Drive Your Enterprise Digital Transformation with an API-Led Strategy Ken Parmelee Business Unit Exec, Interaction Services
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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
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
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
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
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
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
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
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?
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
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
Services and Training Digital Transformation Workshops and Service Engagements Twitter https://www-01.ibm.com/marketing/iwm/iwm/web/signup.do?source=ibm-apimancon @kparmeleetx 12
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
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
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
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
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
Resources Learn more about the API Economy http://www.ibm.com/middleware/integration/en-us/api-economy.html Information and Getting Started with API Connect http://www-03.ibm.com/software/products/en/api-management IBM APIs for Dummies http://ibm.co/1q6vhrx The Power of the API Economy Redbook http://www.redbooks.ibm.com/abstracts/redp5096.html?open JumpStart your APIs consultation https://www-01.ibm.com/marketing/iwm/iwm/web/signup.do?source=ibm-apimancon 18
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
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