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Evolving an important theme I've been working on and presenting all year, this new deck summarizes how enterprise architecture and large scale technology-based business solutions must transform to be more effective in the 21st century. Contains material on a hypothesis for what's wrong with today's EA as well as potential solutions of merit such as emergent architecture, WOA, enterprise REST, open supply chains (APIs), mashups, and other models. Presented this week in Oslo Norway to Bouvet's enterprise architecture council.
Citation preview
Transforming Software Architecture for the
21st Century
Focusing the Power of
People and Todayrsquos
Network on Opportunity
Dion Hinchcliffe
Introduction
Dion Hinchcliffebull ZDNetrsquos Enterprise Web 20
bull httpblogszdnetcomHinchcliffe
bull Social Computing Journal ndash Editor-in-Chiefbull httpsocialcomputingjournalcom
bull Enterprise 20 TV Show
bull httpe2tvshowcom 13
bull Hinchcliffe amp Companybull httphinchcliffeandcocom
bull mailtodionhinchcliffeandcocom
bull Web 20 Universitybull httpweb20universitycom
bull dhinchcliffe
A Short History of Software
Software architecture ndashThe definition of the fundamental structure
and properties of software systems Components resilience scalability adaptability reliability changeability maintainability extensibility security technologies standards and other key constraints
The classical ways of describing architecture
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Introduction
Dion Hinchcliffebull ZDNetrsquos Enterprise Web 20
bull httpblogszdnetcomHinchcliffe
bull Social Computing Journal ndash Editor-in-Chiefbull httpsocialcomputingjournalcom
bull Enterprise 20 TV Show
bull httpe2tvshowcom 13
bull Hinchcliffe amp Companybull httphinchcliffeandcocom
bull mailtodionhinchcliffeandcocom
bull Web 20 Universitybull httpweb20universitycom
bull dhinchcliffe
A Short History of Software
Software architecture ndashThe definition of the fundamental structure
and properties of software systems Components resilience scalability adaptability reliability changeability maintainability extensibility security technologies standards and other key constraints
The classical ways of describing architecture
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
A Short History of Software
Software architecture ndashThe definition of the fundamental structure
and properties of software systems Components resilience scalability adaptability reliability changeability maintainability extensibility security technologies standards and other key constraints
The classical ways of describing architecture
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Software architecture ndashThe definition of the fundamental structure
and properties of software systems Components resilience scalability adaptability reliability changeability maintainability extensibility security technologies standards and other key constraints
The classical ways of describing architecture
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
The classical ways of describing architecture
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Many sophisticated architectural frameworks exist today
bull 4+1bull Department of Defense Architecture Framework (DODAF)bull UK Ministry of Defence Architectural Framework (MODAF)bull The Open Group Architecture Framework (TOGAF)bull Zachman frameworkbull Federal Enterprise Architecturebull Reference Model of Open Distributed Processing (RM-ODP)bull Service-Oriented Modeling Framework (SOMF)
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Areas where traditional EA models often struggle
bull Donrsquot respond to change quickly enough
bull Arenrsquot aligned with current business reality
bull Lack of focus on driving consumption (or network effects)
bull Too centralized and isolated
bull Expensive and resource-intensive
bull Overengineered in the wrong places Excessively constraining
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
ldquoMy Web site is bigger than your enterpriserdquo
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Todayrsquos Software ArchitecturesAre Also Extremely Sophisticated
bull Highly distributed and federated
bull Often have a social architecture
bull Built from cutting edge ingredientsExample httpclickatellcom
bull Have to scale globally
bull Set with expectations that are very high for functionality and low for the cost to developown new solutions
bull Increasingly created with productivity-oriented design amp development platforms
Integrating with 3rd party suppliers live on the Web
as well as being a 3rd party supplier is the name of the
game circa-2009
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Therersquos A Lot To Master Today To
Architect Credible Solutions
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
bullSome of this is around what we call ldquo20rdquo
bull Peer production and crowdsourcing
bull Owning your classes of data on the network
bull Using new distribution models to leverage the Web as your platform
bull Social systems
bull Open supply chains and 3rd party sourcing (httpprogrammablewebcom)
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
The architecture ldquostackrdquo is bigger now
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
But existing integration models have been challenged
bull Most SOA initiatives are delivering low ROI to the business
bull The reasons are many but boil down to
ndash Lack of engagement Focus on technology instead of business problems
ndash Slow adaptation Top-down enterprise architecture moves slower than the environment changes
ndash Low levels of use Important avenues of SOA consumption and production points are often excluded from participation
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
The results of a large new SOA effectiveness study
bullldquoIt has become clear to me that SOA is not working in most organizationsrdquo
ndash Anne Thomas Manes Burton Group
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Demand for Breadth Integration
bull ldquo48 percent of the CIOs we surveyed said that they plan to implement service-oriented architectures for integration with external trading partners this yearrdquo ndash McKinsey amp Co
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
And we now have real-world experience with traditional means of connecting to our data
bull Traditional Web services was a good first try but has a long list of challenges for the outcomes we desire today
bull The model of the Web has continued to teach us about how to structure information and services
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Strange Attractors Similarities between Web 20 and SOA
bull Web 20ndash Software as a service
ndash Interoperability based on Web principles
ndash Applications as platforms
ndash Encourages unintended uses
ndash Mashups
ndash Rich user interfaces
ndash Architecture of Participation
bull SOAndash Software as servicesndash Interoperability based on
heavyweight standardsndash Applications as platformsndash Permits unintended usesndash Composite Appsndash Little user interface guidancendash Little prescription of user
participation
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
REST
URIs
WOA Core
WOA Full
XMLBitTorrent
JSON
OAuth
SSLHMAC-SHA-1
OpenID
WADL
Data Mashups
Widgets
IXMLHTTPRequest
ATOM
Open APIs identityand
security
data formatsand description
distribution andcomposition
protocols andinterfaces
One Emergent Solution Web-Oriented Architecture
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Enabling New Consumption Scenarios
bull Cut-and-Paste deployment anywhere on the Intranet
bull Consumption of the SOA in any application that can use a URL
bull Discovery of data via search
bull Integration moves out of the spreadsheet
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Recent technological innovations coming primarily
from the online world
bull Cloud computing
bull UtilitygridPlatform-as-a-service
bull Non-relational databases
bull S3 CouchDB GAE Datastore Drizzle etc
bull New ldquoproductivity-orientedrdquo platforms
bull RIA FlexAIR JavaFX
bull Stacks Rails CakePHP Grails GAE iPhone etc
bull Web-Oriented Architecture
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Changes to the processes that create architecture
bull Increasing move to assembly and integration over development of new code
bull Perpetual Beta and ldquoextremerdquo agile
bull Community-based development and ldquocommercial sourcerdquo
bull Product Development 20
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Emergent Architecture
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Tenets of Emergent Architecture
bull Community-driven architecture
bull Autonomous stakeholders
bull Adaptive processes
bull Resource constraints
bull Decentralized solutions
bull Emergent outcomes
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Benefits
bull Dynamic response and adaptation to change
bull Architecture supported and driven widely by local users
bull Less waste
bull More access to opportunity
bull Better fit to business needs
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Open Supply Chainsalso
known as
APIs
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
vs
The Platform Overtakes the Web Site
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Motivations for Open Supply Chains
bull Increase reach and head off competition
bull Tap into innovation
bull Grow external investment
bull Cost-effectively scale business relationships
bull Going from 10s to thousands of integrated partners
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Example Amazonbull 1st Gen Product E-commerce storendash No differentiationndash Scaling of a single sitendash Single site
bull 2nd Gen Product E-commerce platformndash 55000 partners using their e-commerce APIs livendash Scaling of the Web
bull 3rd Gen Product A series of Web platformsndash Simple Storage Service (S3)ndash Elastic Compute Cloud (EC2)ndash Mechanical Turk (Mturk)ndash Many othersndash 300K businesses build on top of what theyrsquove produced
bull 2nd and 3rd generation platforms generate large net revenue
S3EC2
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Open Platform vs Closed Platform
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
The Market Share Opportunity
bull The vast majority of Internet user activity is elsewhere on 3rd party Web sites and applications
bull If firms could reach this traffic the growth potential is as large as the Web itself
bull Reaching this traffic before competitors do can result in successful marketshare ldquolock-outrdquo
bull Businesses able to cost-effectively integrate with a large number of partners to grow
bull Access and offer value to existing ecosystems of customers
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Open API
PartnerPartnerPartnerPartner
Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner Partner Partner
Live Web Integration
Tens of Thousands of Dynamic Web Partners
Direct Revenue
AdditionalRevenue viaUsage Fees
Advertising etc$$$Monetization
Boundary
+
+
OpportunityGoing To the Customer
and Open Web APIs
New Business Division
Interact
Interact
Consumer orBusiness Online Business
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Platforms vs Applications
Native App
Web Application
Open Widgets
FacebookOpen Social
Web APISDK Developer Community SLA
Billing
Distribution Models Target Audiences
Consumers
Small BusinessesMedium-Sized Business
PowerWeb Saavy Users
Developers
Businesses
existin
g
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Platforms vs Applications
Native App
Desktop Client API
Open Widgets
FacebookOpen Social
Open Web APISDK Developer Community SLA
Billing
Distribution Models
10M Users
Order of MagnitudeDistribution Method
Push
10M Users Pull
10-20M Users Pull
100M+ Users Pull
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Key API Goals
bull Leveraging existing investments as much as possible (reduce rework in design and architecture)
bull Protect intellectual property around proprietary capabilities
bull Select API model that will result in 1) the most developer uptake and 2) access to the largest possible audience
bull Selecting a discriminating factor (rich vs reach)
bull Scope Graduated capability vs full initial API
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Long-term future usage breakdown wAPI
Existing Web Site or Application
Facebook Apps
3rd Party Web Apps
Open Social Apps
iPhone Apps
Web Widget Apps
Web Mobile Apps
Embedded Apps
Other Apps
bull Reach every distribution channel possible
bull Leverage 3rd party customer bases
bull Cut off competitorrsquos growth OPPORTUNITIES
bull Ride the MAXIMUM POTENTIAL growth curve (driving consumption)
bull Harness innovation of hundreds and thousands of 3rd party developers
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Reasons Developers Select APIs
bull Provides access to functionality not possible to develop internally
bull Easy to use and integrate with
bull Good documentation and easy to get started
bull Reliable well-known scalable provider that is trusted
bull Developers can get answers to questions support and problems fixed when bugs are found
bull Strong user base for 3rd party developers to tap
Key to initial adoption Key to long-term adoption
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
ldquoPlatformingrdquo Your Business
bull Requires opening the server-side to 3rd party developers
bull Allowing the construction of widgets and Web apps offering some or of all of your functionality by external partners
bull Harnessing the innovation on the network
bull Generating the greatest potential reach competitive lock-out market share and revenue
bull Warning Must maintain control of hard-to-recreate data
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Open API Challenges
bull Foreign business model for traditional companies
bull Requires full-spectrum support from the business (marketing sales customer service technical support etc)
bull Successful monetization strategies vary greatly
bull The biggest successes are firms which create a well-funded dedicated business division
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Open Supply ChainsThe bottom line
bull Good repeatability
bull Can be costly
bull Unproven in some industries (yet)
bull Proven ROI (example $300M+ net revenue)
Strategic Industry Play
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
High Velocity Processes The Webrsquos Version of Agile
bull Shadow Apps for real-time feedback
bull Customer-Sampling and Live Testing
bull Granular Versions (constant evolution)
bull Daily even hourly releases
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Product Development 20
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
An extremely competitive environment Our architectures
must explicitly focus on building network effects
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
New Distribution Models
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
20 models are beginning to transform everything
bull Product Development
bull Marketing and Advertising
bull Operations
bull Customer Service
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
The network is consistently proving to be the best
solution for many classes of problems
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
So how do were-imagine our
software architecture for
the 21st century
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Challenges to Transitioning to New Architectural Modes
bull Innovatorrsquos Dilemma
bull ldquoHow do we disrupt ourselves before our competition doesrdquo
bull Not-Invented Here
bull Overly fearful of failure
bull Deeply ingrained classical software culture
bull Low level of 20 literacy
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
What we often see in the marketplace todaybull Too many copy-cat methods
bull Failure of imagination and courage
bull New architectural concepts as an after-thought Or tacked on as a ldquochecklistrdquo item
bull Companies that pay lip service to innovation but are having trouble or unwilling to make the necessary changes
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Key LessonWe now have a
fundamentally new and better set of lenses through which to look at leveraging
value on the network
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
bull Push to pull systems
bull Web 20 design patterns and business models
bull New modes of software platforms and architectures
bull Productivity-Oriented Platforms
bull Web-Oriented amp Emergent Architecture
bull New Distribution Models
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Itrsquos time to changeour DNA
bull Moving from the 20th century towards 21st century businesses
bull Deeply understanding the network and its profound potential for creating growth and building value
bull Putting proven new models into the core of our lines of business and enterprise architecture
Questions
Slides dionhinchcliffeandcocom
Questions
Slides dionhinchcliffeandcocom
