Mesh the Gears: Mastering the Economics of Digital Leverage. A presentation by Bryan Kirschner at Apigee's Adapt or Die, San Francisco 2016

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Mesh the Gears or be Ground Between Them
Mastering the Economics of Digital Leverage
Bryan Kirschner
@bryan_kirschner

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“The future is already here — it's
just not very evenly distributed.”
- William Gibson
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APIs unlocked the economics of digital leverage
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perfectly replicated
an infinite # of times
at zero marginal cost
Source: Iansiti & Lakhani, Digital Ubiquity: How Connections, Sensors, and Data Are Revolutionizing Business
Harvard Business Review, November 2014

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19. ©2016 Apigee Corp. All Rights Reserved. 19Source: John Deere

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Opportunity
Use
creates
value

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Opportunity
Tools
Use
creates
value
Scale on demand

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Opportunity
Tools
Know How
Use
creates
value
Scale on demand
Sustainable
agility at
pace

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Opportunity
23
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24. ©2016 Apigee Corp. All Rights Reserved. 24Source: The Center for Global Enterprise

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$4.3T
Source: The Center for Global Enterprise

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$4.3T The Uber of…
Source: The Center for Global Enterprise

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Putting an API around our stores
A single, universal way to
measure physical movement
The Pandora of food
The operating system for live
entertainment
The platform for the Industrial
Internet
$4.3T
Source: The Center for Global Enterprise

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Use creates value through network effects
Data

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Use creates value through network effects
Data Interaction

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Use creates value through network effects
Data Interaction Transaction

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Use creates value through network effects
31

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Use creates value through network effects
32
Core
competency of
digital disruptors

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Tools
33
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“More and more, companies will fulfill their IT requirements simply by
purchasing fee-based 'Web services' from third parties -- similar to the way
they currently buy electric power or telecommunications services.”

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“…a spokeswoman…said
recent news stories claiming
that the state may need less
than 10 percent of the data
center are not entirely true.”

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“What's wrong with the
Washington State data center?
Facility sits mostly empty after
more than two years.”

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“The state's CIO…has suggested the
space would make a good Sensitive
Compartmented Information Facility…
That's government-speak for a room full
of classified document filing cabinets...”

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40. ©2016 Apigee Corp. All Rights Reserved. 40Source: Wikimedia.org

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Cloud enables scale on demand
Compute

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Cloud enables scale on demand
Compute Data

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Cloud enables scale and scope on demand
Compute Data Intelligence

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Cloud enables scale and scope on
demand
46

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Cloud enables scale and scope on
demand
47
Core
competency of
digital disruptors

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Know how
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Complex programming projects cannot be perfectly partitioned into discrete tasks that
can be worked on without communication between the workers and without
establishing a set of complex interrelationships between tasks and the workers
performing them.

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Source: McConnell, Code Complete

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Source: McConnell, Code Complete Source: Wikimedia.org

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Source: Cooking StackExchange.comSource: McConnell, Code Complete Source: Wikimedia.org

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“All teams will expose their data
and functionality through service
interfaces. The only
communication allowed is via
service interface calls over the
network…All service interfaces,
without exception, must be
designed from the ground up to
be externalizable. No
exceptions. Anyone who doesn’t
do this will be fired.”
- Jeff Bezos, CEO, Amazon

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“All teams will expose their data
and functionality through service
interfaces. The only
communication allowed is via
service interface calls over the
network…All service interfaces,
without exception, must be
designed from the ground up to
be externalizable. No
exceptions. Anyone who doesn’t
do this will be fired.”
- Jeff Bezos, CEO, Amazon
“You literally put APIs
everywhere. That’s how you do
internal development, that’s how
the IT shop works, that’s how
your providers should do
development for you, that’s how
your offshore stuff lands into
your environment…”
- John Donovan, EVP AT&T

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Small Promises Built for the world
Web API know how = sustainable agility at pace

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Web API know how = sustainable agility at pace
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Opportunity
Tools
Know How
Use
creates
value
Scale on demand
Sustainable
agility at
pace

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Opportunity
Tools
Know How
Use
creates
value
Scale on demand
Sustainable
agility at
pace
How APIs are
changing our
jobs

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BoD
profit
CEO
move
faster
CIO/CMO
innovate
LOB
delight
customers

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BoD
profit
CEO
move
faster
CIO/CMO
innovate
LOB
delight
customers
Why it’s time to
Adapt or Die

66. Thank you
@bryan_kirschner
@apigee
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