This presentation was provided to attendees of the Athletic Business Conference in San Antonio, Texas, December of 2008.

1. technologies increasing impact on the fitness & wellness industry Bryan K. O’Rourke, MBA www.bryankorourke.com

3. progress

4. “ impossible without change”

5. “ those who cannot change their minds cannot change anything” George Bernard Shaw

6. tremendous change

7. future so many possibilities

8. “ The further backward you look, the further forward you can see.” - Winston Churchill

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

10. <3>

11. future - convergence

12. context

13. impact

14. <1> technology

15. define it

16. what is technology ?

17. etymology “ technologia” systematic treatment of an art or skill

18. “ a capability given by the practical application of knowledge.”

19. invented after we were born doesn’t quite work yet or

20. 1829 Cambridge

21. 1 st

24. “ unintended consequences”

28. human application of nature’s principals

30. really radical change

31. amazing 5,000 days ago

42. for free whenever

43. 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

44. reaching the capacity of 1 human brain

45. > doubling capacity every 2 years

47. the next 5,000 days? much greater change

48. we think linear technology is exponential

49. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 ………. 2, 4, 8, 16, 32, 64, 128, 256…….

50. overestimate what can be achieved in the very near underestimate what happens in the long run we are in the “knee of the curve”

53. content & experience digitized - mobilized

54. late 70’s walkman & treadmill fitness industry

55. institutions – cloud infrastructure

56. we are in the “knee of the curve” historically the rate of change is accelerating – years since adoption

57. we are in the “knee of the curve” We are witnessing the exponential shift – years since adoption

58. we are in the “knee of the curve” size of machines shrinking processing power increasing patents increasing Internet hosts increasing technical knowledge increasing cost of mips decreasing Internet bandwidth increasing wireless price performance increasing mass use of inventions increasing investment in education increasing global poverty decreasing

59. now

60. connectivity 24/7 delivering content driven by users creating impactful immersion

61. very inexpensively

63. we are teaching the machine the semantic web – web 3.0

64. <2> culture

65. it’s all about people

67. patterns of human behavior

68. the age of transcendence <3> contributing factors culture shifting objective base to a subjective base

69. mature adult majority diversity ubiquity of the information

70. in 1989 majority of US adults were 40 years or older most population growth for years to come will be in +60

71. authenticity determined individually

72. increased rejection of prior values

73. meaningful experience

74. diversity = acceptance, openness, empathy

75. ubiquity of information via the Internet content, “experience” the “Prosumer”

77. the Prosumer (all customers) have increasing power they have access to &/or create the information

78. they seek authentic experience “ meaning”

80. <3> institutions

82. institutions / organizations overwhelmed

83. order thoughts and expectation; impose consistent behaviors; reinforce shared beliefs and impose rules; both constrain and enable behavior; participants realize value “buying-in”

84. disconnect

87. designed around command & control

88. centralization not able to keep up with change

89. highly inefficient fails at embracing change

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

91. collaboration - orchestration

92. open – open systems transparent flexible learning understand your role

96. lifecycle timeframe shrinking

97. drive to commoditization

98. movie theaters arcades record stores failed to embrace change

99. drive fixed cost out transparent - authentic technology customer centric collaborative

100. unexpected emergence

102. unexpected “competition”

103. alternatives - disruptive

104. understandable

105. recap - rapid change great opportunity & risk

106. implications to the fitness & wellness industry ? depends…….

107. ‘ 01 to ‘07 estimated US facility growth 70% growth

108. < 16% exercise regularly

109. impact varies economics conservation

110. tech impact <2> institutions - customers

111. <1> institutions/organizations: understand your unique position adopt orchestration strategy

112. unique position orchestrate program partners

113. partner for programming

114. partner to create meaningful experiences

115. expensive equipment is not always the solution invest in authentic experience limit cap-ex & adopt orchestration host of new equipment technology innovations

116. customer relationship conservation Web 2.0

117. embrace web 2.0 strategies

118. embrace web 2.0 strategies

120. seek alliances leverage globalization outsource expertise e-lance

122. <2> consumer macro

123. obesity will bankrupt us all 20% of children obese

124. 2007 Market Size in Billions

125. 2007 Market Size in Billions

126. disconnect Dr. Jennifer Smith Maguire 2007 Fit for Consumption: Sociology and the Business of Fitness

128. opportunity – outcome reimbursement the market will grow by hundreds of billions in the next decade wellness

129. 4 ways technology impacts wellness direct to consumer engagement through gaming outcomes

132. streaming content & mobility integrate into daily life

134. monitor technology

135. engagement motivation – via the cloud

138. direct without physical place

139. new business models that incorporate facilities in a different manner

140. summing it all up what is the impact ?

141. things will be vastly different how is largely up to us…..

142. “ those who cannot change their minds cannot change anything” George Bernard Shaw

143. progress people

144. & think differently think of our mission