API Productisation – Shift RIGHT to Better Product Resilience

My name is Abhijit Dey, and I’m currently the Vice President of Digital Banking at Axis Bank, India. In this article, I want to discuss a topic that is not just transforming the banking sector but reshaping the entire digital economy: API Productization. This subject is close to my heart as I’ve spent much of my career working with APIs and building products around them. APIs, once considered mere endpoints, have now evolved into full-fledged products with their own lifecycles. How we manage these APIs, especially in terms of their productization, has become crucial for business success, particularly in the digital banking sector.

The Role of APIs in the New Digital Economy

APIs are not just enablers of data transfer; they are the currency of the digital economy. The more APIs a company has, the more use cases it can cater to and, hence, the more revenue it can generate. In recent years, especially post-COVID, we have witnessed a massive digital transformation across industries. The rise of fintech and tech startups, all driven by APIs, highlights their importance. In this new landscape, APIs are not just technical assets but strategic products.

I’ll focus on API productization and how it improves product resilience. We’ll cover key topics such as:

• API as a product: What makes an API a product?
• The role of the API product manager.
• API developer packaging and distribution, which plays a crucial role in product success.

Let’s dive into the details of API productization and what it means for organizations.

API Productization: What Makes an API a Product?

Every product goes through a lifecycle of five stages: ideation, construction, growth, maturity, and retirement. APIs are no different. To understand the productization of APIs, we need to view them through the lens of these lifecycle stages.

1. Ideation: This stage begins with a problem statement. Every API, like any other product, is created to solve a particular problem. Identifying the right problem, discovering potential solutions, and mapping these solutions to the right APIs is essential in this phase. Product managers play a significant role here by evaluating existing APIs and determining which can be adapted to solve the problem.
2. Construction: Once the problem is identified and the API solution validated, the next step is to build the product. This includes creating user stories, engaging stakeholders, and setting revenue streams. The API is constructed with specific features in mind that meet the product’s vision. At this stage, the API must be integrated into the broader business ecosystem, which often involves working with multiple teams.
3. Growth: After the API is built, it enters the growth phase, where it is introduced to the market. Here, you focus on making the API product market-fit. This involves launching an MVP (Minimum Viable Product), gathering feedback from early customers, and refining the product based on this feedback. Growth strategies for APIs can be product-led or community-led, depending on whether the API is scaled through internal development or external communities.
4. Maturity: In this stage, the API has achieved market penetration, and the focus shifts to adoption and profitability. APIs are integrated into developer portals, where they can be accessed, managed, and utilized by customers. Developer portals become critical as they serve as the face of your API product to the world. Effective management of API maturity requires constant monitoring and community engagement.
5. Retirement: Like any other product, APIs eventually reach the end of their lifecycle. When an API becomes obsolete, either due to technological advances or changing market demands, it must be retired or deprecated. However, retirement should not happen without adequate communication with customers, and organizations must have a roadmap for newer versions or replacements.

API Product Managers: Navigating an Unconventional Role

API product managers differ from traditional product managers in many ways. While a traditional product manager oversees the lifecycle of a physical or digital product, the API product manager is responsible for the technical and developer-focused aspects of the product. Their role involves:

• Developer Advocacy: Unlike typical product managers who interact with business users or customers, API product managers work closely with developers. Building strong relationships with the developer community is key to the success of an API product.
• API Design Management: API product managers must apply design thinking to their APIs. The design of an API impacts its usability, adoption, and performance, which directly influences its success as a product.
• Developer Relations: Engaging with the developer community ensures continuous feedback and improvement. This relationship-building leads to a better understanding of how APIs are used in the real world and helps align the product’s evolution with user needs.
• Lifecycle Management: API product managers must oversee the API’s entire lifecycle, from inception to retirement. They are responsible for making key decisions, such as when to release new versions, deprecate older ones, and how to ensure smooth transitions for users.

Developer Portals: The Gateway to API Product Success

One of the most critical components in the API productization journey is the developer portal. In the last few years, developer portals have evolved from simple API documentation hubs to fully-fledged platforms that drive adoption and growth.

A modern developer portal serves several key functions:

• API Catalog: A centralized repository of all available APIs, allowing developers to discover, test, and integrate them into their applications.
• Documentation: High-quality documentation is crucial for API adoption. A well-documented API allows developers to understand its capabilities quickly and effectively integrate it into their solutions.
• Self-Service Onboarding: Many organizations, including my own, have developed digital onboarding processes that allow developers to sign up for and access APIs without manual intervention. This streamlined approach encourages rapid adoption.
• Support and Analytics: A developer portal must offer comprehensive support for developers, including real-time analytics and metrics that help track API performance.
• Developer Tools: Providing tools like Swagger, Postman collections, and command-line interfaces (CLIs) enhances the developer experience and accelerates the integration process.
• Hyper-Personalization: Tailoring the developer experience based on user behavior and preferences leads to better engagement and product stickiness.

Conclusion: APIs as Strategic Products

The number of APIs within organizations is growing rapidly. To manage this complexity and maximize value, it’s time we start viewing APIs as products with distinct lifecycles. Proper productization of APIs ensures that they evolve in a structured manner, can be monetized effectively, and provide long-term value to the business. API product managers play a pivotal role in this transformation, and with the right tools and mindset, they can ensure that their APIs are successful in the market.

In conclusion, APIs are no longer just endpoints or technical assets; they are strategic products that drive digital transformation. By adopting an API productization approach, organizations can enhance product resilience, create new revenue streams, and better serve their developer communities. Thanks for attending this session, and I hope you gained valuable insights into the world of API productization.