This document discusses the fundamentals of platform strategy and creating value through APIs. It outlines some common errors when starting platform initiatives, such as trying low-risk peripheral projects or replacing multiple core systems at once. The document recommends identifying true users, focusing on delivering true value through APIs, and sharing the burden of platform development and governance across teams. It provides examples and emphasizes starting with high-value use cases and enabling one API at a time.

1. The Fundamentals of Platform Strategy:
Creating Genuine Value with APIs
Steven Willmott, @njyx, steve@3scale.net
@3scale @RedHatNews

2. Steven Willmott, @njyx, steve@3scale.net
@3scale @RedHatNews

3. 3scale now part of Red Hat Inc. - www.3scale.net

4. apistrat logo.png
http://boston2016.apistrat.com
API Strategy & Practice Conference, Boston MA, 2-4th November
CODE: APIWorld1630, 30% next 2 weeks

5. Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)
Images copyright of the creators

6. Platforms: huge opportunity
for value – and for wasted
resource

7. MISSION CRITICAL
BIG INITIATIVES
GENUINE NEED

8. EXAMPLE:
UBER

9. EXAMPLE:
“APPLE TV-OS READY” IN
2 WEEKS

10. APIS DON’T WORK
APIS ARE NOT USED
TEAM ISN’T
RESOURCED

11. THE VALUE OF PLATFORMS

12. “Jeff Bezos Moment”
(thank you @frankarr)
)

13. Platform Value
• Individual APIs can have tremendous value
• Underpin products, enable new business
channels, provide an abstraction layer
• Core value almost always revolves around:
Agility

14. COMMON ERRORS

15. Common Errors in Platform Beginnings
• Try something peripheral and low risk
• Replace multiple core systems at once
• Have a platform team build everything
• Top down design a uniform approach

16. TIMING & MOTIVATION ARE CRITICAL

17. Best time to begin
• When you have one or more driving initiatives
• When IT teams are ready to rethink some
infrastructure
• When the goal is not too abstract

18. THREE PRINCIPLES FOR SUCCESS

19. IDENTIFY YOUR TRUE
USERS
FOCUS ON TRUE
VALUE
SHARE THE BURDEN

20. #1: FOCUS ON TRUE VALUE

22. A Map of Expectations
Expected
Unexpected
DesirableUndesirable
Thor Mitchel, 2014

23. Questions to Ask
• Who is the customer?
• Where is their value?
• If we create this, will you use it?
• What is the complete use case?

24. EXAMPLE:
MAPS CREDIT UNION
Loren Paulson, APIStrat, 2015

25. EXAMPLE:
MID-SIZED ECOMMERCE
COMPANY

26. Key Strategy
Deliver value: one API and one
use-case at a time

27. #2: FIND YOUR TRUE USERS

28. We have great developer
experience … what happened?

29. Warning: Blasphemy Alert

30. Developer Experience is
Overrated

31. Questions to Ask
• When Developer Experience is not enough
• How do the APIs need to be consumed?
• Who else might consume them?
• Where do their effects propagate to?
• What additional value can we add?

32. EXAMPLE:
SIMILAR WEB
Noahm Schwartz, APIStrat, 2015

33. EXAMPLE:
FITBIT
Jeremiah Lee, San Francisco, 2016

34. EXAMPLE:
CRUNCHBASE
Nicolas Greenie, San Francisco, 2015

35. Key Strategy
The API is not the key thing – the
Value is the key thing

36. #3: SHARE THE BURDEN

38. Questions to Ask
• How to split Dev, Ops, Management?
• What do we automate?
• What do we monitor?
• Which APIs do we focus on first?
• How will we manage change?

39. Vicious Circle
Virtuous Cycle

40. Hairy Panic!

41. 1-1 IT
Need for software innovation drives deep integrations
InternalSystems
Applications

42. 1-N IT
Governance and APIs create reusable anchor points

43. N-N IT
Common governance rules can apply to APIs from anywhere

44. Key Strategy
N-N >>>>> 1-N

45. Platform value is “co-creation” of value
between providers and consumers
(buyers & sellers)
(you & partners / customers)
(mode 1 & mode 2)

46. Governance + Support must be Spread
e.g. tools, platforms, guides, design sages

47. BONUS #4: MEASURING IMPACT

48. • Very hard work
• Unglamorous
• It is not a big bang (big bet)
• People get upset at rules and
restrictions
• But … hugely rewarding

49. Recommendation:
Focus on Business(es) enabled (number,
revenue)

50. TAKE AWAYS

51. Your company NEEDS your
platform strategy to succeed

52. Even if you have a “Bezos
Moment” – Keep focused on the
value you are delivering piece by
piece

53. Try to empower both API
creation and usage

54. API Owners Manual
http://www.3scale.net
@njyx @3scale
http://bit.ly/APIOwners

55. Images (Copyright Authors)
• Apple TV Image, Apple.com:
https://support.apple.com/library/content/dam/edam/applecare/images/en_US/appletv/apple-tv-3gen-
home-screen.jpg
• Amazon Echo: Amazon stock marketing image
• Bay Bridge: https://unsplash.com/photos/0iAzHzjeYRk
• Jeff Sheldon https://unsplash.com/photos/o6Y9E-DdG6w
• Taras Perevarukha https://500px.com/photo/215416/-by-taras-perevarukha
• Richard Bland https://500px.com/photo/89775589/coming-for-you-by-richard-
bland?ctx_page=2&from=search&ctx_q=platform&ctx_type=photos&ctx_sort=relevance
• Kaleb Nimz: https://unsplash.com/photos/-5rA4DRrEXU
• Seabags Creative: https://unsplash.com/photos/U3m4_cKbUfc
• Todd Quankenbush https://unsplash.com/photos/IClZBVw5W5A
• Hairy Panic http://theconversation.com/what-is-the-hairy-panic-tumbleweed-that-has-buried-a-small-
australian-city-55074
• Welder: Uğur Gürcüoğlu https://unsplash.com/@sharkdesignstudio?photo=s1M0ncSl9l4
• TrainTracks: Redd Angelo: https://unsplash.com/@reddangelo16?photo=60fa9BMxvpE