Impact of technology on fitness industry - IHRSA 2010

7,438 views

Published on

IHRSA 2010 presentation on the impact of technology on the fitness industry showing key trends in technology, business model evolution, innovation and predictions for the future

Impact of technology on fitness industry - IHRSA 2010

  1. 1. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Bryan K. O’Rourke, MBA
  2. 2. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact all content available @
  3. 3. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact before we start a word from seth myers
  4. 4. Thanks Technology Seth Myers
  5. 5. broad
  6. 6. 4
  7. 7. Key Trends
  8. 8. Biz Models
  9. 9. Innovation
  10. 10. Predictions: Consumers & Facilities
  11. 11. “change is the process by which the future invades our lives” Alvin Toffler
  12. 12. think different
  13. 13. No Crystal Ball
  14. 14. Different
  15. 15. <3> demography technology globalism revolution convergence & divergence
  16. 16. 1st key technology trends
  17. 17. technology - what has it & how will it impact our lives & industry ?
  18. 18. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Technology: etymology greek - meaning skillful application of an art. The practical application of science in commerce or industry.
  19. 19. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Gordon Moore Co-Founder of Intel Number of transistors on a chip will double every two years. “Moore’s Law” Technology: the pace of change is not linear its exponential. Adoption rate is increasing similarly.
  20. 20. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Law of accelerating returns . We are just seeing the start - “knee of the curve”
  21. 21. 1,2,3,4,5,6,7,8,9,10....... 2, 4, 16, 256............
  22. 22. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact -Commercial Internet began only 5,300 days ago -Serves over 1.5 Billion people -79% of US adult population -40% of US consumers use search engines for comparative shopping Internet: The free exchange of information with limited constraints.
  23. 23. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact The “Grid” Becoming Increasingly Integrated
  24. 24. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact The ability to increasingly and more easily integrate technology into daily life is upon us. Devices - getting smaller and more powerful.
  25. 25. 15 Billion by 2015
  26. 26. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Mobile Internet Access: Pew - 56% of US Adults Increase of 73% in 17 months Mobility: Communication & information when ever and where ever the customer wants it.
  27. 27. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Mobile speeds will increase ...........
  28. 28. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Web 3.0 the “Semantic” Web Internet will become more intelligent ...........
  29. 29. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Outsourced Service Platforms Salesforce.com Cloud Computing: Low cost ubiquitous storage and application deployment !
  30. 30. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact explosion of interactive tools & platforms
  31. 31. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  32. 32. Merger of emotiv Physical & Digital natal
  33. 33. key trends connectivity digital reality miniaturization new products & services intelligence web 2.0 & 3.0 cloud computing low cost
  34. 34. 2
  35. 35. Biz Models
  36. 36. business model INDUSTRY SUPPLIER PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMER CAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS DEMAND CUSTOMER
  37. 37. "companies that expect a glorious past to shield them from the forces of change driven by advancing technology will fail." - Rupert Murdoch
  38. 38. 2009 U.S. Revenues (in billions $) 300.0 225.0 150.0 75.0 0 206 20 Fitness Facilities 21 40 Video Games OTC Diet Retail Pharma
  39. 39. 2009 U.S. Market (US health care $2.6 trillion) 1% 99% Fitness Facilities Health Care
  40. 40. 17%
  41. 41. U.S. Fitness Facility Market statistics from www.cmeto.com 46%
  42. 42. Market Evolution Low Price & Limited Features High Price & Full Features “Membership” Model Pricing Has Declined
  43. 43. PRIZM Consumers 66 Groups
  44. 44. IHRSA 2009 comparative US industry data 7 groups account for 75% of US club members Income / Price is a KEY Barrier
  45. 45. "It may be fatal to assume that minor adjustments to current business models will keep the fitness industry abreast of changing times." http://futureoffitnesswhitepaper.ning.com/
  46. 46. Demand Industry Convergence
  47. 47. supply side Li & Fung Group clothing
  48. 48. movie theaters arcades record stores
  49. 49. Economics of Free
  50. 50. business model - new models needed INDUSTRY SUPPLIER PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMER CAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS DEMAND CUSTOMER digital technologies
  51. 51. 3
  52. 52. Innovation
  53. 53. “those who cannot change their minds cannot change anything” George Bernard Shaw
  54. 54. How Organizations Create Value
  55. 55. business model - what is technology doing ? INDUSTRY SUPPLIER PARTNER NETWORK CUSTOMER RELATIONSHIPS + CORE VALUE CUSTOMER CAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS _ DEMAND - CUSTOMER
  56. 56. sustaining
  57. 57. disruptive
  58. 58. consumer centric
  59. 59. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Empowered Consumers It’s all about the “You”
  60. 60. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact To Deliver Value Organizations Used To ...... Product - Build fences, own it all Price - Competition, supply - demand Place - Physical distribution Promotion - Sell, sell, sell ....Legacy of the Industrial Revolution
  61. 61. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact To Deliver Value Organizations Must Now...... Product = Experience, Co-Created Price = New Value Exchanges Place = Marriage of Digital & Physical 24/7 Promotion = Conversation or Engagement .... A New Way of Doing Things
  62. 62. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact C.K. Prahalad “World’s Most Influential Management Thinker” -Times of London 2007 “To successfully compete companies must reinvent their process & culture in order to sustain innovative solutions.”
  63. 63. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  64. 64. N=1
  65. 65. R=G
  66. 66. orchestration
  67. 67. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Innovation = Value Creation
  68. 68. customer focus U’s Together = Community Centric
  69. 69. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact social media = new business models
  70. 70. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  71. 71. To Innovate: Change How Organizations Work
  72. 72. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact New Methods, Roles & Models to Compete Integral Part of Organizational Capability
  73. 73. 4
  74. 74. What’s Ahead predictions
  75. 75. 1. non-facility competition will surge
  76. 76. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Merger of Technologies Including Social Media Will Create New Low Price Alternatives
  77. 77. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Nike Running
  78. 78. Outside Industry Convergence
  79. 79. 2. successful facility competitors will deliver new models
  80. 80. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Product = Experience, Co-Created Price = New Value Exchanges Place = Marriage of Digital & Physical 24/7 Promotion = Conversation or Engagement .... A New Way of Doing Things
  81. 81. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Hi-Tech Hi-Touch
  82. 82. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Financial Services Industry Measure is not # of Bank Branches
  83. 83. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact 24/7 Service & Support
  84. 84. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Adoption of Social Media Best Practices
  85. 85. 3. “wellness” will increasingly emerge
  86. 86. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact The Crisis... 23% of Americans participate in no physical activity 62% of Americans obese or overweight -18% rise in last decade. 23% of Americans still smoke. 3000 start each day. 78% of men eat vegetables less than three times per day. 75% - 90% of visits to Primary Care Physicians are for stress. THE COST IS BANKRUPTING OUR NATION
  87. 87. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Head - Traditional Fitness Industry Long Tail - New Wellness Space
  88. 88. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  89. 89. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  90. 90. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  91. 91. Finally
  92. 92. “The greatest obstacle to progress is not ignorance. It’s the Illusion of knowledge. “ -Daniel Boorstin
  93. 93. "Of the ten leading vacuum tube companies, none participated in the transistor revolution". –Chet Raymo
  94. 94. is up to us......
  95. 95. think different
  96. 96. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact THANK YOU

×