Driving Digital Innovation with a Layered API Design Approach
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The document outlines the strategic importance of APIs in driving digital innovation and business agility, emphasizing the need for a layered API design approach. It discusses how APIs can transform core business capabilities into revenue sources and optimize customer processes across various touchpoints. Furthermore, it highlights the necessity for organizations to adapt their API strategies to accommodate different user experiences, security demands, and development lifecycles.
Driving Digital Innovation with a Layered API Design Approach
- 1. Β© 2015 Akana., Inc All Rights Reserved. Driving Digital Innovation with a Layered API Design Approach
- 2. Β© 2015 Akana., Inc All Rights Reserved. Our speakers Randy Heffner @BizTech21 Alistair Farquharson @afarqu
- 3. Driving Digital Innovation with a Layered API Design Approach Randy Heffner, VP and Principal Analyst June 17, 2015
- 4. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 4 Mobile needs APIs News flash: APIs enable much more than mobile.
- 5. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 5 APIs are much more strategic than many think APIs Mobile Web, kiosks, call center, etc. Multi- touchpoint foundation Open web developers Enterprise agility Value chain optimization Customer process optimization Connect products to ecosystems Turn hidden assets into products Turn core capabilities into services Enter completely new markets
- 6. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 6 Source: June 2015, βHow APIs Reframe Business Strategyβ Forrester report APIs reframe business strategy Business Customers Channels Where design for external integration begins Efficiency Partners Competencies Ecosystems Relationships Leverage Connections Traditional business Open business
- 7. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 7 Trading platform Source: June 2015, βHow APIs Reframe Business Strategyβ Forrester report Digital disruption and a European bankβs open business APIs Institutional customers Web Custom UX White label UX β’ Turn a core business capability into a revenue source. β’ Decouple innovation by the bank and its customers. β’ The bank wins from customer innovation. The shift β’ Is the bankβs value-add the trading platform? β’ Is the bankβs value-add the trading UX? β’ Is it both? β’ From where will the next unbundling come? The questions βIf we donβt disrupt our own business, then someone else will β out of the blue.β β CIO, European bank β’ Craft loosely- coupled strategies for each core asset and capability. β’ API-enable more and more of them. β’ Disrupt where possible, react when needed. The strategy European bank
- 8. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 8 Source: June 2013 βEstablish Your API Design Strategyβ Forrester report Forresterβs four categories of APIs Open web APIs Tech-savvy consumers B2B APIs Internal APIs Product APIs Value-add innovators Digital disruptors Suppliers Distribution partners Digital experiences (mobile, web, etc.) Enterprise applications (custom, off-the-shelf, cloud, on-premise) Products (software, physical products, services) Enterprise customers Web site developers Your enterprise Your products Tech-savvy consumers Product ecosystem Wide-open to innovation Optimized business Build product ecosystems Enterprise customers 1 2 3 4 JavaScript API JavaScript API / SDK Prebuilt integration
- 9. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 9 Source: June 2014 βBrief: Product APIs Create Distinct Customer Value And Opportunityβ Forrester report Product APIs βΊ APIs designed to . . . β’ directly control a product, β’ or facilitate its integration into an ecosystem of related products, β’ whether it is a physical product, digital product, or service. βΊ Hotel example: β’ Internal, open web, or B2B APIs: Reserve a hotel room β’ Product APIs: Control the hotel room itself βΊ Every product or service either: β’ Is already digital β’ Can have a digital proxy
- 10. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 10 APIs have varied key success factors β’ Collaborate with devices to deliver engaging user experience. β’ Allow many data and transaction paths through the experience. APIs for . . . Key roles and success factors Single touchpoints β’ Provide familiar user experience across all touchpoints. β’ Allow individual touchpoints to vary when appropriate. Multitouchpoint strategy β’ Match between business drivers and potential open web value. β’ Clear understanding of the types and styles of open web API applications. Open web developers Enterprise agility β’ Common definitions of enterprise transactions and data. β’ Coherent portfolios of services for each major business domain. Product ecosystems β’ Create value-add in a constantly shifting community of related products. β’ Support strategic business partnerships and ecosystems. B2B β’ Provide cross-organization process integrity. β’ Support cross-organization security federation.
- 11. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 11 Reference: March 5, 2015, βHow To Design APIs For Mobileβ Forrester report With API layering, a coherent portfolio serves many Business APIs ====================== Consistent business results Multitouchpoint experience APIs ====================== Familiarity across touchpoints Touchpoint-specific APIs ====================== Technical adaptations Mobile apps Business APIs ====================== Consistent business results B2B APIs ================== Partner business rules Presentation layer Business service layer Partners and suppliers Web apps Kiosks Public ecosystem APIs ================== Open web business rules Open web APIs ================== Caching and security Public developers
- 12. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 12 One enterprise may have many API user communities Open web API portal (division 1) Your organization Open web developers Customers B2B API portal Open web API portal (division 2) Internal developers API portal Product design API portal Business API portfolioUX API portfolio Open web developers Suppliers Resellers Adjacent products Market- placesOpen web developers Mobile devs Process devs BI devs
- 13. Β© 2015 Forrester Research, Inc. Reproduction Prohibited 13 Forrester recommendations β’ βOut of the blueβ digital disruption demands business agility. β’ API-enabled capabilities allow rapid business reconfiguration. β’ Donβt short change the importance of business APIs. β’ Use service portfolio management for lightweight governance. β’ Business scenarios determine quality-of-service and security demands. β’ API users determine how easy the API must be to use. Treat API strategy as business strategy Use layered design to evolve coherent API portfolios Design for business scenarios and API users
- 15. Β© 2015 Akana., Inc All Rights Reserved. Core Capabilities for Layered APIs
- 16. Β© 2015 Akana., Inc All Rights Reserved. API Platform Capabilities When building or buying an API Platform, there are typically 3 high-level requirements/capabilities: API Portal Developer engagement experience Gateway Security, Management, Orchestration/Mediation Lifecycle DevOps, SDLC Integration, Automation
- 17. Β© 2015 Akana., Inc All Rights Reserved. API Portal API Portal Search Documentation Licensing Partner Mgmt. Provisioning Federation Analytics Groups Social
- 18. Β© 2015 Akana., Inc All Rights Reserved. Different Audiences Most enterprises are striving towards a layered API strategy β’ Different requirements β Number of APIs β Security β enterprise LDAP vs. OpenID Connect β Workflow β Internal vs. B2B vs. consumer β’ Different audience = Different user experience β’ Your API Portal therefore needs to be built with these different audiences in mind this will affect: β User experience β search/catalog/complexity β Branding/Marketing
- 19. Β© 2015 Akana., Inc All Rights Reserved. Different Providers Large organizations may also have different API Providers internally: β’ LoB, Group, Division or Geography will affect who is providing the API β’ If each provider wants their own portal, a federated approach becomes important β’ Centralized end-user experiences β’ Distributed control
- 20. Β© 2015 Akana., Inc All Rights Reserved. API Gateway Quota Mgmt. PCI Compliance Policy Mgmt. Monitoring OAuth Security Authentication Protection IAM Integration Encryption Mediation Quality of Service Paging/Caching Orchestration Scripting
- 21. Β© 2015 Akana., Inc All Rights Reserved. API Gateway API Gateways should provide : β’ Non functional requirements such as security/monitoring etc. ββ at each point within a layered architecture β’ Aggregation/orchestration of APIs between layers to create channel/touchpoint-specific APIs
- 22. Β© 2015 Akana., Inc All Rights Reserved. Lifecycle β’ Each API Layer and each user community could have different lifecycles: β Different development teams and SDLCs β Different DevOps processes and tools β’ Organizations will have to determine how to control dependencies during development and at runtime while remaining agile.
- 23. Β© 2015 Akana., Inc All Rights Reserved. Example - Retail Bank β’ Business Objective : strengthen relationship with the Bankβs partners to bring in innovation form outside β’ Challenge : create a platform to automate onboarding of partners β’ Four different divisions are exposing APIs via a multi-tenant, federated deployment: β Departments 1 & 2 : Java and .NET shop with Oracle, Oracle repository and Oracle ESB β Department 3 : Java and .NET shop with Tibco and Oracle ESBs. β Department 4 : Smaller Java shop
- 24. Β© 2015 Akana., Inc All Rights Reserved. Example - Retail Bank β’ Solution : β To preserve the brand, a federation was created β All departmental APIs are be controlled by the members of the federation β A single UI will aggregate the content from all the departmental developer portals into a single UI β Control of βshared, enterpriseβ APIs can be centrally controlled
- 25. Β© 2015 Akana., Inc All Rights Reserved. Summary β’ As organizations see the development of a layered API portfolio across different channels and lines of business they need to consider: β User Experience - how the audience affects it β Tooling β how to manage/secure/orchestrate the APIs in the portfolio β The effect on SDLC and DevOps processes
- 26. Β© 2015 Akana., Inc All Rights Reserved. Thank You β’ Randy Heffner @BizTech21 rheffner@forrester.com β’ Alistair Farquharson @afarqu alistair.farquharson@akana.com