API Economy - making APIs part of new business models

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1 1 API Economy - making APIs part of new business models Andrzej Osmak Cloud Advisor, IBM Cloud February 2, 2017

2 2 Industry disruption has always been driven by technology and standardization The industrial revolution did not become a revolution without the standardization of manufacturing

3 3 And continues today, as companies find new ways to innovate, get closer to their customer and grow their business Connected Cars Websites Partners Websites APIs Game Consoles Connected Appliances Trillions Internet TVs Smartphones Millions Tablets

4 4 What do the Following Have in Common? Coffee company goes digital, builds $1.6B payments business, drives 21% of transactions Car company offers connected car, improves driving experience, sells vehicle data to partners Bank spurs innovation by offering hackathons, integrates rewards program with retailer partners Digital disruption fueled by API s

5 5 Open APIs, standardized and designed to be easily accessible, are driving the next revolution in digital business APIs are pieces of software code that provide a set of technical specifications to efficiently interact with and ultimately integrate applications and business systems Application Programming Interface

6 6 API Economy Value Chain Exposed as APIs To Develop Innovative Apps www TH Existing Enterprise IT Investments Self Service Consumed by Developers IN GS Delivering Differentiated B2C, B2B, B2E Experiences

7 7 Most common API Economy Use Cases Speed application development Securely expose systems of record Publish APIs to expand brand reach Enable new business Apps and data to Mobile, IoT, & hybrid cloud apps Tap into developer & partner ecosystems Via self service library of reusable APIs Monetize existing and new data & algorithms

8 8 The Business of APIs Free Drives Adoption of APIs Typically low valued assets Drive brand loyalty Enter new channels Earn Share Indirect Business Asset must Provides incentive for Use of API achieves For example, Ad placements Percentage of E.g. Increase be of high value to the Developer marketing analytics, news Capabilities such as developer to leverage web API revenue sold product or services some goal that drives business model awareness of specific content, or offerings credit checks

9 9 Getting started in the API economy Deliver exceptional experiences Monetize Scale expertise Create your strategy Build & manage worldclass apps Secure and Integrate across open ecosystems

10 10 Open API Initiative - to ensure APIs are open & accessible The Open API Initiative (OAI), a Linux Foundation Collaborative Project Standardize and document the APIs that are driving today s API economy Based upon the widely adopted Swagger for open collaboration and governance via a broad community of vendors and users Vendor-neutral, portable and open specification for providing technical metadata for RESTful APIs

11 11 IBM s own API journey with Watson The Waston that competed on Jeopardy! in 2011 comprised what is now a single API Q&A built on five underlying technologies. Questions & Answers Visual Recognition Machine Learning Natural Language Classifier Question Analysis Language Translation Author Extraction Ontology Analysis Tradeoff Analytics Entity Extraction Decision Support Risk Stratification Image Tagging Policy Identification Video Augmentation Face Detection Statistical Dialog Criteria Classification Fusion Q&A Text Extraction Knowledge Studio Service Knowledge Graph Message Resonance Tone Analyzer Easy Adaptation Emotion Analysis Usage Insights Taxonomy Watson News Speech to Text Answer Generation Concept Tagging Retrieve & Rank Text to Speech Decision Optimization Sentiment Analysis Dialog Concept Insights By the end of 2016, there will be nearly 50 Watson APIs with more added every year. Image Link Extraction Feed Detection Relationship Extraction Concept Expansion Natural Language Feature Engineering Keyword Extraction Personality Insights Language Detection Processing Since then, Watson has grown to a family of 28 APIs. Q&A Qualification Knowledge Canvas Factoid Pipeline Case Evaluation

12 12 API Connect - API lifecycle with Interaction Services Layer Create, run, manage and secure APIs and microservices Simplified discovery of systems of record Create Run Secure Manage Automated API creation Self service access for internal and 3rd party developers Security and governance across the API lifecycle Unified management and administration Hybrid cloud deployment flexibility

13 13 Clients are unlocking the real power of the API economy Creating and exposing APIs to generate revenue streams and onboard new partners Offering 3rd party merchants secure standards-based access to key business services as APIs, with a self-service experience Create Run Secure Manage Growing foreign exchange business with digital banking services to business partners Collecting data from connected cars, analyzing, filtering, aggregating and monetizing the data

14 14 API Connect grows with business needs Pay only for what you need: Subscription (API calls/month, unlimited PVUs) Perpetual (per PVU, unlimited API calls) Deploy where it s most convenient for you: Deploy on IBM Bluemix Deploy to 3rd party clouds Deploy on-premises Enterprise For cross-organization projects Professional For single API projects Essentials Free for developers

15 15 Partner with IBM to master the API economy Strategy expertise Guiding our client s every step on their journey in the API economy with a proven maturity model Cognitive computing capabilities Accelerating the API and app development process Industry and open community leadership Providing open platforms to build, manage, secure and integrate APIs Hybrid Integration Foundation The most integrated portfolio of products, services and tools to help our clients achieve all the benefits of the API economy

16 16 Useful resources to help you through the API economy journey Learn about API economy Ibm.com/apieconomy Try & Buy - with free trial ibm.biz/apimsaas Join @apiharmony Demos & videos youtube.com/ibmapimanagement Blogs & user community developer.ibm.com/apimanagement Self assessment tool asat.mybluemix.net

17 17 Thank