Saturday, May 3, 2008

Online Golf

The video game industry is growing into one of the largest industry's in the world. Internet gaming is also on the rise with estimates that internet gaming will bring in revenues of $5 billion this year. It is also expected that online gaming revenue will double this figure in the next 3 years.

So what does this have to do with golf?

Online golf games have been around forever. They are very simple and some are very boring. A new game that I came across is called World Golf Tour. It is the most realistic golf game online. It allows gamers to play from any browser without any additional downloads. The game is still in beta mode but it can also allow players to to play together. You can meet up with your friends to play online tournaments. The game play looks stunning. I was truly amazed when I played. It allows you to choose different types of golf clubs according to your type of play and the courses looked amazing. I can't wait until the full version comes out.

The idea for this game came from World of Warcraft (WoW). If you haven't heard of WoW it is a massive multi player online game that brings in millions of people together to accomplish tasks. They are trying to make this golf game into a massive multi player game as well.

This game will allow gamers to experience a golf game that is unique and realistic. It will allow golf club manufacturers to advertise their golf set to different golfers. It will allow new products to be advertised and tested by golf addicts. There is so much potential for this game. As long as this website allows for multiple revenue sources, it can be a very successful game.

Allow this game is truly unique at the moment, it can be copied and replicated. Golf club manufacturers can start their own games that will allow players to choose specific brand name clubs to play with in their game. The only way that this game can succeed and become the number one golf game on the internet is to create a massive consumer base early and quickly. Once a large consumer base is created players will become stuck to this name brand.

An advantage of online game play is that it is far cheaper to produce than your average console based game. A console game can cost around $5 million to produce. It costs about $200,000 to produce one course in the World Golf Tour game. With cheaper production costs and more revenue sources than console games, this game can truly become a leader in the market. If you read my previous blog posts you know that there can be a lot of money to be made in the golf industry, and enhancing that potential with technology creates a greater advantage.

Monday, April 21, 2008

Creating the Perfect Fit

New golf clubs are created by understanding physics and new technology that allows for greater forgiveness and distance in anyone's golf shot. The golf club has gone through a lot since the development of golf. Technology has allowed golfers to get the perfect club for their game that will help them improve their shots and score. Ping, a golf club manufacturer, shows all the aspects that are taken into consideration when a golf club is being made through this video (click the link in the new window). They talk about how their club design will allow for less spin and more distance and also about making the perfect golf club to fit every player.

Product innovation is a key strategy for all golf club manufacturers. They need to make their golf clubs better in order for anyone to stay competitive within this technologically advanced market. New designs are constantly being tested upon and improved. Constant improvement and development is the only way for a company in this industry to survive. However, even though product innovation is a key strategy for this market there are 2 other important strategies that can help anyone in this market to improve sales and gain a greater competitive advantage.

Customer relationship management is one of those strategies that golf club manufacturers lack. There aren't any Ping retail stores, TaylorMade retail stores, or Callaway retail stores, but only general golf retail stores. These retail stores are filled with customer service representatives who have to sell all types of golf clubs, and can recommend any type of golf club to any player. They should cut out the middle man and get closer to their customers. The closer they are to their customer the more they can learn about exactly what each person wants. They need to deliver their products to the customers with service that exceeds all expectations. Use computers to monitor a player's swing and having a specific club that fits perfectly with their swing. Each golf club manufacturer creates new advanced products that will help any player's game, but it's just not reaching the customers in the right way. Players in this market can achieve a great ROI by creating better benefits for establishing a retail store. For instance, they can create a golf range while having a retail store for a specific manufacturer in an area where there are a lot of golfers. They can create a unique experience for golfers to come to their range generating a return on investment right away even though a single golf club wasn't sold. It'll be like going to a car dealership where you can check out all the latest products from TaylorMade and test drive them at the same time getting advice to choose the right TaylorMade.

Another way manufacturers can achieve a competitive advantage is through operational efficiency. Getting their product to the market faster than the competitors. This can be hard to accomplish with so many new products constantly being manufactured. This relies heavily on their research and development team. They can, however, improve the manufacturing and shipping once the products have been designed. Sometimes making the perfect club isn't as important as getting it to the customer first.

Utilizing all three key strategies can be a difficult task in this market. A lot of these golf club manufacturers started with a single person who wanted to improve their golf score. Their idea and passion for the game led them to create their own set of golf clubs which was the start for many golf club manufacturers. The golf club market is very penetrable, but selling durable goods is a very tough business. Customers come to buy golf clubs once every 5 years or so, which is part of the reason for their high prices. Entering any market can be a difficult and daunting task, but once a market is identified as being vulnerable, penetrable, and worth taking the risk for, you can emerge as the leader if you attack the rest of the players where they are the weakest. If a player in the market is weak they will try to show strength and take you out of their market by making the same moves you do, but you will have a first move advantage. So while they try to keep up, you are constantly improving.

Companies need to start reaching their customers better by creating customized designs that are specially made for a specific customer. I believe the technology is there to allow this to happen while still keeping overhead costs low. Manufacturers do have special events where they invite golfers to test and try out new equipment while at the same time creating customized clubs for individuals. These events happen probably once a year, I've never been to one but I can imagine that the turn out isn't too bad. The idea is already there, but their business processes need to be changed which is why I highly doubt they will ever take this into consideration. Golf is known as being a very conservative sport, and I can imagine that the decision makers are very conservative as well being less likely to evoke changes to their profitable businesses.

Monday, April 14, 2008

Exciting Weekend

It was an exciting weekend for golf. The Masters Tournament was held over the weekend with Immelman coming out on top and Tiger Woods coming in second place. Immelman led the way the entire weekend and didn't let anyone catch up to his lead. It was very exciting watching Tiger climb the leader board, but just like last year he came in a close second.

The Masters is televised on CBS and is watched by many viewers. The TV ratings seems to have decreased quite a bit during the past 3 years. I think that the more Tiger Woods dominates the more boring watching golf becomes. I think that everyone just roots for Tiger to lose sometimes.

I guess it's more fun when someone actually challenges the number one golfer in the world and comes out on top.

I believe that the GolfChannel marketed its coverage of The Masters poorly. Their television show was very vague and showed very little highlights throughout the program. They should've used a different approach and try to target specific consumers through their online network.

If the PGA allows the GolfChannel to provide individual coverage throughout the tournament I believe that the consumer base could've been easily marketed to. If certain people watch certain players more frequently than others, they can be shown items that the professionals actually use throughout the tournament and create a specific marketing campaign that targets the specific individual.

By allowing to access this information not only through the internet but also through mobile devices, the people who love golf could've been tracked and monitored to show special characteristics about them. By creating an attributes map of the individuals we could market specific items, equipment, and accessories to all types of players.

It's critical understanding your consumer. The more information you can get from your consumer the better you can market to them. I've been talking about this type of tracking throughout my entire blog thus far, and now I really want to create a new golf medium where viewers and fans can come and watch their favorite players.

Monday, April 7, 2008

Golf Carts

I was playing golf over the weekend and I saw someone with a motorized golf cart. The cart was moving by itself and was controlled by a remote control. I was researching some models and found that the New 2008 Bag Boy Navigator was similar to the one I saw. It has a remote control and an on-board compass to keep the cart moving straight. I could see how this cart might be helpful for senior citizens, but I didn't see any benefits for any other types of players. This gave me an idea for a new product by combining some existing technology.

I wanted to make an artificial golf caddy. It would combine the motorized golf cart with a GPS system measuring distance from the pin and also use Doppler technology to measure how far your golf ball went. I also wanted this product to have an on-board ball locater that will keep track of where your ball went. After helping you locate your ball the golf cart will also suggest certain clubs and different strategies for your next shot. I also want to add a device that will keep your score for you while you play. This golf cart will actually simulate everything a real caddy does.

I wanted to market this motorized golf cart bundled together with a high-tech golf bag. So if you decide to not use the motorized golf cart, you can still detach the bag and still use some of the features. This golf product would be extremely expensive to manufacture and only the most dedicated of players who have a lot of disposable income would want to purchase this product. Is there enough market potential for this product to even be considered?

According to the Golf Economy Report:
Consumer Spending on Golf Equipment in 2000 ($ millions)
Low: $3,805 Best: $4,096 High: $4,388

There seems to be a lot of potential in the golf market industry for new products. Even though most of the spending is associated with golf clubs and balls, there has to be a great amount of money being spent elsewhere. Since golf clubs are a durable good the demand will tend to stay relatively constant throughout time without much change. Golf is gaining more popularity and the market base is increasing everyday. If people are willing to spend close to $2,000 for a motorized golf cart then why not bundle it with some unique features that some people might find very valuable. The cost might be higher than some of the motorized golf carts on the market today, but I want to target the the golfer with the deepest pockets--someone that is an early adopter of new products. If people like the product and the functions it could create positive network externalities that might help boost sales as well. A lot of people tend to recommend products for their friends, and one look at this unique product might make people want to purchase it as well.

I was thinking of something like this for my product...



















Maybe the R2D2 is a bit too much...but you get the idea.

Sunday, March 30, 2008

CDW and the PGA

In 2001 the PGA came out with a data-collecting system called ShotLink. ShotLink was developed by IBM, who was the PGA's Official Technology Partner at the time, and it captures data and information pertinent to players (such as historical ball placement on certain holes). It collects information and stores it in a database for future reference about players. The information captured by this device allows for a greater viewing experience for fans by giving them precise information in real time. It also allows PGA officials to create more challenging golf courses. The statistical information captured by ShotLink allows officials to view how many shots a player needed on a certain hole. For instance, if most players made a lot of birdies or better for a par 5 hole, then officials might change the pin placement to make the hole more difficult. This information allows the sport to continue to be competitive and also creates a more enjoyable viewing experience.

Recently at the beginning of the year CDW was named the PGA's Official Technology Partner. CDW has sponsored a couple of players but also wants to improve the ShotLink program. It hasn't really gone into detail about how it plans to improve the system just yet, but the company has helped players improve their game. The company wanted to sponsor young emerging players as a way to capture the attention of the younger generation. CDW sponsored Sean O'Hair (of the PGA) and Paula Creamer (of the LPGA) who are relatively young and emerging as great athletes. I recently saw on the Golf Channel that CDW has helped these golfers by analyzing their swings during certain situations on certain golf courses. They analyzed their swing and compared it to some of the great golfers in the past such as Jack Nicklaus, Ben Hogan, and Arnold Palmer just to name a few. CDW then gives the golfers information about how to improve their swing and also gives them ideas on how to approach each hole by showing them what some of the great golfers did in the past.

Even though CDW hasn't released much information about how they are going to approach improving the ShotLink system, I thought of some ideas that might make the data-capturing device more useful. ShotLink needs volunteers to go out and take measurements using lasers and hand held devices. They should implement a system that enables the information to be collected without volunteers, such as using Doppler technology to capture real time information and stats about each shot (such as TrackMan which was covered in an earlier blog).

I'm not sure how CDW plans on improving the high quality and reliable system, but I guess as technology continues to advance so does the constant need for improving old systems. It's good to know that the PGA tour continues their commitment to enhance the viewer's experience using technology.

Sunday, March 16, 2008

The Golf Ball

Advancements in golf ball technology and manufacturing has made the golf ball market huge. The golf ball market is worth over $550 million in annual sales. Every year there are over 850 million golf balls manufactured and shipped. Golf ball technology has improved drastically with new insights on aerodynamics and physics. There are a lot of players in this market but I just wanted to focus on one--Callaway Golf Balls. I was watching the Arnold Palmer Invitational the other day and saw a commercial from Callaway that got me interested on this topic.

The golf ball is constructed many ways and there are many varieties. The two main types are 2-piece design and 3-piece design. Now there is also a 4-piece design. The 2-piece design is made mostly of plastic and rubber and used by the casual golfer. This design also enables the golf ball to last a lot longer than the 3-piece design. The 3-piece golf ball is made up of a plastic covering, windings of rubber thread, and a core that contains a gel or liquid. Usually professional golfers will use the 3-piece design. The golf ball is covered in dimples and there are different patterns that can be used here as well. Usually the more dimples there are, as long as they are 0.15 inches in diameter, the better it flies. The size and depth of the dimples will also cause the ball to either spin more or fly higher.

Technological advances in materials and aerodynamics allows the golf ball to be like a custom fit glove. A golf ball can be specially designed for each player who, for instance, might want more spin on the ball or who want more distance on the ball. The golf ball is allowing the recreational golfer to become a better player.

Callaway Golf has made the dimples on the ball into a hexagonal pattern. They say this will eliminate drag and improve distance, they also state that it makes your shot more consistent. This design is supposed to eliminate flat spots on the ball during flight so that it can go further.

Callaway also uses Reaction Injection Molding (RIM) technology that will make the golf ball more durable. They also use a dual core which will help the golfer control the spin on the ball. They also construct their golf balls with a 4-piece design as well as the 2 and 3-piece.

Callaway golf is advancing golf ball technology and allowing players to choose the right ball for their type of play. Callaway can create a market of one by targeting consumers directly and by using a pull technique in their advertising. Why do they continue to advertise like a buckshot and try to capture the mass when they can specifically target an individual who has a genuine interest in a 2-piece design or a 3-piece design or someone who wants more spin on their ball. How can they possibly track and target each consumer? The internet allows for easy tracking and targeting capabilities. If someone was learning about each golf ball and their differences, for me instance, than they are going to spend a lot of time in that section. The more time they spend on a certain page should send Callaway a direct signal that says this consumer is interested in the 3-piece design. This signal will then transmit an advertisement to reload using AJAX and show the consumer a new banner ad that could possibly give them a discount if they purchase right now. The banner ad should also allow the consumer to purchase the product directly from the ad. This could work for golf clubs, balls, and even merchandise.

So why aren't they doing this? Maybe cause they don't have enough bandwidth (I waited for 5 minutes for one page to load!).

Monday, March 10, 2008

The New Improved Golf Channel

The Golf Channel recently added a new device to give precise real time information for viewers. The device is called TrackMan and it uses Doppler radar technology to get a 3-dimensional view of every golf shot. It provides precise information for ball launch, ball speed, ball landing and even the way the ball spins. The Golf Channel started using this technology this year and will allow them to show viewers a visual analysis of a golfer's tendencies, ball flight, and side-by-side looks at how different players approach the same hole.

The device is simple to set up and doesn't even need a marker for the ball. This will give viewers better insight about each golfer and how they approach each hole. It also won't interfere with some of the rules the PGA has in place. Viewers will get a better understanding of each shot and will give them detailed and accurate information about each shot.

I believe that implementing this device for PGA tours will give viewers a more enjoyable experience. Getting information about each shot and each player is important to the viewer. They want to see how they won the tournament, how they approached each hole, and some of the mistakes that they made. With such precise and real time information, data can be transferred to mobile devices so that users can select and obtain only the information they want. Someone might want to look at how Tiger Woods approached each hole, or someone might want to see how Vijay Singh approached each hole, or they might want to see how they both approached the same hole. This device will allow real time update for people who might be on the road or traveling and will give the audience a whole new experience for watching golf.

Here's a video about TrackMan.

Sunday, March 2, 2008

High Definition Golf

Imagine seeing the beautiful grass of the golf course, addressing the ball, and swinging your club and watching how far your ball goes right inside your living room. Interactive Sports Technologies is making this possible. I know the outdoors and beautiful scenery makes golfing even more enjoyable, but if the weather turns sour only the most dedicated players will still be out in the field.

The High Definition Golf simulator is the best simulator in the market. They will come to your house and install the system in the room of your choice. The simulator uses sensors to capture data. It can detect the club head speed and angle to 1/10th of a degree!







Data Capture
  • HD Golf’s proprietary Spectrum Sensor Technology™
  • High resolution digital video based motion detection analysis system
  • Unique ability to measure ball launch, club head path and face angle to 1/10th of a degree
  • System designed to distinguish 1/10,000 of an inch tolerance

Critical Data from Ball Launch

Swing Path and Impact Position are measured, not calculated

  • Ball speed
  • Ball launch angle – vertically
  • Ball launch angle – horizontally
  • Ball spin – backspin and spin axis
  • Club head speed
  • Club head face angle at impact
  • Club head path through impact zone
The beauty about this simulator is not the advanced data capture technology that IST uses, the best part about this simulator is the ability to compete against others online. People have the ability to compete with anyone else that has the same simulator, and even has picture-in-picture so you can watch your opponent making their swing. You can talk to them and hear them just like a webcam. This can allow users to compete competitively online by creating leagues and playoffs, get help from instructors from anywhere in the world, and allow for a fun recreational golf experience.

Imagine a new generation arcade filled with these types of simulators. An advanced car racing simulator, motorcycle simulator, football passing simulator, basketball simulator, etc.. Then imagine being connected to other arcades where you can compete with complete strangers or compete with a friend out of town. Are you picturing it? Maybe a little picture-in-picture will help you out.

Sunday, February 24, 2008

Practice, Practice, Practice!

If you want to improve your game you just need to practice. You need to go to the range, get a bucket of balls, and just start swinging. The more intense your practice is, the better results you'll get on the field. Information you learn from your swing and how far your ball travels will make your practice even more efficient. Technology is allowing every practice to become so much more fun, efficient and productive that it's making a trip to the range a whole new experience.

There are thousands of products today that help golfers improve their swing. One of these products is called V1 Golf Swing Analysis Software. It gives you a variety of services that will help improve your swing. The product includes encyclopedic information about the golf swing, physics of golf balls, recording your swing and identifying your faults, and a guide to improve your mistakes for a better golf swing. This product is perfect for recreational golfers who want to make their swing perfected.

Golf ranges are becoming more advanced. Chelsea Piers Golf Club in New York City wanted to increase their throughput time so that more golfers can hit more balls. The way they did this was creating an automatic tee system. After you hit your ball a tee will come out from the ground with a new ball already in place ready to be hit. This golf club also allows golfers to play on their favorite course with their Simulator Play. It takes place like a virtual game; like an advanced Wii. TopGolf is also using more technology to create an entirely different experience at the golf range. They use a system called the I.D. Ball System where a micro chip is installed into the golf ball. This chip measures how far the ball travels and how close it is to a certain target. The closer you are to the target, the more points you get. They also have a leader board that is displayed to all the golfers to make the environment more competitive and fun. They are trying to capture more of the market by attracting leisure golfers and giving them a whole new experience at the golf range.

With advancements in golf products and golf ranges, practice is becoming fun and efficient. You don't even need a personal golf trainer any more because technology is becoming your personal trainer. Golf ranges should start implementing the use of more technology. They should start combining precise real time information with golf swing advice. Every stall you walk into should be your own personalized coach that knows all of your mistakes and faults and gives you personalized feedback on how to improve your swing. Every stall should give you a reason why your ball only traveled 'x' yards, give you a video analysis of why your swing is making each hit slice, give you tips from the pros, suggest products that match perfectly to each individual's game, and give you a whole new golfing experience. Technology can transform golf ranges into a practice haven. Hopefully, all golf ranges will start becoming more advanced so that I could start improving my game!

Saturday, February 16, 2008

The Virtual Caddy

Precision and meticulous calculation is the key in golf. You have to see all the angles and estimate how far your ball is away from the hole so that you can pick the right club. In professional golf, golfers are given caddies. There not just slaves who lug around golf clubs for the pros, they give advice and tips such as how far away from the pin they are and which way the ball will break on the green. Unfortunately, if you are a recreational golfer you usually won't have the luxury of having a caddy (unless of course you are a member at a luxurious country club).

I have a good idea of how far my ball can travel according to the type of club. Usually some courses will help you out as well placing distance markers every 50 yards or so. But being off 5-10 yards can mean being in the bunker or flying past the green. Knowing your exact location on the course is so vital to making the right club choice. This is where technology comes into play. GPS navigation systems have been used for quite some time now and the precision of GPS is advancing day to day. GolfLogix is a GPS system, manufactured by Garmin, that tells you exactly how far away your ball is from the hole. This product allows you to download ten golf courses into the system from a database of over 15,000 golf courses around the world. If your golf course isn't in the database then all you have to do is submit a request and it will be added into their database. The problem with this product is that it is very limited in its functions. It tells you the distance and that's pretty much it. There is a patent out for a new virtual caddy system which will give golfers tips and strategies on certain holes including calculating how far your ball is from the hole. There is also a product called SkyCaddie. This product actually has professional golfers and caddies walk the green using survey-grade technology to enable golfers to get a 3-D view of the field and the green.

The importance of a caddy is critical to improve any golfers game. The caddy focuses on distance and advice, while the golfer can focus on his swing and club choice. It made perfect sense to make golf a two person game when it was first invented, but as technology starts to become wide spread and available to everyone the caddy can now be replaced by a virtual one.

Friday, February 8, 2008

Introduction to my blog

I would like to start off by welcoming everyone to my blog. My name is Alex Kim and I am a USC student majoring in business with an emphasis in information systems. I've always had an interest in technology and as a little child computers were always around me. I still remember how to execute Prince of Persia on MS DOS. My father was an entrepreneur and owned many businesses--the one I remember the most was his computer store. Seeing all of the software and hardware enticed my interest in technology even further. During my childhood my father would also take me to the golf range trying to make me into the next golf prodigy--unfortunately, it didn't go as he had planned. I only recently started to play golf on a regular basis. I really regret not playing as a young child and wish I had fell in love with it then. The feeling of being outdoors in nature engaging in a friendly competition amongst your friends is so enjoyable. The beauty of golf is simple--it can bridge the gap between generations. You never see a 50 year old man playing a pick-up game of basketball with a bunch of 18 year olds.

This blog is not just about the beauty of golf. It's also about technology and how it's used to help golfers improve their game. It will also cover new information communications technology that will help golf enthusiasts, like myself, to view golf, get golf tips, and get new information about golf products directly to wherever they are. The world is advancing and so is the world of golf.

When you are on the golf course so many things go on inside of your head (how far the ball is from the green, which way the green will break, which club should I use, what strategy should I use on this hole, etc.). Preparation before your shot can lower your score. This is where technology can help improve your decision making and even improve your shot. In the weeks to come I will cover new gadgets and product development which will help recreational golfers improve their game and lower their handicap. It will also cover how technology is being used to display the wonderful world of golf to all of its fans. The first gadget will cover how GPS is being used to help improve a golfer's game. Hope to see you again soon!

-Golf Nut