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Dubai Smart Gates

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Dubai Smart Gates Dubai Airport introduces Smart Gates Src: Flickr


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Changing the Face of Transport via APIs Manfred Bortenschlager I work for 3scale.net API Management @3scale APIdays Paris, December 3, 2014


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Outline Opportunities and Challenges in Transport Five API Use Cases API Economics Wrap-up and take-aways


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International travel contributed $6.9tr to global GDP Transport industry accounts for 4.5% of total employment International trade growth forecast 8% Growing hyperconnectivity: people, places, machines Smart navigation systems reduce travel time by 18% Src: WEF, EC, Flickr


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Traffic congestion effects reduce GDP by $200bn in EU and US Transport accounts for ? of EU’s emissions 71% of EU car drivers criticize convenience of PT Saturation of EU skies, freight traffic to grow 125% Growth rates ? energy ? Src: WEF, EC, Flickr


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The solution to all this ? Application Programming Interfaces …because APIs are interfaces that allow systems to work – frictionless.


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Five API use cases Enabling mobile channels Growing ecosystem Increasing reach Powering business models Driving innovation www.3scale.net


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Open data for multi-modal travel throughout UK Open data for Smart Cities Including transport data Adopted by many mobile apps 1. Enabling mobile channels


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2. Growing ecosystems Carma Easily find matches for carpooling Exposes same functionality via API


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3. Increasing reach From service to platform Opening up an API […] embeds them in a wider range of apps […] and increases their sales potential because they have more channels. (Gartner) Src: http://bostinno.streetwise.co/2014/08/20/uber-api-open-uber-api-launch-partners-include-starbucks-united-airlines/


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4. Powering business models Aggregation of various transport-related data feeds Freemium price plan for API access


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5. Driving innovation Free access to data from multitude of sources: Lines, times, fares, points of interests, bikes, traffic jams, speed cameras, electric car charge points… Encourage mashups and innovation


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But what really is the power of APIs ?


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APIs enable the creation of platforms.


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Src: http://www.valuewalk.com/ …A "platform" is a system that can be […] customized by outside developers -- users -- and in that way, adapted to countless needs and niches that the platform's original developers could not have possibly contemplated.


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APIs enable the creation of platforms. Platforms enable 2-sided business models. (aka Asymmetric Business Models)


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Asymmetric Business Models Side 1 Type “Home” market Primary Side 2 Type “Victimized” market Secondary Drives the primary


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Platform economics Home Market Victimized Market Platform Src: wikipedia


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Platform economics Price Price Quantity Home Market Victimized Market Platform P1 ? P2? (free)


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Platform economics: examples Price Price Quantity Home Market Victimized Market Platform


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APIs enable the creation of platforms. A Platform… …adapted to countless needs and niches…


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Platform and the five API use cases Enabling mobile channels Growing ecosystem Increasing reach Powering business models Driving innovation


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Nearly 4/5 of the CEOs identified technological advances such as the digital economy, …


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Take-aways There are tremendous opportunities in transport. Several socio-economic, structural and technical challenges need to be overcome. APIs (will) play an essential role. Five API use cases can be identified. All relate to platform economics.


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The next miracle to come from transportation


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Q&A Manfred Bortenschlager manfred@scale.net I work at 3scale.net API Management @3scale Changing the Face of Transport via APIs


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