apidays LIVE Paris 2021 - APIs and the Future of Software December 7, 8 & 9, 2021 The Good, the Bad and the Ugly - 3 observations about power and responsibility in the API business Cyril Vart, Executive Vice President at Fabernovel

1. APIDays 2021

3. Innovative historical companies
are also crushing this quarter
with important Year-over-Year growth
suggesting greater investment
and innovative power for those
companies.
Source: Zonebourse.com
*LVMH figures refer to H1 2020 and H1 2021 results.
*Results refer to EBIT
Growth in the results of innovative companies YoY ($bn)
It works, innovative historical Corps starting to bridge the gap.
+356% +328% +203% +117% +107% +84% +42% +32% +13%

4. 4th
edition of the DARE
programme in China.
LVMH’s fabric scrap selling
platform Nona Sense.
LVMH game on the app store
No limit to reach Z generation for LVMH
with new shoptainment experience.
Financial KPIS S1 2021
Revenues: €28.7bn in S1 2021 (+56% YoY).
Innovation strategy
DARE, “Disrupt, Act, Risk to be an Entrepreneur”
LVMH has initiated this innovation program, which involves 60
international participants from the group's 40 brands. Most
recent initiatives: a prototype bag using a digital screen called
“Canvas of the future” and “Nona Source” to sell its fabric
and leather scraps on the Internet.
LVMH x Google Cloud
LVMH has established a strategic partnership to develop
demand forecasting, inventory optimisation and personalised
customer experiences.
Louis the game
This game developed by LVMH which includes 30 NFTs
demonstrates that the brand is a top-player in digital
marketing. The game has already been downloaded more than
500,000 times and China is its largest market to date.

5. Nike from footwear to software.
We are a tech company.
John Donahoe, Nike CEO since 2019, on his arrival.
Financial KPIS
Revenues: $12.3bn revenues (+96% YoY), achieved $44.5bn
revenues for the full year (+19% YoY).
Innovation strategy
Becoming a software company
After the commercial success of the Nike+ iPod with Apple
in 2006, Nike launched its own wristband in 2012, but quickly
gave up. Nike recognized smartphones were able to perform
most FuelBand functions, and refocused on software,
enhancing Nike+ app.
Developing an ecosystem of service
SNKRS (Sneaker Release) app or join a community of athletes
with the Nike run club app. Through the data collected
in the NRC application, Nike will be able to offer the most
suitable product for each runner's use. Nike's ecosystem helps
to strengthen customer retention, increase brand image
and feed the company's strategy.
Choose the most suitable shoes
with Nike fit.
The Nike Run Club app

6. Walmart on the innovative path from retail to platform company.
Financial KPIS
Revenues: €141bn in Q2 2021 (+2% vs Q2’ 2020).
Innovation strategy
Establishing key partnerships
Walmart partners with Adobe Commerce and Magento Open
Source to bring its own capabilities and expertise to small
and medium-sized businesses, as Amazon did a decade ago
with the AWS cloud offering.
Heavy R&D investments
Walmart remains secret on its innovation figures, the latest
R&D quantified indication were in fiscal year 2018, in which
Walmart spent a total of 11.7 billion on technology investments
for its digital transformation. Since then, the company has
mostly invested in technology with a strong development
of its tech team (+70% of tech associates vs 2020).
Building a convergence of interests
Walmart succeed in developing win-win agreement as retailers
use Walmart's expertise and technology to improve their
services and Walmart increases the number of products
on its marketplace to compete with Amazon.
Walmart invests in diversified
retail evolution models.

7. Disney+, the add-on to Netflix winning strategy
Financial KPIS
116M paying users, that generate €12.5B of revenue in 2021, higher
income than The Walt Disney Studios (Movies + Theatres revenues),
generating €9B in 2020 and €10.5B in 2019.
Innovation strategy
A new direct to consumer strategy
While historically, Disney content has always been distributed through
third parties, with Disney+ the company delivers its content directly
to the home. The company benefits from having a much better
knowledge of its customers and was able to continue to deliver
its products during the Covid crisis.
A strong historical fanbase suited for a streaming platform
The Disney audience is particularly advantageous as the platform’s
content will be viewed multiple times. There is less risk that the user
will unsubscribe once the content has been viewed.
An innovative digital marketing strategy with a focus
on social networks.
Disney's success over a year is no longer based on the unique
performance of a few blockbusters but rather on the evolution
and consistency of its overall bundle of contents, notably through
its Disney+ offer.
Disney leverages its
physical infrastructures
to promote its Disney+
platform.
Becoming a “Disney
fanatics”.

8. ©Scott Adams

9. The bad: the “full self-service” sales model won’t work

10. A new segmentation is emerging, in fintech and insurtech
Providers
Embedded service providers
plug offerings into platforms
to increase distribution
and target new customers.
Enablers
Enablers are the pipes
through which providers
and containers exchange
information and data.
Distributors
Platform and aggregators
offer embedded financial
services for their customers
directly on their interfaces.

11. Same orchestrator,
different rails, new trains
➜ Plaid offer centralized API to developers connect
to user bank accounts in various banks.
➜ BM on account verification and each transaction
(e.g. Venmo).
➜ Desire of Visa to acquire dense network of Plaid,
complementary to its card network, to stay
orchestrator of digital payment and fintech.
Key players have different strategies
Both traditional and new actors are finding their way
Platforms of platforms
➜ Stripe Treasury is the backbone of embedded
finance. With a single integration, any marketplace
can enable customers to hold funds, pay bills, earn
interest, and manage cash flow, with a single API call.
➜ Partnering with banks (Evolve Bank, Goldman
Sachs, Citibank, Barclays) to offer its customers
a banking-as-a-service API.
➜ Shopify Balance highlights the power of
platforms: Goldman gets flexibility and new reach,
customers get simplicity and access to Goldman.
Sources: Stratechery, Tech crunch

12. with
with
So we’ll embed
Bundled embedded
More benefits for consumers
Partially embedded
Extended value proposition
Fully embedded
More conversion

13. Swile’s platform is an offer designed for
companies, to the benefit of their employees,
to improve the quality of life at work.
With a preloaded account and a debit card,
employees can pay for their meals or mobility
thanks to dedicated vouchers, organize team
events, find people in the org chart or even
collect payments between colleagues.
Today, 65,000 employees across the world
are equipped with the solution. In addition
to being a employee’s benefits platform,
Swile is a simplified centralized management
of employees payments for companies.
Competitors, retailers or partners?

15. “
Should we gamify everything?
The application
BLING, 100€ tout
de suite uses
gaming methods
to propose micro
lendings.
The experience your bank is creating
is akin to Candy Crush .
It’s about enclosing people in a flux
of invitations and rewards. All interfaces
are becoming slot machines.”
— Natasha Dow Schüll,
Anthropologist – NYU

16. Are we
really
choosing?

17. Play Something on TV, Netflix app
April 2021
Why not
Read
Something
or
Take a Walk?

18. AI can also be used to
… appeal to reason
Tweeter interrupts
business to remind you
should maybe read
before tweeting

19. Can we be
“just engineers”?
An ethical question
Fairness, efficiency, decency, lucidity
Bence Bakonyi

20. Can it be
“only business”?
A business matter
Trust and transparency, a competitive advantage
This burger paid its producer a fair price.

21. AI.ML.API expert & owner
What do you want to do
or know?
“Garbage in, garbage out”
Business ML case designer
What do you want
the experience to be?
“Bias in, bias out”
We need to update our job descriptions.

22. All responsible of the experience
FLUIDITY
Simple, inclusive, pleasant
EMOTION
Surprising, memorable, respectful

23. *Inspired on Kate Raworth’s Doughnut
Value
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Value
_
Value for
the society
Maybe it’s not ugly …
Just a bit more interesting and complex than we anticipated
Value for
the planet
Value for the planet