A Fine Balance
@mitraman
Ronnie MitraDirector of DesignAPI Academy
The History of USB
yum9me on flickr.com
William Warby on flickr.com
standardization
increases compatibilityincreases interoperability
increases safety, repeatability and quality
hinders Innovation
TechStage on flickr.com
Innovation vs StandardizationInnovators vs Standard Bearers
gov.uk
gov.uk
“Standardization does constrain activities but in doing so creates an infrastructure for subsequent innovation.”
gov.uk
“Compatibility or interface standards help to expand market opportunities because they help to increase network effects (or externalities).”
platforms
capability
providerexperienc
euser
One provider, one UX
capability
providerexperienc
euser
One platform, many UX providers
experience
experience
plat
form
platform standardization
may not be ideal for leaders
should help the consumer andthe market
unbundling
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
“Interaction costs represent the money and time that are expended whenever people and companies exchange goods, services, or ideas.”
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
“Taken together, interaction costs determine the way companies organize themselves and the way they form relationships with other parties.”
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporationJohn HagelMarc SingerUnbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
Under the pressures of deregulation, global competition, and advancing technology, a number of industries are already fracturing along the fault lines of customer relationship management, product innovation, and infrastructure management.
“
”
capability
providerexperienc
euser
experience
experience
plat
form
CRMBusiness
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?Option 1: Compete with the UX Providers
capability
providerexperienc
euser
plat
form
experience
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?Option 2: Make the UX providers your new customer
capability
providerexperienc
e
plat
form
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?Option 3: Focus on powering the UX providers with infrastructure capability
capability
providerexperienc
e
plat
form
John Hagel IIIMarc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?Option 4: Focus on providing innovative features to UX providers
capability
providerexperienc
e
plat
form new
capability
API standardization
data modelsoperations
urlmethods
representations
Where is banking headed?Revisit the unbundling story
YOUR BUSINESSYOUR CODEYOUR DATA
YOUR IMPLEMENTATION
YourAPI
GET /accountYourAPI
in a platform worldyour API is your core product
in a standardized API worldyour product is identical to your
competitors
YourAPI
Their
API
GET /account GET /account
in a standardized API worldCapability innovation moves at
thepace of the standard
YourAPI
Their
API
GET /account GET /account
findbalance
experienceuser
plat
form
app development must be optimized
capability
providerplat
form
service providers must befree to innovate
balance developer usabilitywith
service sovereignty
extensible API standards?
allow providers to add customcapabilities
capability
providerexperienceuser
experience
experience
plat
form
CRMBusiness
customcapabilit
yprovider
another option:
standardized messagesstandardized semantics
pick a media type
HAL SIREN CJ JSON-LD UBER
add a profile
HAL SIREN CJ JSON-LD UBER
Banking Semantics
We must work towards an extendable platform
or live at the pace of a standardized API
A Fine Balance
@mitraman
Ronnie MitraDirector of DesignAPI Academy