Case Study

Strategic Framework and Model for
Managing APIs

api_program_operating_model

Major Network Taps APIs to Support Digital Transformation

Digital engagement across nearly every aspect of life from banking and shopping to wealth management and insurance is creating an urgent need for transformations within organizations that support this growing revolution. APIs are one of the most important technologies available to these organizations today as they look to modify and replace legacy processes in the wake of all these changes. For this reason, one of the largest, most innovative providers of payments services to financial institutions and their customers wanted to introduce the power of APIs to their IT environment.

The first step the organization took towards this goal was to select an API management platform on which to build their vision. From there it was necessary for them to determine how they would formalize the governance framework and operating model required to deliver on the key business benefits of the API-based approach they wanted to implement; e.g., agility, ease of integration and improved SLAs. The key challenges were in understanding stakeholder roles and responsibilities, interactions between business and technology and the definition of the operating and governance processes required to move API development and operation into BAU.

Provisioning a Comprehensive Definition for Governance and Operations

to address the specific needs they had regarding these challenges. Our company provided insights and recommendations across a variety of areas that involved governance, process and technology.

Using our proven governance framework, we outlined the functions required as depicted in this diagram:

api_program_operating_model

We defined the organization structure needed for operating and governing an open API program. and proposed the blueprint required to address the process flows in the following stages:

  • Ideation to Initiation: Channel internal and external ideas through feasibility and ROI analysis to determine viability.
  • API Development Lifecycle: Define API delivery process through design, development, testing and release.
  • Product Launch and Versioning: Design packaging and deployment of the API as a formal business release with all applicable associations and information update
  • Partner On-boarding and Certification: Describe partner interaction models across the API lifecycle with primary focus on on-boarding and certification.
  • Monitoring and Support: Creation of business support models and proactive monitoring processes.
  • Building Communities and Go to Market: Establish key phases for API marketing and outreach initiatives.

For measuring the effectiveness of the governance decisions, RS Software proposed selected Key Performance Indicators (KPI) and an indicative list of metrics. The key aspirations for the KPI were related to business drivers. This phase included definition of the following:

  • API metrics and real-time dashboard capabilities to provide the view of a set of metrics for governance.
  • API monetization measurements related to revenue potential.
  • Content management designed to facilitate an API’s value to the developer community.
  • Developing key considerations that developers look for while selecting API suites to embed in their solutions. This includes API documentation and platforms including forums and blogs written for the developer community.
  • Multitenant support considerations needed to allow many organizations to consume the same API without impacting one another’s progress.
  • Service integration using an Enterprise Service Bus (ESB) to support ease-of-service integration with plug-and-play components as a viable intermediate approach to reduce the friction associated with system integration.
  • Enterprise class security features that protect the security of the enterprise while also providing security between tenants.

The reputation of RS Software as the leading vertically integrated technology solution provider in the electronic payments industry with more than twenty-five years providing solutions to leading payments brands around the world provided our client with the comprehensive subject matter expertise required to successfully complete this complex transition. The best practices proposed by RS Software were adopted across the client’s organization and all key tenets were deployed to establish the foundation for their operating model. In addition, RS Software provided a customized blueprint for the firm based on our extensive understanding of their operational status quo in terms of goals, maturity and organizational alignment.