Nike+ Story


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  • Nike+ Story

    1. 1. Enterprise Co-Creation Stories<br />The Story of<br />Nike+<br />
    2. 2. Enterprise Co-Creation Is a Strategy and Methodology for Engaging Stakeholders to Create New Mutual Value<br />ValueFruit<br />ExperiencesBranches<br />Value comes from new experiencesfor stakeholders<br />New experiences come from new interactions<br />InteractionsTrunk<br />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<br />New interactions require engagement platforms… <br />…which sprout from stakeholder engagement<br />Engagement<br />PlatformsSeeds<br />Engagement platforms assemblenew networks and communities<br />Networks<br />NetworksRoots<br />
    3. 3. 80% of Nike Customers’ Processes Were Without Counterpart for Nike, and Nike’s Processes Were Closed<br />Exchanges tips with runners<br />Runs alone<br />Maps outruns<br />Sets training goals<br />Buys gear<br />Searches for gear<br />How to bring runnersinto our processes?<br />Runs with running partners<br />Records distances and times<br />Listens to music<br />Runner<br />Shoe company processes<br />Runner processes<br />How to become part of more runners processes?<br />Shoe Company<br />Shoe design<br />Manufacturing<br />Sale to store<br />Marketing<br />Store distribution<br />Supplier sourcing<br />
    4. 4. Nike+ Co-Creates a Community of Runners<br />The Nike+ system consists of a sensor inserted in a shoe, a syncing device such as an iPod, and the Nike+ website<br />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.<br />
    5. 5. Initially Tied to an iPod, Nike+ Expanded to Other Devices<br />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.<br />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+. <br />
    6. 6. The Nike+ Online Community<br />
    7. 7. You Can Track Your Runs<br />By run<br />By time<br />
    8. 8. You Can Set Goals, Displayed Privately or Publicly <br />
    9. 9. You Can Challenge Other Runners, Individually or in Groups <br />
    10. 10. You Can Train with Coaches and Sports Stars for Specific Goals<br />
    11. 11. Nike Rolls Up Runs, Goals, Challenges, and Training into a Personal Dashboard<br />
    12. 12. You Can Map and Share Your Runs<br />
    13. 13. You Can Listen to Music and Share Your Playlists<br />
    14. 14. You Can Join Local Nike Run Clubs and Participate in Nike-Sponsored Events<br />
    15. 15. You Can Ask Questions on Nike’s Running Forum or Blog <br />
    16. 16. Eight New Interactions in Total<br />Nike+ Captured a Larger Portion of the Running Value Space by Enabling Eight New Interactions with Runners<br />Mapping and<br />Sharing Runs<br />Run<br />Tracking<br />Listening to Musicand Publishing<br />Playlists for Running<br />Challenge<br />Others<br />EngagementPlatform<br />Nike Running<br />Clubs and<br />Nike Sponsored<br />Events<br />Running<br />Resolutions<br />Training with a Coach, Interacting with a Star<br />Running Blog<br />and Discussion<br />Boards<br />
    17. 17. Nike+ Led to Significant Financial Results<br />Comparative Media Mix(1997 vs. 2007)<br />-27 percentage points<br />+14 percentage points<br />$500 Million in Revenue<br />with $50 Million Less Advertising<br />
    18. 18. Permanent 10% running shoe market share gain in U.S.<br />Motivation to run<br />Four Powers Model<br />Ease of tracking my performance<br />Unique insights for innovation, design and customer management<br />Fun of having global peers<br />Nike+<br />Engagement Platform<br />New experiences of value to stakeholders<br />Increased strategic capital and return to <br />the company<br />Nike<br />Runners<br />Lower risks and costs for the company<br />Lower risks and costs for stakeholders<br />55% reduction in conventional advertising, more productivity of spend<br />Avoid cost of joining club<br />Nike’s Results Were the Product of Unleashing Four Sources of Co-Creation Value<br />Lower risk of falling out of exercise regimen<br />
    19. 19. Adidas-Polar’s Competing Offering: Heart Monitor, Shoe, Stride Sensor, Running Computer<br />Adidas-Polar Fusion: a high-tech monitoring system built into apparel that runners use regularly<br />Aimed at the expert, high-mileage runner <br />The package retails for about $500 – more than twice Nike+<br />
    20. 20. Designing a New Experience Is Both about Simplifying (to Reduce Cost) and Enhancing the New Experience<br />High<br />Nike vs. Adidas Experience Curves<br />Perspective of the Runner<br />Nike +<br />10<br />8<br />6<br />Quality of experience<br />4<br />Adidas Polar<br />2<br />Key Elements of the Customer’s Experience<br />Low<br />Integrating music and running<br />Tracking runs<br />Price of shoe and system<br />Brand image, self-identification<br />Running computer<br />Heart rate monitoring<br />Quality of shoe<br />Participating in social network<br />Emotional association with running experience<br />Motivation to run<br />
    21. 21. With Nike iD, an Online Community Was Added to Open Up Design Processes to Customers<br />Nike iD Studio is a physical place augmented by a software interface<br />
    22. 22. How Nike+ Illustrates Key Co-Creation Elements<br />New Value and Experience<br />Nike now participates actively in the workout experience – runners and Nike benefit in terms of value and risk<br />Nike also opens up its design process to runners, further enhancing the experience<br />New Interactions<br />Nike interacts with runners in new ways and enables runner-to-runner community interactions<br />Nike interacts with power users around new designs and product ideas<br />Engagement Platforms<br />The Nike+ web interface allows users to connect their running experience virtually with a broader running community<br />The Nike+ sensor creates the pivotal functional interface between shoe and iPod<br />Nike ID web site added online design tools for consumers <br />Communities and Networks<br />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<br />Nike has begun engaging its online communities in other related activities such as designing new product lines or product models<br />
    23. 23. Co-Creation Lessons Learned From NIKE<br /><ul><li>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. 24. Your products can become engagement platforms, or key parts of one
    25. 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. 26. First mover advantages may be possible when creating communities – the iTunes connection was not easily replicable by Adidas</li></li></ul><li>Invitation to Co-Creation<br />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.<br />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<br />Disclaimer: This case study was drawn from primary sources and external research<br />We welcome corrections and amendments<br />