Five steps to launching an API that makes real money
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So, how do you sell these people on the idea that launching an API program will generate some cold,
hard cash for the company?
In this presentation, we outline five key stepsyou can take to help ensure your API program is profitable
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For some people in some companies, the benefits of launching an API program can seem a little abstract
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Most companies have
made significant investments
in backend IT systems
Identify valuable information assets1
The data and functionality
locked up in these systems
represents significant
unrealized value
APIs unlock this value
by opening backend
systems for reuse in
new applications
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Build an open API2Open APIs make data and
functionality from backend
systems accessible to Web and
mobile app developers outside
the organization
This approach can significantly
reduce the resources needed to
create new apps and can also
lead to more innovative results
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But how do you ensure your open
API will create the kind of ROI
decision makers in your company
will want to see?
Over the next two slides, we explain
two basic approaches to effectively
monetizing an open API…
Choose a monetization model3
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A. PAYING DEVELOPERS
In some cases, API-driven apps may
directly generate revenue for your
company – by making it quicker,
easier and more compelling for
customers to purchase your
products and services
In these scenarios, you can set up a
revenue sharing system, where the
developer gets paid every time a
sale is made via their app – this will
incent developers to create apps
that generate revenue for your
company
Choose a monetization model (continued)3
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B. CHARGING DEVELOPERS
In other scenarios, your API may
be so valuable to developers that
it enables them to build apps from
which they can generate significant
revenue (e.g. via app store sales)
In these cases, developers may
be willing to pay your company
for access to its API – this scenario
is the less common of the two
but it is growing in popularity
Choose a monetization model (continued)3
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In order to successfully monetize your
open API, you will have to build a
community of external developers
who are able to use that API to create
truly valuable apps
To do this, you will need to build an
online portal, through which
developers can discover, register for
and learn how to make effective use
of your API
Engage the developer community4
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Opening APIs to external developers
can expose your backend systems
to a range of new security and
performance threats
Maintain a secure, reliable service5
To ensure your API and the apps it
services run smoothly and securely,
you will need to deploy a full-
featured API Management solution
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API Monetization:Unlocking the Value of Your Data
To learn more about how your organization can use APIs to create new
revenue streams download this eBook from CA Technologies
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