will software eat your ceo?

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WILL SOFTWARE EAT YOUR CEO?

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APIS, AN INNOVATIVE AND EFFICIENT MODEL ALLOWING COMPANIES TO MANAGE THEIR CORE BUSINESS ONLY

TRADITIONAL COMPANY

HR Finance

IT Logistics Marketing

Core business

R&D

R&D

Finance

HR

Sales

API-DRIVEN COMPANY

Logistics

Marketing

vs. “Elastic” IT

In a traditional company, all functions are internalized to support the core business

In an API-driven company, support functions are externalized via an API, focus is on the core business

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A NEW BUSINESS MODEL FOR API-DRIVEN COMPANIES: DATA

R&D

Finance

HR

Sales

API-DRIVEN COMPANY

Logistics

Marketing

Elastic infrastructure

The data deluge •  Logs •  Raw statistics •  Ticketing •  Loyalty schemes data •  Open Data •  ...

Packaged insights for resell •  Pattern predictions •  Real-time logistic optimization •  Tailored marketing plans •  Mass-customization

After being transformed into patterns, predictions and insights, data can be sold to the State, companies and organizations.

The cost of massive datasets analysis decreases because of: •  APIs & SDK easing data

crunching •  Cloud vendors competition •  Open Source technologies

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API CASE STUDIES

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1// TROPO TELEPHONY: A PRODUCT BUILT AS AN API

Incoming call

Tropo Cloud Render

API link with app 1

2

3

Smartphone

Landline

VoIP

Tropo is a new TELCOs: built as an API in the cloud, with no fixed costs and only usage fees. Tropo rents traditionnal TELCOs’ network, and focus on service delivery rather than infrastructure investment and maintenance.

Tropo is a MVNO for B2B. Its help its clients to scale quickly while staying flexibile.

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1// WHAT ARE THE DIRECT SAVINGS WITH A CLOUD TELCO COMPARED TO A TRADITIONAL CALL-CENTER?

No employee to hire

Scale faster

For a six-month development cycle it can mean millions of dollars saved in infrastructure costs.

No Development costs

With a cloud TELCO, the versatibility of the product allows to redirect the call to usual employee desks.

No Upfront investment

Using a cloud communication platform make the SMBs less vulnerable to activity cycle.

Savings for a 2 person call-center:

$50,000 Investment

$2,500/month per agent

$110,000 per year + =

The charges of a cloud-infrastructure is a considered as the charge and therefore, deducted from the P&L and corporate tax.

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2// A COSMETIC DATA PLATFORM

$1.9 billion Revenue 2013

POLA ORBIS Group is engaged in business related to beauty and health in Japan, with emphasis on cosmetic. The Group gathers 7 major brands such as Pola.

In July 2014, Pola launched its new anti-aging brand Pola APEX-I with a new product & service based on Big Data providing direct material for Pola R&D. Since 1990, Pola had already started to collect and analyze data:

2.5m possible cosmetic creams designed

3,600 Make up

designed

$60m Expected new revenue in 2014 based on mass-customisation of

cosmetics

Private APIs for APEX-I: Enable the intensive data collection and analysis, the individual reporting and the personalisation of the manufacturing process.

14.5m Data set

Collected

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2// FROM COSMETICS MASS MANUFACTURING TO COSMETICS COUNSELING

1// Pola Ladies data •  Patches to collect skin

condition data •  Skin sensors •  Tablets connected to

the sensors

2// PERSONAL REPORTS •  Skin health information

reported in 10 days •  Personal advice for each

lady (150 000) •  Condition compared to the

population

3// MANUFACTURING TAILOR MADE PRODUCTS •  Real-time skin data access for

researchers •  Creation of more personalized

samples based on data analysis to fit current skin needs

•  Iterative process

PRIVATE API

PRIVATE API

PRIVATE API

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3// RETAIL BANKING API: OPENING SENSITIVE & PERSONNAL DATA IN A SECURED WAY

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Externalising R&D

Savings per app ≈

$250,000

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Preparing for new usages in retail banking •  Multiple customer accounts •  Less physical points of contacts •  24/24 customer service •  Social CRM •  Dahsboard and advices

Benefits of a bank API Retail banks in France and US already offer apps for smartphone and tablets. Recently, financial companies started to make their customer datas availables to third-party apps. Though most were opened through private APIs, some, like AXA Banque even opened public APIs.

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3// FUTURE OF BANKING: OUTSOURCING THE CLIENT RELATIONSHIP TO SMARPHONE APPLICATIONS

Simple strategy: focusing on customer service and letting partners bank do what they do best

In the US, Simple is disrupting the banking industry with a smartphone application.

Retail bank has always been a real estate job: bank institutions spending large ressources to

manage physical agencies all accross the country.

Thanks to the APIs, retail banks can outsource client relationships to applications like Simple

and focus on cash management.

Retail bank will focus on their core business: investing the money of current and savings

accounts.

In 2012: BNP Paribas Investment banking made 30% of the group profits with 9% of

the headcounts.

Margins are higher in investment banking

Future of retail banking Future of investment banking

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The 3rd party app sends an adress to Uber through the API

The app displays pickup times and fare estimates on the app

PARTNER API Enables Uber’s on demand ride service to be integrated in third party apps

240 Cities

Ex : Time out, Starbucks, Hinge….

50 Countries

$40 billion Valuation

Uber is an app connecting you with a driver in a few minutes.

Ex : Trip advisor, Hyatt, Expensify, United Airlines…

Trips Recent partners

Hobbies

Future partners? Amazon Uber as « the future of logistics »

4// UBER WANTS TO DISRUPT THE ON-DEMAND RIDE SERVICE WITH APIS

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In the 150 countries, many people haven’t tried the app yet.

Data science for predictive marketing

No one knew where you were going

Before Now

Uber can predict where you want to go with 74% accuracy

TAKE FULL ADVANTAGE OF CUSTOMERS DATA THANKS TO THE API

Seamless integrated service: The customer has the convenience to benefit from an Uber Ride without leaving the app.

Exposure to millions of new users

Uber can adapt its marketing & offer based on previous destinations and behaviors of other users.

LEVERAGE OTHER APPS WITH MILLIONS OF USERS

4// AN API FOR A GREATER REACH AND A PREDICTIVE MARKETING

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LESSONS LEARNED: APIS ALLOW COMPANIES TO EFFECTIVELY PURSUE THE CLASSICAL TRIPTYCH OF BUSINESS GOALS

Business Development

#1

Product Development

#2

Delivery Management

#3

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HOW CAN A BOARD UNDERSTAND APIS OPPORTUNITY ?

CMO Sales Director

COO

HR

CEO CFO

Communica7on Director

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1975: two computer science students, Paul Allen and Bill Gates created Altair BASIC, the first programming language for microcomputer, which gave birth to Microsoft.

1998: Sergei Brin and Larry Page, PhD students in computer science at Stanford University, started a search engine projet named Google. 2004: Former computer science student at Harvard, Mark Zuckerberg launched Facebook, a website connecting students on campus.

WITH CODE, THESE MEN CONQUERED THE WORLD

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…AND NOWADAYS, THE WHOLE WORLD SPEAKS HIGHLY OF CODE

“Learning to code is not only important for your future, but

also the future of your country “

BARACK OBAMA

“Coding is a skill that will empower the next generation in

almost any field”

HARRY LEWIS (Former Dean of Harvard College)

“I learned how to fly a hot air balloon when I was 30,000 feet up and my life was in the balance: you can learn skills at any age but why wait when we can teach everyone to code now!”

RICHARD BRANSON

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The website Code.org offers 1-hour coding lessons for beginners.

LEARNING TO CODE HAS NEVER BEEN THIS EASY!

2014: Launch of an Hour of Code

Par7cipants have followed the an HOUR of CODE program since January 2014.

With ambassadors such as: Mark Zuckerberg, Bill Gates, Google, Yahoo, MSN and Disney.

+30m

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Many movements aim to promote coding and programming among the young generation (right from 6 years’ old). Game designing, robot animation, connected objects manufacturing… These workshops are based on the creativity of the youngest and the educational effort from digital experts.

CODING AFTER SCHOOL

Kids Coding Club Kids Coding Club develops the creaPvity of the young generaPon (and their parents), through code, games, robots or connected objects.

CoderDojo An internaPonal movement in 400 ciPes and 43 countries to train the youngest to code for free.

Coding Goûter A monthly event gathering together kids, parents and developers around code and Lego: "If we don’t have fun, it’s that we are not doing what we should." -‐ Raphaël Pierquin, founder.

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New schools have been created or adapted to meet the demand for computing talents

MAKE WAY FOR THE GRANDES ÉCOLES OF CODE!

ECOLE 42 Computer science school founded by Xavier Niel (Iliad – Free) in 2013. The school is accessible for all (no degree required) from 18 to 30 and offers enhanced courses in programming and digital innovaPon

EPITECH Epitech is a private school specialized in computer science and new technologies. It is accessible for bachelors and lasts 5 years.

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// SIMPLON 55 rue de Vincennes 93100 Montreuil

Simplon.co est une fabrique accélérée et rémunérée de développeurs web vouée à accompagner des porteurs de projets numériques, et prioritairement tournée vers les débutants en informatique et les profils sous-représentés dans l'entrepreneuriat digital et le web (filles, jeunes des quartiers populaires ou de zones rurales, personnes en situation de handicap, seniors).

CODE: VECTOR OF E-INCLUSION

Simplon.co is an accelerated factory of web developers who accompany non-coders towards the creation of digital projects. Simplon focuses on beginners and digital minorities (girls, young adults in working-class neighborhoods or rural areas, disabled people, seniors).

Among other initiatives throughout the world:

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SOFTWARE SIMPLIFIES CODE LEARNING

MIT SCRATCH An intuitive programming tool developed by MIT in 2006. The lines of code are generated automatically by software, which allows the user to concentrate on their logic.

GAME SALAD Game Salad is a tool for designing tablet and mobile games. Thanks to simplified interfaces, it enables all "illiterates of code" to create

animations and interactions.

KODU Kodu is a game designing software developed by Microsoft which uses the principle of graphic programming. The programs are produced by assembling graphic elements instead of lines of code.

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E-LEARNING: INTERFACE FOR SELF-LEARNING

CODECADEMY •  A plateforme to learn to code on

your own

•  5 million users in 2012.

OPEN CLASSROOMS •  800 free online courses in

computer science and other scientific disciplines

•  600,000 teachers and students

•  3 million visits in 2012.

KHAN ACADEMY •  10 million users per month

•  100,000 online exercises

•  Various disciplines including "Computer science" and "Computer programming".

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PROGRAMMABLE HARDWARE: LEARNING BY SMALL TASKS!

ARDUINO An Arduino is a printed circuit available for around $50 and gives the possibility to design homo-automation and robotic projects. The force lies in its low cost approach and its extremely well developed community.

MAKEY MAKEY This is an electronic circuit which helps transform all objects into a keyboard. It becomes thus possible to make music, play video games by using a fruit, an eraser or a stone.

LEGO MINDSTORMS & WEDO Mindstorms and WeDo are programmable Lego bricks. This initiative is part of the Lego Education program. The bricks become programmable via MIT’s Scratch.

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The development and the personalization of internal applications still remains in the expert hands of IT teams.

Quite often, any demand that concerns the evolution of a management tool is treated as a particular IT project, which requires time and resources for everyone.

TODAY, PROGRAMMING IS STILL AN I.T. THING

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IT will gradually become an internal consulting department. IT will take care of the technical architecture of the firm and will provide other departments (HR, Marketing, Logistics…) with tools (API, SDK…) in order to quickly adapt their process and digital applications according to their needs.

For example:

•  The HR department will be able to develop its own recruitment tools thanks to internal API provided by the IT department as well as external APIs (e.g.: LinkedIn API)

•  The Marketing Department will be able to personalize its CRM with the access to CRM API and external API (Twitter, Facebook…)

TOMORROW, CODING WILL BECOME A BUSINESS SKILL

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Your clients will develop their personalized interfaces and service offers from the data and functionalities that you provide them.

They will be more and more able to match your data and functionalities with the ones of other services in order to construct the best solutions to their problems.

IN THE FUTURE: TOWARDS THE PROGRAMMABLE FIRM

//31 Testimonies of students from Harvard course CS50 (Introduction to Computer Science)

MANAGERS: ALL PROGRAMMERS?

COMMUNICATING WITH DEVELOPERS “It taught me enough about so;ware development that I don't feel lost in my current job. I can ask intelligent quesBons and I can push back on the developers when necessary”

JON EINKAUF Product manager @Amazon AWS

RECRUITING « I wanted to get a job at a tech startup and ended up as a product manager at one of NYC's hoHest tech startups. The founder, who is a CS PhD, was really impressed that I'd learned to code »

ANONYMOUS

WRITING SOFTWARE “I used CS50 skills to create a half dozen VBA programs that will likely save the startup I'm working for tens of thousands of dollars”

KYLE WATKINS Manager at a startup

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IFTTT : Created 2010 – 30M$ round in August 2014 Over 125 connectors (Nike, Azure, Nest, Jawbone, ESPN, eBay, Square…)

14M personal applicaPons used 15M Pmes a day .

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YOUR COMMUNICATION DIRECTOR SHOULD BE INTERESTED

The Facebook Like API is free to use. Anyone can embed a Like button on their page. This allowed Facebook to spread the Like button very rapidly everywhere on the web, to enrich the Facebook Social Graph, to be present everywhere on the web, and to position themselves as dominant in social recommendation.

Case Study Key figures

2.7 billion of Likes/day

2.5 million websites use the Like button

+1,000 websites adding the Like button/day

#1

#2

#3

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YOUR CMO SHOULD BE INTERESTED


3x faster is the product development cycle at AT&T thanks to its APIs

5 billion API calls each month, mostly coming from third party developers. A 1400 % increase since the launch of the API in 2010.

#1

#2 AT&T opened up APIs to allow developers to build apps on its network to then deliver those apps to customers. Through this transition, developers act as marketers for AT&T: when customers find an app useful, they tend to use the network more than usual and thus, revenue is increased. #3 40,000 members

in the Developer Program

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YOUR SALES DIRECTOR SHOULD BE INTERESTED


2m sellers worldwide use the marketplace

39% of total units shipped are sold through the marketplace

#1

#2 Amazon allows third-party sellers to plug their catalog to Amazon.com through their APIs. By doing so, sellers can be ensured their catalog is always up to date, and it eases their integration on Amazon platform. APIs give sellers a great opportunity to access Amazon’s 152m of customers.

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YOUR COO SHOULD BE INTERESTED


Comcast, America’s largest TV, media, entertainment and cable provider created an internal API for teams to easily share data and solutions. The API is free for use by internal teams. Today, teams can build new products and user experience faster than ever, generating thus new revenue sources for Comcast.

Source: How an API Can Transform Your Enterprise, RWW. Comcast annual report.

30 minutes to share resources through internal API compared to months in the past

x100 increase in the API traffic last year

$8.5 billion revenue for Xfinity, a Comcast offer using the API

#1

#2

#3

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YOUR HR DIRECTOR SHOULD BE INTERESTED


75,000 developers use LinkedIn APIs

48% of jobs on LinkedIn can be found nowhere else

12X more expensive are recruitment agencies compared to LinkedIn

#1

#2

#3

LinkedIn opened-up APIs to let third-party developers integrate parts of its functionalities such as: login with LinkedIn, companies profiles & updates, groups (share content within groups), job search on LinkedIn. It eases the way recruiters monitor, screen and attract talents to their companies, enabling them to extend their reach far beyond what traditional recruitment tools allow (e.g. jobs boards, ads, company page, recruitment agency, etc.).

Source: Social RecruiPng Survey 2012, Jobvite. Bersin & Associates.

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// PARIS 17 rue du faubourg du Temple 75010 Paris +33 1 42 72 20 04 [email protected] // SAN FRANCISCO 169 11th St. San Francisco, CA 94103 USA +1415 626 6406 [email protected]

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KEYNOTE_END

will software eat your ceo?

Software