mesh the gears: mastering the economics of digital leverage

©2016 Apigee Corp. All Rights Reserved.

Mesh the Gears or be Ground Between Them Mastering the Economics of Digital LeverageBryan Kirschner@bryan_kirschner

©2016 Apigee Corp. All Rights Reserved.

Question?

Text @QQQ to 35134You can submit up to 140 characters(volume off, please…!)

(standard rates apply)

3

©2016 Apigee Corp. All Rights Reserved.

“The future is already here — it's just not very evenly

distributed.”- William Gibson

4

©2016 Apigee Corp. All Rights Reserved. 5

2013

©2016 Apigee Corp. All Rights Reserved. 6

2013 2016

©2016 Apigee Corp. All Rights Reserved. 7

©2016 Apigee Corp. All Rights Reserved. 8

©2016 Apigee Corp. All Rights Reserved. 9

©2016 Apigee Corp. All Rights Reserved.

APIs unlocked the economics of digital leverage

10

Question?

Text @QQQ to 35134You can submit up to 140 characters

(volume off, please…!)

(standard rates apply)

©2016 Apigee Corp. All Rights Reserved. 11

©2016 Apigee Corp. All Rights Reserved. 12

©2016 Apigee Corp. All Rights Reserved. 13

©2016 Apigee Corp. All Rights Reserved. 14

©2016 Apigee Corp. All Rights Reserved. 15

©2016 Apigee Corp. All Rights Reserved. 16

perfectly replicatedan infinite # of timesat zero marginal cost

Source: Iansiti & Lakhani, Digital Ubiquity: How Connections, Sensors, and Data Are Revolutionizing BusinessHarvard Business Review, November 2014

©2016 Apigee Corp. All Rights Reserved. 17

©2016 Apigee Corp. All Rights Reserved. 18

©2016 Apigee Corp. All Rights Reserved. 19Source: John Deere

©2016 Apigee Corp. All Rights Reserved. 20

OpportunityUsecreatesvalue

©2016 Apigee Corp. All Rights Reserved. 21

Opportunity

Tools

Usecreatesvalue

Scale on demand

©2016 Apigee Corp. All Rights Reserved. 22

Opportunity

Tools

Know HowUsecreatesvalue

Scale on demand

Sustainableagility at pace

©2016 Apigee Corp. All Rights Reserved.

Opportunity

23

Question?

Text @QQQ to 35134You can submit up to 140 characters

(volume off, please…!)

(standard rates apply)

©2016 Apigee Corp. All Rights Reserved. 24Source: The Center for Global Enterprise

©2016 Apigee Corp. All Rights Reserved. 25

$4.3T

Source: The Center for Global Enterprise

©2016 Apigee Corp. All Rights Reserved. 26

$4.3T The Uber of…

Source: The Center for Global Enterprise

©2016 Apigee Corp. All Rights Reserved. 27

Putting an API around our stores

A single, universal way to measure physical movement

The Pandora of food

The operating system for live entertainment

The platform for the Industrial Internet

$4.3T

Source: The Center for Global Enterprise

©2016 Apigee Corp. All Rights Reserved. 28

Use creates value through network effects

Data

©2016 Apigee Corp. All Rights Reserved. 29

Use creates value through network effects

Data Interaction

©2016 Apigee Corp. All Rights Reserved. 30

Use creates value through network effects

Data Interaction Transaction

©2016 Apigee Corp. All Rights Reserved.

Use creates value through network effects

31

Opportunity

©2016 Apigee Corp. All Rights Reserved.

Use creates value through network effects

32

Opportunity

!Core competency of digital disruptors

©2016 Apigee Corp. All Rights Reserved.

Tools

33

Question?

Text @QQQ to 35134You can submit up to 140 characters

(volume off, please…!)

(standard rates apply)

©2016 Apigee Corp. All Rights Reserved. 34

©2016 Apigee Corp. All Rights Reserved. 35

“More and more, companies will fulfill their IT requirements simply by purchasing fee-based 'Web services' from third parties -- similar

to the way they currently buy electric power or telecommunications services.”2003

©2016 Apigee Corp. All Rights Reserved. 36

“…a spokeswoman…said recent news stories

claiming that the state may need less than 10 percent of the data center are not

entirely true.”

2011

©2016 Apigee Corp. All Rights Reserved. 37

“What's wrong with the Washington State data

center?Facility sits mostly empty

after more than two years.”

2014

©2016 Apigee Corp. All Rights Reserved. 38

“The state's CIO…has suggested the space would make a good Sensitive

Compartmented Information Facility… That's government-speak

for a room full of classified document filing cabinets...”

2014

©2016 Apigee Corp. All Rights Reserved. 39

©2016 Apigee Corp. All Rights Reserved. 40Source: Wikimedia.org

©2016 Apigee Corp. All Rights Reserved. 41Source: Beat via Flickr.com

©2016 Apigee Corp. All Rights Reserved. 42Source: Beat via Flickr.com

©2016 Apigee Corp. All Rights Reserved. 43

Cloud enables scale on demand

Compute

©2016 Apigee Corp. All Rights Reserved. 44

Cloud enables scale on demand

Compute Data

©2016 Apigee Corp. All Rights Reserved. 45

Cloud enables scale and scope on demand

Compute Data Intelligence

©2016 Apigee Corp. All Rights Reserved.

Cloud enables scale and scope on demand

46

Tools

©2016 Apigee Corp. All Rights Reserved.

Cloud enables scale and scope on demand

47

Tools

!Core competency of digital disruptors

©2016 Apigee Corp. All Rights Reserved.

Know how

48

Question?

Text @QQQ to 35134You can submit up to 140 characters

(volume off, please…!)

(standard rates apply)

©2016 Apigee Corp. All Rights Reserved. 49

1975

©2016 Apigee Corp. All Rights Reserved. 50

1975

Complex programming projects cannot be perfectly partitioned into discrete tasks that can be worked on without communication between the workers and without establishing a set of complex interrelationships between tasks and the workers performing them.

©2016 Apigee Corp. All Rights Reserved. 51

Source: McConnell, Code Complete

©2016 Apigee Corp. All Rights Reserved. 52

Source: McConnell, Code Complete Source: Wikimedia.org

©2016 Apigee Corp. All Rights Reserved. 53

Source: Cooking StackExchange.comSource: McConnell, Code Complete Source: Wikimedia.org

©2016 Apigee Corp. All Rights Reserved. 54

©2016 Apigee Corp. All Rights Reserved. 55

“All teams will expose their data and functionality

through service interfaces. The only communication

allowed is via service interface calls over the

network…All service interfaces, without exception, must be

designed from the ground up to be externalizable. No

exceptions. Anyone who doesn’t do this will be

fired.”  - Jeff Bezos, CEO, Amazon2002

©2016 Apigee Corp. All Rights Reserved. 56

“All teams will expose their data and functionality

through service interfaces. The only communication

allowed is via service interface calls over the

network…All service interfaces, without exception, must be

designed from the ground up to be externalizable. No

exceptions. Anyone who doesn’t do this will be

fired.”  - Jeff Bezos, CEO, Amazon

“You literally put APIs everywhere. That’s how you

do internal development, that’s how the IT shop works, that’s how your

providers should do development for you, that’s

how your offshore stuff lands into your environment…”

- John Donovan, EVP AT&T

2002 2012

©2016 Apigee Corp. All Rights Reserved. 57

©2016 Apigee Corp. All Rights Reserved. 58

©2016 Apigee Corp. All Rights Reserved. 59

©2016 Apigee Corp. All Rights Reserved. 60

Small Promises Built for the world

Web API know how = sustainable agility at pace

©2016 Apigee Corp. All Rights Reserved.

Web API know how = sustainable agility at pace

61

Know how

©2016 Apigee Corp. All Rights Reserved. 62

Opportunity

Tools

Know HowUsecreatesvalue

Scale on demand

Sustainableagility at pace

©2016 Apigee Corp. All Rights Reserved. 63

Opportunity

Tools

Know HowUsecreatesvalue

Scale on demand

Sustainableagility at pace

!How APIs are changing our jobs

©2016 Apigee Corp. All Rights Reserved. 64

BoDprofit

CEOmovefaster

CIO/CMOinnovate

LOBdelight

customers

©2016 Apigee Corp. All Rights Reserved. 65

BoDprofit

CEOmovefaster

CIO/CMOinnovate

LOBdelight

customers

!Why it’s time to Adapt or Die

Thank you@bryan_kirschner@apigeetext @QQQ to 35134