The Three Pillars of API Strategy

API Days [https://www.apidays.co/] Zurich, Switzerland [https://www.apidays.co/zurich]

Erik Wilde
Good API

May 21, 2019

Creative Commons License [http://creativecommons.org/licenses/by/3.0/]

This work is licensed under a CC
Attribution 3.0 Unported License
[http://creativecommons.org/licenses/by/3.0/]

Contents Erik Wilde : The Three Pillars of API Strategy

Contents

Erik Wilde : The Three Pillars of API Strategy

(2) Summary

Digital Transformation initiatives are ubiquitous these days, and yet the success rate of these initiatives is relatively low. In this presentation we look at digital transformation initiatives and API strategies as one essential component. We follow by outlining which aspects API strategies must include to improve their chances of success, and how vision, strategy, and execution must be synchronized. Finally, we follow with a presentation of the three pillars that are necessary for API strategy success: business, organizational, and technology. The overall success of digital transformation is limited by these pillars, and it is essential that for all of these pillars, there are managed initiatives and progress indicators in place.



Introduction

Outline (Introduction)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
Introduction Erik Wilde : The Three Pillars of API Strategy

(4) @dret on Twitter/GitHub

dret

Introduction Erik Wilde : The Three Pillars of API Strategy

(5) About Me



Introduction Erik Wilde : The Three Pillars of API Strategy

(6) Good API [http://www.goodapi.co/]

Good API

Introduction Erik Wilde : The Three Pillars of API Strategy

(7) Continuous API Management (2018)

Continuous API Management: Making the Right Decisions in an Evolving Landscape

One Theory

Outline (One Theory)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
One Theory Erik Wilde : The Three Pillars of API Strategy

(9) The Wonders of APIs

API Cargo Cult

One Theory Erik Wilde : The Three Pillars of API Strategy

(10) Transaction Costs Define Business

A firm is likely therefore to emerge in those cases where a very short term contract would be unsatisfactory. It is obviously of more importance in the case of services than it is in the case of the buying of commodities.
We may sum up this section of the argument by saying that the operation of a market costs something and by forming an organisation and allowing some authority (an entrepreneur) to direct the resources, certain marketing costs are saved. The entrepreneur has to carry out his function at less cost, taking into account the fact that he may get factors of production at a lower price than the market transactions which he supersedes, because it is always possible to revert to the open market if he fails to do this.

R. H. Coase, The Nature of the Firm, Economica 4(16):386-405, November 1937 [https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-0335.1937.tb00002.x]



One Theory Erik Wilde : The Three Pillars of API Strategy

(11) Nature of the API

Anything that has measurable impact on transaction costs (both externally and internally) will have measurable impact on business structure and economics. In order to benefit from this impact, it is necessary that both external and internal business structure and transactions are addressed.
APIs can lead to measurable impact on transaction costs because they decrease coupling between peers, in particular in the case of services. By identifying all transaction interfaces and transforming them to APIs, firms achieve more flexibility to define and change their value chains, making them more adaptable and hence more robust. This API transformation should cover external and internal transactions.


Two Perspectives

Outline (Two Perspectives)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
Two Perspectives Erik Wilde : The Three Pillars of API Strategy

(13) APIs as External Interfaces



Two Perspectives Erik Wilde : The Three Pillars of API Strategy

(14) APIs as Internal Componentization



Three Pillars

Outline (Three Pillars)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
Three Pillars Erik Wilde : The Three Pillars of API Strategy

(16) Business Pillar



Three Pillars Erik Wilde : The Three Pillars of API Strategy

(17) Organizational Pillar

Any organization that designs a system will produce a design whose structure is a copy of the organization's communication structure. [http://www.melconway.com/Home/Conways_Law.html] (Mel Conway [https://en.wikipedia.org/wiki/Melvin_Conway])


Three Pillars Erik Wilde : The Three Pillars of API Strategy

(18) Technology Pillar



Three Pillars Erik Wilde : The Three Pillars of API Strategy

(19) Got Strategy?

API Cookie Cutter

Three Pillars Erik Wilde : The Three Pillars of API Strategy

(20) API Strategy = Pillars × Perspectives

External Internal
Biz
  • API monetization
  • Revenue-supporting APIs
  • Increase speed & feedback
  • Identify & stabilize enablers
  • Design for externalization
  • Increase biz insight with dashboards
Org
  • Focus on documentation/DX
  • Support discovery/self-service
  • Collect DX feedback
  • Products > projects (ownership)
  • Team enablement/support
  • Loose coupling for speed/agility
Tech
  • Tech trends and popularity
  • Invest in onboarding support
  • Secure through platform
  • Loosely coupled implementations
  • Observe patterns and practices
  • Establish C4E for platform/support


From Strategy to Results

Outline (From Strategy to Results)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
From Strategy to Results Erik Wilde : The Three Pillars of API Strategy

(22) API Program



From Strategy to Results Erik Wilde : The Three Pillars of API Strategy

(23) API Transformation: Assessment/Enablement/Coaching

Managing the API Strategy Pillars: Assessment, Enablement, Coaching

From Strategy to Results Erik Wilde : The Three Pillars of API Strategy

(24) Continuous API Management



Conclusions

Outline (Conclusions)

  1. Introduction [4]
  2. One Theory [3]
  3. Two Perspectives [2]
  4. Three Pillars [5]
  5. From Strategy to Results [3]
  6. Conclusions [2]
Conclusions Erik Wilde : The Three Pillars of API Strategy

(26) Bigger Than Tech



Conclusions Erik Wilde : The Three Pillars of API Strategy

(27) Thanks! Q&A

What's Next?

May 21, 2019 API Days [https://www.apidays.co/] Zurich, Switzerland [https://www.apidays.co/zurich]