EIGCA Annual Meeting, May 1 st 2019 Emanuel Frauenlob - - PowerPoint PPT Presentation

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eigca annual meeting may 1 st 2019 emanuel frauenlob efr
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EIGCA Annual Meeting, May 1 st 2019 Emanuel Frauenlob - - PowerPoint PPT Presentation

Mar 11, 2024 211 likes •638 views

EIGCA Annual Meeting, May 1 st 2019 Emanuel Frauenlob efr@trackman.com Data on every shot will be the new normal Have an open mind towards innovation and its impact " I think there is a world market for maybe five computers .

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EIGCA Annual Meeting, May 1st 2019 Emanuel Frauenlob efr@trackman.com

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“Data on every shot” will be the new normal

Have an open mind towards innovation and its impact …

“There’s no chance that the iPhone is going to get any significant market share.” — Steve Ballmer, Microsoft CEO (2007). “There is no reason anyone would want a computer in their home.” Ken Olson, president Digital Equipment Corp (1977). “There's just not that many videos I want to watch." Steve Chen, CTO and co-founder of YouTube expressing concerns about his company’s long term viability (2005). "I think there is a world market for maybe five computers.“ Thomas Watson, president of IBM (1943).

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New opportunities through technology

Attracting new and retaining existing customers

Agenda:

  • 1. TrackMan – a driver behind innovation in golf technology.
  • 2. Turning green fairways into blue oceans.
  • 3. Technology innovations that will provide new value propositions to golf courses

and driving ranges.

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Established in Denmark in 2003, privately owned 250+ passionate employees (60 new hires in 2018, 70 planned for 2019)​ 40% of workforce employed in R&D, ~ 15% of revenue spent on R&D New Computer Vision excellence center established in 2015 Multiple product launches per year Performing business world wide (60+ countries) Offices in Copenhagen (HQ), New York, Phoenix, Wroclaw, Tokyo & Seoul (soon) Control of entire value chain ​

SUPPLIERS R&D PRODUCTION MARKETING SALES DISTRIBUTION

TrackMan – Company Overview

A strong commitment to innovation

CUSTOMERS

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Industry context

Golf clubs - strategy canvas

Source: Weston, C., (2018, Oct 5th), TURNING GREEN FAIRWAYS INTO BLUE OCEANS. Retrieved from: https://www.blueoceanstrategy.com/blog/turning-green-fairways-into-blue-oceans/

1 2 3 4 5 6 7 8 9 10 Price Learning golf (teachers, digital feedback) Land requirements Time to play requirements Quality food and beverage before / after playing Accessibility (low entry barriers, eg. HCP req.) Relaxed, fun atmosphere No club/balls required Independence of weather (indoor offers)

Golf Clubs

Private GC Public GC

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SLIDE 7

Source: Weston, C., (2018, Oct 5th), TURNING GREEN FAIRWAYS INTO BLUE OCEANS. Retrieved from: https://www.blueoceanstrategy.com/blog/turning-green-fairways-into-blue-oceans/

Industry context

Golf clubs - strategy canvas

1 2 3 4 5 6 7 8 9 10 Price Learning golf (teachers, digital feedback) Land requirements Time to play requirements Quality food and beverage before / after playing Accessibility (low entry barriers, eg. HCP req.) Relaxed, fun atmosphere No club/balls required Independence of weather (indoor offers)

New Entertainment Facilities vs. Golf Clubs

Drive Shack, Topgolf Private GC Public GC

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SLIDE 8

Source: Weston, C., (2018, Oct 5th), TURNING GREEN FAIRWAYS INTO BLUE OCEANS. Retrieved from: https://www.blueoceanstrategy.com/blog/turning-green-fairways-into-blue-oceans/

1 2 3 4 5 6 7 8 9 10 Price Learning Golf (teachers, digital feedback) Land requirements Time to play requirements Quality food and beverage before / after playing Accessibility (low entry barriers, eg. HCP req.) Relaxed, fun atmosphere No club/balls required Independence

  • f weather

(indoor offers) Gamification (e.g. digital challenges) Play at night Events (live music, company events, cultural events) Online engagement (CRM, data, etc) Content generation Quality food and beverage while playing

Golf Entertainment Facilities vs. Golf Clubs

Drive Shack, Topgolf Private GC Public GC

Industry context

Golf clubs - strategy canvas

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Technology Innovation 1: TrackMan Range

A technology solution inspired by TrackMan Baseball

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TrackMan Range Live at The Masters.

TrackMan Range Live on air during tournaments at your facility for additional revenue!

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The new range experience

Tour technology FOR EVERYONE

Phones: full flexibility iPad: Enhanced game experience

iOS Android

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Virtual Golf (coming soon)

Tee off

Personal de devic vices (iPad)

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Albany

Launched October 2018

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Alb lbany

Bahamas

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Holz lzhäusern

Switzerland

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Golf lf Lounge Hamburg

Germany

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Safety borders

… and start to follow the incidents

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Technology Innovation 2: Indoor Golf

Finally feeling real …

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ON-COURSE PRACTICE

Drop the ball anywhere on any course Practice the same shot continuously

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FLEXCAGE SIMULATOR

Set it up anywhere

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Source: Weston, C., (2018, Oct 5th), TURNING GREEN FAIRWAYS INTO BLUE OCEANS. Retrieved from: https://www.blueoceanstrategy.com/blog/turning-green-fairways-into-blue-oceans/

1 2 3 4 5 6 7 8 9 10 Price Learning Golf (teachers, digital feedback) Land requirements Time to play requirements Quality food and beverage before / after playing low entry barriers (HCP,

  • peness, etc)

Relaxed, fun atmosphere No club/balls required Independence

  • f weather

(indoor offers) Gamification (e.g. digital challenges) Play at night Events (live music, company events, cultural events) Online engagement (CRM, data, etc) Content generation Quality food and beverage while playing

Golf Entertainment Facilities vs. Golf Clubs

Topgolf Private GC Public GC

Industry context

Golf clubs - strategy canvas

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SLIDE 26

Source: Weston, C., (2018, Oct 5th), TURNING GREEN FAIRWAYS INTO BLUE OCEANS. Retrieved from: https://www.blueoceanstrategy.com/blog/turning-green-fairways-into-blue-oceans/

1 2 3 4 5 6 7 8 9 10 Price Learning Golf (teachers, digital feedback) Land requirements Time to play requirements Quality food and beverage before / after playing low entry barriers (HCP,

  • peness, etc)

Relaxed, fun atmosphere No club/balls required Independence

  • f weather

(indoor offers) Gamification (e.g. digital challenges) Play at night Events (live music, company events, cultural events) Online engagement (CRM, data, etc) Content generation Quality food and beverage while playing

Golf Entertainment Facilities vs. Golf Clubs

Topgolf Private GC Public GC GC 2.0

There are many things to be learned

And golf clubs and driving ranges can position them differently

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The implications

The only constant is change!

Based on the technology innovations presented: A) Which implications do you see for golf course and driving range designs? B) How will the role of the golf course architect evolve?

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Thank you! Questions?

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Appendix

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  • Feedback on every shot
  • Customer relationship management
  • Range as customer acquisition tool
  • Ease of use
  • Reduced land requirements (170m ball flight)
  • Professional sales and customer

experience teams

  • Outbound sales team
  • Changing role of the academy and teaching pro’s
  • Games and tournaments across all

segments and offerings

  • On the course
  • On the range
  • Indoors
  • New offering
  • Membership levels (range, indoor, GC)
  • Price differentiation
  • Extended value proposition attracting

non-customers

  • Cultural events
  • Corporate events
  • Public fitness
  • Children playground

Blue ocean golf club

Key value propositions for a golf club following a blue ocean strategy

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Dashboard example

Golf Lounge Hamburg

Key tak akeaways:

  • Monitor how the facility evolves
  • Set-up competitions (coming soon)
  • Gain key-insights in usage and trends
  • Manage bays, targets and sponsors’ areas
  • Manage range sponsor (logo shown in the app)
  • Manage available courses for Virtual Golf (coming

soon)

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Driving range with entertainment bays

Attracting new customer groups

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✓ Hyper-realistic graphics ✓ Tour proven technology ✓ Outstanding environments

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Total Faci acility Revenue Practice Range

(Utilization x price)

Other Revenue Food & beverage Sales of equipment Existing members spend more time

(shot analysis + games)

Data understanding

(fitting + normal sales)

Price

(members vs green fee)

Utilization (#Buckets/Time)

Revenue type Revenue source Revenue driver

New, innovative teaching plans

(TM Range included)

New members attracted

(Technology enabled)

Company Days & Events

(”off-sites” etc.)

Existing members spend more time

(shot analysis + games)

2 3 4 5 8 9

Unique revenue driver

1

TrackMan Range provides several revenue drivers

Success depends on the ability to leverage on or more of these!

Key Sponsor

(intro screen in app)

6 Price of Membership 7

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GO GOLF

Football Soccer Tennis Cricket Track and Field TrackMan Simulator TrackMan Range TrackMan X Practice Radar Colleges & Universities Amateur Baseball

BASE SEBALL OTHER SPO SPORTS

TrackMan Strategy

Down the pyramid and multi-sports

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  • R&D team doubled in size in 1.5 years.
  • ~ 17% of revenue invested in R&D (2018).
  • ~ 40% of TrackMan staff work in R&D.
  • HQ: 150 people with 23 nationalities
  • Aggressively adding capabilities and skills:
  • Data engineering;
  • Neural network;
  • Machine learning;
  • Artificial Intelligence.
  • Application of those technologies:
  • Tracking (more data, more accurate, higher pickup

rate);

  • Automation/tagging;
  • Data insights;
  • …and more.

TrackMan R&D

Significant growth and investment

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Innovation Example 1: OERT

Optically Enhanced Radar Tracking

Technical principles:

  • Combining best of two worlds:

Radar and vision tracking.

  • Radar for 3D: speed, spin, long-

range tracking.

  • Vision for 2D: pixel accurate

positions.

  • Both technologies synced in time

and space. Applications

  • Baseball
  • Golf: impact location, putting, club

data on short shots

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Innovation Example 3: American football

A number of speculation – in the past

Accurate datapoints and tracer on field-goals

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Innovation – Work in Progress

Leveraging TrackMan’s reach for new business models

TrackMan ne netw twor

  • rk

Rea each of

  • f 600,

600,000+ use users Simulators 300.000+ users Commercial, private, golf clubs TrackMan Range 300.000+ users New of

  • ffers

s wit ith industry try part partners s On Online to tournaments

  • Globally or regional.
  • Sponsorship opportunities.
  • Significant prices.
  • E.g. BMW TrackMan Open.

Da Data insig ights

  • Provide insights to golfer from their TM data

(player KPI’s).

  • Leverage AI and machine learning to develop

those insights.

  • Sponsorship opportunities.
  • E.g. personalized club and training advice.
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Why are market leaders often not capable of seeing those big and disruptive changes in their industry? Example: Camera vs. smartphones; Navigation vs. Google maps; Video rental vs. Netflix.

The challenge

The innovators dilemma

Figure: The Impact of Sustaining and Disruptive Technological Change Clayton M. Christensen Harvard Business School

Why is it difficult to catch disruptive technologies: 1) Disruptive technologies promise lower margins (not higher ones). 2) They are often first commercialized in emerging or insignificant markets. 3) A leading firms’ most profitable customers generally don’t want it.