At FABERNOVEL, we’re convinced APIs are a powerful lever for traditional companies willing to enter and thrive in a world dominated by the GAFA (Google, Amazon, Facebook, Apple), Unicorns (Uber, Airbnb…), Chinese giants (Alibaba, Tencent…) and all similar actors that have deeply changed the way goods and services are produced, shared and distributed.
As outlined in our latest study, these new players share one common feature: they’re all structured as networks, connecting individuals, businesses, information and goods to one another.
3. 3
From new kids on the block to heavyweight
champions
Google
CONTENT &
ADVERTISING
Amazon
COMMERCE &
FULFILMENT
Facebook
SOCIAL &
DISTRIBUTION
Apple
ENTERTAINMENT
& SOFTWARE
Haven’t read our previous studies?
Go to http://fr.slideshare.net/fabernovel
5. 5
GAFAnomics® spread in every region
Google | Amazon
Facebook | Apple
Alibaba | Baidu
Tencent | Xiaomi
Yandex | Ozon
VK | Yota (acquired)
NTT | Sony
Gree | Rakuten
Samsung | Gmarket
Kakao Talk | Naver
Flipkart
6. The secret to this new breed of companies
GAFAnomics® companies are organized as networks, leveraging
connections and interactions as a source of knowledge and therefore
performance.
“In the networked world,
[the three most desirable things]
are connections,
connections and
connections.”
Breaking Smart
Marc Andreessen & Venkatesh Rao
7. GAFAnomics® companies build open networks
A network is a system connecting a multitude of people, objects, and information to one another.
By taking leadership on a large scale, GAFAnomics® companies become
infrastructures, on which other companies want to connect to create value.
8. 8
More than half of the unicorns born with GAFA’s
infrastructures
Number of tech companies
valued at more than $1B by
year of birth (pre-IPO and post-IPO)
Apple Store Android Store Google play
Source: TechCrunch
9. 9
Uber has built its whole service on top of infrastructures set out by GAFA.
[Case] Uber scaling fast thanks to GAFA
Access to users
-
Data and server management
-
Driver navigation
-
Payment
-
App distribution on the AppStore, the
Playstore and soon Facebook Messenger
Data storage and management on Amazon
Web services in its early stage.
Google Maps used to geolocate cars and
users as well as to help drivers navigate
Google Wallet and Apple Pay are used to
complete transactions.
11. 11
Magnet enterprise
–
Aggregating and managing very
small units
Networked companies are able to
detect, organize, and animate very
small units of value.
Their competitive advantage is to
deal efficiently with billions of
small transactions.
Real-time enterprise
–
Instantly tuning value
Networked companies use real-time
data feedback to instantly optimize
market fit and improve products’
value
Their competitive advantage is instant
fit-to-market.
4 superpowers to unlock with APIs
Infinite enterprise
–
Shooting for the 100% profit
consumer
Networked companies use highly
scalable software and services to
achieve zero cost delivery once
critical user mass is achieved.
Their competitive advantage is
speed of scalability and profitability.
Intimate enterprise
–
Hospitality is the norm
Networked companies use customer
knowledge to fine-tune and
personalize the experiences they
deliver to each customer. Large-scale
customization is at the heart of their
products.
Their competitive advantage is
customer hospitality and comfort.
12. 12
Magnet enterprise
Aggregating and managing very small units
Networked companies are able to detect,
organize, and animate very small units of value.
They leverage excess capacities and user value
creation to capture and deliver micro deals.
Their competitive advantage is to deal efficiently
with billions of small transactions.
MAGNET REAL-TIME INFINITE ADAPTIVE+ + +4 =
13. 13
Magnet enterprise
How it works
Standard economy
–
Companies take raw materials in input
and produce finished products that are
sold to consumers. Revenue unit = 100
Network economy
–
Companies identify available value, as small as
it is and capture it. They transform this value
and redistribute it to consumers and producers
while taking a cut. Revenue unit = 1
14. 14
Magnet enterprise
[Case] Use others’ APIs
IFFFT offers a unique service allowing users to create recipes (trigger + action) between 242 services.
15 million of these triggers are realized every day. IFTTT has raised more than $38M to date. All the
value captured and distributed by IFTTT comes from API connections.
Use other’s API to benefit from externally-created value.
15. 15
Magnet enterprise
[Case] Give away your APIs
Photo Prints allows mobile application developers to include the ability for their app users to print
photos to any of the 8,000+ Walgreens locations. With every photo order that is successfully placed and
picked up at a local store, the developer can earn a revenue share commission. A strategy to increase
mobile interaction as Walgreens’ revenues per customer for people who interacted with it physically
and through mobile devices were six times those generated by people who just shopped at its stores.
Give away your APIs to benefit from externally created-value.
225 Third party applications
40% Of digital photo business
through APIS
200% Growth of API adoption
15% Revenue share for apps
4M Photo prints via Printicular
16. 16
The real-time enterprise
MAGNET REAL-TIME INFINITE ADAPTIVE+ + +4 =
Instantly tuning value
Networked companies use real-time data
feedback to instantly optimize market fit
and improve products’ value. They use
optimum management and work in
perpetual beta to answer user needs in
real-time.
Their competitive advantage is instant fit-
to-market.
17. 17
Real-time enterprise
How it works
Standard economy
–
Companies produce and put new products on
the market every other year. They don’t have
information about their products’ usage for
months.
Network economy
–
Companies produce a first minimum viable
version of their products and perpetually
improve it through iterative development. They
closely monitor the usage of their products to
answer their user’s needs in real time.
18. 18
[Case] Implement APIs
Real-time enterprise
Through its APIs, Google analytics lets businesses understand their customers’ journey across
channels. Through a comprehensive set of dashboards, businesses can track their performance and
adapt their strategy in real-time to improve their reach or increase their conversion rates. For example,
using Google Analytics improved National Geographic’s click-throughs by 21% for content promotions.
Use other’s API to understand and adapt to the market in real-time.
19. 19
[Case] Give away your APIs
In its early days, twitter’s user interface was not good enough for regular users. In 2008, Twitter
released its search API, which allowed third parties to read and write Twitter messages with minimal
coding in nearly any programming language. An independent developer built TweetDeck, a new app
based on Twitter’s API, with a better user interface that led to an explosion in Twitter usage. Twitter
acquired TweetDeck in 2011 for £25M, thus making the twitter offering evolve with market demand.
Give away your APIs to let your products instantly adapt to the market.
Real-time enterprise
23% Of new status updates in 2010
(after Twitter: 45,7%)
20. 20
The infinite enterprise
Shooting for the 100% profit consumer
Networked companies use highly scalable
software and services to achieve zero cost
delivery once critical user mass is achieved.
Thanks to network effects and zero
marginal costs, they can grow indefinitely in
revenue with minimal impact on costs.
Their competitive advantage is speed of
scalability and profitability.
MAGNET REAL-TIME INFINITE ADAPTIVE+ + +4 =
21. 21
Infinite enterprise
How it works
Standard economy
–
Companies have to produce an additional
output to serve an additional customer. Their
growth is constrained by their production
capacity and by the marginal cost of
production.
Network economy
–
Companies distribute non-competitive goods and
can serve additional customers at virtually no
additional cost, giving them an infinite growth
opportunity. Additionally, they benefit from
network effects and see the perceived value of
their products increase with the number of users.
This is much easier with immaterial goods.
22. 22
[Case] Use others’ APIs
Infinite enterprise
Implementing stripe’s API allows business to adopt a powerful and scalable payment method
leaving to stripe the responsibility of storing cards, processing subscriptions, billing clients, offering
coupons, or anything related to payments. A secure way to accept payments from nearly any
country in the world, on any channel and at a very low marginal cost. You just have to take care of
the rest !
Use other’s API to become scalable and benefit from low marginal costs.
23. 23
[Case] Give away your APIs
…..
Infinite enterprise
Uber released its affiliate API last year to incentivize businesses and developers to refer users. Launch
partners included OpenTable, Starbucks, TripAdvisor, and United Airlines. Developers will get $5 for
every U.S.-based user they sign up for Uber through API integrations in their own and can earn up to
$5000 in referal fees. An usage of APIs to increase reach and reach more potential users.
Give away your APIs to grow through others’ networks.
“Consider ways to galvanize your users into trying the seamless Uber experience.”
“Consider emailing your user base to ensure they are aware of the Uber integration within your app”
Uber.com
24. 24
Intimate enterprise
MAGNET REAL-TIME INFINITE INTIMATE+ + +4 =
Hospitality is the norm
Networked companies use customer knowledge
to fine-tune and personalize the experiences they
deliver to each customer. Large-scale
customization is at the heart of their products.
Targeting and customizing their products to
every single user, they create intimate long-lasting
relationships.
Their competitive advantage is customer
hospitality and comfort.
25. 25
Intimate enterprise
How it works
Standard economy
–
Companies produce in mass and sell a
identical product to all their customers.
Network economy
–
Companies offer tailored products and
customization possibilities to each of their
customers, creating an intimate and long-lasting
experience.
26. 26
[Case] Use others’ APIs
Intimate enterprise
By using Facebook Login, companies can ease the registration and signing in process, building
a more fluid and intimate usage experience for their users. They can also personalize their
interactions by gathering valuable information about their user’s needs and preferences
based on their likes and personal profiles.
Use other’s APIs to personalize your services by better understanding them.
27. 27
[Case] Give away your APIs
Among others, Slack released its Real Time Messaging API, widely used to create what Slack calls bots:
useful tools that can respond to messages chat users type into a chatroom, or interact at specific
points in time. With a little sense of code, every team can create its own bots, answering its own needs,
making customization virtually limitless. Slack recently went one step further by introducing its own
store to let teams offer and download bots.
Give away your APIs to let customers customize your products and services.
Intimate enterprise
Applidium created 2 bots answering their own needs: one that
randomly pairs them up for lunch once a week: Cyril. Another ones
that records and ranks their FIFA tournament results: Zizou.
28. 28
Leverage APIs to embrace superpowers
Intimate enterprise
Magnet enterprise Real-time enterprise
Infinite enterpriseNetworked company
By leveraging APIs, companies can structures themselves around networks. They automatically
benefit from these 4 superpowers and gain unfair competitive advantage in the new economy.
29. One golden rule: Connect and Open
“There is no future for hermetically
sealed closed systems in the Network
Economy. […] Every time a closed
system opens, it begins to interact
more directly with other existing
systems, and therefore acquires all
the value of those systems.”
Kevin Kelly
Wired co-founder
31. 31
Get fresh news on GAFAnomics®
Register to our newsletter on www.GAFAnomics.com
32. 32
See also…
Facebook, The Perfect
Startup (2012)
6 365k views on Slideshare
Amazon, The Hidden
Empire (2011)
918k views on Slideshare
•••
Three digital engines to reshape
and dominate retail
mazon.com
THE HIDDEN EMPIRE
Linkedin, The serious Network
(2013)
253k views on Slideshare
Google, Everything you
always wanted to know
(2008)
540k views on Slideshare
Everything you always wanted to know
about Google…But were afraid to ask
Paris, December 2008
And more.
Apple: 8 Easy Steps to Beat
Microsoft (and Google)
Paris, September 2010
Apple, 8 easy steps to
beat Microsoft
(and Google) (2011)
179k views on Slideshare
GAFAnomics®, New Economy
New rules (2014) - 260k views on
Slideshare
GAFAnomics®, 4 superpowers to
outperform in the network
economy (nov, 2015)
33. 33
4 sessions to become a GAFAnomics expert
(customer, innovation and organization, network
economy, strategy) and implement their best
practices toyour business
Inspiring
keynotes
Collaborative
workshops
Cross-sessions
business case
Certification and
alumni community
Next sessions in January 2016 (Paris)
Information and inscriptions on
academy.gafanomics.com
34. 34
We are
A new world needs new solutions
Who we are
We are a “digital native”
organization of a new type,
nourished by a unique culture
and incomparable talents. We
gather wide and cutting-edge
capabilities –in strategy, software,
design and data marketing –
boosting our clients’
competitiveness.
Our offices
From our offices in San
Francisco, Paris, Toulouse,
Lisbon and Moscow, we work
with clients everywhere in
the world to help them
define and develop new
opportunities.
What we do
We transform feared disruptions into
business opportunities. We craft
impactful user experiences that
benefit our clients and their
customers. We build agile prototypes
to test and develop strong strategic
assets. And we play a prominent role
with a sustainable impact, in the best
ecosystems. At startup speed.
@FABERNOVEL facebook.com/FABERNOVEL FABERNOVEL.com
35. 35
A full stack and digital native company to identify
levers for competitiveness
Stéphane DISTINGUIN
Founder & CEO FABERNOVEL
stephane.distinguin@fabernovel.com
Cyril VART
VP Strategy & Development FABERNOVEL
cyril.vart@fabernovel.com
Leila TURNER
CEO FABERNOVEL Paris
leila.turner@fabernovel.com
Dominique PIOTET
CEO FABERNOVEL US & PARISOMA
dominique.piotet@fabernovel.com
Baptiste BENEZET
CEO Applidium
baptiste.benezet@applidium.com
Alexis Godais
CEO Buzzaka
alexis.godais@buzzaka.com
Kevin GENTIL-CANTIN
Co-founder & CEO lagencemedia
kevin@lagencemedia.fr
Yassine BELFKIH
Co-founder & CEO lagencemedia
yassine@lagencemedia.fr
Antonin TORIKIAN
CEO Institut FABERNOVEL
antonin@institutfabernovel.com
36. 36
Credits
Audrey DA CRUZ
Junior Art Director
Amaury BOTREL
Art Director
DESIGN
-
Stéphane DISTINGUIN
Founder & CEO
Cyril VART
VP Strategy & Development
Sarah NOKRY
Senior Project Analyst
Kevin ECHRAGHI
Project Analyst
Louis MOULLARD
Senior Project Analyst
RESEARCH
-
SPECIAL THANKS
-
Robin Chase (Peers Inc) | Vivek Badrinath (Accor) | Angelos Souriadakis (Ylios) | Philippe Février (Veltys)
David Salabi (Financière Cambon) | François Druel | Jean-Christophe Liaubet (Exane) | Air France Manager Café
Pierre-Baptiste Goutagny (Ex-FABERNOVEL Paris) | Elisa Jo Harkness (FABERNOVEL US)
Benoit TALABOT
Partner & Creative Director
37. 37
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SAN FRANCISCO
Dominique Piotet
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PARIS
Leila Turner
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LISBON
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TOULOUSE
Paul Bois
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BUSINESS INQUIRIES
MEDIA INQUIRIES
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