apidays New York 2022 - Building an API Platform Business, David Mooter, Forrester

APIdays New York
Taking APIs Beyond IT
David Mooter
Senior Analyst

2022 SERIES OF EVENTS
New York
JULY
(HYBRID)
Australia
SEPTEMBER
(HYBRID)
Singapore
APRIL
(VIRTUAL)
Helsinki & North
MARCH
(VIRTUAL)
Paris
DECEMBER
(HYBRID)
London
OCTOBER
(HYBRID)
Hong Kong
AUGUST
(VIRTUAL)
JUNE (VIRTUAL)
India
MAY
(VIRTUAL)
APRIL (VIRTUAL)
Dubai & Middle East
JUNE
(VIRTUAL)
Check out our API Conferences
www.a pida ys .globa l
Want to talk at one of our conferences?
apidays.typeform.com/to/ILJeAaV8

2
© 2022 Forrester. Reproduction Prohibited.
Let’s build a
conference center!
Photo by https://unsplash.com/@productschool

3
Let’s build a
conference center!
CEO: Sells a premier customer on a
conference center
CIO: Designs for the customer’s immediate
needs using the fastest tools to build walls
CFO: Focuses on the immediate problem,
budgets fixed walls for the customer’s event
because they’re cheaper than movable
The event was perfect, making it easy to sell
the second customer
Typical “IT approach”

4
The result!
Next customer has different needs; walls must
be torn down and rebuilt
CIO focuses on agile, devops, and tools to
rapidly tear down walls and rebuild them
Smarter competitors designed movable walls,
and with the agility to reconfigure the business
rapidly, they take the market

5
Wrong mindsets
CEOs who focus on near-term wins
CIOs who focus on technology enablers to build
solutions
CFOs who focus on narrow ROI measures

6
6
© 2020 FORRESTER. REPRODUCTION PROHIBITED.
Speed: going fast when knowing your destination
Photo by https://unsplash.com/@lonestarexotic

7
7
Agility: going fast not knowing your destination
Photo by https://unsplash.com/@madebyjens

8
EXTRACT
Which of the following are true about the application architectures and
strategies used by your enterprise?
Source: Business Technographics Software Survey, 2020 and 2022
Base: 2073 Developers (2020), 2452 Developers (2022)

9
EXTRACT
Which of the following are true about the application architectures and
strategies used by your enterprise?
Source: Business Technographics Software Survey, 2020 and 2022
Base: 2073 Developers (2020), 2452 Developers (2022)

10
10
API’s biggest value: modular business transformation
Charge authorization
Account status
Money transfer
Branch location
Credit score
Issue card
Product
Payments
Market data
Quotes
Claims
Execute trade
Excellent customer
experience
Streamlined
business operations
New business
models and new
markets
Your enterprise as a platform

11
11
Tech silos are not a platform business
Drupal
Java
Pega
Salesforce
Ariba
SAP S4/HANA
Kubernetes
Data virtualization
MS SQL Server
AWS
ESB
Apache Flink
Excellent customer
experience
Streamlined
business operations
New business
models and new
markets

12
12
Events also enable modular business transformation
Charge auth. events
Account status events
Money txfr. events
Location events
Credit score events
Issue card events
Product events
Payments events
Market events
Quote events
Claim events
Trade events
Excellent customer
experience
Streamlined
business operations
New business
models and new
markets
Your enterprise as a platform

13
13
Who should lead your API strategy?
CEO
CIO

14
37% “Our API strategy is primarily driven by
our CEO, CTO, product management, or
some other business leadership”
Base: 2452 Developers
Source: Forrester's Developer Survey, 2022

15
Health insurance
provider Maximum three partner integrations per year
Single SOAP schema with 126 operations
Introduced API product manager:
• Found 90% of business needs could be met
by 10% of those operations
• Refactored the complex use cases as add-
on APIs that 90% of its users could ignore
• Result: 42 partner integrations the next year,
hundreds of millions of dollars in new
revenue
Photo by https://unsplash.com/@hush52

16
Agricultural
retailer
IT-led project-centric approach required three
to four months writing new APIs per partner
API product manager crafted a single API that
met the needs of its overall target market
Reduced onboarding to two to three weeks
with no need for IT to write specialized code
per partner
Photo by https://unsplash.com/@dmey503

17
17
Telematics:
insurance
rate factor
Open business: APIs reframe business strategy
Source: “Four Steps For Building A Platform Business” Forrester report
Business
Customers
Channels
Business design
begins for:
•Agility
•Integration
Efficiency
Partners
Competencies
Ecosystems
Relationships
Leverage
Connections
Traditional business Open business
Telematics:
driver risk
assessment
competency

18
18
Digital partners = interlocking ecosystems
Source: “Brief: APIs are the Foundation for a Digital Business Platform” Forrester report
Customers’
ecosystems
Your
ecosystem
Partners’ ecosystems
New, adjacent
ecosystems

19
Examples of
success
Permata Bank monetizes banking capabilities
to fintechs
Cyber Source (Visa) injects payments where
payments have not historically been
• “Instead of swiping credit cards more, it’s
looking for who benefits from our payments
competencies”

20
Nationwide
Insurance
Embeds insurance into Ford and Toyota’s
vehicles and mobile apps
Embeds Medicare capabilities in NCOA’s
retirement planning tools
Automates insurance verification for lenders

21
“We’ve built a connected ecosystem of capabilities to
support strategic partnerships and publicly available digital
products powered by APIs. This Partner Platform has
already enabled the launch of 50+ partnerships.”

22
22
Current innovation model: siloed and sequential
Source: “Forrester Infographic: Make Software Central To The Structure Of Innovation Delivery” Forrester report

23
23
New innovation model: interfused and evolutionary

24
24
Seed money underpins APIs and digital transformation
API strategy, platform, and portfolio
Business
change #1
Business
change #2
Business
change #3
Business
change #4
API planning API management API governance
API leadership
$$
Strategic seed money

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25
Reframe design, build, financing, and leadership
Finance
• Agile finance
Build
• Blended business /
technology teams
Leadership
• CEO-driven software
competency
Design
• Modular business design
• Software-based business
building blocks

26
Wrong mindsets
CEOs who focus on near-term wins
CIOs who focus on technology enablers to build
solutions
CFOs who focus on narrow ROI measures

27
Correct mindsets
CEOs who think of long-term ecosystem
possibilities
CIOs who consider architectural models to
deliver flexibility for ongoing, disruptive change
CFOs who plan for a stream of portfolio
investments in the platform and its architecture

Thank You
David Mooter
Senior Analyst
dmooter@forrester.com
Blog: https://www.forrester.com/blogs/author/david_mooter/

apidays New York 2022 - Building an API Platform Business, David Mooter, Forrester

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