Hypothetical Project Charter for Apple Watch Nike+
Introduction
My research domain focuses on designing smart textiles and wearable technology to better augment our physical and emotional experiences using data. Additionally, this new territory contains endless possibilities of solutions with the goal of providing helpful yet unobtrusive products to consumers. According to Gartner, global end user spending on wearable devices will total $52 billion in 2020, and wearable types include head mounted displays, ear worn devices, smart clothing and smartwatch which is currently the largest spending category of estimated $30 million in 2021.
Apple is one of the biggest players investing in wearable technology as of 2020, with most popular Nike partnership product “Nike Run Club” application which is available for both Apple Watch and iPhone platforms. The application helps users track runs, provide challenges, and create personalized coaching motivations for a healthier lifestyle.
The initial research started from looking at Gartner reports on current wearable technology statistics in order to define the purpose and the description of the project charter. Subsequently, product market trends and news articles were explored to find a relevant and exciting product.
Project specifics and estimate confidence
To decide on the budget of the project, the partnership details were needed between Apple and Nike. Based on the quote below, it was assumed that Nike was the larger share holder of this project due to storing and analyzing user health data:
“According to a press release from Nike, the watch is essentially the same as the newly announced Apple Watch Series 2, which features GPS, a brighter display, water resistance up to 50 meters, as well as a new processor and OS. The Nike version, however, will offer “deep integration with the new Nike+ Run Club app.”(Bain). Due to this reason, the project charter is written from Nike’s perspectives.
Regarding the final dollar amount of the project, it was estimated based on current high quality talent pool salaries of the designers, engineers, and project managers given the timeline of 9 months.
Project Title
Apple Watch Nike+: Nike Run Club for WatchOS
Purpose
Our recent research and NPS data provide that the Nike Running Club application is an essential companion for millions of people trying to maintain and monitor their healthy lifestyles. It has approximately 50 million downloads on Google Play and Apple Appstore and the figures are refusing to decline. Mark Parker, and Chief Executive Officer discovered that a new product strategy will need to be implemented to increase market share, as well as maintain current levels. Apple Co. as a leader in the designing and development of wearable technology, holds a 33% market share within this category. With this, there is an exciting new opportunity to work closely with Apple to re-create and explore new product space to further define Nike’s business strategy and to discover a new target market in wearable technology and health.
Description
The existing Nike Run Club application is currently only available on mobile platforms including iOS and Android devices. The goal of the project is to provide a seamless and unobtrusive solution for runners to view and track their health data. The total duration is set for 9 months starting March 3rd, 2020, and appropriate resources can be hired externally if necessary.
Once the contract has been reviewed and signed by the stakeholders, the baseline test plan must include details of below:
Product research
Health monitoring systems
Latest hardware technology
Textile materials and design
Opportunities for Siri integration
Ergonomics in Watch design
Market and user research
Competitive analysis of the competitors and market
Trend and predictive analysis based on technology hype cycle
User research: needs, drivers, and goals
Marketing and sales strategy
Data, storage, and third party access
Data and storage protection regulations including GDPR and FIPPA
Design, development and support
User personas and success criteria
User use cases and design proof-of-concept
Architectural evaluation
Development resource and technical requirements
Logistics and travel
Travel allocation fees are included in the budget. All spending cost should be documented and submitted for review prior to booking
Objective
In partnering with Apple, design and develop a product that helps runners capture, track, and analyze their health performance, specifically for WatchOS. The project duration is 9 months with a total budget of $500,000 USD.
Success Criteria or Expected Benefits
For Nike
Increase overall product sales revenue by 30%
Drive marketing strategy by partnering with athletes
Utilize social media and data analysis in identifying known and unknown customer segments
Gather user feedback and conduct sentiment analysis on wearable technology to expand wearable technology product portfolio
For Apple
Increase Apple Watch sales revenue by 20%
4.5+ stars application rating in Apple Appstore
Gather user feedback and conduct sentiment analysis on current running and recovery rates for users
Expand wearable technology and IoT product portfolio leveraging the latest technology
Establish and maintain a robust data protection and regulation system in compliant with GDPR
Funding
The funding of this project will be provided by both Nike and Apple. A total of $500,000 has been authorized for planning and execution of this project (Nike: $300,000 USD; Apple: $200,000 USD). Additional funds may be requested with justification by the project manager and are subject to review and approval.
Major Deliverables
Documents of user personas with quantitative and qualitative research and statistics data
Visual branding, UX design guidelines and design artifacts
Technical specification on heart monitoring to analysis: Connect and configure in real-time to provide latest performance updates
Siri integration
Accessible for visually, physically, and hearing impaired individuals
Newly designed watch bands: Nike x Apple
Marketing materials and event plans that are drafted, selected, and released on various platforms.
A team retrospective and new product strategy moving forward
Acceptance Criteria
Nike and Apple’s market retention and expansion plan in wearable technology sector requires the work and successful completion of the following:
A detailed baseline plan outlining the project breakdown, timeline, and resource allocation by budget
Updated research plan of the application and watch ergonomics
Create precise design and interaction prototype in 2 months period
Integration of heart rate monitor on Apple Watch and application
Testing and QA of new features for specific runner group
Apple and Nike Development of the marketing and sales plan
Design and produce new Watch strap designs working with existing vendors
Push new model wearable w/ heart rate monitor into production
Tracking & adjustment phase of marketing
Program analytics and saturation outcome
Milestone Schedule
Months refer to the suggested duration for each task once the contract is signed by both parties of Apple and Nike:
Baseline plan - Month 1
Market and product user research - Month 1
Develop design strategy and POC - Month 1
Define experience based roadmap, functional, and technical requirements - Month 2
Technical and architectural investigation, and identify dependencies for finalizing requirements - Month 3
Project team selection and finalization: Agile research, design, and development process begins - Month 3/4
Beta test plan (Including end-to-end user experiences and technical configuration) - Month 7
Final design and implementation changes - Month 8
Final evaluation including legal - Month 9
Marketing and sales strategy plan - Month 9
Application deployment on Apple AppStore - Month 9
Project retrospective, maintenance and support - Month 9
Key Assumptions
Nike and Apple’s revenue streams will increase from the project with no negative impact on past customer revenue streams.
The addition of the new Nike Run Club+ application and Apple’s integration on WatchOS will boost sales.
Complete funding is provided from both Nike and Apple.
Nike and Apple can further strategize to produce other wearable tech products moving forward
Constraints
The application must be GDPR compliant and must be designed with proper security protocols in mind
Terms and consent must be clear to the users
Timely breach of notification: 72 hours to notify the users from the time of the breach occurrence
The right to data access and right to be forgotten: users have the right to retrieve the data that was collected surrounding their personal information
Data portability: users have the right to request the collected data to be used elsewhere
Major Risks
Major risks that have a high degree of potential impact on the success of this project include:
Collection of user data and personal information forbidding to comply with GDPR and FIPPA
Failure to hire the correct talent for wearable technology design and implementation
Ineffective marketing and sales strategy to attract buyers
Apple Watch’s technical restrictions in fulfilling application’s performance
Approval Requirements
Additional approvals are necessary from Jenny Bagan (Nike) and John Lam (Apple) beyond the scope of below parameters:
Travel budget and logistics
Product execution timeline
Budget increase requests
Talking to press
Project Manager
Senior Product Manager, Adam Oliveira, at Apple Watch and Fitness will be appointed as the project manager.
Reporting Requirements
The project manager is to provide a bi-weekly executive summary report to all stakeholders. The update should include current activity, research findings, design status, build status, blockers, dependencies, and resource evaluation. The project strategy has room for modifications if projected variables are calculated to differ.
Sponsor Designee
Offering Management Director, Amanda Lee, at Nike Digital will be the point of contact for the sponsor, acting on behalf of the sponsor to interact with the project managers.
Approval Signature
The following individuals (organization, position, name) are signatories for this project charter:
Apple Watch Vice President, Kristina T.
Apple Watch Compliance Officer, Jon L.
Nike Digital Vice President, James A.
Nike Digital Design Director, Jenny B.
Date signed
References
Gido, Jack., Clements, Jim. and Baker, Rose. (2018). “Successful project management”, 7th ed. Boston: Cengage Learning.
Goasduff, Laurence. "Gartner Says Global End-User Spending on Wearable Devices to Total $52 Billion in 2020”, https://www.gartner.com/en/newsroom/press-releases/2019-10-30-gartner-says-global-end-user-spending-on-wearable-dev
Apple. “Apple Watch Nike”, https://www.apple.com/ca/apple-watch-nike/
Apple. “Apple & Nike launch the perfect running partner, Apple Watch Nike+”,
https://www.apple.com/newsroom/2016/09/apple-nike-launch-apple-watch-nike/
Lara, Jon. “Nike Run Club”, https://www.jonlaraux.com/nikerunclub
Dumiak, M. (2019, January 29). “Google Fined €50 Million for GDPR Violations: What Does This Mean and What to Expect Next?”, http://www.econtentmag.com/Articles/Editorial/Industry-Insights/Google-Fined-€50-Million-for-GDPR-Violations-What-Does-This-Mean-and-What-to-Expect-Next-129602.html
Bain, Mark. “Apple and Nike are teaming up on a watch for runners”, https://qz.com/775865/apple-watch-nike-apple-and-nike-are-teaming-up-on-a-watch-for-runners/
