[MUSIC] Welcome back. In this second lesson on developers as the engine behind digital business models, we'll discuss several case studies of companies using developers as product extenders. There's an ever-growing list of companies which work with developers to extend their products, making them more useful. From SmartThings in Smart Home, to Automatic in connected cars, to DJI in drones. The most obvious example is the Apple iPhone. Apple's developer program led to the creation of over 1 million apps for the Apple App Store. These apps are over 1 million features that make the iPhone more valuable for its users. Some are features that Apple did not want to build into the iPhone. Some are features that address niche audiences, that Apple did not want to take the risk of building. Think of golf, medical, or flight tracker apps. Some are apps that Apple would never have thought of building. Think of the Flappy Birds app, an addictive bird flying app that became an overnight success as the most downloaded free app in January 2014, before its creator shut it down. In the case of Apple, developers extend the iPhone, as well as the iPad, the Apple TV, and the Apple Watch products, with features that Apple did not want to build, could not build, or could not even have imagined building. SmartThings, acquired by Samsung, also uses developers to extend its Smart Home products. The SmartThings lineup consist of just five products: a hub, four different types of sensors, and a power outlet. These products connect with over 150 different third party products from a dizzying variety. Light switches, bulbs, dimmers, power outlets, sensors, cameras, thermostats, speakers, fridges, garage doors, smoke detectors, and even cars. The SmartThings developer program then allows developers to connect the Samsung device ecosystem to thousands of smart home devices and millions of apps. Developers can also build apps to control and automate Samsung devices. Effectively, Samsung's SmartThings allows developers to extend the products of Samsung beyond what the company could ever accomplish on its own. Therefore making the Samsung SmartThings products more valuable to its paying customers. Another company using developers to extend its product is Automatic.com. The company produces a connected car adapter that plugs into most modern cars. The adaptor collects data about the car mileage, car gas usage, performance, its engine health, and connects to the cloud over a 3G connection. Automatic offers immediate assistance in the case of an emergency and helps keep track of where you parked your car. Moreover, the adapter connects with over 20 third party apps for expense tracking, ride sharing, trip tagging, car repairs, and even driver coaching. Where it gets interesting is when Automatic connects to a cloud automation service called IFTTT.com, which stands for ”If This Then That”. IFTTT allows developers to connect the car signals that Automatic collect to dozens of applications, services, and use cases. So turning your car on/off, getting a check engine light, and arriving or leaving a location can all trigger actions, that can then be passed to a third party service. This way Automatic can log new trips, make connected lights flash when I speed, or turn on the heating when I get home, or text my partner when I leave work. It's not just developers that can build these integrations. Any web savvy user can connect Automatic to Twitter, Dropbox, Philips Hue lights and more. Again, in this case, Automatic uses developers and web-savvy users to extend the features of the connected car adapter that they sell. Another notable company which users developers to extend their products is DJI. The China-based company has been a manufacturer of drones since 2006, and today, is the market share leader. The company produces drones for aerial photography and videography, as well as produces flight platforms and flight controllers. DJI has launched a developer program that allows developers to create drone-based applications for real estate, insurance, education, tourism, construction, meteorology, and many more industries. The company also offers a flight platform that allows developers to customize not just the software, but also the hardware, for their specific industry and application. In the next and final lesson, we'll discuss how companies from Amazon to Walgreens are working with developers to reach new industries and new users.
