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Bally Total Fitness

Technology in Motion
•   Mobile at Bally
•   Fostering Enterprise Innovation
•   Bally’s Mobile Technology Vision
•   Key Considerations
•   Enterprise Benefits
•   Future Thoughts




                                       2
Mobile at Bally
Why mobile
   – Fitness corresponds with freedom, movement and action
   – Environmental and cultural fit
   – Mobile would amplify the experience and environment




              Pictures do not convey the environment!



                                                             3
Mobile at Bally
What did we see
   – Members already using mobile, but not to engage with Bally
   – Employees interacting with consumers while in motion, but then
     tethered for system access and transactions
   – Technology is detracting from the experience!




                                                                      4
Evolution of Mobile at Bally

Innovation Summit Kickoff

Innovation Summit Presentations

Approved Project Kickoffs

Vendor Selection

Designs/Requirements

Development/Test

First Club Live



                                  Dec ’10   Jan ’11   Feb ’11   Mar ’11   Apr ’11   May ’11   Jun ’11   Jul ‘11




                                                                                                                  5
Fostering Enterprise Innovation

• Formal innovation processes
  – Annual IT Innovation Summit
  – Embedded IT
  – IT Develop Exploration
• Real results




                                     6
Innovation Process: Annual IT Innovation
                Summit
• Annual summit involving all IT personnel
• Innovation focus areas and teams formed
• Research conducted and solutions proposed by
  cross-functional teams
• Innovation ideas presented to IT leadership
  during multi-day innovation summit




                                                 7
Innovation Process: Embedded IT
• Permanently embedded IT staff
  – Provides open communication with all levels of fitness and
    call center staff
  – First hand observation of technology, business processes
    and member communications

• Seasonally embedded IT staff
  – Peak season IT staff embedded in fitness centers
  – Shared experiences and conversations with fitness center
    staff
  – Post peak season debrief focused on how to improve
    technology and processes


                                                                 8
Innovation Process: IT Developer
               Exploration
• After the annual innovation summit, block time
  for developers to explore technology in support
  of innovation ideas
• Innovation and exploration bandwidth is built into
  resource allocations on project plans




                                                   9
2011 Innovation Projects: Results Center

 Key Innovation:
 Large scale interactive video display
 based upon Microsoft Kinect




                                         • Show a member what their future self
                                         would look like if they adopt a healthy
                                         lifestyle
                                         • Provide members and potential members
                                         with a library of exercise videos for major
                                         muscle groups




                                                                                 10
Mobile Technology Vision
•   Employees interacting with consumers
•   Employees interacting with the environment
•   Consumers interacting with the environment
•   Consumers interacting with employees
•   Consumers interacting with each other
•   Work anywhere, on any device




                                                 11
Employee to Consumer
• iPad Apps
  –   Club Tour
  –   Membership and Personal Training Presentation
  –   Membership and Personal Training Sales
  –   Registered Guests
  –   Who is in my club




                                                      12
Employee to Environment

• iPhone Apps
  – Facility Maintenance
  – Workout Equipment Maintenance
• iPad Apps
  – Repair Requests
• RFID Mobile
  – Fixed Asset Inventory
  – Preventative Maintenance



                                    13
Consumer to Environment
• QR Codes on fitness equipment
• Mobile Web
  – Guest pass downloads
  – Find a club
  – Group Ex Schedules
• iPhone/Android App
  –   Profile maintenance
  –   Order a smoothie
  –   Invite a friend
  –   Kids club streaming video
  –   Membership ID
• Streaming group ex classes


                                   14
Consumer to Environment
• WiFi Location Awareness (802.11)
  – Automatic check-in
  – Post messages to Facebook
  – Personalized marketing




                                     15
Consumer to Employee

• iPhone/Android App
  – Find a trainer
  – Personal trainer interaction
     • Fitness advisor
     • Nutrition advisor
• Web
  – Meal planner
  – Workout planner




                                   16
Consumer to Consumer - Social

• iPhone/Android – design stages
  – Find a workout friend
  – Self-organizing interactive communities
  – Competition fostering between individuals or locations
• Web
  – Facebook communities
  – Auto-Tweet activities




                                                         17
Work Anywhere – On Any Device
• Bally IT is 80% virtual
• Employees can work anywhere on any device
  using virtual desktops – iPad being the most
  prevalent
• Reduced IT office space by 50%
• Reduced desktop hardware and software
  support by 60%
• Roll-out to other departments in 2012



                                                 18
Key Considerations
• User Experience is everything
  –   Augment the environment
  –   Foster interaction without feeling intrusive
  –   Emotions through technology
  –   Common digital language across technologies
• Security
  – Transactional security
  – Secure access for consumers
• Vendors
  – User experience
  – Design elements



                                                     19
Enterprise Benefits of Mobile

In locations with new technology:
•   Juice Bar sales up 100%
•   Member retention up 10%
•   Top membership sales in the chain
•   Reduced maintenance costs and downtime




                                             20
Future of Mobile
• Context aware, personalized marketing and
  services
  –   How often do I workout and at which location(s)
  –   Where do I spend time in the location
  –   What services do I use (PT, Group Ex)
  –   What products have I purchased
• Expansive community and social integration
• Mobile Intercept App using natural language
• Voice biometric security



                                                        21
Summary
• Observe the world around you
   – How are consumers/employees interacting with other
     organizations versus your organization
   – How are consumers/employees interacting with each other and
     can your organization facilitate or participate in the conversation
• Use technology to amplify your relationship with
  consumers
• Almost anything you can imagine is possible, so
  innovate




                                                                       22

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Enterprise Mobile Summit V2

  • 2. Mobile at Bally • Fostering Enterprise Innovation • Bally’s Mobile Technology Vision • Key Considerations • Enterprise Benefits • Future Thoughts 2
  • 3. Mobile at Bally Why mobile – Fitness corresponds with freedom, movement and action – Environmental and cultural fit – Mobile would amplify the experience and environment Pictures do not convey the environment! 3
  • 4. Mobile at Bally What did we see – Members already using mobile, but not to engage with Bally – Employees interacting with consumers while in motion, but then tethered for system access and transactions – Technology is detracting from the experience! 4
  • 5. Evolution of Mobile at Bally Innovation Summit Kickoff Innovation Summit Presentations Approved Project Kickoffs Vendor Selection Designs/Requirements Development/Test First Club Live Dec ’10 Jan ’11 Feb ’11 Mar ’11 Apr ’11 May ’11 Jun ’11 Jul ‘11 5
  • 6. Fostering Enterprise Innovation • Formal innovation processes – Annual IT Innovation Summit – Embedded IT – IT Develop Exploration • Real results 6
  • 7. Innovation Process: Annual IT Innovation Summit • Annual summit involving all IT personnel • Innovation focus areas and teams formed • Research conducted and solutions proposed by cross-functional teams • Innovation ideas presented to IT leadership during multi-day innovation summit 7
  • 8. Innovation Process: Embedded IT • Permanently embedded IT staff – Provides open communication with all levels of fitness and call center staff – First hand observation of technology, business processes and member communications • Seasonally embedded IT staff – Peak season IT staff embedded in fitness centers – Shared experiences and conversations with fitness center staff – Post peak season debrief focused on how to improve technology and processes 8
  • 9. Innovation Process: IT Developer Exploration • After the annual innovation summit, block time for developers to explore technology in support of innovation ideas • Innovation and exploration bandwidth is built into resource allocations on project plans 9
  • 10. 2011 Innovation Projects: Results Center Key Innovation: Large scale interactive video display based upon Microsoft Kinect • Show a member what their future self would look like if they adopt a healthy lifestyle • Provide members and potential members with a library of exercise videos for major muscle groups 10
  • 11. Mobile Technology Vision • Employees interacting with consumers • Employees interacting with the environment • Consumers interacting with the environment • Consumers interacting with employees • Consumers interacting with each other • Work anywhere, on any device 11
  • 12. Employee to Consumer • iPad Apps – Club Tour – Membership and Personal Training Presentation – Membership and Personal Training Sales – Registered Guests – Who is in my club 12
  • 13. Employee to Environment • iPhone Apps – Facility Maintenance – Workout Equipment Maintenance • iPad Apps – Repair Requests • RFID Mobile – Fixed Asset Inventory – Preventative Maintenance 13
  • 14. Consumer to Environment • QR Codes on fitness equipment • Mobile Web – Guest pass downloads – Find a club – Group Ex Schedules • iPhone/Android App – Profile maintenance – Order a smoothie – Invite a friend – Kids club streaming video – Membership ID • Streaming group ex classes 14
  • 15. Consumer to Environment • WiFi Location Awareness (802.11) – Automatic check-in – Post messages to Facebook – Personalized marketing 15
  • 16. Consumer to Employee • iPhone/Android App – Find a trainer – Personal trainer interaction • Fitness advisor • Nutrition advisor • Web – Meal planner – Workout planner 16
  • 17. Consumer to Consumer - Social • iPhone/Android – design stages – Find a workout friend – Self-organizing interactive communities – Competition fostering between individuals or locations • Web – Facebook communities – Auto-Tweet activities 17
  • 18. Work Anywhere – On Any Device • Bally IT is 80% virtual • Employees can work anywhere on any device using virtual desktops – iPad being the most prevalent • Reduced IT office space by 50% • Reduced desktop hardware and software support by 60% • Roll-out to other departments in 2012 18
  • 19. Key Considerations • User Experience is everything – Augment the environment – Foster interaction without feeling intrusive – Emotions through technology – Common digital language across technologies • Security – Transactional security – Secure access for consumers • Vendors – User experience – Design elements 19
  • 20. Enterprise Benefits of Mobile In locations with new technology: • Juice Bar sales up 100% • Member retention up 10% • Top membership sales in the chain • Reduced maintenance costs and downtime 20
  • 21. Future of Mobile • Context aware, personalized marketing and services – How often do I workout and at which location(s) – Where do I spend time in the location – What services do I use (PT, Group Ex) – What products have I purchased • Expansive community and social integration • Mobile Intercept App using natural language • Voice biometric security 21
  • 22. Summary • Observe the world around you – How are consumers/employees interacting with other organizations versus your organization – How are consumers/employees interacting with each other and can your organization facilitate or participate in the conversation • Use technology to amplify your relationship with consumers • Almost anything you can imagine is possible, so innovate 22