apidays Helsinki & North 2023 - Lessons about API business and monetization, Olli Kilpeläinen, Abloy Oy

apidays Helsinki & North 2023
API Ecosystems - Connecting Physical and Digital
June 5 & 6, 2023

Lessons about API business and monetization
Olli Kilpeläinen, Head of Innovation Abloy Oy

------

Check out our conferences at https://www.apidays.global/

Do you want to sponsor or talk at one of our conferences?
https://apidays.typeform.com/to/ILJeAaV8

Learn more on APIscene, the global media made by the community for the community:
https://www.apiscene.io

Explore the API ecosystem with the API Landscape:
https://apilandscape.apiscene.io/

Transcript

1. Lessons in API business and monetization Apidays Helsinki & North – June 5th 2023 Olli Kilpeläinen
3. Who am I? https://www.linkedin.com/in/ollikilpelainen/
4. API and SDK product for MEDIA INDUSTRY API Business in different industries API ECOSYSTEMS API Ecosystemfor ELEVATORS AND ESCALATORS API Ecosystem for SECURITY AND ACCESS MANAGEMENT
5. Megatrends shaping thetraditional industries Future Opportunities - Sitra Megatrends 2023
6. From Maslow’s Hierarcy of Needs… Morality, creativity, problem solving SELF- ACTUALIZATION Confidence, achievement, respect SELF-ESTEEM Friendship, family, relationship BELONGING Security in personal matters, community, morals, employment, resources, health SAFETY Breathing, food, water, excretion PHYSIOLOGICAL NEEDS
7. Breathing, food, water, excretion Inspirational value PURPOSE TABLE STAKES …to Almquist’s B2B Hierarchy of Needs. Functional value PERFORMANCE ECONOMIC Ease of doing business value OPERATIONAL STRATEGIC ACCESS PRODUCTIVITY RELATIONSHIP Individual value CAREER PERSONAL
8. In many traditional industries, API business is not even intended as a stand-alone business APIsComplementing an Existing Business How to justify the business case? How to justify the new costs?
9. Pricing model can follow growth plans. First target is usuallyadoption and longer term is recurring revenue.  Similar approach seen in many industries Pricing model considerations Free of charge FREE Free until a set level of use FREEMIUM Fixed monthly/annual SUBSCRIPTION Price based on usage USAGE-BASED Revenue shared with ecosystem partners REVENUE SHARING / OUTCOME BASED
10. Industry used to selling physical goods - Established business models - Established billing systems - Established reportingstructures - Customer expectations - Customer budgeting - … Pricing modelscan have many barriers FREEMIUM MODERATE FIXED MONTHLY FEE MONTHLY FEE SCALING WITH BUSINESS
11. Design Thinking Applied to Business Models
12. Customer Understanding Cross-functionally Customer Service and Sales Product Management and Development Service and Operations CUSTOMER
13. Summing it up Understand the existing business Understand thecustomers Understand the industry limitations Don’t assume too much