creating a successful api program to drive digital transformation

API Management: A Driver for

Digital Transformation

facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient

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Perficient is a leading technology and

management consulting firm serving

Global 2000 and enterprise clients

throughout North America.

We deliver digital experience, business optimization

and industry solutions that enable clients to improve

productivity and competitiveness; strengthen

relationships with customers, suppliers, and

partners; and reduce costs.

ABOUT PERFICIENT

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PERFICIENT PROFILEFounded in 1997

Public, NASDAQ: PRFT

2014 revenue $456.7 million

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus,

Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee,

Minneapolis, New York City, Northern California, Oxford (UK), Southern

California, St. Louis, Toronto

Global delivery centers in China and India

>2,600 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

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PERFICIENT’S API PRACTICE

CORE FOCUS AREAS

• Integration and business optimization

• Strategy and architecture that support our creative agency and

user experience

• Envision, design, and build intuitive customer solutions that are

results-focused, digital ready and grounded in architecture to

enable enterprise agility.

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PRESENTERS

Ed MurphyAPI Practice Lead

Perficient

Ed.Murphy@perficient.com

Michael PorterManaging Principal, Strategic Advisors Team

Perficient

@porterondigital

Michael.Porter@perficient.com

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WHAT IS DIGITAL TRANSFORMATION?

“The realignment of, or new investment in,

technology and business models to more

effectively engage digital customers at every

point I the customer experience lifecycle”

~Altimeter

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“All I’m saying is now is the time to develop the technology to deflect an asteroid.”

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FROM DIGITAL PREY TO DIGITAL PREDATOR

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HOTEL CHAINThe Situation

Think of Hilton’s competitive landscape

• Part of the overall travel industry.

• Airlines and rental car companies let you pick your seats

and car

• Part of a very competitive lodging industry

• Lower margins

• Heavily impacted by economic conditions

• Constant and changing competitive differentiators

• Heavenly Bed

• Free Internet

• Many travelers report issues with hotels

• 30% hate waiting for a clean room

• 28% dislike room location

• 20% dislike room features

• 2 out of 3 wish they could choose their room

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HOTEL CHAINThe Differentiator

Recreate the guest experience

• New and better mobile application

• Pick a room the day before

• Add in special room requests

• Your phone if your room key

• Easy check-out from the phone

• With many features available on the web as well

• Rolled out to

• 4,000 properties

• 650,000 rooms

• 40 million Hilton Honors Members

• 80+ countries

• 18,000 team members

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HOW APIs DRIVE DIGITAL TRANSFORMATION• Role of APIs in digital transformation

• Success Stories

• Supporting components and disciplines

• What makes a strong API program

• 6 starting points to build an API program

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THE ROLE OF APIs IN

DIGITAL TRANSFORMATION

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Rising Customer

Expectations

Amazon, Zappos, Facebook,

Apple, et al are redefining

service, speed and ease-of-use

Continual

Connectedness

Adoption of digital channels is

driving demand for choice and

connectedness

Organizational

Velocity

Tech lowers barriers to entry

and increases speed; slow

response invites disruption

Abundance of Customer

Data

Requires competency in turning

complex data into business

insight

THESE TRENDS DRIVE MASSIVE CHANGE

“APIs enable rapid business reconfiguration and a new angle into

digital business strategy” How APIs Reframe Business Strategyby Randy Heffner, June 1, 2015

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WHERE DOES API MANAGEMENT LIVE?

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WHAT DO APIs DO?

• Deliver new digitally powered, multi-touchpoint customer experiences

• Accelerate their ability to deliver innovation and digital operational excellence

• Build new revenue, influence, and product value through an extended ecosystem

Brief: Four Ways APIs Are Changing Your Business

How To Design An API Strategy That Fuels Digital Business

by Martin Gill and Randy Heffner with Zia Daniell Wigder and Alexander Causey;

Forrester, June 2015

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HOW?

• Product APIs increase product value by connecting to and expanding the ecosystem

• Open web (AKA “public”) APIs expand market reach through openness and innovation

• B2B (AKA “partner”) APIs optimize cross-enterprise processes and relationships

• Internal (AKA “private”) APIs improve organizational agility, efficiency, and effectiveness

“Brief: Four Ways APIs Are Changing Your Business”How To Design An API Strategy That Fuels Digital Business

by Martin Gill and Randy Heffner with Zia Daniell Wigder and Alexander CauseyForrester, June 2015

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APIs

Portal

Mobile

CX

Big Data

Analytics

Security

“APIs are more powerful

when thought of as business

building blocks that open

digital connections to any

business asset or capability.

Seen from this point of view,

APIs enable a new angle for

thinking about business

strategy.”

How APIs Reframe Business Strategy, June 2015

APIs SUPPORT A COHESIVE DIGITAL STRATEGY

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SUCCESS STORIES

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Hypermarket retailer drives

multichannel growth and customer

retention with SOA and API solutions A large, hypermarket retailer with a focus on

fashionable, upscale, trend-forward merchandise

needed an integrated, seamless shopping

experience for consumers online and in stores.

Perficient built an Information-as-a-Service platform,

built on service-oriented architectural principles with

special attention to a consistent information model,

highly scalable performance, and airtight reliability

and security. The digital store platform services and

APIs enable new channels for revenue growth

and richer experiences for retention of existing

customers. To date, the program is enabling 200

unique applications with nearly 40 APIs and 800

methods or data calls.

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Medical supply company integrates

surgical equipment to help reduce riskAPIs integrated surgical equipment to send

information to a central repository. Information is

used for surgery preparation and planning as well

as maintenance/replacement of equipment based

on usage.

APIs enable real-time risk fall assessment on this

company’s internet enabled beds alerting nurses of

patients falling out of bed or experiencing seizures.

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Prescription API enables consumers to

refill prescriptions at the nearest storeOther APIs - photo processing capabilities, health

tracker, etc. – also directly engage the customer in

creative ways. The API program contributed to 6X

increase in in-store customer spending.

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Leading travel cruise liner enables

real time inventory management

with APIsThe leading travel cruise liner uses several APIs

to support booking, airline partner integration,

inventory management and resource planning.

These APIs reduce overall expense and helps

their partners such as Expedia or Orbitz and

airlines to be better supported. The Integration

API enables the cruise line to integrate with

airline partners to allow customers booking air-

fare/cruise packages from their website. Ship

APIs allow real time inventory management and

proper resource planning.

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KICK THE TIRES

“What If”: Kicking the Tires and Lighting the Fires

A nationwide car repair center keeps computerized

records on all cars that come in for repair. The

company decides that they can expose some of this

data they maintain normally via APIs and potentially

create a new revenue channel. They use their data

warehouse and a newly branded “KTT Rating” on cars

detailing the problems they’ve encountered, the cost of

repairs, etc. of the makes and models of the cars that

come into their shops.

The company creates an API and an app and then the

API begins to be used by various vehicle sites to show

the KTT rating.

01

01

010

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API API API

KickTheTires.com

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Marketing ITDevelopers

CONSUMER

WHO CARES?

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THE BUSINESS CASE

• APIs make money even if monetization is not the direct business case

• APIs make it easier for partners to work with your brands and this aids brand promotion

• APIs enable ways for your customers, suppliers, and partners to interact with your business in ways

they’ve come to expect

• APIs open up channels and opportunities that you might not even know existed

• Faster time-to-market helps capitalize on “right time” customer interactions

• Business is more engaged and invested in the planning and implement ion of your API products

Your APIs are a product of your business. Unlike SOA the ROI is more direct. SOA is about saving

money, APIs are about making money.

Why should business care? Isn’t this an IT thing?

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THE IT CASE

• APIs promote reuse and agility

• APIs helps with process and procedural efficiencies

• APIs provide support for a culture of innovation

• APIs help align business and IT goals

• Support frictionless service and operation provisioning

• Support flexible refactoring of backend services

Plain and simple: API Management is not SOA. API Management is an extension of SOA.

Why would IT want this? Isn’t this just SOA all over again?

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WHAT DOES THE C-SUITE WANT TO KNOW?

• Netflix is able to stream to over 200 different device types thanks to its API.

(Your partners will love you.)

• 60% of eBay’s listings are done through their API.

(Developers will love you.)

• Twitter receives over 13 billion API calls daily.

(There are no limits.)

• And all this will contribute to the bottom line.

The Business of APIs: What Product Managers Need to Plan For http://techproductmanagement.com/the-business-of-apis-what-product-managers-need-to-plan-for/

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WHAT DOES THE C-SUITE NEED TO KNOW?

• APIs are not experimental

• APIs can help internally too (this is considered by some to be the biggest use case)

• APIs create channels to new customers and markets

• APIs promote innovation

• An API strategy provides a foundation for competitive differentiation

• Partnering sometimes more sense than building in this space (as with all things)

Customer expectations have changed.

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WHAT MAKES A STRONG

API PROGRAM?

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YOUR CHECKLIST…

Identify your consumer and know your market

Clearly understand its value and make sure it fits your business model

Spell out what “success” means and how will you measure it

Appoint your product manager

Have a plan to engage your community

If you don’t have the expertise in-house, consider your partner wisely

Make sure lots of people are involved

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WHAT’S INVOLVED?

Right Place,Right Time

AccurateCustomer

Information

UnderstandCustomerJourney

CommunityOutreach

Agility andResponsiveness

Provide the Right

Capabilities

AWESOMECUSTOMEREXPERIENCE

CRM

Data MgmtBig Data

Dev PortalsActive Engagement

Integration

APIM

Dev Ops

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Business Strategy

& Design

WHO’S INVOLVED?

API

Strategy

&

Design

Enterprise Architecture

• Business & technology capabilities

• Opportunities

• Strategy

Application Development

• API Design

• Development

• Portfolio Management

Customer Experience

• CX design for omnichannel

• Extended ecosystem experience

eBusiness

• Business Model

• API product ownership

Information gathered from Forrester Research

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6 QUESTIONS TO

KICK-START YOUR API

STRATEGY

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Question #1DO YOU WANT YOUR APIs TO BE PRIVATE OR

PUBLIC?

APIs support both IT organization and exposing

your unique business value.

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Question #2HOW DO APIs FOSTER INNOVATIVE

DEVELOPMENT?

APIs build external partnerships you didn’t

even know existed.

APIs enable your existing staff to support

your future growth.

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Question #3HOW DO YOU MAKE IT EASY FOR USERS TO

ACCESS YOUR BUSINESS ASSETS AND

CAPABILITIES USING APIs?

Make it “frictionless” to gain access.

Build a community and make sure

communication is a two-way street.

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Question #4WHAT ARE CORE CONSIDERATIONS FOR

A STRONG API STRATEGY?

Governance should be light and enable and

agile process.

Processes should be streamlined and efficient.

Stakeholders across the business should be

aligned and engaged.

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Question #5WHAT WILL THE APIs CONTRIBUTE TO

YOUR ORGANIZATION?

Decide what it is about your business that you

want to share (don’t copy competitors!)

Measure it.

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Question #6WHERE WILL YOU LEAD YOUR BUSINESS

IN THE NEXT 10 YEARS?

Professionals (inside your company and out)

want platforms to build on. They want to be

engaged.

That platform involves cloud, mobile, data

management, and other related technologies.

APIs are the keys to unlocking potential in

these areas.

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QUESTIONS?

Please submit your questions in

the chat box

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• Perficient.com/SocialMedia

• Facebook.com/Perficient

• Twitter.com/PRFT_Transform

• Blogs.perficient.com/digitaltransformation/

Registration Coming Soon…

Extending Digital Transformation Across the Enterprise

Thursday, November 19 | 1:00 PM CT

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Insights to Identifying and

Executing a Successful API

Strategy

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