360° Coverage : Nike FuelBand Reveals New Truth Of Competitive Advantage

2 Updates

Nike FuelBand Reveals New Truth Of Competitive Advantage

Apr 26 2014, 9:18am CDT | by

Nike‘s acknowledgement that it is slowing down its commitment to making wearables (the FuelBand), covered by Parmy Olsen here, has added to speculation that Apple will launch its iWatch later this...

Filed under: news

 
 
 

25 weeks ago

Nike FuelBand Reveals New Truth Of Competitive Advantage

Apr 26 2014, 9:18am CDT | by

Nike‘s acknowledgement that it is slowing down its commitment to making wearables (the FuelBand), covered by Parmy Olsen here, has added to speculation that Apple will launch its iWatch later this year.

Nike and Apple are long-term partners and the FuelBand is basically an iDevice. By withdrawing the Fuel Band Nike can piggy back on Apple’s wearables projects, so the argument goes.

The more important piece of logic though is that Nike simply could not keep pace with the level of innovation needed to scale a device-centric strategy.

Behind this lies a platform challenge, a problem created by the new world of platforms and ecosystems.

Nike resisted calls to make FuelBand available on Android and limited its availability to a narrow range of markets. In an interview with TheNextWeb at the back end of last year Stefan Olander, VP of Digital Sport at Nike, explained why: Android fragmentation:

With the original FuelBand, you still had the challenge of catering for 200 different handsets and however-many versions of the operating system…. As we’re looking forward, for us it’s really about making sure we have a great experience. We have nothing against Android. Our running app [Nike+ Running] is on both iOS and Android, and we have learned a lot from that – at the end of the day, you really do get reach. But for us it’s quality first, scale second. If we can’t guarantee quality to a number of our users, we’ll wait until the platform is ready. And right now, we don’t believe the effort is worth the return, for Bluetooth LE. And we want to do it really, really well for iOS.

A feature of enterprise strategy since Apple and Google began scaling iOS and Android has been an increasing desire on the part of CTOs to get in on the act by way of a small platform adoption and a set of open APIs.

It worked for Netflix who stopped licking stamps and made APIs the core of its business. It did wonders for Expedia (the travel company pays around $500 million a year on developing its platform). But what about Nike?

Platforms like iOS and Android are innovation titans that introduce a wholly new logic to the way enterprises function. There is a huge lesson in Nike’s move for companies that are looking to the future and hoping to fashion a platform-based innovation strategy.

Olander is pointing to one of the big innovation challenges of the day – supporting over 200 different versions of one OS, and then localizing interfaces and documentation into dozens of languages, as well as supporting all that on the back-end through the platform.Netflix supports over 1,000 end-user device-types for its streaming TV services.

HP’s Paul Muller estimates that apps for devices (products with software and services) will be updated every three days by end 2020. 120 updates a year, across different end-user terminals running different versions of an OS. Add in continuous delivery, if you are a platform owner.

Jez Humble at Thoughtworks had this to say recently about continuous delivery in the service infrastructure for a device-centric economy:

Amazon is on record as making changes to production every 11.6 seconds on average in May of 2011. Facebook releases to production twice a day. Many Google services see releases multiple times a week….. When we analyzed the data we found that high performing organizations ship code 30 times faster (and complete these deployments 8,000 times faster), have 50% fewer failed deployments, and restore service 12 times faster than their peers

You can read about Netflix’s continuous deployment here and here.

But if that is the infrastructure, a similar development is taking place at the product level. Those 200+ variations of Android are only one part of the challenge./>/>

Platform businesses, I pointed out earlier in the week, intersect with each other, like Nike’s intersects with Apple’s, like Ford’s does with Apple and Android, and probably in future with Expedia’s or Waze’s platform, those of USAA and many more.

They are also likely also to intersect with innumerable Internet of Things platforms that relate product usage to component performance, driving even faster, automated innovation requirements’ specifications.

If it gets focus maybe Nike can be the platform for fitness where it will no doubt have to share some of the glory with Apple. It needs to seek the utility position, to withdraw from device competition and use its existing fitness assets to enable other people’s businesses.

The intersection of the platform and ecosystem creates innovation planning requirements and deployment skills that few companies possess. Anyone who thinks we have seen the end of competitive advantage needs to think again.

Follow me on Twitter @haydn1701 or join me on Facebook. I am here on Google

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce o ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits home. ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Khamenei wants less reliance on oil
Tehran, Oct 23 (IANS) Iran's Supreme Leader Ayatollah Ali Khamenei called on the country's officials Wednesday to formulate plans to cut Iran's dependence on oil revenues and manage the economy on the basis of the domestic capabilities.
 
 
Nigerian parliament approves $1 bn loan to fight Boko Haram
Lagos, Oct 23 (IANS) The Nigerian House of Representatives Wednesday approved President Goodluck Jonathan's request to borrow not more than one billion dollars to tackle the security challenges facing the country.
 
 
Kenya to train 30,000 health workers on Ebola
Nairobi, Oct 23 (IANS) Kenya has plans to train 30,000 health workers on Ebola screening, prevention, control and case management, the health ministry said Wednesday.
 
 
Germany pledges additional five mn euros to fight Ebola
Berlin, Oct 22 (IANS) Germany Wednesday said it would provide over five million euros ($6 million) in additional funds to promote Ebola research.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla