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  • http://www.apple.com/ipod/nike/[http://www.apple.com/ipod/nike/run.html]
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/commerce/?p=PDP&pid=376874&pgid=275946&cid=102201#?ll=en_US&ct=UShttp://nikerunning.nike.com/nikeos/p/nikeplus/en_US/products/sportwatch_pdp?pid=406329
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//dashboard/
  • http://www.simonblog.com/2009/10/24/running-with-iphone-3gs-and-nike/http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//dashboard/http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//runs/history/1544928063/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//goals/http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//goals/view/965186319/1544928063/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//challenges/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//coach/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//dashboard/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//map_it/
  • http://nikerunning.nike.com/nikeos/p/powersong/en_US/
  • http://nikerunning.nike.com/nikeos/p/nikeplus/en_US/plus/#//challenges/detail/228573204/http://inside.nike.com/blogs/nikerunning_events-en_US/?tags=nike_womens_marathon_2011
  • http://forums.nike.com/index.jspa?categoryID=1, http://forums.nike.com/category.jspa?categoryID=3http://inside.nike.com/blogs/nikerunning_training-en_US/?tags=tip_of_the_week

Nike+ Story Nike+ Story Presentation Transcript

  • Enterprise Co-Creation Stories
    The Story of
  • 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
  • 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
  • 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.
  • 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+.
  • The Nike+ Online Community
  • You Can Track Your Runs
    By run
    By time
  • You Can Set Goals, Displayed Privately or Publicly
  • You Can Challenge Other Runners, Individually or in Groups
  • You Can Train with Coaches and Sports Stars for Specific Goals
  • Nike Rolls Up Runs, Goals, Challenges, and Training into a Personal Dashboard
  • You Can Map and Share Your Runs
  • You Can Listen to Music and Share Your Playlists
  • You Can Join Local Nike Run Clubs and Participate in Nike-Sponsored Events
  • You Can Ask Questions on Nike’s Running Forum or Blog
  • 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
  • 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
  • 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
  • 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+
  • 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
  • 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
  • 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
  • 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
    • Your products can become engagement platforms, or key parts of one
    • 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
    • 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 RCahill@prtm.com
    Disclaimer: This case study was drawn from primary sources and external research
    We welcome corrections and amendments