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Platform Economy, API-First

"API Economy"

Overview

The Core Concept

The API Economy refers to the shift in business models where companies expose their digital services via APIs for others to build upon.

Uber is a classic example: it doesn't build its own maps (it uses Google Maps API) or its own payments (it uses Stripe API). It is a business built by stitching together other APIs. Conversely, companies like Twilio or Stripe exist entirely to sell their API as a product.

Why It Matters

  • Speed of Innovation: Developers don't have to reinvent the wheel; they just plug in an existing solution.

  • New Revenue Streams: Companies can monetize their data or functionality by charging for API access.

  • Ecosystem Lock-in: If everyone builds on your API, you become an indispensable platform.

Key Components

  • Microservices: Breaking big apps into small, connected API services.

  • Documentation: The manual that tells developers how to use the API (critical for adoption).

Advanced Strategy Planner

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