<\/a><\/p>\nWhile I was interning in Seattle this summer, I learned from a friend — who happens to be both a software developer and a fitness enthusiast — that she had applied to \u201cenroll\u201d her startup idea with the Nike+ Accelerator program. Every\u00a0summer, Nike hosts multiple start-up companies in their company headquarters in Portland for 3 months and helps them build products and services using Nike\u2019s user data and proprietary technologies. At the Demo Days in June, in Portland and San Francisco, these companies\u00a0present their product concepts to over 1000 Nike leaders, angel\u00a0investors, venture capitalists, industry leaders, and members of the media.<\/p>\n
The Nike+ Accelerator program encourages startups to adopt and build for the Nike+ platform that Nike has invested in over the last several years. Nike+ is a membership site that provides members with a variety of apps and resources to encourage motivation, fitness, and commitment to a healthy and fit lifestyle.\u00a0Nike+ is adding hundreds of millions of athletes in 190 countries every day, and is fast approaching 30 million members in total. In addition to Nike+, Nike also lets developers use its proprietary NikeFuel technology, which is a Nike-designed algorithm that measures body movement.<\/p>\n
Nike has had success with its Digital Sport products before \u2013 in particular with Nike-developed apps (such as Nike+Running, which lets runners track distance, calories burned and speed; Nike+Training Club, which lets users choose among over 100 workouts; and Nike Soccer, which allows soccer players to find or schedule a game). Nike+ Accelerator is different, however, in that it enables\u00a0external developers to build software (and potentially even hardware) for Nike users using Nike\u2019s technology. Nike wants to do more than just sell products \u2013 they want to create a platform that benefits users, external developers, and in turn the company\u2019s products.<\/p>\n
As with any multi-sided platform with network effects, the Nike+ Accelerator program has distinct value creation<\/strong> propositions for all parties involved:<\/p>\n\nFor developers: <\/strong>Nike has made it easy for external developers to plug into their platform by providing developer-friendly and easily accessible APIs (Application Programming Interfaces) and iOS and Android SDKs (Software Development Kits). In addition, Nike allows these developers access to it\u2019s 30M strong user base. Considering how expensive and difficult it can be for apps to acquire new users, this readily available consumer base proves to be a great asset to app developers.<\/li>\nFor users: <\/strong>Users get access to more apps. More apps leads to more users and more user data, which in turn leads to better underlying algorithms resulting in better-performing and more useful apps.<\/li>\n<\/ul>\nThe potential value capture<\/strong> by Nike is multi-fold. More and better apps lead to more \u201cproduct\u201d sales, and in the longer term, customers that have a higher willingness-to-pay given the complementary value-added services. Customers are potentially more sticky too given Nike has all of their historical physical activity data. Nike can also target newer demographics and customer segments with these new apps (Some examples are discussed later). There is also potential to capture value through charging external developers a revenue share. Nike is a shoes and athletic gear company at its core, and they possibly can\u2019t keep up with the rapid innovation happening in software applications and wearables. This platform strategy enables Nike to capitalize on the shifting technology landscape, without actually doing the work they are not good at doing.<\/p>\nI wanted to share a couple of examples of startups that have historically participated in the Nike+ Accelerator program:<\/p>\n
\nFitDeck creates digital decks of exercise playing cards that deliver new workouts for fitness and training enthusiasts.<\/li>\n GeoPalz is a gaming peripheral that captures kids\u2019 real-life physical activity and converts it into digital coins, game tokens, and rewards.<\/li>\n Sprout At Work is a provider of corporate wellness solutions leveraging social and gamification tools to inspire employees and empower employers.<\/li>\n<\/ul>\nWhile FitDeck targets one of Nike\u2019s existing customer segments \u2013 trainers, GeoPalz and Sprout At Work help\u00a0Nike reach new and less traditional customer segments \u2013 kids and companies.<\/p>\n
In addition to creating the Accelerator program, Nike has also partnered with other, more established companies to further its platform strategy. An example is FitStar, which offers users apps that help craft new routines and challenge them when they\u2019ve hit a plateau. Nike integrates NikeFuel into Fitstar workouts. Another example is Garmin, which offers wearable trackers for activities ranging from running to golf. Through its partnership with Garmin, Nike enables runners to review the time, distance, and pace captured by their Garmin GPS devices in the Nike+ Running app.<\/p>\n","protected":false},"excerpt":{"rendered":"
While I was interning in Seattle this summer, I learned from a friend — who happens to be both a software developer and a fitness enthusiast — that she had applied to \u201cenroll\u201d her startup idea with the Nike+ Accelerator […]<\/p>\n","protected":false},"author":169,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-1425","hck-submission","type-hck-submission","status-publish","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/competing-with-network-effects\/","yoast_head":"\n
Nike \u2013 from products to platform - Digital Innovation and Transformation<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n