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© 2017 by ArtOfArc
ArtOfArc 

The Art of Architecting Your Business & IT
Carsten Sensler, CEO
T:!+49!171!832!4185
M:!cse(at)artofarc(dot)com
AIRBNB, UBER, FACEBOOK ODER YOUTUBE OHNE APIS? –
„GEHT JA MAL GAR NICHT!”
https://www.linkedin.com/in/csensler/
© 2017 by ArtOfArc
ArtOfArc 

The Art of Architecting Your Business & IT
Carsten Sensler, CEO
T:!+49!171!832!4185
M:!cse(at)artofarc(dot)com
AIRBNB, UBER, FACEBOOK ODER YOUTUBE OHNE APIS? –
„GEHT JA MAL GAR NICHT!”
https://www.linkedin.com/in/csensler/
Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc
Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc
Pipe-based Business Models
© 2017 by ArtOfArc
Pipe-based Business Models
TV/
Radio
(traditional
) Education ...
TV/ Radio Education Manufactoring
© 2017 by ArtOfArc
Pipe
Producer Consumer
Product moving
through the pipe
Linear business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
Pipe-based Business Models
© 2017 by ArtOfArc
Platform-based Business Models
© 2017 by ArtOfArc
Source: The Platform Manifesto, Sangeet Paul Choudary, Geoffrey Parker and Marshall Van Alstyne
Platform-based Business Models
© 2017 by ArtOfArc
Udacity AirBnB Youtube ...
Platform-based Business Models
Udacity Airbnb Youtube
© 2017 by ArtOfArc
What Are The Core Capabilities of a
Platform-based Business Model?
Matching Interaction Integration
© 2017 by ArtOfArc
Platform-based Business Models
Platform
Value
Producer Consumer
Dynamic business
PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment,
PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary
© 2017 by ArtOfArc
Super Examples ☺
Apple Google
„App Stores“
© 2017 by ArtOfArc
Pipe- & Platform-based Business on 1 Chart ☺
Pipe Platform
Business Design Flexibilitylow high
high
low
Customer
Insight
Eco-System
Driver
Omni-Channel
Business
Supplier business Modular
Producer
http://sloanreview.mit.edu/article/thriving-in-an-increasingly-digital-ecosystem/
© 2017 by ArtOfArc
Today we Are Talking About...
Pipes & Platforms APIficationAPIs & Digital Enterprise
© 2017 by ArtOfArc
© 2017 by ArtOfArc, Carsten Sensler
An API is a defined business capability designed and implemented
for a broad use in- and outside your companies’ borders.
… pretty close to SOA, isn’t it?
… but…
© 2017 by ArtOfArc
SOA vs. API
Unique to
SOA
Unique to
API
• Efficiency
• Application Integration
• Internal view
• API as a product
• Product LifeCycle Mgt
• External view
▪ Governance
▪ Platform
Strategy
▪ Versioning
▪ ...
© 2017 by ArtOfArc
▪ A API taxonomy supports you in
▪ Designing Business Models
▪ Defining Governance rules and Design Guidelines
▪ Communicating the API strategy
▪ Structuring discussions with all disciplines across all levels
A API taxonomy is THE Critical Success Factor
When Introducing API Management Strategically.
„API as a product“
public private
internalOpen B2BB2C
© 2017 by ArtOfArc
API is Business 

Direct & Indirect Monetization
customer satisfaction, brand
recognition, image, ...
PayPerUse/ Transaction based,
commission model, internal cross chargingdirect monetization
indirect monetization
© 2017 by ArtOfArc
API is Business 

Direct vs. Indirect Monetization
public API private API
PayPerUse/ Transaction based,
commission model, internal cross charging
direct monetization
indirect monetization
customer satisfaction, brand recognition, etc
internal
Open
B2BB2C
© 2017 by ArtOfArc
© 2017 by ArtOfArc, Carsten Sensler
Overview About Different Types of API-
based Business Models.
public API private API
PayPerUse/ Transaction based,
commission model, internal cross charging
direct monetization
indirect monetization
customer satisfaction, brand recognition, etc
BM-Type:
Direct Sales
BM-Type:
Internal
Efficiency
BM-Type:
Reselling
BM-Type:
Shared P&L
BM-Type:
Added Value
BM-Type:
Digital
Enabler
BM-Type:
Free API
BM-Type = Business Model Type
A Standardised Method to Design an API Helps a Lot.
© 2017 by ArtOfArc
API Business Design Canvas (providing API only)
API TYPE
COST STRUCTURE REVENUE STREAMS/ CHARGING MODELLS
API Value

PROPOSITION
CUSTOMER SEGMENTSBusiness
Capability
ArtOfArc 2017, Carsten Sensler, Inspired and adopted from Strategyzer.com
KEY PARTNERS KEY ACTIVITIES KEY
Dependencies
Ability to
Execute
Indicator
API Metadata – Titel, Version, Date
KEY RESOURCES
KEY METRICS
API Business Design Canvas (providing API only)
© 2017 by ArtOfArc, Carsten Sensler
„Digitalisation is the new black“ -
Need for Change?
© 2017 by ArtOfArc, Carsten Sensler
Drivers for The Digital Enterprise
Customer
Behaviour/
Expectations
New Enabling
Technologies
External
Market
Force
Adaptable Business Model(s)
Focus on The Critical Success Factors to
Become a Digital Enterprise.
Powerful & Efficient IT
Open For PartnerCustomer Centric
Culture &
Organisation
© 2017 by ArtOfArc
… and APIs?
© 2017 by ArtOfArc
Building Blocks of a Digital Enterprise.
Data Intelligence Plane
Operational PlaneDigital Service Plane
Integration
Plane
External Partner/
APIs
POSAppWebChannels: …
Party Engagement Plane
3rd party/
Social Media
© 2017 by ArtOfArc
External Partner/
APIs
Data Intelligence Plane
POSAppWebChannels: …
Operational PlaneDigital Service Plane
Party Engagement Plane
3rd party/
Social Media
Integration
Plane
API
Mgt.
… APIs are the Glue.
© 2017 by ArtOfArc
© 2017 by ArtOfArc, Carsten Sensler
Today we Are Talking About...
Pipes & Platforms APIficationAPI & Digital Era
APIfication is the systematic
approach to put a API First
approach into real-life.
© 2017 by ArtOfArc
… the result is an
API Economy
© 2017 by ArtOfArc
Let’s Put it Together – Pipe/Platform Based
Business And APIfication.
Pipe Plattform
Business Design Flexibilitylow high
high
low
Customer
Insight
Eco-System
DriverOmni-Channel
Business
Supplier Modular
Producer
More like a SOA
approach
API as a means
of integration
Focus on
integrating APIs
Focus on
providing APIs
Defining
standards for
integrating APIs
& providing APIs
Launch Growth
© 2017 by ArtOfArc
Seven Required Enterprise Capabilities For
Implementing Successfully the APIfication.
API Business
Design
API Product
Management
API Design,
Implementation
& Testing
API Platform
API Security &
Privacy
Management
API
Governance
API Metrics &
Measurement
© 2017 by ArtOfArc
Digital Transformation Survey 2017 –
Transformation-Excellence Team
23%

Experts
>1xx
responses
12
countries
77%

Management
61%

large
Enterprises
64%
non IT
36 %
IT
39%
Medium/
small
Enterprises
preview
© 2017 by ArtOfArc
Studie unter (ab Dezember)
http://transformation-excellenc.biz
Key Measurements of Successful Digital
Player in The API Space*.
73%
01
72%
03
82%
04
Marketplaces
and Business
partner
integration are
very important.
Have a
standardized
Integration of
3rd Party
Services
.
Their
operational IT
provides
encapsulated
business
functions
Have highly
automated and
integrated
business
processes
80%
02
*) Digital Transformation Survey 2017, ArtOfArc, Teavaro, THASCO, et al.
preview
© 2017 by ArtOfArc
Studie unter (ab Dezember)
http://transformation-excellenc.biz
Five Selected Best Practices for
Implementing an APIfication.
© 2017 by ArtOfArc
Start with a simple 2x2 grid
to drive strategic discussions
© 2017 by ArtOfArc
1
Start with API First approach
to get speed.
© 2017 by ArtOfArc
2
Look inside-out and outside-in
for designing an API (product)
© 2017 by ArtOfArc
3
Use the API Business Design Canvas
with business & IT experts.
© 2017 by ArtOfArc
4
© 2017 by ArtOfArc
5 Ask me! ☺
DIGITALISIERUNG@FULL SPEED
APIs as Enabler
For Platform-based
Business Models
„Lerne von anderen Branchen, denn genau die Quereinsteiger aus
anderen Bereichen untergraben am Ende etablierte
Geschäftsmodelle.“
(Dr. Steffen Roehn)
Foto,CarstenSensler,Norddeich
THE END!
© 2017 by ArtOfArc
More information
Entwickler Magazin Spezial, API entwickler.press, 2015
Carsten Sensler, Thomas Grimm
Focus: Digital Transformation
Mail:!cse@artofarc.com
Mobile:!+49!171!8324185
Carsten Sensler, CEO ArtOfArc
© 2017 by ArtOfArc
Carsten Sensler ist Mitgründer der ArtOfArc und berät Kunden im Kontext ihrer Transformation in
den verschiedensten Dimensionen und Ausprägungen. Davor war Carsten bis Ende 2013 Angestellter
eines großen Telekommunikationskonzerns. Dort war er als Vice President „Technology, Architecture
and Operation“ Mitgründer eines strategischen Konzerngeschäftsfelds. Vorher arbeitete er in dem
Konzern als Group-Enterprise-Architekt für den CIO. Carsten war für die Ausgestaltung der
Konzernzielarchitektur und deren internationales Alignment verantwortlich, zuvor verantwortete er
innerhalb der Enterprise-Integration die konzernweite Standardisierung einer SOA-Infrastruktur
sowie der entsprechenden SOA Governance. Seine Karriere begann er als Consultant für neue
Technologien. Neben seinen beruflichen Herausforderungen konnte Carsten an der Henley Business
School (UK) erfolgreich den Masterstudiengang in „Enterprise Information Management“
absolvieren. Carsten teilt sehr gerne sein Wissen und seine Erfahrungen mit anderen, indem er
Fachartikel veröffentlicht, auf Konferenzen referiert oder als Gastdozent Lehrveranstaltungen gibt.
T:!+49!171!832!4185
M:!cse(at)artofarc(dot)com
© 2017 by ArtOfArc
https://www.linkedin.com/in/csensler/

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WJAX 2017: APIs als Enabler plattformbasierter Geschäftsmodelle

  • 1. © 2017 by ArtOfArc ArtOfArc 
 The Art of Architecting Your Business & IT Carsten Sensler, CEO T:!+49!171!832!4185 M:!cse(at)artofarc(dot)com AIRBNB, UBER, FACEBOOK ODER YOUTUBE OHNE APIS? – „GEHT JA MAL GAR NICHT!” https://www.linkedin.com/in/csensler/
  • 2.
  • 3. © 2017 by ArtOfArc ArtOfArc 
 The Art of Architecting Your Business & IT Carsten Sensler, CEO T:!+49!171!832!4185 M:!cse(at)artofarc(dot)com AIRBNB, UBER, FACEBOOK ODER YOUTUBE OHNE APIS? – „GEHT JA MAL GAR NICHT!” https://www.linkedin.com/in/csensler/
  • 4.
  • 5. Today we Are Talking About... Pipes & Platforms APIficationAPIs & Digital Enterprise © 2017 by ArtOfArc
  • 6. Today we Are Talking About... Pipes & Platforms APIficationAPIs & Digital Enterprise © 2017 by ArtOfArc
  • 7. Pipe-based Business Models © 2017 by ArtOfArc
  • 8. Pipe-based Business Models TV/ Radio (traditional ) Education ... TV/ Radio Education Manufactoring © 2017 by ArtOfArc
  • 9. Pipe Producer Consumer Product moving through the pipe Linear business PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment, PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary Pipe-based Business Models © 2017 by ArtOfArc
  • 11. Source: The Platform Manifesto, Sangeet Paul Choudary, Geoffrey Parker and Marshall Van Alstyne Platform-based Business Models © 2017 by ArtOfArc
  • 12. Udacity AirBnB Youtube ... Platform-based Business Models Udacity Airbnb Youtube © 2017 by ArtOfArc
  • 13. What Are The Core Capabilities of a Platform-based Business Model? Matching Interaction Integration © 2017 by ArtOfArc
  • 14. Platform-based Business Models Platform Value Producer Consumer Dynamic business PlatformScale:Howanemergingbusinessmodelhelpsstartupsbuildlargeempireswithminimuminvestment, PlatformThinkingLabs;Auflage:FirstEdition(15.September2015),9810967586,SangeetPaulChoudary © 2017 by ArtOfArc
  • 15. Super Examples ☺ Apple Google „App Stores“ © 2017 by ArtOfArc
  • 16. Pipe- & Platform-based Business on 1 Chart ☺ Pipe Platform Business Design Flexibilitylow high high low Customer Insight Eco-System Driver Omni-Channel Business Supplier business Modular Producer http://sloanreview.mit.edu/article/thriving-in-an-increasingly-digital-ecosystem/ © 2017 by ArtOfArc
  • 17. Today we Are Talking About... Pipes & Platforms APIficationAPIs & Digital Enterprise © 2017 by ArtOfArc
  • 18. © 2017 by ArtOfArc, Carsten Sensler An API is a defined business capability designed and implemented for a broad use in- and outside your companies’ borders. … pretty close to SOA, isn’t it?
  • 19. … but… © 2017 by ArtOfArc
  • 20. SOA vs. API Unique to SOA Unique to API • Efficiency • Application Integration • Internal view • API as a product • Product LifeCycle Mgt • External view ▪ Governance ▪ Platform Strategy ▪ Versioning ▪ ... © 2017 by ArtOfArc
  • 21. ▪ A API taxonomy supports you in ▪ Designing Business Models ▪ Defining Governance rules and Design Guidelines ▪ Communicating the API strategy ▪ Structuring discussions with all disciplines across all levels A API taxonomy is THE Critical Success Factor When Introducing API Management Strategically. „API as a product“ public private internalOpen B2BB2C © 2017 by ArtOfArc
  • 22. API is Business 
 Direct & Indirect Monetization customer satisfaction, brand recognition, image, ... PayPerUse/ Transaction based, commission model, internal cross chargingdirect monetization indirect monetization © 2017 by ArtOfArc
  • 23. API is Business 
 Direct vs. Indirect Monetization public API private API PayPerUse/ Transaction based, commission model, internal cross charging direct monetization indirect monetization customer satisfaction, brand recognition, etc internal Open B2BB2C © 2017 by ArtOfArc
  • 24. © 2017 by ArtOfArc, Carsten Sensler Overview About Different Types of API- based Business Models. public API private API PayPerUse/ Transaction based, commission model, internal cross charging direct monetization indirect monetization customer satisfaction, brand recognition, etc BM-Type: Direct Sales BM-Type: Internal Efficiency BM-Type: Reselling BM-Type: Shared P&L BM-Type: Added Value BM-Type: Digital Enabler BM-Type: Free API BM-Type = Business Model Type
  • 25. A Standardised Method to Design an API Helps a Lot. © 2017 by ArtOfArc API Business Design Canvas (providing API only)
  • 26. API TYPE COST STRUCTURE REVENUE STREAMS/ CHARGING MODELLS API Value
 PROPOSITION CUSTOMER SEGMENTSBusiness Capability ArtOfArc 2017, Carsten Sensler, Inspired and adopted from Strategyzer.com KEY PARTNERS KEY ACTIVITIES KEY Dependencies Ability to Execute Indicator API Metadata – Titel, Version, Date KEY RESOURCES KEY METRICS API Business Design Canvas (providing API only)
  • 27. © 2017 by ArtOfArc, Carsten Sensler „Digitalisation is the new black“ - Need for Change?
  • 28. © 2017 by ArtOfArc, Carsten Sensler Drivers for The Digital Enterprise Customer Behaviour/ Expectations New Enabling Technologies External Market Force
  • 29. Adaptable Business Model(s) Focus on The Critical Success Factors to Become a Digital Enterprise. Powerful & Efficient IT Open For PartnerCustomer Centric Culture & Organisation © 2017 by ArtOfArc
  • 30. … and APIs? © 2017 by ArtOfArc
  • 31. Building Blocks of a Digital Enterprise. Data Intelligence Plane Operational PlaneDigital Service Plane Integration Plane External Partner/ APIs POSAppWebChannels: … Party Engagement Plane 3rd party/ Social Media © 2017 by ArtOfArc
  • 32. External Partner/ APIs Data Intelligence Plane POSAppWebChannels: … Operational PlaneDigital Service Plane Party Engagement Plane 3rd party/ Social Media Integration Plane API Mgt. … APIs are the Glue. © 2017 by ArtOfArc
  • 33. © 2017 by ArtOfArc, Carsten Sensler Today we Are Talking About... Pipes & Platforms APIficationAPI & Digital Era
  • 34. APIfication is the systematic approach to put a API First approach into real-life. © 2017 by ArtOfArc
  • 35. … the result is an API Economy © 2017 by ArtOfArc
  • 36. Let’s Put it Together – Pipe/Platform Based Business And APIfication. Pipe Plattform Business Design Flexibilitylow high high low Customer Insight Eco-System DriverOmni-Channel Business Supplier Modular Producer More like a SOA approach API as a means of integration Focus on integrating APIs Focus on providing APIs Defining standards for integrating APIs & providing APIs Launch Growth © 2017 by ArtOfArc
  • 37. Seven Required Enterprise Capabilities For Implementing Successfully the APIfication. API Business Design API Product Management API Design, Implementation & Testing API Platform API Security & Privacy Management API Governance API Metrics & Measurement © 2017 by ArtOfArc
  • 38. Digital Transformation Survey 2017 – Transformation-Excellence Team 23%
 Experts >1xx
responses 12 countries 77%
 Management 61%
 large Enterprises 64% non IT 36 % IT 39% Medium/ small Enterprises preview © 2017 by ArtOfArc Studie unter (ab Dezember) http://transformation-excellenc.biz
  • 39. Key Measurements of Successful Digital Player in The API Space*. 73% 01 72% 03 82% 04 Marketplaces and Business partner integration are very important. Have a standardized Integration of 3rd Party Services . Their operational IT provides encapsulated business functions Have highly automated and integrated business processes 80% 02 *) Digital Transformation Survey 2017, ArtOfArc, Teavaro, THASCO, et al. preview © 2017 by ArtOfArc Studie unter (ab Dezember) http://transformation-excellenc.biz
  • 40. Five Selected Best Practices for Implementing an APIfication. © 2017 by ArtOfArc
  • 41. Start with a simple 2x2 grid to drive strategic discussions © 2017 by ArtOfArc 1
  • 42. Start with API First approach to get speed. © 2017 by ArtOfArc 2
  • 43. Look inside-out and outside-in for designing an API (product) © 2017 by ArtOfArc 3
  • 44. Use the API Business Design Canvas with business & IT experts. © 2017 by ArtOfArc 4
  • 45. © 2017 by ArtOfArc 5 Ask me! ☺
  • 46. DIGITALISIERUNG@FULL SPEED APIs as Enabler For Platform-based Business Models
  • 47. „Lerne von anderen Branchen, denn genau die Quereinsteiger aus anderen Bereichen untergraben am Ende etablierte Geschäftsmodelle.“ (Dr. Steffen Roehn) Foto,CarstenSensler,Norddeich THE END! © 2017 by ArtOfArc
  • 48. More information Entwickler Magazin Spezial, API entwickler.press, 2015 Carsten Sensler, Thomas Grimm Focus: Digital Transformation Mail:!cse@artofarc.com Mobile:!+49!171!8324185 Carsten Sensler, CEO ArtOfArc © 2017 by ArtOfArc
  • 49. Carsten Sensler ist Mitgründer der ArtOfArc und berät Kunden im Kontext ihrer Transformation in den verschiedensten Dimensionen und Ausprägungen. Davor war Carsten bis Ende 2013 Angestellter eines großen Telekommunikationskonzerns. Dort war er als Vice President „Technology, Architecture and Operation“ Mitgründer eines strategischen Konzerngeschäftsfelds. Vorher arbeitete er in dem Konzern als Group-Enterprise-Architekt für den CIO. Carsten war für die Ausgestaltung der Konzernzielarchitektur und deren internationales Alignment verantwortlich, zuvor verantwortete er innerhalb der Enterprise-Integration die konzernweite Standardisierung einer SOA-Infrastruktur sowie der entsprechenden SOA Governance. Seine Karriere begann er als Consultant für neue Technologien. Neben seinen beruflichen Herausforderungen konnte Carsten an der Henley Business School (UK) erfolgreich den Masterstudiengang in „Enterprise Information Management“ absolvieren. Carsten teilt sehr gerne sein Wissen und seine Erfahrungen mit anderen, indem er Fachartikel veröffentlicht, auf Konferenzen referiert oder als Gastdozent Lehrveranstaltungen gibt. T:!+49!171!832!4185 M:!cse(at)artofarc(dot)com © 2017 by ArtOfArc https://www.linkedin.com/in/csensler/