apidays LIVE LONDON - The Road to Embedded Finance, Banking and Insurance with APIs Differentiating your Developer Program: Is Speed "A" Differentiator or is Speed "THE" Differentiator? Paul Rohan, Finance Advisor at Google Cloud

1. Proprietary + Confidential
Differentiating your Developer Program:
Is Speed "A" Differentiator or is Speed
"THE" Differentiator?"
API Days London
October 27th 2020
Paul Rohan, Head of Business Strategy (Finance) Apigee

2. Proprietary + Confidential
Contents
● Developer Marketing is a very new discipline for Incumbents
● What are Developers looking for as they scan the API Economy?
● How much should you be spending on Developer Marketing?
● How should the funding of a new Developer Programme be managed?
● How will the stages of market development influence Developer Marketing?
● Speed - the one constant differentiator across all stages of market
development

3. Proprietary + Confidential
Developer Marketing is a very new
discipline for Incumbents

4. Target known, existing
and large market
segments
Offer new services at
firm’s known and
preferred digital
Interface
Each new product must
achieve cost-plus returns
Command-and-control
your staff
No business partners or
very few business partners
App
Strategy
Platform
Strategy
Firm is Dominant
Innovator
Innovation is deliberate
Culture Governance Segmentation Economics
New Market
Microsegments that are
accessible with
developers
Offer services at End
User's preferred digital
interface
Investments can aim to
assist overall ecosystem
growth
Orchestrate third-parties
for growth and innovation
Mindset is that all partners
are valuable
Third-Party developers are
treated as customers and
they drive innovation
Unanticipated innovation
can emerge from Third
Parties
Developer Marketing is a very new discipline for Incumbents

5. Brand New Communication Patterns, both inside and outside the enterprise
Consumer
App Teams
App Devs
Consumer
App Teams
App Devs
Consumer
App Teams
App Devs
Consumer
App Teams
App Devs
Consumer
App Teams
App Devs
Consumer
App Teams
App Devs
Domain / System
Teams
Capability Teams
API Producer Engagement - data and services “below the Glass”
API Consumer Engagement
Domain / System
Teams
Domain / System
Teams
Domain / System
Teams
Domain / System
Teams
Domain / System
Teams
Domain / System
Teams
Capability Teams Capability Teams Capability Teams Capability Teams
Dev Portal
& API Products
Operations API Enterprise Services
Engagement
Leadership
Enterprise
Architecture
Security
Program
Management
Executive
Line of Business Line of Business
API Center for
Enablement -
at the center of
an API
Community of
Practice
3rd Party Fintechs
Relative Volumes
Physical Interactions: X
Own-brand Apps: 10X
Ecosystem Interactions
100X
Other 3rd Parties

6. Proprietary + Confidential
What are Developers looking for
as they scan the API Economy?

7. What are Developers looking for as they scan the API Economy?
A Developer is scanning for platform providers serving a region or industry vertical offering
API Products that:
● Makes it easy access to get started quickly in that new region or industry vertical
● Offers gated on-boarding steps
● Has an adjacent community of complementary providers that will quickly tap into
local network effects
● Be pay-as-you-use so a decision on incurring fixed costs is not a hurdle to fast market
entry
● Offers the precise service the Developer wants as they want it

8. Proprietary + Confidential
How much should you be
spending on Developer
Marketing?

9. “Companies whose dominant business model is
ecosystem driver experienced revenue growth
approximately 27 percentage points higher than
the average for their industries, and had profit
margins 20 percentage points above the
average for their industries.”
Researchers have quantified the impact on revenue growth and
profit margins
See “Driving Growth in Digital Ecosystems”, MIT Sloan School of Management, M. Sebastian, Peter Weill, and Stephanie L. Woerner August 18, 2020
https://sloanreview.mit.edu/article/driving-growth-in-digital-ecosystems/
27%
20%

10. Proprietary + Confidential
Sidebar
If these are the potential gains, which
of these percentages is the best
estimate of Developer Marketing
spend as a percent of your firm’s Total
Marketing spend?
● 1%
● 5%
● 10%
● 15%
● 25%
● 50%
+27%
Revenue growth versus industry
average
+20%
Profit margins versus industry
average

11. Proprietary + Confidential
How should the funding of a
new Developer Programme
be managed?

12. Proprietary + Confidential
How should the funding of a new Developer Programme
be managed? It’s an Internal Corporate Venture
1. Finance early API product and Developer Community service development, market
research, business plan development and setting up a management team
2. A significant cash infusion to help in promoting new API products and Developer
Community to new Developers. The team is equipped with a supporting platform for full
API Product Lifecycle Management and API Monetization
3. The bank is now ready to go into systematic API Product development and external
consumption through an API Developer Program and this requires a higher amount of
capital than the previous stages.
4. The API Developer Program needs additional capital to support market expansion and to
refine and improve the initial range of API Products.
5. The API Developer Program has bridged across into a mature corporate function and
opportunities in the API Economy are directly integrated into all corporate development
processes through API First mindset
Seed Stage1
Startup Stage2
First Stage3
Expansion Stage4
Bridge Stage5

13. Proprietary + Confidential
How will the stages of market
development influence
Developer Marketing?

14. Proprietary + Confidential
Payoffs from the
Developer Programme
Size
Number of developers
Time to first API use
Registration to Activity
Reciprocity
Developers using our APIs/
We use their APIs
Diversity
Number of market sectors
Customer journeys
Number of extended
experiences
Activity
Number of API Calls
Word-of-mouth
Net Promoter Score
API Monetization
Direct revenues

15. Proprietary + Confidential
Stages of market development
Time to first API use
New customer journeys
API Monetization
Reciprocity
Diversity
Size
Activity
Word-of-mouth
Introduction Growth DeclineMaturity

16. Proprietary + Confidential
Speed - the one constant
differentiator across all stages of
market development

17. Proprietary + Confidential
Stages of market development
Speed of API Consumer Engagement
Speed of API Producer Engagement
Speed of API Consumer Engagement
Speed of API Producer Engagement
Speed of API Consumer Engagement
Speed of API Producer Engagement
Introduction Growth DeclineMaturity

18. Proprietary + Confidential
Speed to 100X
Number of monthly visits to our
branch or store per customer
X
Number of monthly visits to our
own brand Apps per customer
10X
Number of customer’s ecosystem
experiences that we participate in
each month
100X

19. Proprietary + Confidential
Differentiating your Developer Program:
Is Speed "A" Differentiator or is Speed
"THE" Differentiator?"
API Days London
October 27th 2020
Paul Rohan, Head of Business Strategy (Finance) Apigee