We prepared this presentation for the Innovation and Technology Management lecture. It is about the digital transformation that Under Armour undertook and the role of technology.
14. Measuring Success – UA App
• More than 210 million users.
• One out of every five people in the U.S. has downloaded an app in
the UA network.
• 72 million women are registered on the UA platform.
Editor's Notes
Under Armour (UA) is a sports brand founded by Kevin Plank, a man who aspired to produce moisture-wicking synthetic t-shirts for athletes. When these t-shirts appeared to be successful, the company started selling other sportswear as well.
Until 5 years ago, the company produced a wide range of sportswear which it sold to costumers through a pipe model. The value was created by the brand and consumed by the customers through physical stores and on the website.
Under Armour focuses on the quality of their products and delivers this through continuous innovation. Therefore, in the value discipline model, UA is placed in product leadership. They differentiate themselves from competitors by offering more innovative products, for example the moisture-wicking t-shirts.
What UA wanted to achieve through its digital transformation was to create wearable technology. It wanted to build a network in which all gear is connected with each other. Through this network, a platform strategy is added where consumers can also create value themselves.
By tracking their workouts with the app, they will be provided with more insights on their performance and on how to improve it. The customers also benefit from recording their data because UA can use this to create new products that better satisfy their needs.
Regarding the 4P’s of innovation, we see the main changes in UA’s products, process, and paradigm. First, a completely new product, namely wearable technology was added to the product line. Second, since new products were introduced, the company required a new process to create these products. Lastly, the paradigm shift took place because where the company was previously seen as a sportswear provider, they now moved to a company providing athletic gear equipped with technology.
We would like to mention the role of technology in Under Armour’s digital transformation
While building the design for its 3-D printed shoe, Under Armour changed its traditional approach of seeking feedback directly from consumers.
Instead, it scanned the social media analysis using the natural language processing capabilities of SAP HANA.
The final product was combining all the successful pieces of previous Under Armour shoe designs.
The real win for Under Armour revolves around big data and how it will inform future product designs as well as improve athletic performance.
The heel of this 3D printing shoe is steady enough for strength training, but versatile enough for any workout you're willing to attempt.
Smart feature within the footwear that extends the tracking capability of MapMyRun by providing detailed workout stats, such as tempo, real-time pace information, and the mileage lifetime of the shoe.
It can also measure the wearer’s muscular fatigue level before he or she even gets started by performing the Jump Test. Once connected to MapMyRun the technology embedded in the shoes will measure and average the air time of a sequence of jumps as an indicator of muscle fatigue.
This helps track an athlete’s recovery status over time and provides guidance on how to alter the intensity of a workout. “We know one of the biggest problems runners face is pushing through pain and fatigue, leading to injury.”
Gemini line of running shoes seamlessly allows consumers to track fitness and health activity without the use of a smart phone.
The Company also uses its data around consumer’s workout timeframes to push targeted advertisements to consumers.
For example, after a user completed a long run on a cold day in Chicago, Under Armour then pushed a targeted advertisement for its “snot finger gloves”.
Under Armour acquired several technology based fitness companies which provided them with the tech and costumer database for their app for $710M.
215 million people have downloaded one of their apps. This way, people tell them how much they sleep, how much they eat, how much they workout, and the types of workouts they do.
They also get data on brand interactions from MyFitnessPal.
“By combining the data from the apps with the brand interaction data, we can understand buying decisions. More importantly, we understand the behavior behind the buying decisions.”
Due to the digital transformation, in 2018, Under Armour was ranked in the top 3 most valuable sportswear brands.
