CREATE AN API PROGRAM TO DRIVE DIGITAL TRANSFORMATION
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1 CREATE AN API PROGRAM TO DRIVE DIGITAL TRANSFORMATION
2 Digital transformation can make digital predators out of digital prey in the marketplace. Trends analyst Altimeter says these transformations allow companies to realign technology and business models to more effectively engage digital customers at every point in the customer experience lifecycle, which extends from consideration of a product, through its purchase and use, on through product loyalty maintenance. These realigned models take into account digital operational excellence the mastery of tools and analytics that defines a good digital operator as well as digital engagement. When both are aligned, companies can give customers the experiences they want through the digital channels they prefer. Application programming interfaces (APIs) are essential to operational excellence. APIs are sets of routines, protocols, and tools for building software applications. They specify how software components should act and are important elements for programming graphical user interface (GUI) components. APIs: Deliver digitally powered, multi-touchpoint customer experiences Accelerate a company s ability to deliver innovation and digital operational excellence Build revenue, influence, and product value through an extended ecosystem Consequently, APIs are a key driver in successful digital transformations. We help clients implement API management programs and build the starting point for APIs to drive digital transformation. In fact, independent technology and market research company, Forrester, recently recognized us for our leadership in API strategy and delivery.
3 MASSIVE CHANGE IN THE MARKETPLACE Four trends are driving the demand for digital transformation: Rising customer expectations Amazon, Apple, Facebook, and Zappos are among the companies redefining service, speed, and ease of use. Continual connectedness The adoption of digital channels spurs demand for consumer choice, access, and availability. Organizational velocity Technology lowers barriers to entry and increases speed; slow responses invite disruption. Abundance of customer data Competency is essential for turning complex data into business insight. APIs integrate the technology that addresses these trends and enable companies to examine customer behaviors. They dwell in an area between access and service and foster or enhance capabilities that connect the two. Annual spend on API management will quadruple by the end of the decade, from $140 million in 2014 to $660 million in Forrester Research
4 *Examples of companies with publicly available, widely consumed APIs WHERE DO APIs LIVE? APIs come in four basic varieties: Product APIs increase product value by connecting to and expanding ecosystems Open web (public) APIs expand market reach through openness and innovation Business-to-business (B2B) APIs optimize cross-enterprise processes and relationships Internal (private) APIs improve organizational agility, efficiency, and effectiveness APIs support a cohesive digital strategy by constructing digital connections to your business assets or capabilities. APIs are more powerful when thought of as business building blocks that open digital connections to any business asset or capacity Seen from this point of view, APIs enable a new angle for thinking about business strategy. Randy Heffner, Forrester Research
5 CLIENT SUCCESS STORIES A large hypermarket retailer focused on trend-leading merchandise needed an integrated, seamless shopping experience for its customers online and in stores. We delivered an Information-as-a-Service platform based on service-oriented architecture (SOA) principles, a consistent information model, highly scalable performance, and airtight reliability and security. The digital store s platform services and APIs enable new channels for revenue growth and richer customer experiences. A medical supply and devices company needed a central repository of device information, integrated with workflow and electronic medical record systems, to create a complete patient view. We used APIs to build a network of connected devices from surgical tools to internet-connected beds to collect information. This information improves surgery preparation and planning, as well as maintenance and replacement of equipment. APIs also enable real-time risk assessment of patients, with beds that alert staff when patients are in danger of falling out or experience seizures. A chain of pharmacies wanted to build new channels to engage with customers and third-party applications. They implemented APIs to create digital engagement, such as enabling customers to fill prescriptions and search for nearby stores. The APIs also assist with health tracking and photo processing. Thanks to the API program, online interaction and sales improved, visits to brick-and-mortar locations increased, and in-store spending increased six fold. A leading travel cruise line sought an API program to better manage external partners and internal inventory. The program supported customer booking, airline partner integration, inventory management, and resource planning. The APIs reduced overall expenses and helped partners such as Expedia, Orbitz, and airlines assess availability with greater accuracy. Now, customers can book airfare and cruise packages directly from the company s website and the network of shipboard APIs allows real-time inventory management, and resource planning.
6 JUSTIFYING YOUR APIs WHY SHOULD THE BUSINESS SIDE OF COMPANIES CARE ABOUT USING APIs? They make profit possible even if monetization is not the direct business case They make it easier for partners to work with your brands, which aids brand promotion They enable customers, suppliers, and partners to interact with your business in ways they have come to expect They open new channels and create unforeseen opportunities They accelerate time to market, which improves capitalization on right-time customer interactions They improve business engagement and encourage the business side to be more invested in planning and implementing products APIs enable rapid digital business change, broad ecosystem connectivity, and world-class customer engagement. - Randy Heffner, Forrester Research Some big business names rely on revenue driven by APIs: 50% OF SALESFORCE S $6.7 BILLION REVENUE 90% OF EXPEDIA S $6.7 BILLION REVENUE 60% OF EBAY S $8.6 BILLION REVENUE Harvard Business Review, Jan 2015
7 WHY SHOULD THE IT DEPARTMENT CARE ABOUT USING APIs? They promote reuse and agility They introduce process and procedural efficiencies They support a culture of innovation They help with aligning business and IT goals They support frictionless service and operation provisioning They support flexible refactoring of backend services WHAT DO CORPORATE EXECUTIVES NEED TO KNOW ABOUT APIs? They are not experimental They can help internally by forging new revenue opportunities and promoting innovation They open channels to new customers and markets They promote innovation They form a foundation for competitive differentiation They magnify the value of creating new partnerships More than 40% of U.S. enterprises will adopt API management solutions by Forrester Research
8 API CHECKLIST Identify the consumers and know the market API MANAGEMENT REQUIRES INVOLVEMENT ACROSS THE ENTERPRISE Understand the value of APIs and make sure they fit the business model Create a definition of success and decide how it will be measured Appoint a product manager Have a plan for community engagement Carefully consider partnerships if the necessary expertise is not available within the company Make sure lots of people and departments are involved SPEAKING OF INVOLVEMENT APIs forge links between tools to help create a 360-degree view of customers and enhance their experiences. In doing this, they also create a cohesiveness between a company s capabilities. So, it is crucial to have broad-based engagement in API management.
9 BUILDING AN API STRATEGY IMPORTANT QUESTIONS TO GET YOU STARTED Companies should have deep, rich conversations about APIs before investing in them. Start those conversations with these questions. Should APIs be private or public? APIs support the IT organization and expose a company s unique business value whether that s for internal or external development groups. However, an organization s API strategy isn t limited to just one or the other and can publicize some APIs while keeping others private. How do APIs foster innovative development? APIs form the foundation for new and unique external partnerships. They enable companies to support growth, but staff need a platform and space to leverage these tools. What core considerations result in a strong API strategy? Governance should be light and enable agile, streamlined, and efficient processes. Stakeholders across the organization should be aligned and engaged. Both of these elements enable innovation and quick improvements to your API program. What will APIs contribute to the organization? Decide what unique business elements should be shared. APIs offer an opportunity to create an engaging story with external developers and demonstrate value to those outside your business. In that uniqueness, avoid copying competitors efforts, and measure that value. How can we simplify access to business assets using APIs? Ease of access is key to a strong API management program. Two-way communication between your organization and your API users also allows you to create a feedback loop for constant improvement of your APIs. Where should the company be in 10 years? Employees, clients, and partners want sustainable, expandable platforms and relationships that involve cloud, mobile, data management, and related technologies. APIs are keys to unlocking potential in these areas.
10 WHY PERFICIENT? Forrester s latest vendor landscape for API strategy and delivery providers recognized us for our ability to speed the adoption of APIs and their supporting platforms with strategy, architecture, and tactical technology expertise. We partner with top API platform providers and offer programs to help you take the first steps to quickly realizing the potential and ROI of API management.
11 Let Perficient help you on your digital transformation journey: DOWNLOAD GUIDES AND ADDITIONAL DIGITAL TRANSFORMATION RESOURCES AT: perficient.com/digital-transformation
12 ABOUT PERFICIENT Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America. With unparalleled information technology, management consulting and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution and value with outstanding digital experience, business optimization and industry solutions. PERFICIENT.COM/BLOGS TWITTER.COM/PERFICIENT FACEBOOK.COM/PERFICIENT PERFICIENT.COM/GUIDES
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