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Strategy + Innovation Portfolio


OCAD University Strategy Development April 2019 Presented to Kevin Morris By Igor Bueno Atunes Riley McCullough Liin Nur Jacquie Shaw


Table of Contents Fitbit Today Industry Overview Internal Analysis

Fitbit in 2035 Foresight Analysis Innovation Intent Strategic Themes Innovation Initiatives Innovation Capabilities


Fitbit Today


About Fitbit Fitbit is an American company headquartered in San Francisco, California. “Fitbit helps people lead healthier, more active lives by empowering them with data, inspiration and guidance to reach their goals. Fitbit pioneered the connected health and fitness market starting in 2007, and since then, has grown into a leading global health and fitness brand. The Fitbit platform combines connected health and fitness devices with software and services to help people become more active, exercise more, sleep better, eat smarter, and manage their weight� (Fitbit, n.d.).

Fitbit has two distinct branches: a consumer-direct side and a health solutions side. Its consumer-direct offers side includes fitness trackers and smartwatches to measure data such as number of steps, heart rate, sleep quality, and other metrics related to fitness. Additionally, the company offers a smart scale, a wireless headphone and a personal trainer app. The health solutions branch, launched in May of 2018, works with insurance companies, health plans and other organizations. One of its offerings designed for corporate is the Fitbit Care that offers a health platform for wellness, prevention and disease management.


Industry Overview In 2018, the market for the wearable devices was estimated to be approximately US$26 billion, with a 2022 forecast of US$73 billion. This gives the industry a compounded annual growth rate (CAGR) from 2018 to 2022 of about 29%. Fitness trackers and smartwatches remain the most significant device segments for wearables, accounting for more than 80% of shipments in 2016. However, their share is projected to go down to 50% by 2022 when body sensors are expected to be the third largest wearable device segment. Compared with the smartwatch market, the fitness tracker market is facing a tough road ahead with its market possibly reaching a saturation point soon.

33.8 26.4 16.1 19.4

44.4

59.4

73.3

2016 2017 2018 2019 2020 2021 2022 Wearable device market (worldwide sales revenue in billion U.S. dollars)


Competitive Analysis By examining the market share of wearables from 2014 to the third quarter (Q3) of 2018, we can see how Fitbit went down from 44.7% market share to 10.9%. One of the companies that has taken some of Fitbit’s market share is Xiaomi. Xiaomi was launched in 2014 and has continued to grow since then. By the end of Q3 in 2018, it had a larger market share than Apple, another competitor of Fitbit since 2015. It is also important to note that 40% of the market is held by other smaller companies and brands. Professional Athlete

The industry is large and diverse, ranging mainly from activity trackers to smartwatches. The players in this space spread across different performance and cost levels.

High Cost

Low Cost

Performance Level

Xiaomi, Huawei, and Fitbit operate in the low cost and everyday user space, while Fossil, Samsung, and Apple operate in the higher cost space. Brands like Garmin are alone in targeting the professional athletes.

Everyday User Cost


Fitbit’s Current Strategy

Goals and Aspirations

Where Will We Play? To be the market leader in personal health tracking. To encourage healthier living and an active lifestyle. To make everyone in the world healthier.

How Will We Win? In the health tracking wearables space, in the smartwatch space, and in the corporate wellness space. Fitbit’s products are sold in stores and online in 86 different countries. Fitbit is targeting casual users or those involved in fitness for health maintenance, not professional trainers. In the healthcare provider space, through partnerships with hospitals and insurance companies to monitor patients’ health stats to reduce the need of treatment.

Capabilities Provide solutions to personal health management across a spectrum of needs - from providing you with your exercise levels to connecting you with health solutions.

Method for users to access data (software).

Full integration with all smartphones through the Fitbit app.

Physical stock and places to sell products (both brickand-mortar and online).

Leverage corporate wellness programs to provide Fitbit products to the workforce en masse.

Access to health monitoring technology.

Partner with insurance providers and hospitals. Gain the trust of the medical community.

Continued research and development for health management.

Processes and Systems

Data management systems.

Manufacturing and distribution partnerships. Partnership strategy for corporate wellbeing program. Partnerships with hospitals and healthcare providers.


Fitbit’s Key Figures

#1 brand for wearables globally, but losing traction. 84 million devices sold to date. Products sold in 86 countries. Products sold in 39,000 stores worldwide. #1 Health and Fitness app on iOS and Android in the US Wide range of devices at a number of different price points.

All measures as of Q3/2018 Except #1 app: as of 31/dec/2017


Current Strategy Assessment: Porter’s 5 Forces

THREAT OF NEW ENTRANTS THREAT OF NEW ENTRANTS

HIGH Fitbit is operating in a growing market that has seen nearly 20% growth since 2023.

SUPPLIER POWER

COMPETITIVE RIVALRY

THREAT OF SUBSTITUTION

BUYER POWER

New entrants need access to capital, but the lack of proprietary technology leaves the industry open to any company that has access to capital. The three major players in the industry make up less than 40% of the market, and many small players dominate the remaining market.


THREAT OF SUBSTITUTES

BUYER POWER

SUPPLIER POWER

COMPETITIVE RIVALRY

MODERATE

HIGH

UNKNOWN

HIGH

Trends are showing a movement towards chips, pills, and implants.

There is a wide variety of price points and options.

There are now many different vendors that could be used to supply activity trackers.

There are three major players in the market (Xiaomi, Apple, and Fitbit), along with many small players.

Wearables aren’t needed as often when you can track a lot of your health information through your phone.

There is a demand for more features at a lower price and for overall lower prices.

A company called Flex reportedly produces about 75% of the world’s wearables.

Apple is targeting the high price smartwatch and activity tracking market, and Xiaomi is targeting the low-price market with wearables available for as low as US$15.

There is a high cost of change to new method, and there is currently low availability. The perceived level of difference between wearable health trackers and alternative methods is high. The performance of substitutes is still unknown, but is thought to be more accurate than wearable trackers like Fitbit. There is a growth in the area of sensor-enabled clothing.

There is a low to moderate switching cost. Fitbit is currently in the middle of the road for price comparisons in 2019. Fitbit’s Iconic smartwatch is less than half the price of an Apple Watch. Buyers are well educated about the products available.

Due to the complexity of Fitbit’s structure, there’s plenty of options for substation of parts coming from different manufacturers. That said, they use big tech names like Bosch and Toshiba for their sensors.

Partnerships are becoming key in differentiation between companies. Fitibit experiences low customer loyalty, unlike Apple. There is a low cost of change between providers. The performance of competitors’ products is thought to be the same or better than Fitbit.


Assessment of Current Strategy

Fitbit is making good choices, but they aren’t strategic choices. Instead, they act as obvious responses to the changing environment.

Some of Fitbit’s choices, such as moving into the headphone space, are confusing.


Tension Areas

1

DELIVERY OF FITBIT HEALTH SOLUTIONS IS UNCLEAR.

How will you navigate the different healthcare and corporate wellness systems and regulations in different countries?

3

FITBIT LACKS A STRONG TARGET AUDIENCE.

This has led to Fitbit no longer being seen as the leader in personal health tracking devices.

2

FITBIT HEALTH SOLUTIONS DOESN’T HAVE A STREAMLINED APPROACH.

The presentation of your products and your services is not clear.

4

FITBIT’s FUTURE BUSINESS MODEL IS BASED ON SHARING THE DATA OF USERS.

There is a potential future societal shift towards data privacy and data rights.


Fitbit in 2035


Trends Driving the Future of Health Management

THE FORESIGHT PROCESS Before developing a 15 year innovation strategy for Fitbit, it was important to take a look at future trends in the health and wellbeing space. To develop this “preview of the future”, a foresight process of scanning was undertaken and signals of change were combined to create future trends. The following trends were selected because they may impact the field of Personal Health Management in the next 15 years.

THE HEALTHSCARE SYSTEM by Moyee Roychoudhury

A PEEK INSIDE by Sara Qarizada.

ACCESS TO HEALTH DATA by Andrew Walls

Tech companies are entering the healthcare sector by investing in digital healthcare and its existing industry.

The current possibilities of ingestibles lie mainly in wireless monitoring of patients and diagnostic imaging.

Access to personal health data through genomics, wearables, electronic health records, and new platforms like HealthKit is increasing dramatically.

More than 75% of all patients expect to use digital services in the future. Digital-service use is expected to increase across all age groups.

However, since the FDA approval of the first smart pill, a new wave of ingestibles are being created to target the growing market of smart pills. These new pills are being developed to potentially allow for multiple possibilities such as sensing cancerous DNA. There is also intent to implement these pills in people’s daily routines, such as taking a vitamin, which can be huge among the elderly who are susceptible to forgetfulness.

This trend is Emerging.

This trend is Emerging.

Sophisticated data collection technologies are being integrated on, and in us in the form of wearables and integrated sensors and monitors Access to health data could lead to individuals making more informed health decisions, which could lead to more prevention rather than treatment in healthcare. Health data platforms can make generating insights easier, but also build a reliance on an external system for tracking our health. This trend is Peaking.


BELIEVING PATIENTS by Jacquie Shaw

ARTIFICIAL INTELLIGENCE IN DIAGNOSTIC HEALTH by Harmnajout Kaur

USING TECHNOLOGY TO SENSE ANXIETY by Karli Ferriolo

HUMAN SERVICE DATA SHARING REVOLUTION by Lisa Taylor

Health data collection technologies as it exists, and could exist, further diversification of those in the medical and research field and the lessening of stigmatization of illness could lead to a more inclusive system of healthcare. Currently, studies show that healthcare continues to perpetuate racialized, sex/ gendered, and sexuality based myths resulting in a lower quality of healthcare for racialized persons, women, and members of the LGBTQ+ community.

As AI joins hands with healthcare, it opens an avenue of possibilities in diagnostic medicine. Algorithms are been trained on big datasets of diseases like skin cancer, diabetic retinopathy, wrist fractures and can diagnose these pathologies with accuracies equal to, or even greater than, those of experienced doctors.

The intersection of healthcare and technology can lead to many new innovations for the field of mental health. Researchers have started developing wearable sensor technologies that can detect anxiety for those wearing it, allowing doctors to make better diagnoses for patients, as well as allowing individuals to better understand their illness.

The idea of sharing of information is a growing conversation. The healthcare system and other areas develop a great deal of data, however, each ones uses its own silo. This siloed approach prevents the data from being aggregated and used to discover patterns, gaps and opportunities for change for the system.

This trend is Emerging.

In this unique marriage of medicine and technology, the ultimate beneficiaries are the patients, who are being provided with better standards of care.

The use of this technology could also be a new option for those who do not have access to or have not succeeded with other therapies.

This trend is Emerging.

This trend is Growing.

There is also a push to extend data sharing so that individuals can access their own data. With this people could view and control who views their health data, and the system could learn from data trends. This trend is Growing.


THE LONG DISTANCE DOCTOR by Sara Qarizada

DIAL-A-DOC by Patricia Wong

REVERSING THE FLOW by Trishia Nashtaran

NURSE ALEXA by Jacquie Shaw

Telemedicine uses telecommunication technology to offer healthcare from a distance. It has been implemented in many areas of healthcare from remote surgeries to healthcare apps.

Advancement in artificial intelligence, drone, and engineering technologies are helping to expand the privatized healthcare industry, consequently pushing the boundaries around the traditional notion of the centralized healthcare system.

Healthcare system is getting more and more user-centred and decentralized, facilitated by technology and evolving policies.

An emergence of tech start-ups are launching products and services that are changing the way patients, health practitioners, and healthcare providers interact and connect with one another.

Implementation of inclusive policies along with robotic and augmented reality are enabling remote and decentralized healthcare service at home and to the streets.

This trend depends on the 3-way hybridity of combining the rise of personalized health tracking and treatment combined with the growing normality of smart objects, Internet of Things and smart homes, and AI and robots for care people. The combination of these technologies and systems could lead to the integration of healthcare into smart homes, with AI assistance.

Telemedicine is quickly being adopted as more patients become aware of this new form of healthcare. The world of healthcare is heading into the time of patientcentric health systems where telemedicine could become the norm.

Healthcare is taking a U-turn and shifting from a service-centred system to a user-centred one.

This trend is Growing. This trend is Emerging.

Having more options to the way users receive healthcare services or products empowers patients regarding their own personal health and enables healthcare to be integrated into the natural operation of everyday life.

extrapolating the integration of health into the smart home we can imagine treatments for illnesses can being carried out at home using personalized tracking and data. Ex. Smart home able to react to environmental changes to help treatment of illness “Alexa detects signs of migrane > reduces in home trigger” “Alexa notices signs of asthma triggers > turns on air purification”

This trend is Emerging. This trend is Emerging.


BIG PHARMA TECH by Moritz Miethke

ARTIFICIAL INTELLIGENCE MENTAL DIAGNOSIS by Sara Qarizada

PRECISE DRUG DELIVERY by Igor Bueno Antunes

Tech companies are hoping to transform healthcare by applying their resources to healthcare spanning across a variety of sectors.

Artificial Intelligence (AI) is being implemented to diagnose mental illnesses. Patterns in speech and writing are analyzed by new cognitive systems (AI technology), which can hint at early-stage mental illnesses.

Better drug delivery systems might maximize cure attempts and reduce side effects. With the advance of smart microrobots able to adapt to their surroundings and pass through narrow blood vessels, or flexible devices that can be attached to organs, the health industry may be able to deliver drugs directly to diseased organs or tissues.

Their expertise in various fields coupled with immense resources could enable them to bring disruptive innovation to the slow moving healthcare industry. Each of the tech giants are trying to apply their strength in the field with Apple focusing on consumer products, Microsoft expanding analytics, Amazon building on its retail experience, and Google concentrating on research and data. This trend is Growing.

This new trend of AI technology in the field of mental health is in part due to a rise in demand for mental health practitioners as well as the high cost of mental health therapy. This trend is Emerging.

With this step into the future, treatments may become more precise and reduce many of the side effects currently faced by patients. This trend is Emerging.


The Future Landscape for Fitbit

The future landscape that Fitbit will be operating in will be one that is determined by the increase in technology-assisted medicine, advanced health tracking techniques, user-entered and at-home care, and a new relationship with health data from both users and healthcare practitioners.


Innovation Intent

Within the next 15 years, we will be recognized as one of the world’s top 5 most innovative companies across sectors and the #1 most innovative company in the health sector by reimagining the possibilities of health tracking to allow our customers to monitor and improve every aspect of their health.


Fitbit’s Current Strategy

Goals and Aspirations?

Where Will We Play? To be the market leader in personal health tracking. To encourage healthier living and an active lifestyle. To make everyone in the world healthier.

How Will We Win? In the health tracking wearables space, in the smartwatch space, and in the corporate wellness space. Fitbit’s products are sold in stores and online in 86 different countries. Fitbit is targeting casual users or those involved in fitness for health maintenance, not professional trainers. In the healthcare provider space, through partnerships with hospitals and insurance companies to monitor patients’ health stats to reduce the need of treatment.

Capabilities Provide solutions to personal health management across a spectrum of needs - from providing your exercise level to connecting you with health solutions.

Method for users to access data (software).

Full integration with all smartphones through the Fitbit app.

Physical stock and places to see products (both brickand-mortar and online).

Leverage corporate wellness programs to provide Fitbit products to the workforce en masse.

Access to health monitoring technology.

Partner with insurance providers and hospitals. Gain the trust of the medical community.

Continued R&D for health management.

Processes and Systems

Data management systems.

Manufacturing and distribution partnerships. Partnership strategy for corporate wellbeing program. Partnerships with hospitals and healthcare providers.


Fitbit’s Future Strategy

Goals and Aspirations

Where Will We Play? Be one of the world’s top 5 most innovation companies. Be the #1 most innovative company in the health sector. Reimagine the possibilities of health tracking to allow our customers to monitor and improve every aspect of their health.

In the healthcare space by providing health tracking services to four main target audience categories: The Digital Natives Digital natives have an expectation that technology will be integrated into every part of their life. The Chronic Patient Chronic patients have a need for continuous health monitoring and treatment to understand their illness. The Aging Individual Aging populations have increased health problems and require more visits to the doctor to understand their health. The Medical Community Doctors and healthcare practitioners will have new opportunities to interact with their patients’ health through data analytics.

How Will We Win?

Capabilities By developing new forms of personal health tracking.

Processes and Systems By focusing on new ways that our users can understand and interact with their health data.

An innovation strategy that permeates all levels of the organization.

By acting as the middleman between patients and healthcare practitioners.

A governance structure that encourages both internal and external collaboration.

By integrating into everyday life through the Internet of Things.

Funding and talent management to recruit the best talent. Metrics and rewards that foster a sense of purpose and a drive for innovation.

Research and Development partnerships and methodologies. Partnerships with Internet of Things players. Partnerships with professionals in the healthcare industry.


Focus Areas

Development of Health Tracking

Internet of Health

Understanding Everyday Health Data

The Medical Middleman


Development of Health Tracking Providing users with the ability to monitor their personal health information on a regular basis without the need for doctors visits and lab tests.

Understanding Everyday Health Data Using data analytics from our broad base of users, expanded individual health data can be analyzed to provide easy-to-understand insights about users’ health compared to baseline health information.

Internet of Health

The Medical Middleman

Partner and develop products and services for FitBit that more fully integrate into the Internet of Things and digital health services.

Providing healthcare professionals with the resources to allow them to monitor individuals’ health data whenever those individuals allow.


Development of Health Tracking OPPORTUNITY STATEMENT Providing users with the ability to monitor their personal health information on a regular basis without the need for doctors visits and lab tests.

REASON TO BELIEVE Patients are interested in more accurate tracking of personal health information. Patients want more discreet, less prominent devices for tracking their health data. Shift towards connected, integrated, and decentralized care.

FUTURE GLIMPSES Growing number of non-diabetics using Continuous Glucose Monitors (CGMs) to track blood sugar and energy levels more accurately.

HEAD STARTS Fitbit has begun to partner with and acquire different companies such as Sano to look beyond the device to think about holistic health solutions.

New developments in the area of clothing and wearables that track personal health.

Pill-sized ingestible sensors are currently available on the market to measure pH levels, temperature, and medication regimens, among other things.

Trends include: The Healthcare System by Moyee A Peek Inside by Sara Precise Drug Delivery by Igor


Understanding Everyday Health Data OPPORTUNITY STATEMENT Using data analytics from our broad base of users, expanded individual health data can be analyzed to provide easy-to-understand insights about users’ health compared to baseline health information.

REASON TO BELIEVE Currently over 300 million wearable devices sold. Patients have increased access to their electronic health records. Data use in healthcare is leading to more accurate diagnoses. Influences are changing individuals’ relationship with their health. More than 75% of patients expect to use digital service in the future. 70% of adults track at least one health indicator.

FUTURE GLIMPSES There is a movement towards a human-centric approach to health data. Trends show there will be a movement towards providing health data that is easy to understand. There will be an increase in the use of AI to make sense of patients’ health, including in the diagnostic process. Trends include: Access to Health Data by Andrew The Healthscare System by Moyee Believing Patients by Jacquie AI in Diagnostic Health by Harman Using Tech to Sense Anxiety by Karli Human Services Data Sharing Revolution by Lisa

HEAD STARTS 23&Me allows you to access intimate data about your personal genetics and how they may impact your health. Apple Health allows you to track a wide variety of health data from a built-in app on your phone. MyFitnessPal allows you to manually track your food intake and provides you data regarding nutrients and macros. Other personal health record (PHR) apps let you store your health data and choose who you share it with. Sleep Number aggregates data on its users sleeping habits to provide baselines and recommendations to other users.


The Medical Middleman OPPORTUNITY STATEMENT Providing healthcare professionals with the resources to allow them to monitor individuals’ health data whenever those individuals allow.

REASON TO BELIEVE Reducing the gap of health information that exists between doctors and heal practitioners outside of traditional medical appointments can improve the treatment of chronic diseases. Delivering more sophisticated care coordination can be a win-win for both patients and clinicians: minimization of time and effort, reduction of follow-ups, increase in patients loyalty, increase of revenue. Patients’ portals as they currently exist still present a number of limitations: portability of data, patient-generated health data limited for a single episode of care, interoperability challenges connecting systems. There is a low adoption rate of patient portals among some patient groups and the systems are largely still not in place.

FUTURE GLIMPSES There is an increase in digital healthcare and the number of health companies investing in it. Technology is enhancing the accessibility of healthcare and is contributing to more user-centred healthcare. The accuracy of diagnostics will improve with the increased availability of AI and data. Trends include: The Long Distance Doctor by Sara Believing Patients by Jacquie The Healthscare System by Moyee Dial-a-Doc by Patricia Reversing the Flow by Trishia Nurse Alexa by Jacquie AI in Diagnostic Health by Harman Precise Drug Delivery by Igor Using Tech to Sense Anxiety by Karli

HEAD STARTS Fitbit Care health coaching designed for employee wellness programs. Fitbit and Google have collaborated to accelerate innovation in Digital Health and wearables.


Internet of Health OPPORTUNITY STATEMENT Partner and develop products and services for FitBit that more fully integrate into the Internet of Things and digital health services.

REASON TO BELIEVE As the Internet of Things (IoT) market continues to grow , we’ll continue to see the importance of health tracking integrated into smart living. The IoT market is expected to double by 2021, reaching $520 billion. If This Then That (IFTTT) applets further integrating Fitbit devices with IoT by synching health and fitness data with hundreds of other services.

FUTURE GLIMPSES Integration of healthcare and health, fitness and wellness tech in the IoT. Enabling the use of personalized health data in the future smart some, and with healthcare professionals. There will be a continued evolution of health tech in the home and digital healthcare services with changing models of access to care. Potential rise of in home and smart home health assistants using the continuous flow of data from fitness and health trackers. Trends include: The Healthscare System by Moyee Big Pharma Tech by Moritz Nurse Alexa by Jacquie Using Tech to Sense Anxiety by Karli Dial-a-Doc by Patricia AI Diagnosis by Sara A Peek Inside by Sara

HEAD STARTS Integration of Amazon Alexa and Google Home with Fitbit allowing for smart home assistants to read out health statistics. Fitbit Aria 2 smart scale signals the start of Fitbit branded IoT objects.


Innovation Initiatives

1.a

1.b

1.c

2.a

Development of Health Tracking

Internet of Health 4.a

4.b

2.b

Understanding Everyday Health Data

The Medical Middleman 3.a

3.b


Development of Health Tracking

1.a

Research and Development for internal, continuous health monitors

1.b

Line of fitness wearables for health tracking

1.c

Development of implantable bio-devices

Understanding Everyday Health Data

The Medical Middleman

2.a

User-generated health baselines

3.a

2.b

Curated and shareable health management system

3.b

Electronic Health Record software for health practitioners Curated medical research platform

Internet of Health

4.a

Formal relationships with IoT partners

4.b

Actionable smart home synchronization


1.a

Research and Development for internal, continuous health monitors

Fitbit should continue its Research and Development (R&D) in the fitness technology space, and should continue to acquire smaller companies already working in this space. This R&D will allow them to operate on the forefront of innovations in the fitness technology industry, eventually allowing them to become the leaders and pushing the boundaries of what technologies are available.

1.b

Line of fitness wearables for health tracking

As Fitbit is already invested in the personal fitness industry, they should focus their initial R&D efforts on developing other forms of wearable health tracking items, such as clothes. Suggested initiatives may include a sports bra that measures heart rate, or partnerships with companies like Nike to gather data from shoes.

1.c

Development of implantable bio-devices

Riding the uptake of continuous glucose monitors and Fitbit’s acquisition of Sanos, Fitbit should continue to develop internal health trackers as these are predicted to be the future trends in the health tracking industry. This is a separate initiative from wearable tracking and R&D as it comes with its own set of procedures and processes like governmental approval and testing.


2.a

User-generated health baselines

Using the data already provided by Fitbit’s users, Fitbit should provide anonymized and aggregated baseline health data so users have a comparison of their health status to other users. This is already incorporated into Fitbit’s app through sharing with your friends, and through its corporate wellness programs, but a generic user baseline based off of nearby geographies would allow users to understand their and their community’s health data against medical guidelines.

2.b

Curated and shareable health management system

As Fitbit’s ability to monitor more and more aspects of an individual’s health data grows, there will be an opportunity to curate and interpret health information in a way that is meaningful to its users. Instead of just showing a users’ Vitamin C levels, for example, Fitbit can provide an increased understanding of this data information that allows the user to understand what a low Vitamin C level means and what they can do to increase their Vitamin C levels.


3.a

Electronic Health Record software for doctors

By offering an Electronic Health Record (EMR) software, Fitbit can innovate in a segment essential for the efficiency of the health community. The initiative encapsulates the connection of user data to the EMR according to user preferences. This continuously generated data could allow patients and clinicians to more personalized care and better treatments improvements.

3.b

Curated medical research platform

Going towards the need of the medical community of continuous knowledge update, while capitalizing on current partnerships offered to researches, Fitbit can offer a curated content according to the health practitioner's areas of expertise and interest. The suggested initiative could be understood as “the Goodread of healthcare�. A platform allowing health professionals to search for researches, have a curated library catalogue and keep track of a reading list. At the same time, the professional could be able to connect with peers and have discussions regarding new papers.


4.a

Formal relationships with 
 IoT partners

As the internet of things (IoT) grows, the market for smart objects the work with the IoT is expected to grow to a $520 billion industry by 2021. With this quickly expanding market FitBit should be looking to partner and develop products and services for FitBit that more fully integrate into the IoT and digital health services.

Actionable smart 
 home synchronization

4.b

With the numerous offerings and integrations into smart homes, FitBit should be preparing for integration of health data as a way to create actionable integration between users and their IoT objects and Smart home. 
 
 ex. When showing signs of over caffeination a smart home being able to lock down a coffee maker. 
 Looking even further at a timeline outside of the 15 year strategy plan extrapolations of remote healthcare, and in home healthcare assistants may become a reality. Moving from the idea of perhaps your health data being able to turn on or off a coffee maker, to being able to control a personal home health assistant robot.


NEW

TRANSFORMATIONAL 4.b

ADJACENT

3.b

44 %

3.a 1.a

15 %

2.a

CORE

44 %

2.b 4.a

INCREMENTAL

NEW

How to win | Products & Assets

ADJACENT

40 %

1.c

1.b

EXISTING

CORE

12 % ADJACENT

EXISTING

Where to Play | Market & Customers

Innovation Portfolio

TRANSFORMATIONAL

45 % Benchmark: Mid-stage Technology Firm


1.c

Development of implantable bio-devices Line of fitness wearables for health tracking Research and Development for internal, continuous health monitors

1.a

Actionable Smart Home synchronization

4.b

2.a

User-generated health baselines

1.b

Formal relationships with IoT partners

4.a

3.b

2.b

Curated and shareable health management system

3.a

Electronic Health Record software for health practitioners

Curated medical research platform

DEVELOPMENT OF HEALTH TRACKING UNDERSTANDING EVERYDAY HEALTH DATA THE MEDICAL MIDDLEMAN CORE

ADJACENT

TRANSFORMATIONAL

INTERNET OF HEALTH


Initiative Prioritization In order to determine which initiatives to prioritize, we looked at them in terms of three criteria: desirability, effort, and impact. Because a user-centred approach was used early in the strategy development process, we did not develop any initiatives that would be undesirable for Fitbit customers. We mapped all the desirable initiatives on a matrix that analyzed the effort that would be required to implement the initiative and the impact that the initiatives would have on Fitbit’s users. Each quadrant is categorized in terms of how many initiatives should be pursued in that quadrant. After prioritizing the initiatives based on their impact and effort, we then mapped the initiatives as a system to understand which initiatives would lead to other initiatives as they are all interdependent on each other. After understanding the effort and impact and the relationship of all our initiatives, we provided a high-level sequencing of when each initiative should be rolled out.


HIGH

do all

2.b

1.a

1.c

4.a

3.a

do with support

Impact

4.b

1.b

3.b

2.a

LOW

do less or none LOW

do some

Effort

HIGH

DEVELOPMENT OF HEALTH TRACKING UNDERSTANDING EVERYDAY HEALTH DATA THE MEDICAL MIDDLEMAN

CORE

ADJACENT

TRANSFORMATIONAL

INTERNET OF HEALTH


Sequencing

2025

2020

2030

2035

Time 1.a

1.b 1.c

2.a

2.b

*

3.a

**

3.a

3.b

4.a

4.b

DEVELOPMENT OF HEALTH TRACKING UNDERSTANDING EVERYDAY HEALTH DATA THE MEDICAL MIDDLEMAN CORE

ADJACENT

TRANSFORMATIONAL

* development ** adoption

INTERNET OF HEALTH


1.a

1.b 1.c

DATA 2.a allows

CURATED AND 2.b SHAREABLE INFORMATION

*

3.b

**

3.a

MEDICAL INTEGRATION

enhances

supports

4.a

allows

4.b

3.a

facilitates

INTERNET OF HEALTH DEVELOPMENT OF HEALTH TRACKING UNDERSTANDING EVERYDAY HEALTH DATA THE MEDICAL MIDDLEMAN

CORE

ADJACENT

TRANSFORMATIONAL

* development ** adoption

INTERNET OF HEALTH


Capabilities & Roadmap

Approach

Innovation strategy Develop an innovation strategy to create a related profile of initiatives to pursue

Pipeline & portfolio management Determine a process to move initiatives from ideas to action

Process Create a prioritization matrix and roadmap

Capabilities already in place

Organization

Senior leadership Senior leadership supports initiatives and internal testing

Governance Form an internal committee with representation from different seniority and different departments

Collaboration Strengthen internal collaboration with staff and external collaboration with healthcare partners

Resources & Capabilities

Funding A stable source of funding for initiatives

Talent management Build a culture of collaboration, transparency, partnership and innovation

Innovation Tools Select and master the innovation tools required to carry out planned and future initiatives

Metrics & Incentives

Financial and nonfinancial rewards Foster a sense of pride and purpose for staff working for Fitbit beyond financial compensation

Innovation metrics Create metrics using the innovation intent and roadmap in the innovation strategy

External attraction Work towards becoming a market leader to create prestige and recognition as an innovative company


2025

2020

2035

2030

Time 1.a

1.b 1.c

2.a

2.b

*

**

3.a

3.a

3.b

4.a

4.b

DEVELOPMENT OF HEALTH TRACKING UNDERSTANDING EVERYDAY HEALTH DATA THE MEDICAL MIDDLEMAN INTERNET OF HEALTH CORE ADJACENT TRANSFORMATIONAL

Capabilities already in place * Development ** Adoption

APPROACH

ORGANIZATION

RESOURCES & CAPABILITIES

METRICS & INCENTIVES

Innovation strategy

Senior leadership

Funding

Financial and nonfinancial rewards

Pipeline & portfolio management

Governance

Talent management

Innovation metrics

Process

Collaboration

Innovation Tools

External attraction


How does this relieve Fitbit’s current tensions?

1

2

3

4

DELIVERY OF FITBIT HEALTH SOLUTIONS IS UNCLEAR.

What is currently Fitbit Health Solutions will become the main focus of Fitbit’s brand by developing the next generation of health trackers, providing overall health information to individuals, acting as a link between patients and their healthcare practitioners, and integrating health into the everyday aspect of users’ life with IoT integration.

FITBIT HEALTH SOLUTIONS DOESN’T HAVE A STREAMLINED APPROACH.

The new Fitbit will be rolled out in a sequential and prioritized manner that builds on its current competencies and each earlier innovation initiative. Capabilities such as collaboration and a new governance structure that aims to break down silos will ensure that these updates are working across the entire brand.

FITBIT LACKS A STRONG TARGET AUDIENCE.

FITBIT’s FUTURE BUSINESS MODEL IS BASED ON SHARING THE DATA OF USERS.

Fitbit’s new brand will focus on four main target audiences: The Digital Native, The Chronic Patient, The Aging Individual, and The Medical Community. All of Fitbit’s offerings will be tied to meeting the needs of at least one of these groups.

Fitbit’s new model is still grounded firmly in the collection and analysis of users’ datas., but it is not grounded in the business of sharing individuals data with external companies without consent. Future trends indicate that individuals may become more protective of their data, but that governments, corporations, and the medical community will rely on it more and more. This reveals a tension between data privacy and seamless healthcare as more of one will lead to less of the other. To navigate this tension, Fitbit’s new model allows the user to have control over all their data and control who it is shared with and when. Fitbit will not provide their data to external partnerships without the users’ consent.


Conclusion In recent years, Fitbit has lost its hold as one of the most innovative health technology companies and as the market share leader in health wearables. Fitbit’s current strategy is responsive and not proactive enough for the company to regain its place as a leader in health data. The consumer market for wearable is also changing and consumers are looking for new ways to track and manage their health information. The new Fitbit 2035 strategy is informed by strategic foresight and positions Fitbit well for the future. Through an analysis of the current strategy and future trends, the new Fitbit strategy contains four distinct strategic themes: Development of health tracking, Understanding everyday health data, Internet of health, and the Medical middleman. Each of these strategic teams has a set of initiatives designed so that they work together to achieve the new innovation intent. We realize that shifting to this new strategy will require some work and to better support this transition, we have outlined the capabilities Fitbit will need for each phase of this new strategy. By proactively meeting the needs of consumers and pushing the limits of what health management tools could be, Fitbit will be a leader by 2035.


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Profile for Jacqueline  Shaw

Fitbit innovation strategy report  

Produced for the requirements of Strategy Development course for Strategic Foresight and Innovation MDes at OCADU. Authors: Liin Nuur, Igor...

Fitbit innovation strategy report  

Produced for the requirements of Strategy Development course for Strategic Foresight and Innovation MDes at OCADU. Authors: Liin Nuur, Igor...

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