Building a Products Portfolio for Real Business Results

Digital Strategy Webcast

Dan Tortorici @dantortorici

Jeremy Anticouni @JeremyAnticouni

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YouTube Slideshare

Social Content Channels

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I Love APIs Conference 2013

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Building a Digital Product Portfolio Introduction

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Powered by Apigee

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•  Digital products •  Business models and monetization •  Digital product design and development •  Final thoughts

Agenda

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IT Architecture

IT Resources Operations Model Operational

Analytics Security & Privacy

Digital Platform

Blueprint Transformations Platform Analytics

Service Level Management

Digital Ecosystem

Recruitment Support Ecosystem Analytics Community

Digital Strategy

Initiative Insights Metrics

Digital Products

Apps Customer Analytics

Business Channel

Digital Success Model

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•  Media •  Mobile Apps •  Tablet Apps •  Next generation devices •  Any device specific to your business

–  Auto dash and telematics

•  Devices and the IOT

Digital products, what are they?

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•  Ability to repurpose and combine existing assets in a new and compelling way –  Extending service

–  Increasing customer interaction

•  Increased synergy with partners to provide products and value beyond enterprise walls

•  Crowd sourced innovation that can deliver products that were previously unimaginable

A new opportunity

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•  For the App user –  Easy to use as dictated by device form factor

–  Provide fast access to useful information and services

–  Provide value relevant to target device

–  Consumer expectations raise the bar

•  For the business –  Extend backoffice, frontoffice, transactional systems in new ways not

previously possible

–  Employ a business model aligned with business goals

–  Achieve ‘impulse interaction’ with customer for greater mindshare

Characteristics of digital products

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The API: Key to unlocking digital business

Seeks the help of a concierge that simplifies access to services

A hotel guest needs access to desired services

Which are available from Service Providers

Dining

Events

Golf An App needs access to

desired services

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Which are available from all kinds of Service Providers

Seeks the help of an API to simplify access to services,

managed by an API Platform

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•  API product –  Treat the same as you would any other software product

–  Design API products for the developers you need to target

–  Design for an ‘Open API’ even though initial use may be internal

•  API team –  Cross functional team that covers all aspects of product lifecycle

–  Business, product management, marketing, IT operations, engineering etc.

The API product and team

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•  Digital products •  Business models and monetization •  Digital product design and development •  Final thoughts

Agenda

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•  Business and IT need to be in alignment with both business and technical visions

•  Business objectives are powerful driver to business model •  Increasing revenue

–  Through imagining existing product in digital world (locators, upsell, cross-sell, distribution partners)

–  New products that leverage existing ones and combine with compelling digital added value (partner synergy, social community)

–  Extending reach to connect with new sources of prospects

Aligning business model with goals

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•  Customer investment –  Increasing customer interaction with additional points of contact

–  Increasing services available to the customer

–  Loyalty programs that leverage social and mobile

•  Internal efficiency and productivity –  Eliminating partner integrations

–  Increasing enterprise agility and flexibility

–  Enabling greater value of company information

Business goals driving digital business

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World Bank: Extending reach

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•  Extending reach and impact through mobile

•  Enabling external innovation with Open API and contests

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OnStar: Increase services available to the customer

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Needed to expand use of OnStar network for greater value beyond existing services offered

•  Partner API enabled RelayRides to offer unique car rental service

•  Partner API also used with B2B Smart Grid electric companies for efficient Chevy Volt charging scheduling

“We feel that opening up our proprietary API to developers will ensure that OnStar continues to keep customers connected in ways they never thought possible..”

- Eric Litt, CIO

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Business models for API monetization

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Free

Revenue Sharing Charging

Fees

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Business models for API monetization

Free

Duration

Quantity

Combination

Fees

One off

Recurring

Revenue Sharing

Fixed Revenue

Share bands

Product specific

Tax model

Group /company

Product specific

Charging

Transaction volume

Custom attribute

Flat rate

Flexible banded

Virtual currency

Group /company

Bundled

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•  Model and monetization are specific to each API product •  Business model

–  Align with business goals which will determine developer community –  If external developers are involved, keep a free API for fast learning –  Business models evolve: Netflix changed to a partner model which

drove client availability •  Monetization

–  Needs to be a win-win for you and your developers –  Often the best strategy is an extension of your current revenue strategy –  Monetizing the API itself not recommended, too much differentiation and

value required

Best practices

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•  Digital products •  Business models and monetization •  Digital product design and development •  Final thoughts

Agenda

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Who are the developers?

App Types Examples

Developers Anywhere (Open API)

Partner Developers (Partner API)

Internal Developers (Internal API)

B2E, S2S B2B, B2C,

B2C

B2C

Who uses the API?

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•  Data is the link across all your touchpoints and should enable consistent service and reflect customer relationship

•  Transactions may be within the App for greater impulse purchases or the App may be used to driver greater sales through normal channels

•  Easy access to service of value is an important hurdle to overcome to keep customers engaged

Design: Data, transaction, access

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•  Apps provide another channel to reinforce brand •  Can help demonstrate the uniqueness of your brand as well •  The digital economy provides many data points to measure:

–  Awareness: Page views and general API traffic –  Registrations: Converting awareness to interest –  Downloads: Product trials and evaluations –  App purchases: Revenue associated with the digital channel

•  API programs and Apps need marketing like any other product

Design: Brand, metrics, marketing

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•  Wireframing & Prototyping –  UX design and validation are critical to the success of an app.

–  Cutting corners here often leads to significantly longer development.

•  Limited Real Estate –  Mobile devices have limited real estate.

–  Ensure that your UI elements are properly sized and have a need to exist.

•  Less Is More –  Complicated interfaces are easy.

–  Crafting a beautiful UI that is intuitive and simple: far more challenging.

Best practices for mobile app design

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•  External Developers •  Streamline the process, if they can’t self-service register they will go

elsewhere •  The ‘Time to First Response’ is critical! •  ‘Learn by trying’ environment simplifies learning •  ‘Free’ access encourages taking the next step

•  Sample code makes it easy to experience success •  Example Apps show functionality in context •  Available docs answer any corner cases •  Access to support eliminates obstacles

Best practices for developers

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•  Digital products •  Business models and monetization •  Digital product design and development •  Final thoughts

Agenda

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•  Digital products enable business solutions for all the classic business challenges

Final thoughts

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•  Digital products enable business opportunity for all the classic business challenges

•  Well designed products enable opportunities unique to the digital economy

Final thoughts

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•  Digital products enable business opportunity for all the classic business challenges

•  Well designed products enable opportunities unique to the digital economy

•  Business models need to fit the characteristics and business goals of the API

Final thoughts

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•  Digital products enable business opportunity for all the classic business challenges

•  Well designed products enable opportunities unique to the digital economy

•  Business models need to fit the characteristics and business goals of the API

•  Design and development best practices provide the foundation for ease of use and customer satisfaction

Final thoughts

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I Love APIs Conference 2013

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Questions

Dan Tortorici @DanTortorici

Jeremy Anticouni @JeremyAnticouni

Thank you

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