Future Of Fitness

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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 drivers

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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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bryankorourke.com The Future of the Fitness Industry

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


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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Mobile speeds will increase ...........

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Internet will become more intelligent ...........

Web 3.0the “Semantic” Web

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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

natal 41

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


CUSTOMERSEGMENTS


CORECAPABILITIES

PARTNERNETWORK

REVENUESTREAMS


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


CUSTOMERSEGMENTS


CORECAPABILITIES

PARTNERNETWORK

REVENUESTREAMS


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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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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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 ?

3rd

Health & Medicine

Future Of Fitness