Introduction to APIs

William El Kaim
Oct. 2016 - V 2.2
 This Presentation is part of the
Enterprise Architecture Digital Codex

Copyright © William El Kaim 2016 http://www.eacodex.com/ 2

 Plan

API Definition
• From API to Open API
• The Programmable Economy
• The Four Types of Business APIs
• API Business Models
• How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 3

 Business Agility Through API

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 API Definition: Wikipedia

“ A particular set of rules and specifications that a

software program can follow to access and make use of
the services and resources provided by another particular
software program that implements that API.
It serves as an interface between different software
programs and facilitates their interaction, similar to the way
the user interface facilitates interaction between humans
and computers.”
An API is implemented by applications, libraries, and
operating systems to determine their vocabularies and
calling conventions, and is used to access their services.

Copyright © William El Kaim 2016 5

 API Values
In the dot-com era, websites were crucial for companies to reach new customers and grow their businesses

APIs unlock distribution channels by allowing data, content and services to be accessible and usable on any
device, anywhere.

By opening up business assets to other parties, APIs ease considerably partnership process. Potential
partners are able to make use of the API to design new products and services.

Copyright © William El Kaim 2016 6

 Example of an API

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 Example of an API

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 API Typology

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 API Usage

• An API can be seen as

• A technical “plumbing” between dispersed systems
• A Way to feed/extend applications/web sites with added value services and data
• An API is targeted towards DEVELOPPERS or System Integrator

Copyright © William El Kaim 2016 10

 Plan

• API Definition
From API to Open API
• The Programmable Economy
• The Four Types of Business APIs
• API Business Models
• How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 11

 Open API: Why now?

• Information is the #1 asset of business today

• A new generation of business models emerged
• The new golden rule is that those who have (and share) the best information make the
rules.
• Market leadership is now determined by who knows how to proactively handle their
enterprise data and make a compelling offering out of it.
• Data is most valuable when it's open, preferably community-driven.
• One of the most striking lessons of the Web 2.0 era was that the more you open up your
data, the more valuable it gets.
• Organizations with the highest data and network competencies will have the
advantage.
• The ability to get at data, secure it, open it up, govern it, engage partners,
and then use it to drive revenue is key
Copyright © William El Kaim 2016 12
 API Evolved With Internet
From Closed Library To Open API

Copyright © William El Kaim 2016 13

 What is an Open API?

• An open API does not mean free! “Open” Means “As Open as You’d Like”
• An open API means:
• Openly documented
• Available via self-service (i.e. developers can sign up on a website, get an API key, with
no hassle)
• And using open Internet technologies (SOAP, REST, RSS).
• When opening up data through an Open API (whether it is private, partner or
public), the Open API provider does the partnership work once, partners then
need only onboard themselves and use their own resources as often as they
like for marginal additional cost to the provider.
• An open API provider creates the infrastructure and then each partner does the
technical, business and legal work on their end.

Copyright © William El Kaim 2016 14

 Open APIs Are Everywhere
Searching for Open Media & Content SaaS Integration
APIs
• Apis.io
• Api for That
• Mashape
marketplace Social & e-Commerce Others
• Programmable Web

Interest is broad and deep. APIs are currently reshaping the web, and
disrupting some industries: telecoms, payments, etc!

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 Open API Billionaires

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 Open APIs Enable Companies to Grow and
Innovate

By giving access to what they do best and accessing what others do best

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 Open API: Legal Considerations

• Like in any business, platform providers should ensure due diligence on the
legal side of the API.
• Issues like misuse of the API and data stored in the platform by third party providers and
the associated legal ramifications.
• Issues like the contract between the service providers and developers and potential
legal wars associated with it.
• These are some of the legal problems that could spring up while opening up
the API for a platform.

Copyright © William El Kaim 2016 18

 Open API: No Copyright!

• US
• “So long as the specific code used to implement a method is different, anyone is free
under the Copyright Act to write his or her own code to carry out exactly the same
function or specification of any methods used in the Java API. It does not matter that the
declaration or method header lines are identical.”
• EU
• [... the Court holds that neither the functionality of a computer program nor the
programming language and the format of data files used in a computer program in order
to exploit certain of its functions constitute a form of expression. Accordingly, they do not
enjoy copyright protection.]

Copyright © William El Kaim 2016 19

 Plan

• API Definition
• From API to Open API
The Programmable Economy
• The Four Types of Business APIs
• API Business Models
• How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 20

 The Programmable Economy

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 Rise of API Driven Companies

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 Example: Bynd
http://byndlabs.com/get-started/

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 APIs to Help You Grow Your Business

APIs unlock new distribution

channels & enable the
expansion of your business
beyond the limits of your web
site.

API Deployment Focus

38%
51% Multi-
Channel
11%

Source: Dion Hinchcliffe, http://blogs.zdnet.con/Hinchcliffe

Copyright © William El Kaim 2016 24

 APIs Deliver Raw Data, Content and Services

Create New Distribution

Partner Up Build an Ecosystem Power Mobile Apps
Channels

Serve any type of device, Rationalize & Control Decrease your cost of
Protect IPR
software, anywhere access to your resources serving your customer

“Externalize” your R&D. Lower Barriers to Create New Business

Reach More Customers
Foster Innovation Integration Models

Copyright © William El Kaim 2016 25

 Open APIs Create Ecosystems

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 Plan

• API Definition
• From API to Open API
• The Programmable Economy
The Four Types of Business APIs
• API Business Models
• How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 27

 Four Types of Business APIs
Examples

1 The API is the product

2 The API projects the product

3 The API promotes the product

4 The API powers and feeds the product

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 The Four Types of Business APIs
Each type of API has different
potential business value associated
1 with it !
2
3
4

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 The Four Types of Business Apis
Direct Revenues

is the product The only customer experience may be via

the API or via a 3rd party using the API.

projects the product

Billing relationship may be to the end user
or the partner / distributor.
Examples

Whitelabel Channel

“Sell Through” Channel

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 The Four Types of Business Apis
Indirect Revenues

1 2 3 4
Powers and promotes the
The API plays a supporting role – the
Is the Projects the Promotes
feeds the
product product the product
product product product is the main event. The billing
relationship is unlikely to be tied to the API.

feeds the product API ROI needs to be measured by product

metrics.
Examples

“Free” Modality

“Affiliate” Modality

The API as a indirect revenue driver

Copyright © William El Kaim 2016 31

 The API Is the Product
Core Value Is Tied Up In The API

Others

API is Core Value

Direct customer usage

Encourage resellers
API
Ecosystem Build tech knowledge
Strategy
Ex. Enable new services

Brings easy access Encourage 3rd party tools

to complex Telecom
technologies
$ If Core service sees usage growth.

Copyright © William El Kaim 2016 32

 The API Is the Product
Core Value Is Tied Up In The API

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 The API Projects the product
Extends Availability of Functionalities To New Places

Mobile apps
3rd Parties integration
Added utility Others
Added to a product

Cultivate partner ecosystem

Innovation opportunities
API
Ecosystem Build switching costs
Strategy
Ex. Encourage 3rd party tools

Enables new services

1,700+ Apps on
Force.com
50k+ Developers
Increasing customer spend (primary) and
$ If number of customers (secondary) for core
product

Copyright © William El Kaim 2016 34

 The API Projects the product
Extends Availability of Functionalities To New Places

Copyright © William El Kaim 2016 https://developer.sabre.com/ 35

 The API Projects the product
Extends Availability of Functionalities To New Places

Copyright © William El Kaim 2016 https://developer.airfranceklm.com/ 36

 The API Promotes the product
Secondary Function And Indirect Revenue Impact

Secondary (non core)

service Others
Designed to drive
Widget leads/traffic

Distribute “Teaser” information

Brand Diffusion
API Ecosyste
Promote to niches
m
e.g Strategy Cultivate partners

Widgets to Improve partners Impact

Whole sites powered
10’s 1000’s of affiliates

$ If Increasing customer number (primary)

and spend (secondary) on core product

Copyright © William El Kaim 2016 37

 The API Promotes the product
Example: Netflix

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 The API Promotes the product
What if Netflix Did Not Have An API?

Copyright © William El Kaim 2016 39

 The API Powers & Feeds the product
Content acquisition via the API

Others
Content, User
information,
Ratings, comments
Etc. into the service
Leverage social networks
Brand Diffusion
API
Ecosystem Facilitate Access
Strategy
Ex. Virtuous circle data in/out

Improve partners & businesses

13 Billion calls/day on API
Impact
>75% of traffic by API
250,000 Apps (probably less
now…)
$ If when UGC (user generated content)
brings appreciable value to the central
product

Copyright © William El Kaim 2016 40

 Plan

• API Definition
• From API to Open API
• The Programmable Economy
• The Four Types of Business APIs
API Business Models
• How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 41

 Value Chain has changed …
From Packaged Goods

Producer Retail Store Consumer

To Internet Services

Provider Developer App Consumer

Copyright © William El Kaim 2016 Source - Sam Ramji - VP Strategy, Apigee 42

 Value Chain has changed …

Copyright © William El Kaim 2016 43

 Business model has changed
… Requiring More Business Agility
• The new Internet is full of extraordinary companies that looked at the market
from a different angle and created entirely new approaches to the changing
Web.
• Zynga, Amazon, Netflix, Facebook and 1-800-Flowers.com have all seen and seized the
massive opportunity of a new Internet driven by social networks, applications and mobile
devices.
• Paradoxically, succeeding in the new Web doesn't mean changing
everything.
• Find ways to reinvent existing capabilities and systems for the new market of influence
and commerce, tapping into existing assets to create new business models and profit
streams.
• How? By leveraging open APIs to bring products and services to the multichannel Web.

Copyright © William El Kaim 2016 44

 Implementing The Vision ...
API enables Disintermediation …
 Shift from Direct (buy from manufacturers)
From Selling in …

 To Indirect (buy from retailers/middlemen)

To Selling Through …

 APIs are how people get to your business.

Source - Sam Ramji - VP Strategy, Apigee

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 API Represents a Shift In Traditional Business Models

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 API Business Models

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Source: John Musser 47
 API Business Models: Free

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 Developer Pays

Copyright © William El Kaim 2016

Source: John Musser 49
 Developer Pays: Pay as you Go

• Twilio
• Text messages sent via an
API are billed at $0.01 per
message

• Rome2Rio
• Each search API call cost
$0,2

Copyright © William El Kaim 2016 50

 Developer Pays: Tiered Pricing

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 Developer Pays: Tiered Pricing

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 Developer Pays: Freemium

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 Developer Pays: Unit Based Pricing

https://developer.salesforce.com/fr/

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 Developer Pays: Transaction Fee

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 Developer Gets Paid

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Source: John Musser 56
 Developer Gets Paid: Cost Per Action (CPA)

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 Developer Gets Paid: Cost Per Click
Example: Expedia (CPC)

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 Developer Gets Paid
Example: Room77 Uses Expedia API (CPC)

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 Developer Gets Paid
Example: API Value for Expedia (CPC)

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 Developer Gets Paid
Example: Google AdSense (CPC)

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 Developer Gets Paid
Recurring Revenue Share

Recurring revenue every month as long as subscribers recruited by you remains

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 Indirect Revenues

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 Indirect Revenues

Copyright © William El Kaim 2016 64

 What API(s) for my Business Model?

• Key questions to define the value

• What are my core assets?
• Who will use my API(s) and for what purpose?
• How will I make available my API(s)?
• Dos & Don’ts
• Don’t put lipstick on a pig, it will still be a pig…
• Don’t just build it and think they will come…
• It is the organization’s core business which is valuable and the API is the channel into
this.

Copyright © William El Kaim 2016 65

 API Usually Mix Several Business Models

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 Open API Business Models Examples

Bake your business model in your API

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 How to Find the Best Businsess Model?
Use the API Model Canvas

Copyright © William El Kaim 2016 Source: NordicApis 68

 How to Find the Best Businsess Model?
Use the API Model Canvas

Copyright © William El Kaim 2016 Source: 3Scale 69

 Plan

• API Definition
• From API to Open API
• The Programmable Economy
• The Four Types of Business APIs!
• API Business Models
How to Use an API?
• Conclusion
• Resources

Copyright © William El Kaim 2016 70

 Start with a REST client

• Apigee Console
• Insomnia
• Paw (for Mac Only)
• Postman
• Quadrillian
• RestClient.net
• SoapUI
• Tibco ActiveMatrix BusinessWorks V6

Copyright © William El Kaim 2016 71

 Ex: PostMan REST Client

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 Use APITools to See API Calls

https://www.apitools.com/

Copyright © William El Kaim 2016 https://www.apitools.com/ 73

 Use TemBoo to get client code

Copyright © William El Kaim 2016

https://www.temboo.com/ 74
 Lear To code and Go to Hackathons

• Learn how to code with codeAcademy API Track

• You can do it yourself at home:
• Choose an API randomly (via API Randomizer, code here)
• And start coding.
• Some Dedicated sites:
• Hackerleague.org: Power Hackathons for companies trusting Hacker League to handle
hackathon planning and organization.
• Hackathon.io: Join Hackathon.Io To Discover Hackathons Or Create Your Own
• Hackathonhero.com: Directory listing of Hackatons
• Try a Google News Search of past hackathon winners.

Copyright © William El Kaim 2016 75

 Plan

• API Definition
• From API to Open API
• The Programmable Economy
• The Four Types of Business APIs!
• API Business Models
• How to Use an API?
Conclusion
• Resources

Copyright © William El Kaim 2016 76

 Open API Is Key For Your Business!

• The Web has reinvented itself

• Succeeding means thinking differently about how to innovate quickly,
cheaply and with existing resources.
• The winners will be those who can reach the mobile and application-driven
Web with open APIs

Copyright © William El Kaim 2016 Source - Sam Ramji - VP Strategy, Apigee 77

 An API modifies the demand/supply pattern

• From
• Companies providing APIs to access their business are the supply
• Developers who build against those APIs are the demand
• Not this way anymore
• To
• Companies providing APIs are the demand
• They demand developers’ attention and adoption
• Developers building with APIs are the supply
• They supply innovation and adaptation
• Developers now sit between you and your customers
• They are like the retail store in the value chain

Copyright © William El Kaim 2016 Source - Sam Ramji - VP Strategy, Apigee 78

 What / Who / How …

Copyright © William El Kaim 2016 79

 Dos & Don’ts: Tips To Avoid Pitfalls

• Define revenue value chain

• Deploy "sense and respond" and innovation toolkits rather than applications with fixed
functionality
• Propose several business models
• Adapted for multiple distribution channels
• Think DATA (Stop thinking Application/IT product)
• Adopt a flow based vision where real time data is valorised
• Implement Open API
• Invest on Business Analysis for finding the most valuable travel services to offer /build.
• Enhance User Experience
• Let users select their best in class solutions for each delivery channel

Copyright © William El Kaim 2016 80

 Plan

• API Definition
• From API to Open API
• The Programmable Economy
• The Four Types of Business APIs!
• API Business Models
• How to Use an API?
• Conclusion
Resources

Copyright © William El Kaim 2016 81

 This Presentation Was Built From Great
Presentations and Resources
• 3scale
• “What is an API?” (Download PDF).
• “The API Economy: API Provider Perspective”, Steven Willmott, EIC 2012/ Munich,
Germany (Slideshare)
• “APIs for Biz Dev 2.0: Which Business Model?”, Guillaume Balas (Slideshare)
• “Winning in the API Economy. Using Software and APIs to Transform your Business, …”
(Download)
• “How APIs are changing Application Development”, Steven Willmott (Slideshare)
• “The API- & APP-ification of the Web”, Steven Willmott (Slideshare)
• API Evangelist
• Roundup of 20 API Service Providers in 2012
• If you build it they will come (2011)

Copyright © William El Kaim 2016 82

 This Presentation Was Built From Great
Presentations and Resources
• API Commons
• “Bringing api design-out-of-the-shadows-and-into-the-commons” , Kim Lane (Html)
• “Towards an API Commons”, Kin Lane and Steven Willmott, (Slideshare)
• Apigee
• Sam Ramji presentations channel – SlideShare
• White Paper:” Web API Design - Crafting Interfaces that Developers Love”, Brian Mulloy
(Download)
• FaberNovel
• “Six reasons why API are reshaping your business”, November 2012 (SlideShare)
• “Why Should I Care About APIs”, December 2013 (SlideShare)

Copyright © William El Kaim 2016 83

 This Presentation Was Built From Great
Presentations and Resources
• Layer7
• “Webinar: Business ROI for APIs”, March 14th, 2013 (Slideshare)
• “Be My API: How to implement an API strategy …”, Mike Amundsen (Slideshare,
YouTube)
• ProgrammableWeb
• “Open APIs: What’s HOT, What’s NOT”, John Musser (Slideshare)
• “API Business Model, 20 models in 20 minutes”, John Musser, API Strategy Conference,
2013 (Slideshare)
• “What Makes a Great Open API?”, John Musser (Slideshare)
• Adam Duvander Keynote at TNW2012 (Youtube)
• RESTLET
• “Web APIs, the new language frontier”, Jérôme LOUVEL, December 2013 (Slideshare)

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