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© 2015 Akana., Inc All Rights Reserved.
Driving Digital Innovation with a Layered API Design Approach
© 2015 Akana., Inc All Rights Reserved.
Our speakers
Randy Heffner@BizTech21
Alistair Farquharson
@afarqu
Driving Digital Innovation with a Layered API Design ApproachRandy Heffner, VP and Principal Analyst
June 17, 2015
© 2015 Forrester Research, Inc. Reproduction Prohibited 4
Mobile needs APIs
News flash: APIs enable much more
than mobile.
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
APIs are much more strategic than many think
APIsMobile
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
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
Source: June 2015, “How APIs Reframe Business Strategy” 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
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
Trading platform
Source: June 2015, “How APIs Reframe Business Strategy” Forrester report
Digital disruption and a European bank’s open business
APIs
Institutional customers
Web
Custom UX
White label UX
• Turn a core business capability into a revenue source.
• Decouple innovation by the bank and its customers.
• The bank wins from customer innovation.
The shift
• Is the bank’s value-add the trading platform?
• Is the bank’s value-add the trading UX?
• Is it both?
• From where will the next unbundling come?
The questions
“If we don’t disrupt our own business, then someone else will — out of the blue.”
— CIO, European bank
• Craft loosely-coupled strategies for each core asset and capability.
• API-enable more and more of them.
• Disrupt where possible, react when needed.
The strategy
Europeanbank
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
Source: June 2013 “Establish Your API Design Strategy” Forrester report
Forrester’s four categories of APIs
Open web APIs
Tech-savvy consumers
B2B APIs
Internal APIs
Product APIs
Value-add innovators
Digital disruptors SuppliersDistribution
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 ecosystemsEnterprise customers
1 2
3
4
JavaScript API JavaScript API / SDK Prebuilt integration
© 2015 Forrester Research, Inc. Reproduction Prohibited 9
Source: June 2014 “Brief: Product APIs Create Distinct Customer Value And Opportunity” Forrester report
Product APIs
› APIs designed to . . .• directly control a product,
• or facilitate its integration into an ecosystem of related products,
• whether it is a physical product, digital product, or service.
› Hotel example:• Internal, open web, or B2B APIs: Reserve a hotel room
• Product APIs: Control the hotel room itself
› Every product or service either:• Is already digital
• Can have a digital proxy
© 2015 Forrester Research, Inc. Reproduction Prohibited 10
APIs have varied key success factors
• Collaborate with devices to deliver engaging user experience.• Allow many data and transaction paths through the experience.
APIs for . . . Key roles and success factors
Single touchpoints
• Provide familiar user experience across all touchpoints.• Allow individual touchpoints to vary when appropriate.
Multitouchpoint strategy
• Match between business drivers and potential open web value.• Clear understanding of the types and styles of open web API applications.
Open web developers
Enterprise agility• Common definitions of enterprise transactions and data.• Coherent portfolios of services for each major business domain.
Product ecosystems• Create value-add in a constantly shifting community of related products.• Support strategic business partnerships and ecosystems.
B2B• Provide cross-organization process integrity.• Support cross-organization security federation.
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
Reference: March 5, 2015, “How To Design APIs For Mobile” 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 suppliersWeb apps Kiosks
Public ecosystem APIs==================
Open web business rules
Open web APIs==================
Caching and security
Public developers
© 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
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
Forrester recommendations
• “Out of the blue” digital disruption demands business agility.• API-enabled capabilities allow rapid business reconfiguration.
• Don’t short change the importance of business APIs.• Use service portfolio management for lightweight governance.
• Business scenarios determine quality-of-service and security demands.• 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
© 2015 Akana., Inc All Rights Reserved.
Core Capabilities for Layered APIs
© 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 PortalDeveloper
engagement experience
GatewaySecurity,
Management, Orchestration/Mediati
on
LifecycleDevOps, SDLC
Integration, Automation
© 2015 Akana., Inc All Rights Reserved.
API Portal
API Portal
Search
Documentation
Licensing
Partner Mgmt.
Provisioning
Federation
Analytics
Groups
Social
© 2015 Akana., Inc All Rights Reserved.
Different Audiences
Most enterprises are striving towards a layered API strategy
• Different requirements– Number of APIs– Security – enterprise LDAP vs. OpenID Connect– Workflow – Internal vs. B2B vs. consumer
• Different audience = Different user experience
• Your API Portal therefore needs to be built with these different audiences in mind this will affect:– User experience – search/catalog/complexity– Branding/Marketing
© 2015 Akana., Inc All Rights Reserved.
Different Providers
Large organizations may also have different API Providers internally:
• LoB, Group, Division or Geography will affect who is providing the API
• If each provider wants their own portal, a federated approach becomes important
• Centralized end-user experiences• Distributed control
© 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
© 2015 Akana., Inc All Rights Reserved.
API Gateway
API Gateways should provide :• Non functional requirements such as security/monitoring etc. –– at
each point within a layered architecture• Aggregation/orchestration of APIs between layers to create
channel/touchpoint-specific APIs
© 2015 Akana., Inc All Rights Reserved.
Lifecycle
• Each API Layer and each user community could have different lifecycles:– Different development teams and SDLCs– Different DevOps processes and tools
• Organizations will have to determine how to control dependencies during development and at runtime while remaining agile.
© 2015 Akana., Inc All Rights Reserved.
Example - Retail Bank
• Business Objective : strengthen relationship with the Bank’s partners to bring in innovation form outside
• Challenge : create a platform to automate onboarding of partners
• Four different divisions are exposing APIs via a multi-tenant, federated deployment:– Departments 1 & 2 : Java and .NET shop with Oracle, Oracle
repository and Oracle ESB– Department 3 : Java and .NET shop with Tibco and Oracle
ESBs.– Department 4 : Smaller Java shop
© 2015 Akana., Inc All Rights Reserved.
Example - Retail Bank
• Solution :– To preserve the brand, a federation was created– All departmental APIs are be controlled by the members of the
federation– A single UI will aggregate the content from all the departmental
developer portals into a single UI– Control of ‘shared, enterprise’ APIs can be centrally controlled
© 2015 Akana., Inc All Rights Reserved.
Summary
• As organizations see the development of a layered API portfolio across different channels and lines of business they need to consider:– User Experience - how the audience affects it– Tooling – how to manage/secure/orchestrate the APIs in the
portfolio– The effect on SDLC and DevOps processes
© 2015 Akana., Inc All Rights Reserved.
Thank You
• Randy Heffner@[email protected]
• Alistair [email protected]@akana.com