Technologies and New Business Models Are Reinventing Our Industry Before Our Eyes

The headlines tell a story that many leaders in the health club and fitness industry should be watching, closely. Weight Watchers just purchased Wello, a purely digital fitness delivery platform that offers one-on-one and group fitness training online. During a recent quarterly conference call, Weight Watcher’s CEO Jim Chambers had this to say:

“The competitive frame of the weight loss market continues to evolve as free apps and activity monitors generate significant consumer interest.” He went on to comment, “We have an ambitious technology vision. We will become a 21st-century technology organization, engineered for the digital era, whose innovative technology fundamentally improves the way people manage their weight, health and wellness. We will be agile service-oriented, data-driven, cloud-enabled and efficient. We will be a model for digital technology in the markets in which we compete and we will be a magnet for talented innovators both, inside and outside the company.”

Clearly Weight Watchers is addressing the huge market it serves with as many as 70% of US adults being over weight. They are also attempting to service those customers in the most convenient ways possible given the rise of technologies that enable this. This is the new era. Its not just Weight Watchers taking bold innovative moves in wellness through acquisition, so is Wallgreens with their new theranos testing labs and wellness tour, Fitocracy with their 2 million online participants, and RetroFit with their online coaching solution that includes Wi-Fi scales. There are many other examples of these new era business models and the 2013 $330 million wearable market in combination with over 80% of households having smartphones and a 100 Billion apps downloaded so far means there will be even more innovation. You don’t have to be Nostradamus to understand what's here and what’s coming; a wave of new competition set to serve and explosion of customers.

During my recent interview with Dr. Michael Mantell on Health & Fitness Technology (click to listen) we explored how the industry has entered a new era. I compared the impact of the MP3 format on the music industry to what is happening today in the wellness business. While record companies cried over the disruption of their business models, the fact is that the amount of music purchased and the number of live music events attended from 2000-2010 tripled around the world following the advent of digital music. This happened because technology released the constraints of bricks and mortar distribution, enabling a much larger audience to be served in many new ways. The same thing is happening in fitness and wellness today as the brands I’ve shared along with many others are enabling new markets to be reached more effectively and less expensively.

Some health club industry leaders will claim that nothing can replace human interactions, so clubs and trainers can’t be threatened by these new business models. I’d have to disagree. It is true that there is no replacement for human beings, but technology is enabling business models to do things in ways that humans on their own can not at scale. Many of the most successful brands will blend human interaction with technology tools to create even higher levels of service whereby trainers can support hundreds of clients with a combination of digital and physical delivery.  Therefore, very forward thinking bricks and mortar club brands are closlely evaluating the customer experience and considering how things like networked fitness, mobile technology and other digital tools can be integrated into their business models while other new purely digital startups and brands will jump into the space because the barriers to entry in the digital world are some much lower. Just like Weight Watchers, the path to innovation must be kept in mind as the industry enters the 21st century and as we have entered a new era of fitness and wellness.

So what do you think ? Have we entered the new era ? Are new business models going to revolutionize fitness and wellness, growing the market and delivering services in new innovative ways ? Let me know and thanks for reading.

About Bryan

Bryan O’Rourke is considered by many to be a thought leader on technology, health club and wellness trends. He has been quoted in global periodicals like the Wall Street Journal, New York Times, Inc. Magazine, and has been published in journals around the world on his views of how technology will create the dawn of a new era of opportunity for the health club and fitness industries. In addition to being an industry expert, Bryan is a technologist, financier, shareholder and executive in several fitness companies. He has spoken on a range of business and trend topics on four continents. As a contract executive and advisor, Bryan wears many hats, including working for Fitmarc, which delivers Les Mills programs to over 700 facilities in the US. He advises successful global brands, serves as a member of the GGFA Think Tank, on ACE's Industry Advisory Panel and is CEO of the Fitness Industry Technology Council. To join FIT-C visit www.fit-c.org . To learn more contact Bryan here today .

IHRSA 2014 And How Gary Vaynerchuk’s Message Was The Most Relevant Part Of The Show

If you read my posts and content you might know the street kred I give Gary Vaynerchuk. When I saw IHRSA 2014 included him as a Keynote Friday morning and that I’d get to have some more private interaction with him afterwards, I was stoked. In the end IHRSA 2014 was the best ever for many reasons but mostly Gary's talk which met all of my expectations.

Here are some of Gary’s quotes from his keynote and private talk afterwards (by the way you can gain access to private sessions at IHRSA by being a part of the Industry Leadership Council or ILC. Its well worth joining. To learn more about the benefits of ILC visit here ) at IHRSA 2014:

You better be a media company first because your ability to just advertise is disappearing fast.

Anytime someone says “our data shows” and they are on the wrong side of history its over (referring to how Blockbuster declined to acquire Netflix for $50 Million, more on that story here  ).

When the Blockbuster executives explained why they didn’t want to acquire Netflix they used a variety of “facts” including that customers wanted a Blockbuster “experience”. They believed people liked running into their neighbors at the store and they wanted to purchase popcorn to take home. When I want a movie I want to lay naked in bed and hit a button. (Hearing the description “experience” must have been eery for at least a few health club industry players who use the term as their mantra).

The fastest way to go out of business is to be romantic about the business you are in.

Innovation does not give a crap about you or me.

At least 25% of what you are doing in marketing is dumb crap (referring to marketing in the health club industry and in other industries as well).

Being sorry is sometimes more powerful than the crime.

Health clubs are massively vulnerable to innovation.

Somewhere out there someone is working on an Uber for trainers. Its only a matter of time until it hits the market.

One of the most interesting moments was in the beginning of the keynote when Gary asked who in the crowd knew him. Not many people raised their hands. Given Gary’s views and celebrity I wonder what that might imply.

What Gary Vaynerchuk shared were the facts of a new world, the one we live in, and that's what made his talk most relevant.  As a man who has invested in 75 startups, including Uber and Twitter, among others, he knows what he is talking about, and therefore his insights are quite relevant. There is NO doubt that the health club industry is going through the beginning of a massive revolution involving tremendous disruption, many industries are. I’ve said before that some independent club operators could be compared to independent record store owners in the 1980’s before the advent of technology completely turned the music industry on its head. Some might find that a negative outlook, but I don’t and here’s why.

One of Gary Vee's contemporaries is Malcolm Gladwell, whose recent speech at The Health Care Interoperability Summit earlier this month started off with this:

“But I’m only going to spend a little time talking about healthcare proper – both because I think it’s often more useful to approach some of these issues from an angle by looking at the world outside of the one you’re engaged in – and secondly because I have a rule that I never talk about something my audience knows more about than I do.”

A week before IHRSA Malcolm was addressing issues in the health care arena and his quote is right, it takes an outside view to see what is happening and both he and Vaynerchuk were doing just that in their respective lectures. Gladwell went on to share historic perspectives on everything from McLean’s revolution of the shipping industry to the advent of MP3 as an operability standard for music and how that revolutionized the industry. In each case Gladwell identified that it’s the combined interoperability that has the truly disruptive and exponential effect. The underlying component technology isn’t always a new invention – or exponentially disruptive. (Read more about his speech here on Forbes ). That's why perhaps its sometimes hard to see it coming.

Malcolm’s most relevant point during his speech was that despite the carnage that disruption brings, there is always a silver lining in the end. An example he used was Music stores, a dominate part of the retail landscape (and music experience) that disappeared entirely within about 5 years. By un-tethering music from a rigid distribution model around proprietary formats, music enjoyment and sales exploded. From 2000 to 2010, growth in live performances and album sales both tripled.

I think Gary Vaynerchuk and Malcolm Gladwell were discussing the same views from slightly different angles. Ironically, Gladwell was highlighting how the health care industry needs to work on Interoperability standards, and the same need exists for fitness as well. And to Gary’s point, some group is working on an Uber disruptor today that will , among other innovations, revolutionize the fitness space. The risks are so tremendous to the industry now, yet few are aware of just how threatening it is and while that risk exists for most present players massive opportunities are there for the right ideas . In the end however, this will enable the health and fitness industry to expand exponentially, creating more ways to impact people’s quality of life.

If Vaynerchuk and Gladwell are both sharing similar views about the present and near future for health and fitness you better prepare for what is to come. Disruption is here. Is your business preparing for it ?

What did you think about Gary's speech at IHRSA 2014 ? I'd love to hear your views.

About Bryan

Bryan O’Rourke is considered by many to be a thought leader on technology, health club and wellness trends. He has been quoted in global periodicals like the Wall Street Journal, and has been published in journals around the world on his views of how technology will create the dawn of a new era of opportunity for the health club and fitness industries. In addition to being an industry expert, Bryan is a technologist, financier, shareholder and executive in several fitness companies. He has spoken on a range of business and trend topics on four continents. As a contract executive and advisor, Bryan wears many hats, including working for Fitmarc, which delivers Les Mills programs to over 700 facilities in the US. He advises successful global brands, serves as a member of the GGFA Think Tank, on ACE's Industry Advisory Panel and is CEO of the Fitness Industry Technology Council. To join FIT-C visit www.fit-c.org . To learn more contact Bryan here today .

IHRSA 2014 - A Busy Schedule In San Diego. Hope To See You There

This year IHRSA 2014 will be one of the best ever. I am particulary delighted to be speaking at the Medical Wellness Association forum, sharing views with the leaders of IHRSA Federations from around the world, conducting a technology roundtable with some great industry experts and sharing views on mobile technologies and their impact.

One really special aspect of the event will be Gary Vaynerchuk's talk on Friday morning. If you are attending IHRSA this year, do not miss it. I've included Gary's video discussing health clubs and how social media and consumer change are impacting the industry. You might find it very amusing and insightful.

Hope to see you at IHRSA this year. Watch these videos on my two main presentations on Thursday and Friday at 1:30 pm. Hope to see you there.

About Bryan

Bryan O’Rourke is considered by many to be a thought leader on technology, health club, consumer and wellness trends. He has been quoted in periodicals like the Wall Street Journal, and has been published in journals around the world on his views of how technology will create the dawn of a new era of opportunity for the health club and fitness industries. In addition to being an industry expert, Bryan is a keynote speaker, technologist, financier, shareholder and executive in several companies. He has spoken on a range of business and trend topics on four continents. As a contract executive and advisor, Bryan wears many hats, including working for Fitmarc, which delivers Les Mills programs to over 750 facilities in the US. He serves as a member of the GGFA Think Tank, sites on ACE's Industry Advisory Panel and is CEO of the Fitness Industry Technology Council. To join FIT-C visit www.fit-c.org . To learn more contact Bryan here

Can't We All Just Get Along ? The Need For Collaboration And Transparency Continues

If you read my posts (thanks if you do) I am certain you might get a little tired of the terms “collaboration” and “transparency”. However, the truth is technology is democratizing much of the world; this is a reality everyone should ponder. You just can’t hide anymore and this fact is very hard for some people to accept. What is even more challenging a notion is that competitive collaboration can lead to more fruitful innovations which is unquestionable and done every day in other industries but for some to get their minds around that idea is like asking them to jump off a high rise in the belief they won't be harmed (remember the matrix video?). In reflecting on some events last week, I had to ponder these subjects myself because of what happened, again. You see it is apparent to me thata lack of transparency and a failure to collaborate are some of the biggest challenges our industry faces. Its getting back to the scacity thinking again snd please bare with me while I explain.

In a few of my networks last week I shared that Johnson Health Tech, which manufactures the Matrix Fitness brand, is recalling Matrix Fitness trainers and ellipticals that pose a fire hazard. The U.S. Consumer Product Safety Commission announced the recall on January 23, 2014.. About 2,800 Ascent Trainers by Matrix and Matrix Fitness elliptical units that were installed from November 2011 through December 2012 are being recalled.

As Club Industry reported and tweeted , this is the second product recall pertaining to the fitness industry that the CPSC has announced this month. Cybex International is recalling 234 Olympic decline free weight benches manufactured from December 2008 to September 2013.

What was interesting were several emails I got from a few people who found my tweeting the recall and sharing it on Linkedin “distasteful”, “tacky”, reflecting a “lack of credibility”, being “negative” and “undermining the industry” .  Are you kiding me ? You might only imagine the origin of some of these emails. By the way, this information was being shared all over the Internet by others and I did not in any way twist the facts or share a particular view on it. I'm not being defensive when I say that many of our customers and industry friends rely on me sharing pertinent industry information, which I try to do. Do some people really believe that tweeting (sharing) public information about an equipment recall is somehow undermining a global brand like Matrix ? Or is the sensitivity a sign of something else ? I think its the later. Give me a break.

Before I get into this subject and In the interest of full disclosure (again to transparency) our organizations have happily done work for  and with Star Trac, Schwinn, Stairmaster and Mr. Michael Bruno with whom we have a wonderful relationship. We also advise and sell other equipment, programs like Les Mills, services and technologies. We work with some of the leading bricks and mortar health club brands in the for profit and non-profit club business among doing many other things. I guess any of these various players could see each other as competitors but we try to be as transparent as we can keeping the big picture in mind. Most people who know me, follow me and read my work would think we are pretty transparent (I hope). I don’t think you couldn’t know what I am doing or where I am on any given day and we don’t try and hide it. If you disagree please let me know.

What the emails and comments I received regarding the Matrix Fitness story did reflect is something I’ve noticed over the years in the health club and fitness industry in general. Its called a scarcity attitude. Of course there will always be a bit of strain and stress in any marketplace and not everyone is going to like you. Robert Dyer and I laughingly say that many of the organizations and professionals we speak with before they get to know us keep waiting for the “hook”, but there is no hook when it comes to us. I don’t think some people believe that though because of other experiences they have, like my emails they are accustomed to a lack of collaboration and scarcity thinking.

I replied to the emails regarding the Matrix recall and asked the folks who did write to call me so we could talk. No one has taken me up on it as of this writing. In the world of transparency its important to be transparent. But there are many who probably didn’t write but might have felt the same way and this is what I want to address. You'll note I did not name names because that would not have been fair.

This attitude of distrust, of short term competitive advantage, of one over another is damaging the fitness and particularly the health club industry. It is a major contributor to why the industry has not collaborated on shared technological development in DECADES for example and its this short term view that could be our undoing. We’ve got to help each other but by working on constructive solutions . I was privy to the behind closed door discussions and negativity put forth by various competitors during the turnaround of Star Trac as Michael Bruno rescued the business; all designed for competitive gain. I’ve seen it happen to others as well. My reputation has been attacked by some leading professionals in the space as well behind closed doors and sometimes not. Like they say, "haters are going to hate." Anytime anyone is leading change its what you’d expect but instead of letting that be the bottom line we need others to stand up and show another way, to fill the void.

This is why I am involved with a number of other leaders in the Fitness Industry Technology Council. We need to create a forum to advance the supply and delivery side of the industry given the rate of technological change. Its why I am thankful to participate with ACE’s Industry Advisory Panel as well as the other organizations like IHRSA and their Public Policy Council where we try and help.

We’ve great respect for almost every major player in the industry including our friend Michael Bruno, Star Trac, Stairmaster, Schwinn, Johnson Health Tech’s Matrix, Cybex, Precor, Life Fitness and Technogym among many others. Believe me, tweeting about the Matrix recall was not done to damage Matrix. But in an age of transparency and with the realization that the biggest threat is not each other but our failure to collaborate I ask that you read some of my other blog posts and content and see my intention is to bring people together to identify a changing world and marketplace and collaborate around the future. Failing to do so will only lead to missed opportunities for us all.

So tell me, should I be more transparent and how ? Should I not tweet anything about any supplier in the industry if it touches upon a challenge they are having ? Would that make me better, less transparent ? Please share your views with me and thanks for taking time to read the post.

About Bryan

Bryan O’Rourke is considered by many to be a thought leader on technology, health club, consumer and wellness trends. He has been quoted in periodicals like the Wall Street Journal, and has been published in journals around the world on his views of how technology will create the dawn of a new era of opportunity for the health club and fitness industries. In addition to being an industry expert, Bryan is a keynote speaker, technologist, financier, shareholder and executive in several companies. He has spoken on a range of business and trend topics on four continents. As a contract executive and advisor, Bryan wears many hats, including working for Fitmarc, which delivers Les Mills programs to over 750 facilities in the US. He serves as a member of the GGFA Think Tank, sites on ACE's Industry Advisory Panel and is CEO of the Fitness Industry Technology Council. To join FIT-C visit www.fit-c.org . To learn more contact Bryan here

Technology Tools That Are Changing The World - Why Twitter Rocks

Some thought has been put into my profile on Linkedin. When it says "helps organizations and professionals realize their full potential and solve their biggest challenges" well that's what I am trying to do. Hopefully it shows every now and again. When @StartracFitness invited me to share views on social selling, there came a few points during the presentation where I saw that look in people's eyes. I'll call it the look of WOW, wonderment, realization; a look I live for because it can mean you are making an impact. When you can get an audience to rethink what they are doing, how they are doing it and why they should maybe do it differently its a win. Its that aha moment. I saw a few of those looks last Thursday in Irvine California. (see the video below for an example of what spurred the look).

Hopefully you know my view: technology has created awesome potential for doing good for people, for customers for the world , if used correctly. Technology tools like Twitter are a good example, yet many still don't use the tool. With around 218 million active users you can use Twitter like Google and search to learn so much information as well as connect with many professionals and people that share your interests.The 2014 Fitness Industry Technology Council U.S. Health Club Survey Report showed, however, that only 27% of club leaders use twitter at all.

I use Twitter because its fantastically powerful. Health clubs, service and consulting organizations, like Star Trac Fitness, non-profits, and others can all use Twitter. Leaders in the health club business including @RobertjDyer , @ChuckRunyon, @SarahRobbOh, @SFable, @ECRetro , @GMelstrand , @CEOScott and many many others use the Twitter platform.

To learn more about why Twitter Rocks visit Twitter's Youtube Account. Do you use it ? Why or why not ? I'd love to hear what you have to say. And on a final note many thanks go out to the @StarTracFitness team and my team including Michael Bruno, Terry Woods, Vanessa Lee, Jeff Dilts, Sal Pellegrino, Eleanor Hisey, Robert Dyer, Maureen O'Rourke and so many others. Thanks to you all for the chance to do what I love to do.