Matching your API Business Model to your Company Strategy
Paul GreenwellPlatform Strategy Manager, MYOB
10.02.2015
Why do we want to have an API?
API Objectives
1. Increase number of Online subscriptions
2. Increase retention of Online subscriptions
3. Develop new market opportunities through increased innovation
Who is the customer?
What is the service or products we are offering?
APIs only succeed if they offer something of “value”
Service Data Function
Audience Marketplace Access
Service Data Function
Audience Marketplace Access
APIs only succeed if they offer something of “value”
What are the revenue sources from the API program?
API revenue models
Primary focus of developer program(↑ Subscriptions, ↑ Retention)
AP
I
User pays
Subscription (Content or Service)
Transaction costs (value based)
Developer pays
Subscription (Content or Service)
Transaction costs
Access to market
Pay for add-on Products & services
Business pays
Referral/Sales
Transaction revenue share
3rd party paysAccess to
market/data
Future: i.e. payments, bank feeds
Does not support program goals & different competitive environment.
Bundling developer solutions
Product entitlements, support, events & marketing
Pay for partner referrals
Future: i.e. 3rd party APIs like logistics
Future: i.e. consolidated / big data
Developer Program
Does not support program goals & different competitive environment.
Why?Who? What?
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Acknowledgements and Inspiration
• Mashery strategy services, Devon Biondi & Chuck Freeman
• “API Business Models, 20 models in 20 minutes” John Musser, Programmable Webhttp://www.slideshare.net/jmusser/j-musser-apibizmodels2013
• “Why you probably don’t need an API strategy” Daniel Jacobson, Netflixhttp://thenextweb.com/entrepreneur/2013/09/15/why-you-probably-dont-need-an-api-strategy/
• “API Monetization” Kin Lane, API Evangelisthttp://monetization.apievangelist.com/
• “Winning in the API Economy” Steven Willmott & Guillaume Balas, 3scalewww.3scale.net/wp.../Winning-in-the-API-Economy-eBook-3scale.pdf
• “The API-Driven Business Model” 2013 IBM Corporationhttp://www.slideshare.net/ibmapimgmt/the-api-driven-business-model
• “Measuring the Economic Impact of the Sharing Economy” Tim O’Reilly, O’Reilly Media http://www.slideshare.net/timoreilly/measuring-the-economic-impact-of-the-sharing-economy