The Value of Innovation

Chapter 5Aligning Innovation Projects to the Organization

If you’re concerned about monitoring your exercise with the goal of becoming more fit and losing a few extra pounds, then the odds are that you’re aware of Fitbit. Whether it’s a device that clips to your pocket or worn on your wrist, Fitbit monitors steps, hours of sleep, and even more. The company behind it has been a phenomenal success. Since its beginning in 2008 Fitbit has sold more than 63 million devices, and the stock peaked at $48 a share shortly after it went public in 2015. Today, it’s just over $5. The most recent quarterly sales were 40% lower than the previous period a year ago. Meanwhile in July, Jawbone, maker of the UP wristband fitness tracker who at one time started up fresh with venture capital funding and 3 billion dollar evaluation is liquidating its assets. [1]

Does this mean that this is a fad that is going away, like so many others? Perhaps not. One thing for certain, the Fitbit has more competition than before. Some of the competition is promising all types of measurement tracking, including monitoring blood sugar for diabetes without piercing the skin, for example. The problem with Fitbit might need a little more explanation.

Of Fitbit’s over 50 million registered users, less than half, 23.2 million, remain active. The first generation of fitness trackers has largely run its course, it seems. Three major issues appear to have caused the decline of Fitbit. First, they are a victim of their own ...