"community-based innovation & strategy: fitness wearables". lecture given at...

Wearable  Fitness  Devices    &  Community-­‐based  innova8on          case  study  

Wearable  Fitness  Devices    !   $  330  M  USD  sales  in  2013  

! Fitbit  (68%),  Jawbone  (19%)  &  Nike  (10%)  account  for  97%  market  share    

!   Plethora  of  startups  make  up  the  remaining  3%  

!   Market  to  double  its  size  in  2014  

!   Strategic  market  for  “internet  of  things”  applied  to  health  &  fitness  

Fitbit  

Fitbit  

Nike  +  Fuel  Band  

Nike  +  Fuel  Band  

Nike  +  Fuel  Band  

Jawbone  UP  

Jawbone  UP  

Jawbone  UP  

BodyMedia  

BodyMedia  

Massive  Health  –  The  Eatery  

Atlas  Wearables    

Atlas  Wearables    

Atlas  Wearables    

Kiwi  

Kiwi  

Kiwi  

Nymi  

Nymi  

Nymi  

Wello  

Heart  Rate,  Blood  Pressure,  ECG,  Blood  Oxygen,  Temperature,  Spirometry  

Amiigo  

Amiigo  

Amiigo  

Amiigo  

Amiigo  

Amiigo  

16  months  later  !   First  deliveries  for  backers  started  last  May  acer  an  

8  month  delay,  two  missed  deadlines  and  a  crashed  holiday  season  

!   At  current  pace  of  manufacturing,  deliveries  will  catch  up  with  backers  backlog  by  end  of  summer  

!   Ini8al  backers  and  beta  testers  experience  underwhelming  vs.  promise    

Amiigo  

How  would  a  tradi8onal  company  have  fared?  

It  would  have  gone  under  

Amiigo  

How  is  Amiigo  faring?  !   Got  strategic  investment  and  manufacturing  /logis8cs  

capabili8es  from  FLEXTRONICS      

!   Has  substan8al  wai8ng  list  orders  backlog    

!   Is  constantly  making  their  socware  app  bejer  and  bejer  

!   No  “tradi8onal  marke8ng”  expenses  

!   Can  compete  in  a  biz  arena  with  Giants  

Amiigo  

Why?    

Community-­‐based  strategy  and  innova8on  

Amiigo  

Amiigo  

Amiigo  

Amiigo  

Amiigo  !   Backers  not  Customers  

!   Co-­‐crea8on  and  ownership    

!   Ac8ve  par8cipa8on,  feedback  and  dialogue  

!   Wisdom  of  the  Crowd  

!   Community  

!   Promise:  “build  –  together  –  the  most  personalized  wearable  technology  available  enabling  users  to  track  their  favorite  ac8vity”  

Example  of  community-­‐based  strategy  &  innova8on  in  fashion  

GUSTIN  meanswear  

GUSTIN  menswear  

GUSTIN  menswear  

Lessons  for  Community  based  innova8on  &  strategy  

!   Conceive  a  product  that  is  poten8ally  disrup8ve  

!   Engage  our  audience  by  storytelling  your  value  proposi8on  

!   Make  your  audience  an  integral  part  of  your  product/concept.    

!   Use  their  wisdom/$/energy/know-­‐how  to  bring  your  concept  to  first  stage  frui8on.    

!   Be  upfront  and  proac8ve  in  a  two-­‐way  open  conversa8on    

!   Mone8ze  o  your  base  (followers)  with  third  par8es  (investors)  

Lessons  for  Community  based  innova8on  &  strategy  

!   We  are  living  through  the  second  industrial  revolu8on.  The  informa8on  revolu8on.  

!   Fragmenta8on  of  our  society.  Create  context  through  social  media.  Time  &  Ajen8on  are  commodi8es.  

!   Word  of  mouth  at  scale.  Produce  content  that  is  shareable.    

!   Every  company  is  a  media  company.  You  are  a  media  company.  

!   Blockbuster  didn't’t  buy  Neolix  for  40M  10  years  ago  “based  on  data”.  

In  a  nutshell,  don’t  do  like  these  guys  

Simply  because…  

Thank  you  

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