Models For Api Value Generation

Digital interfaces, in the form of application programming interfaces (APIs), enable cost savings, revenue enhancement and new business models. But little is known about how nontech firms leverage APIs to generate business value. To address this gap, we studied several businesses and collected in-depth data from three large firms in the educational services, distribution and healthcare sectors. Our analysis identified three API value models: the efficiency, focused and transformed value models. Each requires a different combination of people, process and technology investment, and offers a unique value proposition.