The document discusses how APIs allow companies to focus on their core business by outsourcing non-core functions. It provides examples of companies in different industries that use APIs to improve their business model, including a telecommunications company, a cosmetics company, and a banking company. It also discusses how coding and programming skills are becoming more important and how various initiatives are making it easier for more people to learn how to code.
2. //2
APIS, AN INNOVATIVE AND EFFICIENT MODEL ALLOWING
COMPANIES TO MANAGE THEIR CORE BUSINESS ONLY
TRADITIONAL COMPANY
Core
business
HR Finance
R&D
IT Logistics Marketing
R&D
Finance
HR
Sales
API-DRIVEN COMPANY
Logistics
Marketing
vs. âElasticâ IT
In a traditional company, all
functions are internalized to
support the core business
In an API-driven company, support
functions are externalized via an API,
focus is on the core business
3. A NEW BUSINESS MODEL FOR API-DRIVEN COMPANIES: DATA
The cost of massive datasets
analysis decreases because of:
âą APIs & SDK easing data
crunching
âą Cloud vendors competition
âą Open Source technologies
//3
R&D
Finance
HR
Sales
API-DRIVEN COMPANY
Elastic infrastructure
Logistics
Marketing
The data deluge
âą Logs
âą Raw statistics
âą Ticketing
âą Loyalty schemes data
âą Open Data
âą ...
Packaged insights for resell
âą Pattern predictions
âą Real-time logistic optimization
âą Tailored marketing plans
âą Mass-customization
1
2
3
After being transformed into patterns, predictions and insights, data can be sold to the
State, companies and organizations.
6. //6
1// TROPO TELEPHONY: A PRODUCT BUILT AS AN API
Tropo is a new TELCOs: built as an API in the cloud, with no fixed costs and only
usage fees. Tropo rents traditionnal TELCOsâ network, and focus on service delivery
rather than infrastructure investment and maintenance.
Tropo is a MVNO for B2B. Its help its clients to scale quickly while staying flexibile.
2
API link with app 1
Incoming call
Tropo Cloud
3
Render
Smartphone
Landline
VoIP
7. //7
1// WHAT ARE THE DIRECT SAVINGS WITH A CLOUD TELCO
COMPARED TO A TRADITIONAL CALL-CENTER?
No employee to hire
Scale faster
No Development costs
For a six-month development cycle it can mean
millions of dollars saved in infrastructure
costs.
With a cloud TELCO, the versatibility of the
product allows to redirect the call to usual
employee desks.
No Upfront investment
Using a cloud communication platform make
the SMBs less vulnerable to activity cycle.
The charges of a cloud-infrastructure is a
considered as the charge and therefore,
deducted from the P&L and corporate tax.
Savings for a 2 person call-center:
$50,000
Investment
$2,500/month
per agent
$110,000
per year + =
9. POLA ORBIS Group is engaged in business related to beauty and health in Japan, with
emphasis on cosmetic. The Group gathers 7 major brands such as Pola.
//9
2// A COSMETIC DATA PLATFORM
$1.9 billion
Revenue 2013
In July 2014, Pola launched its new anti-aging brand Pola APEX-I with a new product
& service based on Big Data providing direct material for Pola R&D. Since 1990,
Pola had already started to collect and analyze data:
2.5m
possible cosmetic
creams designed
3,600
Make up
designed
$60m
14.5m
Data set
Collected
Expected new revenue in 2014 based on mass-customisation of
cosmetics
Private APIs for APEX-I: Enable the intensive data collection and analysis, the
individual reporting and the personalisation of the manufacturing process.
10. //10
2// FROM COSMETICS MASS MANUFACTURING TO
COSMETICS COUNSELING
1// Pola Ladies data
âą Patches to collect skin
condition data
âą Skin sensors
âą Tablets connected to
the sensors
2// PERSONAL
REPORTS
âą Skin health information
reported in 10 days
âą Personal advice for each
lady (150 000)
âą Condition compared to the
population
PRIVATE API
PRIVATE API
PRIVATE API
3// MANUFACTURING
TAILOR MADE PRODUCTS
âą Real-time skin data access for
researchers
âą Creation of more personalized
samples based on data analysis
to fit current skin needs
âą Iterative process
12. 3// RETAIL BANKING API: OPENING SENSITIVE & PERSONNAL
DATA IN A SECURED WAY
//12
Retail banks in France and US already offer Benefits of a bank API
apps for smartphone and tablets.
1
Externalising R&D
Savings per app
â
$250,000
2
Preparing for new usages in
retail banking
âą Multiple customer accounts
âą Less physical points of contacts
âą 24/24 customer service
âą Social CRM
âą Dahsboard and advices
Recently, financial companies started to make
their customer datas availables to third-party
apps.
Though most were opened through private
APIs, some, like AXA Banque even opened
public APIs.
13. //13
3// FUTURE OF BANKING: OUTSOURCING THE CLIENT
RELATIONSHIP TO SMARPHONE APPLICATIONS
In the US, Simple is disrupting the banking industry with a smartphone application.
Simple strategy: focusing on customer service and letting
partners bank do what they do best
Future of retail banking Future of investment banking
Retail bank has always been a real estate job:
bank institutions spending large ressources to
manage physical agencies all accross the
country.
Thanks to the APIs, retail banks can outsource
client relationships to applications like Simple
and focus on cash management.
Retail bank will focus on their core business:
investing the money of current and savings
accounts.
In 2012: BNP Paribas Investment banking
made 30% of the group profits with 9% of
the headcounts.
Margins are higher in investment banking
15. //15
4// UBER WANTS TO DISRUPT THE ON-DEMAND RIDE
SERVICE WITH APIS
Uber is an app connecting you with a driver in a few minutes.
PARTNER API
Enables Uberâs on demand ride service to be integrated in third party apps
The 3rd party
app sends an
adress to Uber
through the API
The app
displays
pickup times
and fare
estimates on
the app
240
Cities
Recent partners
Ex : Time out, Starbucks, HingeâŠ.
50
Countries
$40 billion
Valuation
Trips
Ex : Trip advisor, Hyatt,
Expensify, United AirlinesâŠ
Hobbies
Future partners? Amazon
Uber as « the future of logistics »
16. //16
4// AN API FOR A GREATER REACH AND A PREDICTIVE
MARKETING
Exposure to millions of new users
In the 150 countries, many people
havenât tried the app yet.
Data science for predictive marketing
Before
No one knew where
you were going
Now
Uber can predict
where you want to go
with 74% accuracy
TAKE FULL ADVANTAGE OF
CUSTOMERS DATA THANKS TO THE API
Seamless integrated service:
The customer has the convenience to
benefit from an Uber Ride without
leaving the app.
Uber can adapt its marketing & offer
based on previous destinations and
behaviors of other users.
LEVERAGE OTHER APPS
WITH MILLIONS OF USERS
17. LESSONS LEARNED: APIS ALLOW COMPANIES TO EFFECTIVELY
PURSUE THE CLASSICAL TRIPTYCH OF BUSINESS GOALS
//17
#1
Business
Development
#2
Product
Development
#3
Delivery
Management
18. //18
HOW CAN A BOARD UNDERSTAND APIS OPPORTUNITY ?
CMO
Sales
Director
COO
HR
CEO
CFO
Communica7on
Director
19. //19
WITH CODE, THESE MEN
CONQUERED THE WORLD
1975: two computer science students, Paul
Allen and Bill Gates created Altair BASIC, the
first programming language for
microcomputer, which gave birth to
Microsoft.
1998: Sergei Brin and Larry Page, PhD
students in computer science at Stanford
University, started a search engine projet
named Google.
2004: Former computer science student at
Harvard, Mark Zuckerberg launched
Facebook, a website connecting students on
campus.
20. //20
âŠAND NOWADAYS,
THE WHOLE WORLD SPEAKS HIGHLY OF CODE
âLearning to code is not only
important for your future, but
also the future of your country â
BARACK OBAMA
âCoding is a skill that will
empower the next generation in
almost any fieldâ
HARRY LEWIS
(Former Dean of Harvard College)
âI learned how to fly a hot air
balloon when I was 30,000 feet
up and my life was in the
balance: you can learn skills at
any age but why wait when we
can teach everyone to code now!â
RICHARD BRANSON
21. //21
LEARNING TO CODE HAS
NEVER BEEN THIS EASY!
The website Code.org offers 1-hour coding
lessons for beginners.
2014: Launch of an Hour of Code
Par7cipants
have
followed
the
an
HOUR
of
CODE
program
since
January
2014.
With
ambassadors
such
as:
Mark
Zuckerberg,
Bill
Gates,
Google,
Yahoo,
MSN
and
Disney.
+30m
22. Many movements aim to promote coding and programming among the young generation (right from
6 yearsâ old). Game designing, robot animation, connected objects manufacturing⊠These workshops
are based on the creativity of the youngest and the educational effort from digital experts.
//22
CODING AFTER SCHOOL
Kids
Coding
Club
Kids
Coding
Club
develops
the
creaPvity
of
the
young
generaPon
(and
their
parents),
through
code,
games,
robots
or
connected
objects.
CoderDojo
An
internaPonal
movement
in
400
ciPes
and
43
countries
to
train
the
youngest
to
code
for
free.
Coding
Goûter
A
monthly
event
gathering
together
kids,
parents
and
developers
around
code
and
Lego:
"If
we
donât
have
fun,
itâs
that
we
are
not
doing
what
we
should."
-Ââ
Raphaël
Pierquin,
founder.
23. //23
MAKE WAY FOR THE GRANDES ĂCOLES OF CODE!
New schools have been created or adapted to meet the demand for computing talents
ECOLE
42
Computer
science
school
founded
by
Xavier
Niel
(Iliad
â
Free)
in
2013.
The
school
is
accessible
for
all
(no
degree
required)
from
18
to
30
and
offers
enhanced
courses
in
programming
and
digital
innovaPon
EPITECH
Epitech
is
a
private
school
specialized
in
computer
science
and
new
technologies.
It
is
accessible
for
bachelors
and
lasts
5
years.
25. //25
SOFTWARE SIMPLIFIES CODE LEARNING
MIT SCRATCH
An intuitive programming tool
developed by MIT in 2006. The lines
of code are generated automatically
by software, which allows the user
to concentrate on their logic.
GAME SALAD
Game Salad is a tool for designing
tablet and mobile games. Thanks to
simplified interfaces, it enables all
"illiterates of code" to create
animations and interactions.
KODU
Kodu is a game designing
software developed by Microsoft
which uses the principle of
graphic programming. The
programs are produced by
assembling graphic elements
instead of lines of code.
26. //26
E-LEARNING:
INTERFACE FOR SELF-LEARNING
CODECADEMY
âą A plateforme to learn to code on
your own
âą 5 million users in 2012.
OPEN CLASSROOMS
âą 800 free online courses in
computer science and other
scientific disciplines
âą 600,000 teachers and students
âą 3 million visits in 2012.
KHAN ACADEMY
âą 10 million users per month
âą 100,000 online exercises
âą Various disciplines including
"Computer science" and
"Computer programming".
27. //27
PROGRAMMABLE HARDWARE:
LEARNING BY SMALL TASKS!
ARDUINO
An Arduino is a printed circuit
available for around $50 and gives
the possibility to design homo-automation
and robotic projects.
The force lies in its low cost
approach and its extremely well
developed community.
MAKEY MAKEY
This is an electronic circuit which
helps transform all objects into a
keyboard. It becomes thus possible
to make music, play video games by
using a fruit, an eraser or a stone.
LEGO MINDSTORMS &
WEDO
Mindstorms and WeDo are
programmable Lego bricks. This
initiative is part of the Lego
Education program. The bricks
become programmable via MITâs
Scratch.
28. //28
TODAY, PROGRAMMING
IS STILL AN I.T. THING
The development and the personalization of
internal applications still remains in the expert
hands of IT teams.
Quite often, any demand that concerns the
evolution of a management tool is treated as a
particular IT project, which requires time and
resources for everyone.
29. //29
TOMORROW, CODING
WILL BECOME A
BUSINESS SKILL
IT will gradually become an internal consulting
department. IT will take care of the technical
architecture of the firm and will provide other
departments (HR, Marketing, LogisticsâŠ) with
tools (API, SDKâŠ) in order to quickly adapt their
process and digital applications according to
their needs.
For example:
âą The HR department will be able to develop
its own recruitment tools thanks to internal
API provided by the IT department as well as
external APIs (e.g.: LinkedIn API)
âą The Marketing Department will be able to
personalize its CRM with the access to CRM
API and external API (Twitter, FacebookâŠ)
30. //30
IN THE FUTURE:
TOWARDS THE
PROGRAMMABLE FIRM
Your clients will develop their personalized
interfaces and service offers from the data and
functionalities that you provide them.
They will be more and more able to match your
data and functionalities with the ones of other
services in order to construct the best solutions
to their problems.
31. MANAGERS: ALL PROGRAMMERS?
COMMUNICATING
WITH
DEVELOPERS
âIt
taught
me
enough
about
so;ware
development
that
I
don't
feel
lost
in
my
current
job.
I
can
ask
intelligent
quesBons
and
I
can
push
back
on
the
developers
when
necessaryâ
JON
EINKAUF
Product
manager
@Amazon
AWS
RECRUITING
«
I
wanted
to
get
a
job
at
a
tech
startup
and
ended
up
as
a
product
manager
at
one
of
NYC's
hoHest
tech
startups.
The
founder,
who
is
a
CS
PhD,
was
really
impressed
that
I'd
learned
to
code
»
ANONYMOUS
WRITING
SOFTWARE
âI
used
CS50
skills
to
create
a
half
dozen
VBA
programs
that
will
likely
save
the
startup
I'm
working
for
tens
of
thousands
of
dollarsâ
KYLE
WATKINS
Manager
at
a
startup
Testimonies of students from Harvard course CS50 (Introduction to Computer Science) //31
32. //32
IFTTT
:
Created
2010
â
30M$
round
in
August
2014
Over
125
connectors
(Nike,
Azure,
Nest,
Jawbone,
ESPN,
eBay,
SquareâŠ)
14M
personal
applicaPons
used
15M
Pmes
a
day
.
33. YOUR COMMUNICATION DIRECTOR SHOULD BE INTERESTED
//33
Case Study Key figures
The Facebook Like API is free to use.
Anyone can embed a Like button on their
page.
This allowed Facebook to spread the Like
button very rapidly everywhere on the
web, to enrich the Facebook Social
Graph, to be present everywhere on the
web, and to position themselves as
dominant in social recommendation.
2.7 billion of Likes/day
2.5 million websites use the
Like button
+1,000 websites
adding the Like button/day
#1
#2
#3
34. //34
YOUR CMO SHOULD BE INTERESTED
Case Study Key figures
3x faster is the product
development cycle at AT&T thanks
to its APIs
5 billion API
calls each month, mostly coming
from third party developers. A 1400
% increase since the launch of the
API in 2010.
#1
AT&T opened up APIs to allow developers to #2
build apps on its network to then deliver
those apps to customers.
Through this transition, developers act as
marketers for AT&T: when customers find an
app useful, they tend to use the network
more than usual and thus, revenue is
increased. #3 40,000 members
in the Developer Program
35. //35
YOUR SALES DIRECTOR SHOULD BE INTERESTED
Case Study Key figures
2m sellers worldwide use
the marketplace
39% of total units
shipped are sold through the
marketplace
#1
Amazon allows third-party sellers to plug #2
their catalog to Amazon.com through
their APIs.
By doing so, sellers can be ensured their
catalog is always up to date, and it eases
their integration on Amazon platform.
APIs give sellers a great opportunity to
access Amazonâs 152m of customers.
36. //36
YOUR COO SHOULD BE INTERESTED
Case Study Key figures
Comcast, Americaâs largest TV, media,
entertainment and cable provider created an
internal API for teams to easily share data and
solutions.
The API is free for use by internal teams.
Today, teams can build new products and user
experience faster than ever, generating thus
new revenue sources for Comcast.
Source:
How
an
API
Can
Transform
Your
Enterprise,
RWW.
Comcast
annual
report.
30 minutes to share
resources through internal API
compared to months in the past
x100 increase in the API
traffic last year
$8.5 billion revenue for
Xfinity, a Comcast offer using the
API
#1
#2
#3
37. //37
YOUR HR DIRECTOR SHOULD BE INTERESTED
Case Study Key figures
75,000
developers use LinkedIn APIs
48% of jobs on
LinkedIn can be found
nowhere else
12X more expensive
are recruitment agencies
compared to LinkedIn
#1
#2
#3
LinkedIn opened-up APIs to let third-party
developers integrate parts of its
functionalities such as: login with
LinkedIn, companies profiles & updates,
groups (share content within groups),
job search on LinkedIn.
It eases the way recruiters monitor,
screen and attract talents to their
companies, enabling them to extend
their reach far beyond what traditional
recruitment tools allow (e.g. jobs
boards, ads, company page, recruitment
agency, etc.).
Source:
Social
RecruiPng
Survey
2012,
Jobvite.
Bersin
&
Associates.
38. 38
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