technologies increasing impact on the fitness &

wellness industry

Bryan K. O’Rourke, MBA

www.bryankorourke.com

progress

“impossible without change”

“those who cannot change their minds cannot change

anything”George Bernard

Shaw

tremendous change

future

so many possibilities

“The further backward you look, the further forward you can see.”

- Winston Churchill

“The future ain’t what it used to be”-Yogi Berra

<3>

future - convergence

context

impact

<1>

technology

define it

what is technology ?

etymology

“technologia” systematic

treatment of an art or skill

“a capability given by the practical application of

knowledge.”

invented after we were born

doesn’t quite work yet or

1829Cambridge

1st

“unintended consequences”

human application of

nature’s principals

really radical change

amazing

5,000 days ago

for free

whenever

100 million clicks per day

55 trillion links

8 terabytes of data per second of traffic

2 billion location nodes

2 million emails per second

1.5 million IM’s per second

reaching the capacity of 1 human brain

> doubling capacityevery 2 years

the next 5,000 days?much greater change

we think lineartechnology is exponential

1, 2, 3, 4, 5, 6, 7, 8, 9, 10 ……….

2, 4, 8, 16, 32, 64, 128, 256…….

overestimate what can be achieved in the very near underestimate what happens in the long run

we are in the “knee of the curve”

content & experience

digitized - mobilized

late 70’s walkman & treadmill

fitness industry

institutions – cloud infrastructure

we are in the “knee of the curve”

historically the rate of change is accelerating – years since adoption

we are in the “knee of the curve”

We are witnessing the exponential shift – years since adoption

we are in the “knee of the curve”

size of machines shrinkingprocessing power increasingpatents increasingInternet hosts increasingtechnical knowledge increasingcost of mips decreasingInternet bandwidth increasingwireless price performance increasingmass use of inventions increasinginvestment in education increasingglobal poverty decreasing

now

connectivity 24/7

delivering content

driven by users

creating impactful immersion

veryinexpensively

we are teaching the machine

the semantic web – web 3.0

<2>culture

it’s all about people

patterns of human behavior

the age of transcendence <3> contributing factors

culture shiftingobjective base toa subjective base

mature adult majority

diversity

ubiquity of the information

in 1989 majority of US adults were 40 years or

older

most population growth for years to come will be in

+60

authenticity

determinedindividually

increasedrejectionof priorvalues

meaningful experience

diversity =acceptance, openness,

empathy

ubiquity of informationvia the Internet

content, “experience”

the “Prosumer”

the Prosumer(all customers)

have increasing power

they have access to &/or create the information

they seek authentic experience

“meaning”

<3>institutions

institutions / organizations

overwhelmed

order thoughts and expectation;

impose consistent behaviors;

reinforce shared beliefs and impose rules;

both constrain and enable behavior;

participants realize value “buying-in”

disconnect

designed around

command & control

centralization

not able to keep up with change

highly inefficientfails at embracing change

“The greatest obstacle to progress is not ignorance. It is the illusion of knowledge”

-Daniel Boorstin

collaboration - orchestration

open – open systems

transparent

flexible

learning

understand your role

lifecycle timeframe shrinking

drive to commoditization

movie theaters

arcades

record stores

failed to embrace change

drive fixed cost out

transparent - authentic

technology

customer centric

collaborative

unexpected emergence

unexpected “competition”

alternatives - disruptive

understandable

recap - rapid changegreat opportunity & risk

implications to thefitness & wellness industry ?

depends…….

‘01 to ‘07 estimated US facility growth

70% growth

< 16% exercise regularly

impact varies

economics

conservation

tech impact <2>

institutions - customers

<1> institutions/organizations:

understand your unique position

adopt orchestration strategy

unique positionorchestrate

program partners

partner for programming

partner to createmeaningful experiences

expensive equipment is not always the solution

invest in authentic experience

limit cap-ex & adoptorchestration

host of new equipment technology innovations

customer relationshipconservation

Web 2.0

embrace web 2.0 strategies

embrace web 2.0 strategies

seek alliances

leverage globalization

outsource expertise

e-lance

<2> consumer

macro

obesity will bankrupt us all

20% of children

obese

2007 Market Size in Billions

2007 Market Size in Billions

disconnect

Dr. Jennifer Smith Maguire2007 Fit for Consumption: Sociologyand the Business of Fitness

opportunity – outcome reimbursement

the market will growby hundreds of billions in the

next decade

wellness

4 ways technology impacts wellness

direct to consumer

engagement

through gaming

outcomes

streaming content & mobility

integrate into daily life

monitor technology

engagement motivation – via the cloud

direct without physical place

new business modelsthat incorporate facilities

in a different manner

summing it all upwhat is the impact ?

things will be vastly different

how is largely up to us…..

“those who cannot change their minds cannot change

anything”George Bernard

Shaw

progress

people

& think differently

think of our mission