Impact Of Technology On Fitness Industry - IHRSA 2010

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Impact Of Technology On Fitness Industry - IHRSA 2010

  1. 1. Technological Innovation andthe 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 Impactbefore 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 whichthe 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 ImpactTechnology: etymology greek - meaning skillfulapplication of an art. The practical application ofscience 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 itsexponential. Adoption rate is increasingsimilarly.
  20. 20. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactLaw 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 shoppingInternet: The free exchange of information withlimited constraints.
  23. 23. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactThe “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 monthsMobility: Communication & information whenever and where ever the customer wants it.
  27. 27. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactMobile speeds will increase ...........
  28. 28. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Web 3.0 the “Semantic” WebInternet will become more intelligent ...........
  29. 29. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact Outsourced Service Platforms Salesforce.comCloud Computing: Low cost ubiquitous storageand application deployment !
  30. 30. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impactexplosion of interactive tools & platforms
  31. 31. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  32. 32. Merger of emotiv Physical & Digitalnatal
  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 thatexpect a glorious past to shield them from theforces of change driven by advancing technology will fail."- Rupert Murdoch
  38. 38. 2009 U.S. Revenues (in billions $)300.0225.0150.0 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 EvolutionLow Price & Limited Features High Price & Full Features “Membership” Model Pricing Has Declined
  43. 43. PRIZMConsumers66 Groups
  44. 44. IHRSA 2009 comparative US industry data7 groups account for 75% of US club membersIncome / Price is a KEY Barrier
  45. 45. "It may be fatal to assume that minor adjustmentsto current business models will keep the fitnessindustry abreast of changing times."http://futureoffitnesswhitepaper.ning.com/
  46. 46. DemandIndustry 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 CUSTOMERdigital technologies
  51. 51. 3
  52. 52. Innovation
  53. 53. “those whocannot change their mindscannot 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 ImpactTo 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 ImpactTo 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 ImpactInnovation = Value Creation
  68. 68. customer focusU’s Together =Community Centric
  69. 69. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impactsocial media = new business models
  70. 70. Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
  71. 71. To Innovate: Change HowOrganizations Work
  72. 72. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactNew Methods, Roles & Models to Compete Integral Part of Organizational Capability
  73. 73. 4
  74. 74. What’s Ahead predictions
  75. 75. 1. non-facilitycompetition will surge
  76. 76. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactMerger 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. OutsideIndustry Convergence
  79. 79. 2. successful facilitycompetitors will deliver new models
  80. 80. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactProduct = Experience, Co-CreatedPrice = New Value ExchangesPlace = Marriage of Digital & Physical 24/7Promotion = Conversation orEngagement .... 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 Impact24/7 Service & Support
  84. 84. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactAdoption of Social Media Best Practices
  85. 85. 3. “wellness” willincreasingly emerge
  86. 86. Technological Innovation and the Fitness & Wellness Industry: Predicting the ImpactThe Crisis...23% of Americans participate in no physical activity62% 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 ImpactHead - 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 toprogress is not ignorance. It’s the Illusion of knowledge. “-Daniel Boorstin
  93. 93. "Of the ten leadingvacuum tubecompanies, noneparticipated in thetransistorrevolution".–Chet Raymo
  94. 94. is up to us......
  95. 95. think different
  96. 96. Technological Innovation andthe Fitness & Wellness Industry: Predicting the Impact THANK YOU

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