@ManfredBo

APIsFrom Value Chains to Value Networks

Manfred Bortenschlager

I work at 3scale.netOut-of-the-box API Management@3scale

APIDays MediterraneaMay 30, 2014

@ManfredBo2

What do I want to achieve?

Describe a current evolution

Highlight challenges

Suggest solutions

@ManfredBo3

Context

Technology of APIs

Business of APIs

Politics of APIsSource: Kin Lanehttp://apievangelist.com/2014/05/06/remembering-why-this-whole-api-thing-is-working--apidays-berlin/

@ManfredBo4

Value chains.

1985

@ManfredBo6

Source: Michael T. Porter (1985)Competitive Advantage: Creating and Sustaining Superior Performance

@ManfredBo7

Source: Gartner (2013)

Digitization

@ManfredBo8

The establishment of value networks.

@ManfredBo9

A value network…

…is defined as a value creating system in which all involved stakeholders co-produce value.

Source: Normann and Ramirez (1993)

@ManfredBo10

@ManfredBo11

At the center of a value network is a platform.

Platform Business Model

Image Source: http://www.healthandcare.co.uk/

Image Source: Wikipedia

@ManfredBo15

The Platform Benefit

few vs. a lot

@ManfredBo16

Benefits of Platforms

Acceleration via network effectsIncreased rate of innovationContribution of complementary elementsIncreased number of channelsEvolution and stabilizingIncreased visibility Reduction of cost and riskSource: Gawer & Cusumano (2002): Platform Leadership

@ManfredBo17

APIs enable the Platform Business Model.

@ManfredBo18

Challenges

1.Be attractive

2.Be findable

@ManfredBo19

Challenge 1: Be Attractive

Valuable Simple

@ManfredBo20

Open standards contribute to attractiveness.

@ManfredBo21

http://apicommons.org/

@ManfredBo22

@ManfredBo23

Challenge 2: Be Findable

Connection + Gravity + Flow

Flow

how well the platform fosters exchange and co-creation of value.

Matchmaker Tools

facilitates connections between producers and consumers.Source: Sangeet Paul Choudary (2013)Platform Thinking

@ManfredBo24

http://APIs.io/

@ManfredBo25

@ManfredBo26

@ManfredBo28

API ManagementFor Developers

www.apitools.com

Out-of-the-box API Management

For API Providers

3scale.net

apistrategyconference.com

apicodex.3scale.net

Market Education & Evolution

APIcommons.org

APIs.io

@ManfredBo29

Wrap-up & Take-away

Emergence of value networks due to digitizationPlatforms are at the heart of value networks and allow more efficient value co-creation.Challenge 1: be attractive

leverage open standards / APIcommons

Challenge 2: be findable discoverability / APIs.io

@ManfredBo

Q&AManfred Bortenschlager

I work at 3scale.netOut-of-the-box API Management@3scale

APIsFrom Value Chains to Value Networks