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Added: Jefferey Matta - Date: 10.12.2021 07:41 - Views: 12819 - Clicks: 6310

Welcome to the 1, newly Not Boring people who have ed us since last Monday! In September, I wrote about MainStreeta company that literally just gets your company free money from the government. Like I said, free money. If you work for a company in the US that has engineers, go, right now, and get your money.

Happy Monday! When the topic is technical, I feel it even more. On the other, I feel like I have nowhere near the technical depth or hands-on experience to write about the topic with the nuance it deserves. This, then, is the beginning of an exploration, and I look forward to your thoughts and feedback.

On Thursday, the kind of thing that gets people like me very excited happened: Ben Thompson wrote about Stripewhich announced its new Stripe Treasury product, and interviewed its co-founder and President, John Collison. In the press releaseStripe highlighted its partnership with Shopify, which is using Treasury to build Shopify Balance.

The Shopify Balance announcement means that the opposite is true. Instead of pulling its business, Shopify is integrating more deeply with Stripe. Many of its clients will keep their money in s managed by banks with which Stripe, not Shopify or the merchant, owns the relationship. Think of the switching costs if Shopify were to try to pull out of the relationship now.

Shopify is a really smart company. Instead, it made a deliberate, strategic choice to focus on the things that it does best, and to plug in Stripe for all of the things that it does best. The Stripe x Shopify announcement woke me up, though, and led me down a rabbit hole to places both familiar and new, to the question of what good strategy looks like on the Bored unappreciated wife click here and why most companies Bored unappreciated wife click here just be API Frankensteins with one main point of differentiation.

Like the turtles, modern software is APIs all the way down. API-first has some fascinating implications for how companies are built and where value is created. But first things first…. According to Justin :. Applications are just a bunch of functions that get things done: APIs wrap those functions in easy to use interfaces so you can work with them without being an expert. An engineer writes a bunch of code to manage complex things, and builds an API on top of the code to abstract away most of the complexity so that using all of that code is as simple as writing a few lines of code.

APIs handle an ever-increasing amount of things that get done in the world. Something that might have been a pen and paper process involving hundreds of people 50 years ago, and a dozen people clicking a computer screen a decade ago, is probably software talking to other software via APIs today. Public APIs: Typically used to open up datasets so the public can build on top of them. Vendor APIs: Give customers the full superpowers of an entire company in a few lines of code.

Whereas an internal or public API abstracts away the complexity of some code through one clean endpoint, like this:.

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An API-first company essentially abstracts away the complexity of a whole best-in-class companygiving clients the full output of a highly-focused org by typing a few things, like this:. Hiring has traditionally been one of the most important things a company does. Picking the right API vendor is like the hiring decision on steroids. Imagine copying in some code and getting the Collison brothers to run your Finance team.

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Just like in traditional hiring, the impact of that decision compounds over time, for better or for worse, but at full company scale. Purchasing Decision. Traditional SaaS is a department-head, IT, or exec purchasing decision, while API-first is typically a product and engineering purchasing decision. Many people in a company interact with a typical SaaS product like Slack, Salesforce, Airtable, Asanawhereas only the engineers typically work with API-first companies. Business Model. Use Case. Traditional SaaS products help employees get things done, APIs automatically do those things themselves.

Their customers run the gamut, from large platforms like Shopify and Uber all the way down to individuals who want to accept payments online, and everything in between. Puja and I just had pictures taken with Dev, and the photographer sent us her invoice via Stripe. Those companies are increasingly able to build nearly everything non-core through APIs. API-first companies focus on solving a very specific problem. Stripe started with payments, and put all of their efforts into building the best payments solution.

Twilio started with messaging and calling. Plaid does bank data, Algolia does search, Shippo does shipping, Checkr does background checks. That focus means that everything the company does is oriented towards solving all of the problems related to that particular area.

Importantly, it means that everyone who works for those companies went there to solve those problems. Plaid can spend the effort to integrate with even very small financial institutions, for example, since there will likely be thousands of people who use that bank across all of the products that use Plaid. From the product side, they can be godsends. Good strategy almost always looks simple and obvious and does not take a thick deck of Powerpoint slides to explain. Instead, a talented leader identifies the one or two critical issues in the situation — and then focuses and concentrates action and resources on them.

This is the beauty of Bored unappreciated wife click here companies. They allow customers to focus on the one or two things that differentiate their businesses, while plugging in best-in-class solutions everywhere else. Just as AWS and the cloud let entrepreneurs launch more cheaply, API-first businesses allow them to scale and professionalize with low upfront costs and managerial effort.

I often say that strategy is a dirty word in business; it should be struck. Good Strategy also involves defining a guiding policy and coherent actions. Coherent actions are the set of interconnected things that a company does to carry out the guiding policy, each reinforcing the other to build a chain-link system that is nearly impossible to replicate.

If Lawson will indulge me, there are actually some pretty wild strategic implications to coherent actions in an API-first ecosystem, in which the traditional conveyor belt-style value chain model no longer makes sense. InPorter wrote:. It stems from the many discrete activities a firm performs in deing, producing, marketing, delivering, and supporting its product.

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Using a bunch of APIs that are really flexible, and figuring out good ways to connect them, le to a combinatorial explosion of potential workflows. API-first companies turn software into like customizable building blocks, and companies like Zapier and Tray.

If the of potential connections between APIs increases exponentially as more are added, companies have a near-infinite ability to create unique chain-link systems of coherent actions out of the existing primitives.

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The way that they organize all of the components in their ecosystem. That creates a dynamic system in place of a static chain, one that constantly improves and evolves as the companies behind each one of the components work on building the best possible input for their customers.

Shopify focuses on its key differentiators and building a coherent whole that is differentiated even while many of the components are modularized. Stripe is the prototypical API-first company. It does a whole lot of complicated things behind the scenes, and offers it to customers in a few lines of code that abstract away all of the complexity.

When a company chooses to use Stripe Payments, it copies in those few lines of code and sits back while Stripe pushes updates to its core API 16 times per day. That translates into more money over time, with no extra effort. By working with Stripe, Shopify gave its customers the power to seamlessly collect payments, then to easily manage subscriptions, then to borrow money, and now to launch bank s in a few clicks. Shopify plugs in Stripe, and Stripe continues to add new money-related products that Shopify can use itself and give to its customers.

The better each Stripe product gets, and the more great products Bored unappreciated wife click here offers, the less likely Shopify is to ever leave. And why would it? Instead of hiring armies of engineers and spending management brainpower on a second-class product outside of its core competency, it can pay Stripe to handle all of that. Stripe can build robust money-related solutions for Shopify at a lower cost than Shopify could build for itself, because Stripe is able to amortize the costs of everything that it builds over millions of customers, some large and many small.

When Twilio talks about its Flex product, for example, it uses Shopify as a case study. Uncoincidentally, Shopify is the low-key leader in building a business using APIs wherever possible in order to focus on its unique point of differentiation: building best-in-class digital eCommerce solutions. Just two weeks ago, for example, Shopify launched Handshakea wholesale marketplace it acquired last year in order to compete with unicorn startup, Faire.

Bored unappreciated wife click here

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APIs All the Way Down