Innovation Obstacles
April 12, 2013
It doesn’t take long to compile a dozen or more examples of products or businesses that have disappeared, or nearly so, because the world changed while the product or business did not.
Think eight-track tapes and players. Consider what digital photography has done, from the Eastman Kodak Company to out-of-business local studios. What the Internet has done to travel agents. See what’s happened and still happening to print newspapers across the country, to magazines, and to both local and large chain bookstores.
It is not at all rare that businesses fail to reinvent themselves. For many reasons, including admirable passion for what they are doing, business leaders often miss the trends or ignore the signs that suggest the need to change their products or their entire business model.
As Geoff Colvin wrote in FORTUNE magazine Feb. 25, 2013, “Business model innovation is a competency that doesn’t exist in most companies.” He continued: “The largest obstacles will be weak imaginations, threatened interests, and culture.”
I suspect that those are also the three major obstacles we must overcome as we think about the future of interscholastic athletics.
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Does school-based sports, with a 100-year-old history, have a 50 or even 15 year future in schools and society?
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If so, should the business model change? And if so, how?
I suspect that some of what we think is change may be no better than rotating bald tires on our car; when what we really need is new tires, or no tires at all.
Money, Money Everywhere, But ...
June 23, 2016
Weather-watchers will often complain that there is too little rain where it’s needed, and too much rain where it is not.
I feel the same way about money and sports – too little money where it’s needed, and too much money where it is not.
While physical education is being eliminated in elementary schools and interscholastic athletics are being gutted in junior high/middle schools and high schools, college sports are awash in extravagant new revenue from broadcasting and merchandising rights. For example ...
The athletic departments of UCLA, Ohio State, California, Notre Dame and Wisconsin will receive more than $1 billion combined from Under Armour over the next 15 years. The University of Michigan has announced a 15-year, $169 million deal with Nike. Michigan State University has a multimedia rights deal pending with Fox Sports worth $150 million over 15 years. Both Michigan and MSU will benefit richly from what is likely to be a new $440 million per year package with the Big Ten Network.
Meanwhile, for lack of funds, schools reduce or eliminate physical activity from the school and after-school curricula. Inactivity rates soar, as do childhood obesity rates, as do medical expenses to treat obesity-related illnesses in adults.
In sports as in most other aspects of American society, ours is a free-market system that allows the rich to get richer, with little regard for the consequences. It’s a system that invites misplaced priorities. Of celebrity more than substance. Of immediate gratification over investing in the long-term health of a nation and its people.