API Days 2014 Conference Notes
My notes and takeaways on the API Days 2014 conference in San Francisco
Today I attended the morning keynote sessions at API Days (#ApiDaysSF) in San Francisco. The conference theme was “Disrupting the Car Industry and Driver Experience with APIs.” Of the 25 speakers, I attended the keynotes from Larry Burns, Kin Lane, Sid Bhatia, and Nick Muerdter.
Although this was a relatively small conference, the attendees were highly engaged and deeply passionate about the topic. I was also struck by how strongly people were thinking about emerging business models in the automotive industry. Below are my notes from each speaker.
Larry Burns
Advisor for Google Self-Driving Cars and Former VP of R&D at GM
Topic: Is the auto industry today evolutionary or transformational?
Larry opened with a historical view of the automobile industry. For more than 100 years, the automobile has evolved gradually in the United States, with innovations introduced in phases over time. His central point was that the industry has changed very slowly, but we are now approaching a period of significant transformation.
He noted several key statistics, including approximately 1 billion automobiles worldwide and 1.2 million fatalities. He contrasted the industry’s traditional DNA with what he sees as the emerging model: Connected, Electric, Shared, Driverless, Tailored (speed, weight, and distance), Lower cost with a better mobility experience.
Larry also discussed how Google evaluated Ann Arbor, Michigan, and New York City to improve the transportation experience. They concluded that they could reduce the cost of a trip from $7 to $1 while also improving the experience. His view was that the industry is moving from selling vehicles, gas, and insurance to selling miles, experience, and time savings.
He predicted that a driverless automobile could become a reality by 2017 through Google, and he framed the long-term vision as a fully integrated mobility system designed to create a better customer experience.
Kin Lane
Thought Leader and President of API Evangelist
Topic: The technology, business, and policies of APIs
Kin raised an important strategic question: why do we need a car in the first place? His point was that consumers now have more alternatives than ever, including taxis, Uber, rental cars, car sharing, trains, public transit, and even motorized alternatives. He also noted that teenagers increasingly have little interest in owning cars, and that telecommuting has become far more common than it was a decade ago.
He emphasized that entrepreneurs entering this highly regulated industry must understand the real obstacles facing consumers. He also noted that these new opportunities will create a substantial big data opportunity.
A major theme in his presentation was the politics of APIs. He argued for greater collaboration and transparency across consumers and developers, along with trust, clarity around ownership, and strong respect for privacy. He also made the presentation materials available publicly through GitHub and API Evangelist.
Nick Muerdter
Application Engineer for the U.S. Department of Energy
Topic: Public APIs that support the evolution of the auto industry
Nick discussed the public APIs his team is building for the U.S. Department of Energy to help support innovation in the automotive space. He shared that the U.S. spends approximately $1 billion to import oil and that the Department of Energy is focused on replacing, reducing, and ultimately eliminating fossil fuel dependence.
The APIs currently available to developers focus on helping users find alternative fuel stations. The broader goal is to make more government data available through public APIs so developers, and ultimately consumers, can use it in mobile applications and vehicles. His message was clear: the entire effort is about supporting drivers.
He also described the next version of these APIs, which will need to address the realities of electric fueling. That includes real-time station availability, charging time remaining, open stations, incentive programs, cost calculators, support for both light- and heavy-duty vehicles, and fuel reduction planning tools.
Sid Bhatia
Program Director, API Economy for IBM
Topic: Driving real value with APIs and connected cars
Sid focused on the business value of connected vehicles. He shared a projection that 20% of cars are expected to be fully connected by 2020. Connected cars generate significant amounts of data, much of it unstructured, and he stressed the importance of trustworthy data in order to make meaningful decisions.
He described several common API usage patterns: Monetize, Optimize, Extend, and Control.
He also outlined a wide range of use cases, including roadside assistance, concierge services, third-party applications, remote services such as finding and unlocking a car, predictive maintenance, condition awareness, vehicle-to-anything communication, insurance pricing, fuel efficiency, pay-per-drive models, geofencing, and automated pickup and drop-off.
Examples such as Peugeot’s streaming analytics and third-party API use, Car2Go’s keyless access apps, and Sprint Velocity for connected cars reinforced his point that the future of connected vehicles will be driven by ease of use, internet-scale connectivity, location awareness, real-time analytics, and monetization through APIs.
Panel Discussion
During the panel discussion, several speakers reinforced the idea that software, hardware, and automotive companies are converging. The industry is still defining the players, much like the early days of the automobile before consolidation took hold.
The broader message was that this is an emerging market where virtual and physical worlds are beginning to collide. There are significant overlaps, and organizations need to identify opportunities by focusing on negative scenarios that create urgency for change. Progress will likely be incremental. For example, parking is a pain point that many companies are trying to improve through applications and services.
Another important observation was that APIs are becoming much more visible to business leaders than they were just a few years ago. Automotive executives increasingly view APIs as products and services that can enhance the customer driving experience, whether through offerings such as OnStar or Tesla. They see them as strategic investments that will help ensure competitiveness in the future.
One especially notable comment was that Tesla is open-sourcing all of its patents, which is a strong signal of how quickly this industry is changing. The overall impression was that middleware is increasingly becoming the operating layer for this new ecosystem.