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the revolution in fitnesschange is ahead
what will the future look like ?
What Does The Future Hold ?
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Progress
broad3
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Key Trends
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Biz Models
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Innovation
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Predictions:Consumers & Facilities
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“change is the process by which
the future invades our lives”
Alvin Toffler
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think different 11
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Different
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<3>
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3 drivers
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<3>
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DEMOGRAPHIC - CONSUMER SHIFTS
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2GLOBALIZATION
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3TECHNOLOGY
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DEMOGRAPHIC - CONSUMER SHIFTS
GLOBALIZATIONfor more information read some of these books...
key technology
trends
1st
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Prevalent Business Models & Trends - EmergingOn line retail continues surge - fitness models follow
"People are just shifting their dollars to the Web," said Sucharita Mulpuru, vice president and principal analyst for Forrester Research Inc. Online retail sales will grow 10% a year for the next five years, accounting for 53% of all U.S. retail sales by 2014, according to Forrester Research.
how will it impact our lives & industry ?
technology
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Technology: etymology greek - meaning skillful application of an art. The practical application of science in commerce or industry.
The Future of the Fitness Industry
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bryankorourke.com
Technology: the pace of change is not linear its exponential. Adoption rate is increasing similarly.
Gordon MooreCo-Founder of IntelNumber of transistors on a chipwill double every two years. “Moore’s Law”
The Future of the Fitness Industry
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bryankorourke.com
Law of accelerating returns . We are just seeing the start - “knee of the curve”
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1,2,3,4,5,6,7,8,9,10.......
2, 4, 16, 256............
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Internet: The free exchange of information with limited constraints.
-Commercial Internet began only 5,300 days ago-Serves over 1.5 Billion people-79% of US adult population-40% of US consumers usesearch engines for comparativeshopping
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The “Grid” Becoming Increasingly Integrated30
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Devices - getting smaller and more powerful.
The ability to increasingly and more easily integrate technology into daily life is upon us.
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15 Billion by 2015
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Mobility: Communication & information when ever and where ever the customer wants it.
Mobile Internet Access:Pew - 56% of US AdultsIncrease of 73% in 17 months
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bryankorourke.com The Future of the Fitness Industry
Mobile speeds will increase ...........
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Internet will become more intelligent ...........
Web 3.0the “Semantic” Web
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bryankorourke.com The Future of the Fitness Industry
Cloud Computing: Low cost ubiquitous storage and application deployment !
Outsourced Service PlatformsSalesforce.com
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explosion of interactive tools & platforms
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Merger of
Physical &Digital
emotiv
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key trends
digital reality
intelligence
connectivity
miniaturization
web 2.0 & 3.0
cloud computing
low cost
new products &services
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Biz Models
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Prevalent Business Models & Trends - Emerginghttp://futureoffitnesswhitepaper.ning.com/ factors : aging, industry diversification, wellness, cost control
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
ACTIVITYCONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
DISTRIBUTIONCHANNELS
business model
INDUSTRYSUPPLIER
DEMANDCUSTOMER
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"companies that expect a glorious
past to shield them from the
forces of change driven by advancing technology will fail."
- Rupert Murdoch56
0
75.0
150.0
225.0
300.0
2021 40
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Fitness FacilitiesVideo Games
OTC DietRetail Pharma
2009 U.S. Revenues(in billions $)
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US Soda Biz $70 Billion
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1%
99%
Fitness Facilities Health Care
2010 U.S. Market(US health care $2.6 trillion)
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17%60
U.S. Fitness Facility Marketstatistics from www.cmeto.com
46%61
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To compete you will have to carefully consider your point of differentiation
•Price
•Features
•Competitive abilities
•Wellness Option
"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/
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DemandIndustry Convergence
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clothing
supply side
Li & Fung Group67
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movie theaters
arcades
record stores
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Economics of Free
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
ACTIVITYCONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
DISTRIBUTIONCHANNELS
business model - new models needed
INDUSTRY SUPPLIER
DEMANDCUSTOMERdigital technologies
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business model - asthetics | design | concept
melding the digital & physical experience
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Innovation
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“those who cannot change
their minds cannot change
anything”
George Bernard Shaw
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How OrganizationsCreate Value
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
ACTIVITYCONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
DISTRIBUTIONCHANNELS
business model - what is technology doing ?
INDUSTRYSUPPLIER
DEMAND - CUSTOMER
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the dilemma
sustaining
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disruptive
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"Of the ten leading vacuum tube companies, none participated in the transistor revolution".
–Chet Raymo
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EmpoweredConsumers
It’s all about the
“You”
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bryankorourke.com The Future of the Fitness Industry
Product - Build fences, own it all
Price - Competition, supply - demand
Place - Physical distribution
Promotion - Sell, sell, sell
....Legacy of the Industrial Revolution
To Deliver Value Organizations Used To ......
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Product = Experience, Co-Created
Price = New Value Exchanges
Place = Marriage of Digital & Physical 24/7
Promotion = Conversation or Engagement
To Deliver Value Organizations Must Now......
.... A New Way of Doing Things
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C.K. Prahalad
“To successfully compete companies must reinvent their process & culture in order to sustain innovative solutions.”
“World’s Most Influential Management Thinker”-Times of London 2007
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N = 1
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R = G
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orchestration95
orchestration96
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What’s Aheadpredictions
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1. non-facilitycompetition will surge
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Merger of Technologies Including Social MediaWill Create New Low Price Alternatives
Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
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Technological Innovation and the Fitness & Wellness Industry: Predicting the Impact
Nike Running
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OutsideIndustry Convergence
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2. successful facilities will delivernew models
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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
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bryankorourke.com The Future of the Fitness Industry
Hi-Tech Hi-Touch
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Financial ServicesIndustry
Measure is not# of Bank Branches
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technology platforms - 24/7 service & support
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3. “wellness” will increasingly emerge
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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
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Head - Traditional Fitness Industry
Long Tail - New Wellness Space
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4. marketplace will continue to
bifurcate and niche
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Business Models and Trends - Competitive LandscapeBifurcation of the market - Ray Algar Model
http://www.oxygen-consulting.co.uk/
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Prevalent Business Models & Trends - Emerginghttp://futureoffitnesswhitepaper.ning.com/ factors : aging, industry diversification, wellness, cost control
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the new paradigma new era of organizations will emerge
that adopt new ways of doing things
How Will Organization’s Succeed ?
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