OPPORTUNITY ASSESSMENT

2YourBest

Context

many apps to get a fitter and healthier

you

many devices in sport, fitness and health

many players and related interactions (gym, personal trainer, doctor, nutritionist, etc.)….

Too hard, too much data, too many apps …

So much data, so many views. Who is right? I am confused

Problem: end user pain Vendor lock in: If the end user changes the brand of heart rate monitor/fitness device, the end user is pushed to adopt a different application and it is

painful to migrate the old data/information. The user also feels he has to buy new devices (cycle RPM tracker) from the same brand otherwise it is hard to bring the data together

Lack of flexibility: Hard to use alternatively a watch and a  mobile app (different from the watch manufacturer one). If the end user forget the watch and uses the phone to track the workout often the watch app does not integrate with the phone app.

Tools targeted for specific activities: Difficulty to plan not predefined activities: E.g. "I want to create my fitness plan: ok I go to the BodyPump twice, then I go to the gym twice, I have a PT session and I go running with the Nike group on Tuesday and Thursday”, “where can I plan this? In one place? I need so many tools.”

Lack of advice/recommendation: Planning and tracking tools are unlikely to provide advice and recommendations. "Which are the good exercises for my sessions if I do body pump already?”

Information overload: The end consumer is overloaded with information. Doesn’t know what and whom to trust. What is true and what is a FAB. E.g. IBS, what? How can I really track my intolerances? What does it work?

Nutrition advise, diet plan and food lists are generic: The diet is not targeted to the end user, to performed activities, body type, intolerances, etc. Hard to find which food can be eaten and what not (intolerances, specific diets such as paleo, alkaline). Hard to get results or understand what works and what doesn’t and why

How does the end user solve those problems today? Manual re-work Specialized and paid advice Trial and error Time consuming research

2YourBest One fitness and health solution Integration with with your favorite applications Across all channels (online, mobile, device) All information in one place Targeted insights and personalized recommendations Trusted and tested information

I can use my favorite apps

I can see the data of all my devices

My trainer, doctor, nutritionist and I

have all the same view

Cool insights and recommendations:

It works!

I am fitter and healthier and .. It

was easy

Business Model Canvas

2YourBestIn short, 2YourBest provides a one portal/solution for the fitness, health, wellness and nutrition industry.

It enables:

End consumers (i) to track, monitor and improve their fitness, health and nutrition,(ii) to buy and find appropriate services and products, (iii) to get customized recommendations and get trusted information

Fitness and health professionals (i) to manage their customer relationships in one place, (ii) to provide their services online, (iii) to make their customers' lives simpler, (iv) to concentrate on their core business, and (v) to add more value to facilitate retention and organic growth

Fitness and health organizations (i) to better engage with their customers, (ii) to provide useful tools to their customers, (iii) to understand their customers better, (iv) to improve their services, (v) to identify new opportunities, (vi) to make their customers' lives simpler, and (vii) to concentrate on their core business

The low fidelity prototype

Test our prototype on your device of choice at …

http://raffaellanz.wix.com/2yourbesthealth

Interviews & lesson learnt We have interviewed 20+ people across countries with different health and fitness backgrounds and

problems and few gym managers.

We learnt that: Mostly have tried some applications and paid for those ($5-$10), have downloaded many but found very few useful.

The applications are not very friendly. The interviewees use more than one app

They use applications and devices more frequently when they are planning an event (race, competition, run, wedding, diet to go to the beach) or have an unsolved/unclear health problem(s)

Only 12.5 % use an app for tracking diet or sleep patterns

Some face information overload and they “don’t know who to trust“

50% of the interviewees consider integration with other applications a positive differentiator

They like to interact with their friends and share information/events

The interviewees like our product. They like the concept of having all information and interactions in one place. They value simplicity (needs to do everything in one task, cleanly)

They would buy products and services and products from the site. More than half spend more than $100 in personal training or nutritionist/naturopath on average per month

We can have a synergistic revenue relationship with professional organizations/gyms/trainers.

We have changed our offer to: Focus on customer experience and make it simple

Prioritize the following features

○ A one view planner for activities, gym, food, supplements, etc.○ Pre-built and extendible repository of exercises and workouts - “Easy to use and save me time”○ Dashboards and insights on allergies, food, and/or fitness progress○ Facebook-type features, such as group events, group information sharing, and discussions○ Re-selling of relevant product and services○ Open platform and design

Market researchWe have performed extensive online market research and we have learnt that:

mHealth applications market is a strong growth market

The market revenue reached USD 2.4bn in 2013 and is projected to grow to USD 26bn by the end of 2017. mobile apps used for sports and fitness activities are set to rise by 63 percent from 2012 to 2017 Average daily app usage for health and fitness apps has increased by 62% mHealth could represent up to $250 Billion in annual healthcare cost savings worldwide.

mHealth apps penetration is fairly related to smartphones penetration

The market forecast 3.4 Billion smartphones in 2017 One in 4 smartphone owner used their device to track their health, diet or exercise

mHealth success is centered around few segments

The main customer segments are health and fitness interested people (28%) and chronically ill people (31%) Fitness(30.9%) and Medical reference (16.6%) apps are the largest mHealth app categories The connecters publishers group generates the highest average revenue There is a need for an integrated solution

○ Sensor vendors who allow other app publishers to import the measured data are better placed in the market.○ Publishers connected to others apps are showing a substantial competitive advantage

While the US is the strongest market, this is where there is the toughest competition

We have decided that our target market will be :

In the mHealth connecter group (integrated solution) Targeting health and fitness interested people (28%) Initially focusing in Italy and France, which are good market but see less competition While providing a global platform Targeting the US market only at later stage

Market opportunityBased on the lesson learnt from the customer interview and the market research, the market sizes are as following:

Target Market share in year 1 year 2 year 3 year 4 year 5Italy 5% 10% 15% 20% 25%France 0 5% 10% 15% 20%US 0 0 0 5% 8%

year 1 year 2 year 3 year 4 year 50.5 m 2 m 10 m 15 m 20 m

Market Size in USD Year 1 Year 2 Year 3 Year 4 Year 5

TAMTotal Addressable Market

M-Health app market size 2.45 bn 4 bn 6.35 bn 13.59 bn 26.56 bn

SAMServed Available Market

Focusing on online connectors revenue segment (8.9%)

0.22 bn 0.36 bn 0.57 bn 1.2 bn 2.36 bn

Target Market

Focusing on Italy and a global platform, then France and US

0.9 m 4 m 17. 2 m 44.1 m 95 m

Italy 0.2 m 0.68 m 1.6 m 4.5 m 11.1 m

France 0.54 m 1.7 m 5.4 m 14.2 mUS 13.3 m 41.9 m

Global application 0.70 m 2.78 m 13.9 m 20.9m 27.8 m

Market shares projections:

Numbers of users on a global app (e.g. MyFitnessPal like)

TAM

26.56 bn

SAM

2,36 USD bn

Target Market

95 USD m

Referenced data from: • PWC Touching lives through health• mobile healthmHealth App Developer Economics ,2014• Forbes

Global m-Health market size

Reachable market size for the

connector segment

2YourBest Target Market:

•Health and Fitness interested people segment (28%)•In selected countries•Aligned to below projections•Pessimist since could include Australia, Canada, UK and New Zealand

Conclusion It is worthwhile to further investigate the opportunity to create 2YourBest

The plan is to enter and test the market in a specialized segment

The first release will focus on customer experience and it will provide the following features A one view planner for activities, gym, food, supplements, etc. Pre-built and extendible repository of exercises and workouts - “Easy to use and save me time” Dashboards and insights on allergies, food, and/or fitness progress Facebook-type features, such as group events, group information sharing, and discussions Re-selling of relevant product and services

It will target

The mHealth connecter group (integrated solution) Health and fitness interested people (28%) The Italian marker While building a global platform

The End

Appendix: business side pain Low customer engagement and IT savvy customer:

“My customer engagement is low. I need to help them be motivated. I can add some tools on the web site.” “Why they don't use it? Ah, they use garmin/sunto/nike etc. That's why they keep running but they don't come here”

I am not sure I can help my patient. It would be good to have more information at hand.

My patient is so informed (or mis-informed). I feel outplaced

I make a watch that does everything, I provide some software and my customer still want more. I am not a software house

Limited IT skills and need for IT apps:

Businesses are in need to provide customers with better tools, to improve engagement. Customers expect more.

Need better insights to understand customer needs and develop business, value proposition accordingly

Due to limited skillset, need to acquire, outsource or buy new tools while having to reduce costs

How do businesses solve those problems today? Outsourcing Creating ad-hoc solutions/mobile apps Growing IT capability