Drive Your Enterprise Digital Transformation with an API-Led Strategy
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1 Drive Your Enterprise Digital Transformation with an API-Led Strategy Ken Parmelee Business Unit Exec, Interaction Services
2 Please Note: IBM s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. 1
3 The Disruption Paradox of Digital Transformation Startups can move faster than and out innovate Large Enterprise, but grow to the point that they then have similar baggage Startup Large Enterprise No legacy systems Many existing systems Cloud first with old interfaces Paygo Primarily on-prem Auto-scaling Multi year contracts Minimum viable Architect for scale product Process Agile Moving towards agile Risk takers Risk averse Enterprises that do not actively move to a digital strategy will lose market 2
4 Digital Strategy will be every company s differentiator By 2016, 30% of businesses will have begun directly or indirectly monetizing their information assets via bartering or selling them outright. By 2020, smart agents will facilitate 40% of mobile interactions, and the postapp era will begin to dominate. 3
5 Traditional Application Architecture Web App Presentation Layer Mobile App Presentation Layer Internal App Presentation Layer Apps communicate over siloed stacks to backends Business Logic Business Logic Business Logic Data mostly internal and controlled Middleware Middleware Middleware App and backend innovation slow and large projects Connectors Webservices Connectors Webservices Connectors Webservices Anything exposed externally required a full integration contract
6 New approach- Leverage capabilities APIs are not just about integration and exposure APIs run as apps in the interaction tier API orchestration enables microservices that work together as small systems Interconnections between APIs, backend systems and clouds create an responsive architecture Things and services now interacting- not always about a user interface Seamless cross-device experience 3rd Party Directions API Telemetry API Notification API Partner Payment API Retail Offers API Ordering System Marketing System IBM Bluemix Cloud Partner Cloud 5
7 Two roads, different strategies B2C Focus: Innovation seizing the opportunity to gain advantage Enabling agility and flexibility Focused on a project level instead of enterprise wide impact Evolving from integration strategy to interaction strategy Well defined business objectives per project Create Secure Run Manage B2E Focus: Siloed services becoming high value assets Push to enable LOBs and partners Focus on performance Reuse, cost reduction Simplification of development and skills Management and Governance IT lead LOB lead
8 Most companies are not ready The primary inhibitor is immature strategy Requires art of the possible thinking Must be driven by combination of data that the company owns, what the company does dayto day and how to leverage for advantage 7
9 Key Questions Innovation questions 1. What is our unique data or knowledge? 2. What are unique processes we have? 3. How can we apply IoT devices? 4. Are there partnerships that would create more value? 5. What change is required? 6. Who can we partner with that has the knowledge/skill to speed time to market? Tactical questions 1. Public or private? 2. What are the existing backends? 3. How are the systems currently exposed? 4. Who is the consumer? 5. What dev skills are needed? 6. Types of apps? 7. What is the value created? 8. Who are the key stakeholders? 9. What tools are needed to deliver? 8
10 Choosing API tools Vendor viability Cost/business model API features and sophistication API creation tooling Developer community Management and security Integration (e.g., back ends) Required architecture Cloud/hosting options Skills and sourcing Partners and ecosystem Support and training capability Alignment with your vision Key questions to accelerate the selection process Any non-negotiable requirements? e.g., skills, existing providers, etc. What's the API life span? How volatile are the requirements? How much is it worth spending? What will motivate a developer to use the API or my service? How strategic is the application?
11 IBM API Connect: Simplified & Comprehensive API foundation What is API Connect? An integrated creation, runtime, management, and security foundation for enterprise grade API s and Microservices to power modern digital applications What does API Connect provide? Automated, visual and coding options for creating APIs Node.js and Java support for creating Microservices Integrated enterprise grade clustering, management and security for Node.js and Java Access control over API s, API Plans and API Products Advanced API usage analytics Customizable, self service developer portal for publishing APIs Policy enforcement, security and control Create Secure Run Manage
12 IBM API Connect: Simplified & Comprehensive API foundation Client Need: Expand reach and revenue in the Digital economy Securely unlock existing IT assets Deliver innovative apps with modern architectures IBM Offers: An API foundation to Create, Run, Manage & Secure new or existing APIs and Microservices in a hybrid deployment with Node.js and Java to power modern digital applications Create Run Client Value: Enable new business models in new ecosystems Realize new ROI via secure reuse of existing IT assets Achieve faster innovation via self-service access to APIs IBM Differentiators: Create & Run with Node.js and Java for an end-toend API lifecycle with market leading gateway Discovery & creation of APIs from existing systems of records Hybrid deployment flexibility Secure Manage
13 Services and Training Digital Transformation Workshops and Service Engagements Twitter 12
14 Getting started with your Interaction Services Strategy Form a team that includes LOB, developers and architects Identify mobile, IoT and partner apps Identify integration and developer efficiencies that APIs can impact Consider how aggressively your organization can make change Form a digital transformation ideation team and investigate data owned, consider data that could be of value and potentials Design processes that will need to change Determine roles and skills needed Define measures of success 13
15 Good Strategy Starts with a Cross-functional Team Business units User representatives IT representatives: - Security - Architecture - Application development - Data management Human resources Legal Compliance Finance Marketing
16 Gotchas Think about potential impacts such as impact to websites earn ad revenue Complexity will doom your APIs If the API will be monetized it must be treated like a product- updated, tested, supported Creating lots of APIs without a plan and an architecture results in an expensive and poorly performing interaction and integration layer Companies that will be most effective in the API space will create syndications of data and partner extensively. 15
17 Business Requirement GoDaddy needed a modern solution for exposing APIs to drive new business and bringing on new partners, a highly important aspect of their overall technical strategy. Solution API Connect, including the StrongLoop LoopBack Framework, and a collaborative partnership provided consistent, modern REST-based APIs for resellers and other GoDaddy partners. Other features such as throttling, authentication, and analytics made StrongLoop the optimal choice for enabling the next generation of GoDaddy APIs. Results We are excited to be collaborating with [IBM] on our Reseller API. Co-developing a solution with [IBM] has allowed us to accelerate the delivery of solutions to our reseller partners and drive revenue growth for them. Our external API is an incredibly important aspect of our overall technical strategy. -- Elissa Murphy, Chief Technology Officer, GoDaddy
18 Leading Global Commercial Bank provides easy & secure access to key financial services Business Challenge Difficult for internal partners and developers to discover & access key financial services Lacked a standard ecosystem to manage internal partners including global credit card companies and merchants No visibility on Service consumption or ability to chargeback Solution IBM API Connect & Datapower Gateway Business Value Offers 3 rd party merchants secure standards based access to key business services as APIs, with a self service experience Provides a private ecosystem for partners and a central repository with usage analytics API platform and hackathons help drive innovation for Mobile application development
19 Resources Learn more about the API Economy Information and Getting Started with API Connect IBM APIs for Dummies The Power of the API Economy Redbook JumpStart your APIs consultation 18
20 To Do Now APIs must create a win-win Developers who leverage your APIs expect ease of use. Identify tools that make creating, managing and documenting use of the API Work with the users- define mobile apps, integrations needed and data opportunities This will require creative thinking and an innovation process Design your API architecture Think forward to internal and external APIs and how the architecture will support developers, partners, IoT and mobile apps Look on this as an opportunity, not a problem Rewards include increased innovation, increased delivery speed and potential for new revenue among other benefits
21 Notices and Disclaimers Copyright 2016 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM. U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM. Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. THIS DOCUMENT IS DISTRIBUTED "AS IS" WITHOUT ANY WARRANTY, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGE ARISING FROM THE USE OF THIS INFORMATION, INCLUDING BUT NOT LIMITED TO, LOSS OF DATA, BUSINESS INTERRUPTION, LOSS OF PROFIT OR LOSS OF OPPORTUNITY. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided. Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice. Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary. References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business. Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation. It is the customer s responsibility to insure its own compliance with legal requirements and to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer s business and any actions the customer may need to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law 20
22 Notices and Disclaimers Con t. Information concerning non-ibm products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-ibm products. Questions on the capabilities of non-ibm products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the ability of any such third-party products to interoperate with IBM s products. IBM EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. The provision of the information contained h erein is not intended to, and does not, grant any right or license under any IBM patents, copyrights, trademarks or other intellectual property right. IBM, the IBM logo, ibm.com, Aspera, Bluemix, Blueworks Live, CICS, Clearcase, Cognos, DOORS, Emptoris, Enterprise Document Management System, FASP, FileNet, Global Business Services, Global Technology Services, IBM ExperienceOne, IBM SmartCloud, IBM Social Business, Information on Demand, ILOG, Maximo, MQIntegrator, MQSeries, Netcool, OMEGAMON, OpenPower, PureAnalytics, PureApplication, purecluster, PureCoverage, PureData, PureExperience, PureFlex, purequery, purescale, PureSystems, QRadar, Rational, Rhapsody, Smarter Commerce, SoDA, SPSS, Sterling Commerce, StoredIQ, Tealeaf, Tivoli, Trusteer, Unica, urban{code}, Watson, WebSphere, Worklight, X-Force and System z Z/OS, are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at: 21
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