Sam Ramji - Darwin’s Finches, 20th Century Business, and API's
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Transcript of Sam Ramji - Darwin’s Finches, 20th Century Business, and API's
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Darwins Finches,20th Century Business,
and APIs
Evolve Your Business Model
Sam Ramji @sramjiVP Strategy, Apigee
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DARWINS FINCHES
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These birds
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live in this paradise right here
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so whats the problem?
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The problem is
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theyre on a small island chain
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a long way from anywhere else
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thats a lot ofenvironmental pressure
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so these finches
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are actually terrific competitors
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and their differences
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were defined by this man
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as successful adaptations.
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The ones you dont see today
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had unsuccessful adaptations
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and died out.
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A century after
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a team of scientists identified the mechanism
ofadaptation and evolution
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Twenty years later
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called out the gene
as the atomic unit ofcompetition.
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From the perspective of the gene
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the gene is successful
if the organism that carries it is successful.
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Switching gears
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20th CENTURY
BUSINESS
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In 1910 business was mostly direct
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By the 1930s there was a lot ofcompetition
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But after World War II, there were new
environmental pressures
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Many businesses died out.
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Business went from direct to indirect.
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Those businesses who thrived in this transition
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Shared a set ofsuccessful adaptations
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Special makes for select retailers
Broad consumer marketing and branding
Distribution exclusives in territory and product allocation
Retailer incentives slotting fees, joint marketing, tiered
volume discounts
Consumer incentives coupons, in-store events, limitedtime discounts
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Unified by one idea
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It was not just about selling in
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It was not just about selling in
It was about selling through.
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From the perspective of the business
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The business is successful
If the retailer that it sells through is successful.
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The real world went from direct to indirect
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It went beyond the corner store.
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The web world is going from direct to indirect.
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It is going beyond the browser.
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That takes us to
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APIs
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Robert ScobleAuthor of tech blog Scobleizer
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Why?
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Because in a web beyond the browser
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APIs are how people get to your business.
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You need to see things
from the perspective of the gene.
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The gene is successful
if the organism that carries it is successful.
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You need to see your business
from the perspective of the API.
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The API is successful if
the application that carries it is successful.
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Successful applications will use many
different APIs.
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and they will carry those APIs everywhere
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z
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taking your business with them.
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For the successful companies, 80% of traffic will
be coming from beyond the browser.
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Everyone else will have to play in the world
that the winners make.
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One last thought on evolution
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Adaptive Radiation in Twitter Applications
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Classifications byOneforty.com
Visualization bySonoa
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CURRENT
ENVIRONMENTAL
PRESSURES
bil
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Mobile
Social Cloud
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They can be independent or they can support
each other.
It is up to you to decide if theres harmony.
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Y b ll d t d t
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Your company may be very well adapted to
the web, but is it adapted to mobile?
Mobile devices have limited storage and
processing and need to be tied in to real-
world and social dimensions.
They use APIs to get at location, maps,
social graphs, and events.
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Social sites are data services with a critical mass
of users, where each new user makes the
service better.
You cant build a new Facebook or Twitter.
But you need to access them, so you use their
APIs.
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Cloud computing is not about Amazon.
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Cloud computing is not about Rackspace.
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Cloud computing is not about Microsoft.
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Cloud computing is not about Google.
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Cloud computing is about
how you reach your customers
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Weve gone from libraries to APIs
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We ve gone from libraries to APIs.
In a cloud computing world people access
library-like functionality via an API.
These services are the unit of programming.
Make your API useful and it will be carried to
customers youve never met.
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CHANGE AGENCY
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I know you get all this already
But how do you get your colleagues to join
you in the journey to APIs?
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Whats so damn wrong with the current model?
I like it and its working for me.
Plus, I understand it.
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Actually, its not working.
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Populations, societies, and markets are becoming
more specialized and differentiated.
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Consumer interest groups are fragmented.
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Consumer interest groups are increasingly fragmented.
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Markets are changing so fast that you cant
spend the time to
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market size,
focus group,plan,
develop,
launch,measure and
sustain
because the market niche may be gone or
fundamentally changed
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A rapidly expanding range of computing
platforms are needed to reach consumers.
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Mary Meeker, Morgan Stanley
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This is not a solvable problem nor a winnable game.
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The only way to win is to change the game.
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Thousands of people,
who are not on your payroll,
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who are noton your payroll,
who are intimately part of each of these changing
interest groups and niches,
must be convinced to carry
your productthere for you
in a way that adapts to the dynamic
environment
Thousands of people,
who are noton your payroll,
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y p y ,
who are intimately part of each of these changing
interest groups and niches,
must be convinced to carry
your brandthere for you
in a way that adapts to the dynamic
environment
Thousands of people,
who are noton your payroll,
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y p y ,
who are intimately part of each of these changing
interest groups and niches,
must be convinced to carry
your experience there for you
in a way that adapts to the dynamic
environment
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Its a competition for ideas
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Enable your business to adapt into niches
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Only 1 of 100 will be successful not a
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failure rate that you can withstand and
remain in business.
You need to encourage that to happen
out there where the cost structures andspeed of business are synchronized.
Be ready to reward or acquire the winners.
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SUCCESSFUL
API ADAPTATIONS
Realizing that developers are your channel
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Being recombinant and easily mixed
Unlocking your legacy data into open APIs
Driving new data into your system via open APIs
Supporting your application ecosystem
developers
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Why do you need to attract developers?
developers
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Because applications are the fastestgrowing and fastest changing organisms in
this environment
and theyre built by developers
developers
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Unsuccessful adaptations to this world are based
on the following conventional wisdom
developers
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Companies providing APIs to access their business
are the supply
Developers who build against those APIs
are the demand
developers
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This is exactly wrong.
developers
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Companies providing APIs are the demand
developers
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Companies providing APIs are the demand
They demand developers attention and adoption
developers
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Developers building with APIs are the supply
developers
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Developers building with APIs are the supply
They supply innovation and adaptation
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developers
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Developers now sit between you and your customers
They are like the retail store in the value chain
Packaged Goods
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ConsumerRetail StoreProducer
Internet Services
ConsumerDeveloperProvider App
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SUCCESSFUL
API ADAPTATIONS
Two rules for marketing your API to developers
recombinant
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Two rules for marketing your API to developers
1. Dont assume that developers are clamoring for your API.
2. Dont assume that developers will want to use your API alone.
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recombinant
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Be robust so that your API is recombinant
Thi i ll b h
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Michael HartDirector of Engineering, Netflix
This is all about the customers.
We allow developers to integrate the Netflix service into apps
with full control over the user experience.
So we are able to outsource innovation and thats a greatthing.
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Visualization byApigee
recombinant
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Rules for robustness
REST first, everything else second
Nothing weird: straight XML straight JSON
recombinant
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Nothing weird: straight XML, straight JSON
Keep responses small
Keep calls granular
No custom security schemes: use OAuth
Dont make the developer deal with PCI-compliance
Sample code wins every timeYoull get it wrong the first time so listen well
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recombinant
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Be remixable so that your API is recombinant
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recombinant
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Rules for miscibility
Observe your adjacencies
recombinant
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Dont break social sign-on
Dont require session management
Provide sample code for expected remixesReward creativity through promotion
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SUCCESSFUL
API ADAPTATIONS
legacy data
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Unlocking your legacy data into open APIs
legacy data
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Open APIs for your legacy data means innovation
can happen out there
Product Catalogs that integrate with your backend
Customer Preferences based on your interactions
legacy data
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f y
Historical Purchases through your existing sites
Logistics Information about your supply chain
Seasonalityon purchases of goods and services
Location of historical purchases
User Recommendations of good and servicesService Providers that you have transacted with
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SUCCESSFUL
API ADAPTATIONS
new data
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Driving new data into your system via open APIs
Data is the new business model
new data
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Data is the new business model
Each new user makes the service better
Use the tail to feed the head
GameSpy Open
new data
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One single API for the head and the tailTail policy: limited access for free
Head policy: unlimited access for fee
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Data from Programmable Web
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Data from Wikipedia
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SUCCESSFUL
API ADAPTATIONS
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Helping your finches succeed
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Help your application ecosystem succeed
An app is only as strong as its weakest API call
application ecosystem
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Your API is a product like any other product
Design for scale of business processes
There is a huge gap between a feature and a
business
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John MusserFounder, Programmable Web
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Programmable Web
application ecosystem
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It is not just about selling in
It is about selling through.
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InCLOSING
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John MusserFounder, Programmable Web
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Dion HinchcliffeDachis Group
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THANK YOU
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Questions and ideas to:
@sramji
Biography
As you have already figured out, the name of the blog is in honor of Richard Feynman, my
personal hero. Physics has the same basic means of inquiry that we need to use in business
and has rich metaphors for thinking about markets. New markets are baby universes - they
are born, expand, merge, and collapse. Exploring the physics of these phenomena means
asking dumb questions and being prepared to be surprised by the answers - and applying this
to the multiverse of software startups and open source technology is what this blog is all
about.
I've been in five startups (NetStudio, Brightware, WebHarbor, Xoriant, and Ofoto) and four
established companies (Broderbund, Fair Isaac, BEA Systems, and Microsoft). I now work for
Apigee as VP of Strategy.
Before joining Apigee in September 2009, I worked at Microsoft from 2004-2009 where I led
worldwide Open Source and Linux Strategy I worked at BEA Systems before that from
Sam Ramji http://samus.typepad.com/about.html
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worldwide Open Source and Linux Strategy. I worked at BEA Systems before that from
2002-2004 in the WebLogic Integration product unit as Director of Market Development,
focused on technical market strategy under Chet Kapoor and Dave Hinman. Our team grew
revenue for WLI from $20M to $100M in 2 years, and from a Gartner Magic Quadrant "Niche
Player" to "Leader". Prior to that I was Director of Engineering at Ofoto before, during, and
briefly after the Kodak acquisition.
I had the extraordinary opportunity to stand on the shoulders of giants at UCSD, where I got
my BS in Cognitive Science (AI meets Neurobiology) - Pat Churchland, Don Norman, Edwin
Hutchins, and other greats taught there... a truly amazing experience that has shaped much ofhow I think today.
In real life I'm an avid husband, father of two, mountain biker, guitarist and food-eater - I
appreciate everything from the humble burger to sea-urchin sushi. I live with my wife and
children in my favorite place on earth, Marin County, California.
Interests
guitar, history, cognitive science, philosophy, mountain biking, eating, physics, tennis, coaching
kids' sports
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