technologies increasing impact on the fitness & wellness industry Bryan K. O’Rourke, MBA www.bryankorourke.com

progress

“ impossible without change”

“ those who cannot change their minds cannot change anything” George Bernard Shaw

tremendous change

future so many possibilities

“ The further backward you look, the further forward you can see.” - Winston Churchill

“ The future ain’t what it used to be” -Yogi Berra

<3>

future - convergence

context

impact

<1> technology

define it

what is technology ?

etymology “ technologia” systematic treatment of an art or skill

“ a capability given by the practical application of knowledge.”

invented after we were born doesn’t quite work yet or

1829 Cambridge

1 st

“ unintended consequences”

human application of nature’s principals

really radical change

amazing 5,000 days ago

for free whenever

100 million clicks per day 55 trillion links 8 terabytes of data per second of traffic 2 billion location nodes 2 million emails per second 1.5 million IM’s per second

reaching the capacity of 1 human brain

> doubling capacity every 2 years

the next 5,000 days? much greater change

we think linear technology is exponential

1, 2, 3, 4, 5, 6, 7, 8, 9, 10 ………. 2, 4, 8, 16, 32, 64, 128, 256…….

overestimate what can be achieved in the very near underestimate what happens in the long run we are in the “knee of the curve”

content & experience digitized - mobilized

late 70’s walkman & treadmill fitness industry

institutions – cloud infrastructure

we are in the “knee of the curve” historically the rate of change is accelerating – years since adoption

we are in the “knee of the curve” We are witnessing the exponential shift – years since adoption

we are in the “knee of the curve” size of machines shrinking processing power increasing patents increasing Internet hosts increasing technical knowledge increasing cost of mips decreasing Internet bandwidth increasing wireless price performance increasing mass use of inventions increasing investment in education increasing global poverty decreasing

now

connectivity 24/7 delivering content driven by users creating impactful immersion

very inexpensively

we are teaching the machine the semantic web – web 3.0

<2> culture

it’s all about people

patterns of human behavior

the age of transcendence <3> contributing factors culture shifting objective base to a subjective base

mature adult majority diversity ubiquity of the information

in 1989 majority of US adults were 40 years or older most population growth for years to come will be in +60

authenticity determined individually

increased rejection of prior values

meaningful experience

diversity = acceptance, openness, empathy

ubiquity of information via the Internet content, “experience” the “Prosumer”

the Prosumer (all customers) have increasing power they have access to &/or create the information

they seek authentic experience “ meaning”

<3> institutions

institutions / organizations overwhelmed

order thoughts and expectation; impose consistent behaviors; reinforce shared beliefs and impose rules; both constrain and enable behavior; participants realize value “buying-in”

disconnect

designed around command & control

centralization not able to keep up with change

highly inefficient fails at embracing change

“ The greatest obstacle to progress is not ignorance. It is the illusion of knowledge” -Daniel Boorstin

collaboration - orchestration

open – open systems transparent flexible learning understand your role

lifecycle timeframe shrinking

drive to commoditization

movie theaters arcades record stores failed to embrace change

drive fixed cost out transparent - authentic technology customer centric collaborative

unexpected emergence

unexpected “competition”

alternatives - disruptive

understandable

recap - rapid change great opportunity & risk

implications to the fitness & wellness industry ? depends…….

‘ 01 to ‘07 estimated US facility growth 70% growth

< 16% exercise regularly

impact varies economics conservation

tech impact <2> institutions - customers

<1> institutions/organizations: understand your unique position adopt orchestration strategy

unique position orchestrate program partners

partner for programming

partner to create meaningful experiences

expensive equipment is not always the solution invest in authentic experience limit cap-ex & adopt orchestration host of new equipment technology innovations

customer relationship conservation Web 2.0

embrace web 2.0 strategies

embrace web 2.0 strategies

seek alliances leverage globalization outsource expertise e-lance

<2> consumer macro

obesity will bankrupt us all 20% of children obese

2007 Market Size in Billions

2007 Market Size in Billions

disconnect Dr. Jennifer Smith Maguire 2007 Fit for Consumption: Sociology and the Business of Fitness

opportunity – outcome reimbursement the market will grow by hundreds of billions in the next decade wellness

4 ways technology impacts wellness direct to consumer engagement through gaming outcomes

streaming content & mobility integrate into daily life

monitor technology

engagement motivation – via the cloud

direct without physical place

new business models that incorporate facilities in a different manner

summing it all up what is the impact ?

things will be vastly different how is largely up to us…..

“ those who cannot change their minds cannot change anything” George Bernard Shaw

progress people

& think differently think of our mission