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?

$

Paul Greenwell

Platform Strategy Manager, MYOB

paul@greenwell.id.au

@PaulGreenwell

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