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Nike + Running

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by

Marcos Nunes

on 8 October 2012

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Transcript of Nike + Running

How Nike+ running shoes work
- it sends your running data to your iPod via a sensor.
- Tracking your fitness progress on the Internet.
- Users can create training plans.
- Set goals and monitor their progress.
- Automatically post status reports on Twitter or Facebook. What is the technology? (cc) image by nuonsolarteam on Flickr Nike +
Smart Running Technology Academic background Relevant Technology? Business Model *Sensors
-Sensor: it is meant to fit inside a pocket under the sockliner of Nike+ ready shoes.

-The sensor is a piezoelectric accelerometer pedometer, waterproof and shock resistant that senses steps and estimated distance.

-The sensor does not have a replaceable battery, when the battery dies in a year or less, you will need to buy another sensor for €14. Nike+ GPS App: A tracking engine that does not require the separate shoes sensor. -Automatically sends data with the use of Cloud Computing technology. -Sharing data on social networks such as Facebook, Twitter and the Nike website.
You can view your stats, workout results, set goals, challenge others to virtual races, and buy workouts on iTunes. -iPod:
1) Update the settings with your weight to get the calories burned.
2) Set your workout: time, distance, calories, your favorite playlist
3) BEGIN your workout
Instant updates about your workout would be received via the headphones. 1. Products and Services Specifications:
Size: 1.37 x .95 x 0.30 inchesWeight: 0.23 ounceBroadcast frequency: 2.4GHz Products: special shoes, sensors, system, applications
Workout plans, paid app

Services: measuring, analyzing, reporting, social sharing 2. Business Process Shoes are manufactured by standard NIKE suppliers.
Sensors production is outsourced to Nordic Semiconductor (Norway) and Microchip Technology (USA)

Sensors are put into shoes by clients or by NIKE. Apple devices are sold by Apple.

Finally, products and services are purchased online (own shop and resellers i.e. Amazon) or in an existing global network of NIKE or other sport physical stores. 3. Customers and CVP Generation Z (technology savvy, connected, global interests), active, health concerned. Potentially, existing NIKE and/or Apple customers.

CVP – customer value proposition:
–top quality, latest technology which allows to get more information about your workout.
-personal trainer in your pocket 4. Resources NIKE - an established brand of sports shoes with market know-how and years of experience in production, design, logistics, supply chains, sales and marketing of shoes.

Additionally needed:
System development - in-house.
Sensors - top electronics suppliers (USA and Norway)
Devices- existing customer base of Apple products 5. Supply Chain NIKE produces the shoes in China, Sensors are produced in China,

They are shipped separately to local markets and sold separately.

Through local wholesalers they are later distributed to physical and online retail shops.

System and apps are available online on NIKE and Apple websites or systems (via iTunes) taking advantage of their existing reach and position. 6. Revenue Model -Higher margins on ‘NIKE + running’ compatible shoes

-Price captures the added value of collecting and analyzing the workout information.

-Additional revenues come from sales of workout plans or NIKE + apps (USD 2) or devices. -Costs of sensors and IT/IS systems are distributed over 5 million users

-"in fiscal 2012 Nike footware sales in USA were 15% up" YES, more information about physical activity is an opportunity.

-connection between running and music (Nike and Apple)

-information which was never available is now possible to capture

-customers - Generation Z - they will want more technology in their life IMPACT? -other sport disciplines
-application in health, medical, professional, rescue areas
-continuous data collection of all movements Conclusion -Information System Strategy:
input -> process -> output -> feedback
sensors -> sending data -> retrieving and analyzing -> Social Networks -Porter’s 5 Competitive Model -Moore’s law:
Technology approximately doubles every 18 months Cloud computing:
Technology is rented or leased on a regular basis. Examples are data storage and computing hardware that are accessed via the internet . In order for Nike to maintain a sustainable competitive advantage in the Fitness industry they should continuously adopt the latest technology available in their field. "if we fail to introduce technical innovation in our products, consumer demand for our products may decline."
NIKE ANNUAL REPORT - SEC - 31.05.2012 Sustainable Competitive Advantage Nike has already decided to add a new business strategy which is introducing hi-tech products such as SMART RUNNING SHOES.
GPS App - application works using the accelerometer and GPS or wireless of the iPhone and the accelerometer of the iPod. Group 3
Abdalla Al Zaim-u1253608
Alberto Fenili-u1253510
Wojtek Horala -s127713 Group- brainstorm ideas, agree on steps

Abdalla - theoretical research and organization
Alberto- product and market research
Wojtek- structure and presentation,
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