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Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
Nike+ Story
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  • Transcript

    • 1. Enterprise Co-Creation Stories
      The Story of
    • 2. Enterprise Co-Creation Is a Strategy and Methodology for Engaging Stakeholders to Create New Mutual Value
      Value comes from new experiencesfor stakeholders
      New experiences come from new interactions
      Enterprise Co-Creation: The systematic development of networks of individuals, stakeholders, and enterprises to create value together, through engagement platforms designed to enable mutually valuable interactions and experiences
      New interactions require engagement platforms…
      …which sprout from stakeholder engagement
      Engagement platforms assemblenew networks and communities
    • 3. 80% of Nike Customers’ Processes Were Without Counterpart for Nike, and Nike’s Processes Were Closed
      Exchanges tips with runners
      Runs alone
      Maps outruns
      Sets training goals
      Buys gear
      Searches for gear
      How to bring runnersinto our processes?
      Runs with running partners
      Records distances and times
      Listens to music
      Shoe company processes
      Runner processes
      How to become part of more runners processes?
      Shoe Company
      Shoe design
      Sale to store
      Store distribution
      Supplier sourcing
    • 4. Nike+ Co-Creates a Community of Runners
      The Nike+ system consists of a sensor inserted in a shoe, a syncing device such as an iPod, and the Nike+ website
      Nike capitalized on the connection between running and music to create a running community. The community is aimed at enthusiasts and casual runners rather than experts, with the goal of growing the number of runners and the miles they run, with the eventual outcome of selling more shoes.
    • 5. Initially Tied to an iPod, Nike+ Expanded to Other Devices
      Nike+ was launched in 2006, and within a year 500,000+ runners from 160+ countries had signed on. Through Aug. 2007, Nike had captured 57% of the $3.6 billion US running shoe market, compared with 47% in 2006.
      By Aug. 2009, over 1.3 million runners had uploaded more than 150 million miles on Nike+. Nike’s share of the US running show market had increased to 61% – although Nike shoes are not required to use Nike+.
    • 6. The Nike+ Online Community
    • 7. You Can Track Your Runs
      By run
      By time
    • 8. You Can Set Goals, Displayed Privately or Publicly
    • 9. You Can Challenge Other Runners, Individually or in Groups
    • 10. You Can Train with Coaches and Sports Stars for Specific Goals
    • 11. Nike Rolls Up Runs, Goals, Challenges, and Training into a Personal Dashboard
    • 12. You Can Map and Share Your Runs
    • 13. You Can Listen to Music and Share Your Playlists
    • 14. You Can Join Local Nike Run Clubs and Participate in Nike-Sponsored Events
    • 15. You Can Ask Questions on Nike’s Running Forum or Blog
    • 16. Eight New Interactions in Total
      Nike+ Captured a Larger Portion of the Running Value Space by Enabling Eight New Interactions with Runners
      Mapping and
      Sharing Runs
      Listening to Musicand Publishing
      Playlists for Running
      Nike Running
      Clubs and
      Nike Sponsored
      Training with a Coach, Interacting with a Star
      Running Blog
      and Discussion
    • 17. Nike+ Led to Significant Financial Results
      Comparative Media Mix(1997 vs. 2007)
      -27 percentage points
      +14 percentage points
      $500 Million in Revenue
      with $50 Million Less Advertising
    • 18. Permanent 10% running shoe market share gain in U.S.
      Motivation to run
      Four Powers Model
      Ease of tracking my performance
      Unique insights for innovation, design and customer management
      Fun of having global peers
      Engagement Platform
      New experiences of value to stakeholders
      Increased strategic capital and return to
      the company
      Lower risks and costs for the company
      Lower risks and costs for stakeholders
      55% reduction in conventional advertising, more productivity of spend
      Avoid cost of joining club
      Nike’s Results Were the Product of Unleashing Four Sources of Co-Creation Value
      Lower risk of falling out of exercise regimen
    • 19. Adidas-Polar’s Competing Offering: Heart Monitor, Shoe, Stride Sensor, Running Computer
      Adidas-Polar Fusion: a high-tech monitoring system built into apparel that runners use regularly
      Aimed at the expert, high-mileage runner
      The package retails for about $500 – more than twice Nike+
    • 20. Designing a New Experience Is Both about Simplifying (to Reduce Cost) and Enhancing the New Experience
      Nike vs. Adidas Experience Curves
      Perspective of the Runner
      Nike +
      Quality of experience
      Adidas Polar
      Key Elements of the Customer’s Experience
      Integrating music and running
      Tracking runs
      Price of shoe and system
      Brand image, self-identification
      Running computer
      Heart rate monitoring
      Quality of shoe
      Participating in social network
      Emotional association with running experience
      Motivation to run
    • 21. With Nike iD, an Online Community Was Added to Open Up Design Processes to Customers
      Nike iD Studio is a physical place augmented by a software interface
    • 22. How Nike+ Illustrates Key Co-Creation Elements
      New Value and Experience
      Nike now participates actively in the workout experience – runners and Nike benefit in terms of value and risk
      Nike also opens up its design process to runners, further enhancing the experience
      New Interactions
      Nike interacts with runners in new ways and enables runner-to-runner community interactions
      Nike interacts with power users around new designs and product ideas
      Engagement Platforms
      The Nike+ web interface allows users to connect their running experience virtually with a broader running community
      The Nike+ sensor creates the pivotal functional interface between shoe and iPod
      Nike ID web site added online design tools for consumers
      Communities and Networks
      Nike+ has formed an online community of runners who can connect in a number of ways ranging including offering training advice, sharing iTunes playlists, group challenges, and sharing running routes
      Nike has begun engaging its online communities in other related activities such as designing new product lines or product models
    • 23. Co-Creation Lessons Learned From NIKE
      • Participating in new parts of customer processes can open up new ways to add value and grow share – Nike went from selling running shoes to selling a more complete fitness solution
      • 24. Your products can become engagement platforms, or key parts of one
      • 25. Engagement platforms provide a valuable “front row seat” on customer behavior that can provide deeper ongoing insight than is possible through conventional market research and which drives even more innovation and growth
      • 26. First mover advantages may be possible when creating communities – the iTunes connection was not easily replicable by Adidas
    • Invitation to Co-Creation
      Enterprise co-creation is a fundamentally different way of looking at value creation between the enterprise and its consumers, customers, suppliers, partners, employees, and public-sector agencies. We believe that these stakeholders should be treated as active equals rather than passive respondents in the core value creation processes of the enterprise.
      Do you know of a good example of enterprise co-creation? Please share your cases and comments with us on this site or with the site’s facilitator Ryan Cahill at
      Disclaimer: This case study was drawn from primary sources and external research
      We welcome corrections and amendments