Wednesday, 12 August 2009

Tesco's Open API - leading the way for other big brands?

With the recent announcement of Tesco’s release of their online store API, we are starting to see the beginnings of what is the very exciting development of the application of Web 3.0 technologies in practical, real-life situations. Tesco have always been innovative with their adoption of digital technologies. Nick Lansley, an Analyst/Programmer in the IT Division was the brains behind their online grocery store as early as 1996.

So in these days of an open digital world, will other big brands follow the Tesco example and start releasing their own APIs?

Historically it has generally been the innovation of users and developers rather than brands themselves that drive this invention and I don’t see this about to change drastically. Nick Lansley is a brilliant example of this. In him Tesco have a forward-thinking developer that has recognised the commercial opportunities for their brand online. But this is definitely not something for everyone. When you consider the technical and security implications alone Tesco are brave in opening up their API and have approached it with reasonable caution. Not every brand will have the appetite to take on this type of project, particularly in this economic environment, but those that do, with relevancy and a well-thought out approach will certainly reap many benefits as pioneers in this area.

For Tesco it's another channel to sell their products, provide added value for customers and increase retention, all essential in its highly competitive market. For developers it's an opportunity to realise creative ideas to enhance the value of their product. And for consumers it's another case of technology making their every day life a little easier.

Imagine your fridge knowing your running low on milk and ordering it automatically. What if it could also tie in with your diary to know when you are going to at home to receive your delivery. That's just scratching the surface, the possibilities are endless.

An increasing number of brands are releasing their code to allow their data and services to be used by developers. But this doesn’t mean that developing an API is going to be worth the time, money and maintenance you put in.

Ultimately you need the reputation, user base and content that will add value for the people taking advantage of your API. Or identify the potential of others adopting your API that you would never achieve on your own.

Barnaby Ellis
Head of Digital


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