I Love APIs Europe 2015: Business Sessions

Making sense of the new market contextMartha Bennett, Forrester !Bryan Kirschner, Apigee !!

2

200 > $500M

“Mastering a fast feedback loop wi l l be a key different iator. Companies that quickly deliver digitally instrumented products or services, harvest data from market interactions, and use insights to rapidly iterate and optimize their value chain will gain compet i t i ve advantage that continuously builds on itself.”

3

“Mastering a fast feedback loop wi l l be a key different iator. Companies that quickly deliver digitally instrumented products or services, harvest data from market interactions, and use insights to rapidly iterate and optimize their value chain will gain compet i t i ve advantage that continuously builds on itself.”

4

How relevant is this to your company’s competitive position

over then next five years?

5 extremely …

1 not at all

“Mastering a fast feedback loop wi l l be a key different iator. Companies that quickly deliver digitally instrumented products or services, harvest data from market interactions, and use insights to rapidly iterate and optimize their value chain will gain compet i t i ve advantage that continuously builds on itself.”

5

50

40

0 25 50

1 (not at all)

2

3

4

5 (extremely)

How to Succeed in the New Market Context Martha Bennett, Principal Analyst

London March 24th, 2015

© 2015 Forrester Research, Inc. Reproduction Prohibited 8

Agenda

›  Setting the scene: key trends no business can ignore ›  The importance of right data, right

place, right time › Key success factors for thriving in the

digital economy

© 2015 Forrester Research, Inc. Reproduction Prohibited 9

© 2015 Forrester Research, Inc. Reproduction Prohibited 10

Guess which car service continues to be widely used? › Cheaper

› More convenient

› Better service

“Uber-isation of all industries…”

© 2015 Forrester Research, Inc. Reproduction Prohibited 11

Key business trend: selling an outcome Used to sell: › Aero engines › Air conditioning units › Lifts/Elevators › Cars › Agricultural machinery › Medical testing devices › Health insurance › Toothbrush

Now sell, or may in future: › Units of propulsion › The right temperature › Moving people/goods up/down › Ability to get from A to B › Optimum yields › Number of tests › Wellness program › Healthy mouth and teeth

© 2015 Forrester Research, Inc. Reproduction Prohibited 12

Digital dysfunction at executive level

Source: Forrester/Russell Reynolds 2014 Digital Business Survey

93% •  Believe that digital technologies will disrupt their business over the next 12

months

74% •  Claim the company has a “digital” strategy

33% •  Think it’s the right “digital” strategy

15% •  Believe they have the right people and skills to execute the strategy

© 2015 Forrester Research, Inc. Reproduction Prohibited 13

Data matters more than ever. Getting it right …

Massive Win!

© 2015 Forrester Research, Inc. Reproduction Prohibited 14

… can be a challenge. Even for the best.

Epic Fail!

© 2015 Forrester Research, Inc. Reproduction Prohibited 15

Liberating key insights from the desktop

Mobile BI adopters either: •  Really ‘get’ the

transformational potential of mobile BI, or

•  Think they should make it available because it’s the right thing to do, or

•  Are counting the cost of a failed implementation

© 2015 Forrester Research, Inc. Reproduction Prohibited 16

Transformation can happen at all levels

Source: October 2013 “Market Overview: Mobile Business Intelligence”

If you’re not intending to implement any form of mobile BI or analytics, make sure you’ve considered carefully why not

© 2015 Forrester Research, Inc. Reproduction Prohibited 17

Measuring mobile apps: many dimensions

The same framework can be applied to any other app analytics, whether B2C, B2B or B2E

© 2015 Forrester Research, Inc. Reproduction Prohibited 18

Leaders strive to excel in all of these

Age of the customer

Turn big data into business

insights

Embrace the mobile mind shift

Transform the customer experience

Accelerate your digital business

forrester.com

Thank you Martha Bennett +44 7768 896 540 mbennett@forrester.com @martha_bennett Blog: http://blogs.forrester.com/martha_bennett

Prediction & the “next best action”

20

Prediction & the “next best action”�Opportunities & risks�

21

Prediction & the “next best action”�Opportunities & risks�“To Dos”

22

Q&A

Thank you

Become a digital insider: “invite” to institute@apigee.com

Better Together: �Great experiences that combine digital and physical Craig Smith - REPL Group !Ben Salama - Accenture !Mark Rattley - SAP !Nick Katsivelos - Apigee !

Pervasive�Connected�Ubiquitous

Ben Salama �Accenture

Craig Smith�REPL Group

RETAIL INNOVATION AT MARKS & SPENCER

With & Without APIs

ABOUT ME

About Me •  I’m REPL’s Digital Director. I joined in October.

•  Famous for putting digital in store at M&S.

•  Programme Manager on £180m M&S.com multichannel re-platform.

•  I run retail-innovation.com. 450 visits per day.

•  Regular speaker.

About me

Retail is in my blood..

About me

But I was the geek in the family..

REWIND TO 2010 Innovating without APIs

The digital landscape at M&S at the start of 2010

•  We had one digital channel – the desktop site

•  Amazon were running M&S.com.

•  We were seeing unprecedented growth in mobile and we wanted to start investing in showcasing the best of M&S in store.

•  It was hard to build differentiated

experiences for our customers.

We had to transcode

Mobile

In Store Kiosk

In Store Assisted Selling Tablet

We needed more flexibility

Agile web services were born…

THE NEW ERA Innovating with APIs

2013 – The New International Platform

Native APIs at last

Virtual Rail

2014 – The New UK Platform

Native APIs at last

M&S UK Kiosk

END

Mark Rattley�SAP

Bringing strategy and technology, �bits and atoms, together creating experiences with business impact.

53

Thank you

LUNCH��

General Hall / Main Concourse�(Sessions resume at 14:00)

We're all software companies now: �Make digital part of your organization's DNAPaul Clark - ITV !Alberto Prado - Philips !Nick Katsivelos - Apigee !

Digital Organization DNA

•  Out of your comfort zone �Transformation is strange

•  Platforms are not Projects �It is more than mindset

•  People are Fundamental�Finding the T-Shaped, Unicorn LAWYERS

•  Money Matters�To run like a startup, you need to get funded like a startup

•  Appropriate Measurements�The traditional metrics don’t apply

57

Thank you

We’re all CDOs now: Becoming the digital leaders every organization needsSienne Veit, John Lewis !Tom Pikethly, John Lewis !Bryan Kirschner, Apigee !!

60

1,321 > $500M

61

Measures of business performance1 Bringing new products & services to market

2 Customer or partner satisfaction

3 Market share

4 Revenue

5 Margin

Digital capabilities

1 Operating APIs to make systems and data available for self-service access or mash-ups

2 Deploying apps such as mobile or tablet applications to employees, customers, or partners

3 Using ‘big data’ and analytics to enhance internal processes, existing products/services, or new offers

62

Bringing New Products & Services to Market

Market Share

Gross Revenue

Customer or partner satisfaction

Margin

LeadersTop 50% using

Apps, APIs, data analytics

LaggardsBottom 50% using Apps, APIs, data

analytics

0 25 50 75 100

Leaders 1.5X more likely to report outperforming others in their sector

63

Bringing New Products & Services to Market

Market Share

Gross Revenue

Customer or partner satisfaction

Margin

LeadersTop 50% using

Apps, APIs, data analytics

LaggardsBottom 50% using Apps, APIs, data

analytics

Leaders almost 2.5X more likely to report strongly outperforming others in their sector

0 25 50

How?

64

How?�The secret isn’t a CDO

65

66

LeadersTop 50% using

Apps, APIs, data analytics

LaggardsBottom 50% using Apps, APIs, data

analytics

Companies with strong Marketing & IT

alignment are 7.5X more likely to be Digital

Leaders Companies behind their competitors on digital are twice as

likely to say “the way Marketing & IT typically

work together” is a liability

Case Study: Marketing & IT alignment

Thank you

Become a digital insider: “invite” to institute@apigee.com

Afternoon Break��

General Hall / Main Concourse�(Sessions resume at 16:00)

Mastering Bits, Platforms & EcosystemsDr. Annabelle Gawer, Imperial College London !Daniel Staub, Swisscom !Chris Laws, Dun & Bradstreet !Bryan Kirschner, Apigee !!

71

200 > $500M

“The dynamics that drive winner take-all results in the technology sector will come into play in many industries. Turning products into p l a t f o r m s t h a t s u s t a i n a n ecosystem of developers or partners will become a way to seize a dominant market position and a disproportionate share of a sector's profit.”

72

“The dynamics that drive winner take-all results in the technology sector will come into play in many industries. Turning products into p l a t f o r m s t h a t s u s t a i n a n ecosystem of developers or partners will become a way to seize a dominant market position and a disproportionate share of a sector's profit.”

73

How relevant is this to your company’s competitive position

over then next five years?

5 extremely …

1 not at all

“The dynamics that drive winner take-all results in the technology sector will come into play in many industries. Turning products into p l a t f o r m s t h a t s u s t a i n a n ecosystem of developers or partners will become a way to seize a dominant market position and a disproportionate share of a sector's profit.”

74

44

31

0 25 50

1 (not at all)

2

3

4

5 (extremely)

Annabelle Gawer

Daniel Staub

I love APIs Europe Daniel Staub - MD Swisscom Wholesale 25th March, 2015

Swisscom is the market leader in Switzerland

Everything always on

Internet- based

Global competition

Building the best infrastructure Fast, secure network access, available everywhere at all times Offering the best experiences Innovative, inspiring services with professional support for our customers Realising the best growth opportunities Innovation and sustainable growth in the core business and associated fields

trusted, simple,

inspiring

> Integrated operator

> Revenue – USD12 B

> EBITDA – USD 4 B

> Market Share – 65%

> 6.5 million mobile

customers

> 1 million 4G customers

> 2 million broadband customers

> 1.3 million TV customers

3/25

/201

5 D

anie

l Sta

ub -

MD

Sw

issc

om W

hole

sale

78

Strategy

Swisscom Wholesale 2.0 Swisscom Wholesale 1.0

–  Traditional Wholesale – Focus on lean operations to optimize CM

New revenue streams creating value for SC: –  API based enablement business – External exposure

of SC assets for wholesale (incl. OTT) customers

Challenges >  -90% Voice Interconnection >  -55% Inbound Roaming >  -40% Access

79

Swisscom’s transformation story Traditional Wholesale business has been declining over 10% YoY API based services drive transformation providing new revenue streams with exponential growth potential

-5%

-9%

393

566

886 Roaming Access MVNO

Infrastructure Voice Interconnection Data OTT

Wholesale revenues, MCHF Wholesale, MCHF

2

1

570

-9%

0%

566

886

Add. Potential - Upper Add. Potential - Lower

800

…

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 ‘30  

3/25

/201

5 D

anie

l Sta

ub -

MD

Sw

issc

om W

hole

sale

Old revenue streams are disappearing at a staggering pace

Dan

iel S

taub

- M

D S

wis

scom

Who

lesa

le

80

3/25

/201

5

APIs give us the flexibility to implement Internet business models on Telco assets

Scalable

Open

Agile

Profitable

Impact of API Effect

•  Easily adapt to market trends •  Launch new releases quickly

•  Self service set-up and usage •  Adherence to global best practices

•  Platform usable for partners of all sizes •  Set up and use / no integration project

•  Minimal entry barriers (cost, skills) •  High exit barriers

In sync with market trends

“Easy to do business with”

Drive innovation

Low entry risk

Goals

Our Vision: Become a platform beyond access Position Swisscom within the growing ecosystem of digital business

Dan

iel S

taub

- M

D S

wis

scom

Who

lesa

le

81

3/25

/201

5

API Portfolio Carrier Billing & Identity are the leading use cases; Meaningful engagement with big internet partners has already been established on both topics

• Carrier billing for frictionless payments

Payment Targeting Identity

• Telco identity for account creation and fraud prevention

• Telco «big data» for targeted advertising

Service Description

Customers*

Opportunity

Timelines

• C10m USD • 100% growth y/y

• C5m USD • 200% growth y/y

• C15m USD • 70% growth y/y

• Live since 2012 • Launch in 6 months • Potential launch in 2016

*examples

• Content platforms like Google, apple

• Online merchants like Amazon, Zalando, …

• Advertisers like Goldbach, Appnexus

Lessons learnt from API transformation Be disruptive, take calculated risks and reap tremendous rewards!

•  Grow a user base

•  Execute fast

•  Decouple legacy from future

•  Fail cheap and early

•  Combine right skill sets

3/25

/201

5 D

anie

l Sta

ub -

MD

Sw

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om W

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sale

82

83 I love new business models enabled by APIs

3/25

/201

5 D

anie

l Sta

ub -

MD

Sw

issc

om W

hole

sale

Chris Laws

Discussion

Thank you

Become a digital insider: “invite” to institute@apigee.com

If IT is from Mars and Marketers are from Venus, are Developers from Alpha Centauri?Stuart Hughes - Laterooms !Jon Billings - BBC !Sienne Veit - John Lewis !Nick Katsivelos - Apigee !

Beyond Alignment to Unification

•  People•  Place•  Purpose•  Process

88

Thank you

Closing Keynote�Great Hall�