, IT Should Expose Functionality as APIs
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• Exposes functionality over APIs
• Leaves experience to marketing
• No regard for how APIs are consumed
TechnologyMarketing
• Builds the experiences
• Consumes the APIs from technology
• Customer-focused
• Device-agnostic
Allow Developers to Innovate
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Traditional Commerce
Developers/Architects
Where You Should Hire
Back APIs By Microservices
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• Characteristics of microservices
o Has its own vertical team
o Does only one thing
o Exposes functionality over external APIs
o Has few dependencies on other teams
o Has its own tech stack
• All starts with the team –everything else occurs naturally
User Interface
Application
Datastore
Infrastructure
Monolith
One Application
Microservices
Many Small Microservices
API
Application
Datastore
Infrastructure
InventoryMicroservice
API
Application
Datastore
Infrastructure
PaymentMicroservice
API
Application
Datastore
Infrastructure
ProfileMicroservice
API
Application
Datastore
Infrastructure
Product CatalogMicroservice
Pick an API Documentation Specification
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Nice documentation
Standardization
Generate client and server code to match the APIs
Editors
Validation
Testing
Make APIs Easy to Call
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• Level 1
– Start requesting individual resources
– Interact with /OrderService/12345
• Level 2
– Start using HTTP verbs - HTTP GET/POST/PUT/DELETE/etc
– Responses come back using correct HTTP codes – e.g. HTTP 409 for a conflict
• Level 3
– Application itself tells client how to interact with it - similar to hyperlinks in a web page
– <link rel = "delete" uri = "/OrderService/12345/delete"/> under <order id="12345">
• Level 0
– Use HTTP as a tunneling mechanism only
– Interact with /OrderService
– Use HTTP GET/POST only
Develop a Versioning/Evolvability Strategy(and stick to it!)
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Version Evolve
commercetools Offers 300 Individually Consumable Commerce APIs
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Customers
Authorization
Customers
Customer Groups
Cart & Checkout
Shopping cart
Discounts codes
Taxation
Shipping methods
Payment status
Product Catalog
Product
information
Pricing
Discounts
Inventory
Search
Categories
Reviews
Order Management
Orders
Channels
Stores
Store finder
Technical
Custom objects
Import/Export
Technical services
APIs are the Universal Currency of Commerce
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http://dev.commercetools.com/
300+ Individually Consumable APIs Support Tomorrow’s Consumer Electronics
About commercetools
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Offices in the US: Durham NC,
USA; Berlin and Munich, Germany
99.8% uptime guarantee and
response time of less than 100ms
Founded 2006 / 130+ employees
Library of 300+ Commerce APIs
Serving B2C/B2B clients
100+ enterprise clients Globally
Global digital ecosystem
partnerships with the world’s leading
technology vendors, digital agencies
CMS vendors and solution providers
Financially strong – backed by multi-
billion dollar, 90+yr old European
enterprise
Multi-tenant platform hosted in the
Google Cloud
150+ platform enhancements in
2016
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Cloud-Hosted Hundreds of
Releases/Year
Programming
language
agnostic
With commerce
concepts for the
post-PC era
Ready for
Microservices
Individually
consumable
“on demand”
Connecting to
the “old
world”
Built for SPEED
Strategy: Start With Non-transactional Workloads
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No
n-t
ran
sact
ion
alT
ran
sa
ctio
na
l
95% Product/Category Pages
70% Marketing Pages
10% Customer Pages
5% Order Pages
Build a Product Endpoint
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https://api.yourcompany.com/product
Build a Category Endpoint
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https://api.yourcompany.com/category
Implement an Experience Management Platform
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Implement an Experience Management platform
Next, Cut Over Customers
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https://api.yourcompany.com/customer
Finally, Cut Over Orders
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https://api.yourcompany.com/order
We Must Re-imagine Software Development
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X IT ownership of experiences
X Marketing ticketing IT to move pixels
X Separate vertical tech stacks for each device
X Long release cycles
X APIs that are hard to call
X Closed/internal only APIs
Pre-register to For a Copy of Our New Booklet
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• What APIs are and why they are so valuable for digital commerce
• How and why to model commerce APIs before the implementation
• Building APIs using Microservices and how the two pair so well together
• How to deploy commerce APIs
• Consuming and extending APIs to achieve maximum flexibility and differentiation
www.commercetools.com
Office Munich
Adams-Lehmann-Str. 44
80797 Munich
+49 89 99 82 996-0
Office Berlin
Sonnenallee 223
12057 Berlin
+49 30 67 24 21-20
Durham, NC
American Underground | Crowe Building
406 Blackwell Street, Suite 240
Durham, NC 27701
+1 212 220 3809
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