apidays LIVE LONDON - Differentiating your Developer Program: Is Speed "A" Differentiator or is Speed "THE" Differentiator? by Paul Rohan
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The document discusses the burgeoning field of developer marketing, emphasizing the importance of speed as a key differentiator across various stages of market development. It outlines the factors developers consider when evaluating API providers, the financial implications of effective developer marketing, and the strategy for funding new developer programs. Ultimately, it highlights that successful developer engagement can lead to significant revenue growth and enhanced profit margins.
apidays LIVE LONDON - Differentiating your Developer Program: Is Speed "A" Differentiator or is Speed "THE" Differentiator? by Paul Rohan
- 1. Proprietary + Confidential Differentiating your Developer Program: Is Speed "A" Differentiator or is Speed "THE" Differentiator?" API Days London October 27th 2020 Paul Rohan, Head of Business Strategy (Finance) Apigee
- 2. Proprietary + Confidential Contents ● Developer Marketing is a very new discipline for Incumbents ● What are Developers looking for as they scan the API Economy? ● How much should you be spending on Developer Marketing? ● How should the funding of a new Developer Programme be managed? ● How will the stages of market development influence Developer Marketing? ● Speed - the one constant differentiator across all stages of market development
- 3. Proprietary + Confidential Developer Marketing is a very new discipline for Incumbents
- 4. Target known, existing and large market segments Offer new services at firm’s known and preferred digital Interface Each new product must achieve cost-plus returns Command-and-control your staff No business partners or very few business partners App Strategy Platform Strategy Firm is Dominant Innovator Innovation is deliberate Culture Governance Segmentation Economics New Market Microsegments that are accessible with developers Offer services at End User's preferred digital interface Investments can aim to assist overall ecosystem growth Orchestrate third-parties for growth and innovation Mindset is that all partners are valuable Third-Party developers are treated as customers and they drive innovation Unanticipated innovation can emerge from Third Parties Developer Marketing is a very new discipline for Incumbents
- 5. Brand New Communication Patterns, both inside and outside the enterprise Consumer App Teams App Devs Consumer App Teams App Devs Consumer App Teams App Devs Consumer App Teams App Devs Consumer App Teams App Devs Consumer App Teams App Devs Domain / System Teams Capability Teams API Producer Engagement - data and services “below the Glass” API Consumer Engagement Domain / System Teams Domain / System Teams Domain / System Teams Domain / System Teams Domain / System Teams Domain / System Teams Capability Teams Capability Teams Capability Teams Capability Teams Dev Portal & API Products Operations API Enterprise Services Engagement Leadership Enterprise Architecture Security Program Management Executive Line of Business Line of Business API Center for Enablement - at the center of an API Community of Practice 3rd Party Fintechs Relative Volumes Physical Interactions: X Own-brand Apps: 10X Ecosystem Interactions 100X Other 3rd Parties
- 6. Proprietary + Confidential What are Developers looking for as they scan the API Economy?
- 7. What are Developers looking for as they scan the API Economy? A Developer is scanning for platform providers serving a region or industry vertical offering API Products that: ● Makes it easy access to get started quickly in that new region or industry vertical ● Offers gated on-boarding steps ● Has an adjacent community of complementary providers that will quickly tap into local network effects ● Be pay-as-you-use so a decision on incurring fixed costs is not a hurdle to fast market entry ● Offers the precise service the Developer wants as they want it
- 8. Proprietary + Confidential How much should you be spending on Developer Marketing?
- 9. “Companies whose dominant business model is ecosystem driver experienced revenue growth approximately 27 percentage points higher than the average for their industries, and had profit margins 20 percentage points above the average for their industries.” Researchers have quantified the impact on revenue growth and profit margins See “Driving Growth in Digital Ecosystems”, MIT Sloan School of Management, M. Sebastian, Peter Weill, and Stephanie L. Woerner August 18, 2020 https://sloanreview.mit.edu/article/driving-growth-in-digital-ecosystems/ 27% 20%
- 10. Proprietary + Confidential Sidebar If these are the potential gains, which of these percentages is the best estimate of Developer Marketing spend as a percent of your firm’s Total Marketing spend? ● 1% ● 5% ● 10% ● 15% ● 25% ● 50% +27% Revenue growth versus industry average +20% Profit margins versus industry average
- 11. Proprietary + Confidential How should the funding of a new Developer Programme be managed?
- 12. Proprietary + Confidential How should the funding of a new Developer Programme be managed? It’s an Internal Corporate Venture 1. Finance early API product and Developer Community service development, market research, business plan development and setting up a management team 2. A significant cash infusion to help in promoting new API products and Developer Community to new Developers. The team is equipped with a supporting platform for full API Product Lifecycle Management and API Monetization 3. The bank is now ready to go into systematic API Product development and external consumption through an API Developer Program and this requires a higher amount of capital than the previous stages. 4. The API Developer Program needs additional capital to support market expansion and to refine and improve the initial range of API Products. 5. The API Developer Program has bridged across into a mature corporate function and opportunities in the API Economy are directly integrated into all corporate development processes through API First mindset Seed Stage1 Startup Stage2 First Stage3 Expansion Stage4 Bridge Stage5
- 13. Proprietary + Confidential How will the stages of market development influence Developer Marketing?
- 14. Proprietary + Confidential Payoffs from the Developer Programme Size Number of developers Time to first API use Registration to Activity Reciprocity Developers using our APIs/ We use their APIs Diversity Number of market sectors Customer journeys Number of extended experiences Activity Number of API Calls Word-of-mouth Net Promoter Score API Monetization Direct revenues
- 15. Proprietary + Confidential Stages of market development Time to first API use New customer journeys API Monetization Reciprocity Diversity Size Activity Word-of-mouth Introduction Growth DeclineMaturity
- 16. Proprietary + Confidential Speed - the one constant differentiator across all stages of market development
- 17. Proprietary + Confidential Stages of market development Speed of API Consumer Engagement Speed of API Producer Engagement Speed of API Consumer Engagement Speed of API Producer Engagement Speed of API Consumer Engagement Speed of API Producer Engagement Introduction Growth DeclineMaturity
- 18. Proprietary + Confidential Speed to 100X Number of monthly visits to our branch or store per customer X Number of monthly visits to our own brand Apps per customer 10X Number of customer’s ecosystem experiences that we participate in each month 100X
- 19. Proprietary + Confidential Differentiating your Developer Program: Is Speed "A" Differentiator or is Speed "THE" Differentiator?" API Days London October 27th 2020 Paul Rohan, Head of Business Strategy (Finance) Apigee