research paper: anja serfontein market analysis of current coaching it-solutions and its future...

7/29/2019 Research Paper: Anja Serfontein Market Analysis of current Coaching IT-solutions and its future implications for the Coaching industry

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Research Paper Assessment

Name: Anja SerfonteinDate: 10th October 2012

Student ID:Email: [email protected]

Market Analysis of current Coaching IT-solutions

and its future implications for the Coaching industry


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Table of Contents

1. Introduction ............................................................................ 3

2. Changes in the Communication culture...................................3

2.1. Market Opportunities ............................................................4

2.2. Market Threats..................................................................... 5

3. Market Trends.......................................................................... 6

3.1. Limitations ............................................................................ 7

4. Success Factors ......................................................................8

5. The other side ......................................................................... 9

6. Final conclusion....................................................................... 9

Appendices.................................................................................11

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1. Introduction

In January 2012 the Healthcare IT News wrote Virtual Coaches keep overweight

people on track.1 The article referred to a study by the Center for Connected

Health and Massachusetts General Hospital, that overweight people who made

use of web-based virtual coaches (computer-animated coaches) showed more

commitment to improving their health than those who didn't. This research paper

is not trying to argue the pro and cons of machine vs human but instead

highlights a change in the market for Coaches and Coachees and examines the

opportunities as well as threats - that result out of new developments like this.

2. Changes in the Communication culture

According to Strategy Analytics: Worldwide 1,551.4 million mobile handsets were

sold in 2011, up 14 percent compared with 2010. According to ABI Research, total

mobile app store revenues () will rise in the next five years, growing from $8.5

billion in 2011 to $46 billion in 2016.2 This increase in hardware, as well as

1 Eric Wicklund, 02nd January 2012 Virtual Coaches keep overweight people on track (Online) - 2 nd

August retrieved. Http://www.healthcareitnews.com/news/virtual/coaches/keep-overweight-people-track

2 Rajesh Prahbakar, not dated - Global Mobile Application Store Revenues Smartphones & Tablets

drive growth (Online), 8th August 2012 retrieved. http://www.slideshare.net/rajeshdgr8/global-app-

store-revenues

3
http://www.healthcareitnews.com/news/virtual/coaches/keep-overweight-people-trackhttp://www.healthcareitnews.com/news/virtual/coaches/keep-overweight-people-trackhttp://www.slideshare.net/rajeshdgr8/global-app-store-revenueshttp://www.slideshare.net/rajeshdgr8/global-app-store-revenueshttp://www.slideshare.net/rajeshdgr8/global-app-store-revenueshttp://www.healthcareitnews.com/news/virtual/coaches/keep-overweight-people-trackhttp://www.healthcareitnews.com/news/virtual/coaches/keep-overweight-people-trackhttp://www.slideshare.net/rajeshdgr8/global-app-store-revenueshttp://www.slideshare.net/rajeshdgr8/global-app-store-revenues


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software has a profound influence on the way we communicate and interact with

each other. Already today, the fear of being separated from one's phone, a

condition known as Nomophobia, is on the rise. Max Celko argues that if our

devices become 'alive' via AI technology, acting as a mediator for self-discovery

and self-realization, it might have far-reaching consequences.3

This Research Paper argues that the worldwide increase of Smart Phone / Tablet

users, as well as the Apps that are used with these devices will inevitable have a

strong influence on the Coaching industry and its members.

Is it worth to join the hype? And what benefits result from swimming against the

current: there must be beauty in being disconnected in order to be connected.

For this Research Paper Interview-based evidence has been used. (A sample of

the interview questions can be found in the attachments.)

2.1. Market Opportunities

A market opportunity arises if a product or a service, based on either one

technology or several, fulfils the need of a market better than the competition.

Yuval Goren, a former high-tech Senior Executive became a personal

development coach and created the self-improvement program SuccessWizard

www.successwizard.com with the goal of helping a million people worldwide start

enjoying lives that are filled with clarity, happiness and harmony. He saw at an

early stage the opportunity that arose from the change in the market place that

previously had the Self-help market (books, CDs, Audio programmes) on one side

3 Max Celko, 10th March 2012 - The Freud Apps: AI, Virtual Life Coaching, and the Future of

Psychotherapy (Online) , 2nd August 2012 retrieved.http://bigthink.com/hybrid-reality/the-freud-apps-

ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=all

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http://www.successwizard.com/http://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://www.successwizard.com/


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and the In-Person Coaching Industry on the other side. He decided to create a

bridge of the two market areas by designing a web-based Coaching Programme

that has real Coaches in the background available but otherwise the client and

the programme interact exclusively.4 This is only one example of a Coach turning

IT into a business opportunity. In chapter 3 there will be an overview of current

market solutions but in the meantime let's look at the threats of the changes in

the market field.

2.2. Market Threats

Trend analyst Max Celko from Hybrid-reality argues If virtual therapy systems

become very advanced at some point in the future, certain aspects of the coaching

profession might get outsourced to technology, similar to the way lawyers today

are already getting outsourced to text scanning devices to a certain extent.5 Is this

a paradigm of the future? Not quite the future already became presence:

In September 2011 the company TNM Coaching introduced during the ICF

Conference in Las Vegas an App with the name of 'niggle'. It is a stand-alone

solution made for everybody who has a niggle = something that irritates you,

worries you or stops you from having fun This app was build on the idea that

human coaches often come with a pre-attachment to an outcome6 It is currently

free-of-charge and hence is an attractive alternative for users to turn to their

4 Skype Interview with Yuval Goren on 9th August 2012. Questionnaire see in the appendix.5 Max Celko, 10th March 2012 - The Freud Apps: AI, Virtual Life Coaching, and the Future of



6 Skype Interview with Lydia Kimmerling on 23rd August 2012. Questionnaire see in the appendix.

5
http://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=all


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iPhone, which is available 24/7 - instead of finding a suitable Coach to address an

issue they may face.

Is the IT (r)evolution effecting all Coaching niches in the same way? Currently the

trend seems to be unstoppable for Life Coaching and Health & Wellness

Coaching. Dr. Brian Alman, founder of TruSage International states: Thanks to the

Internet and mobile phones, [people] are wired together in an information network

that facilitates remote health/wellness coaching. Delivered at a fraction of the costs

of face-to-face care, mobile wellness.... he furthermore stresses Clients want

convenient access to effective, affordable wellness advice. Even in the arena of

Business there are new technologies and systems are entering the market that

can be either perceived as a Threat or an Opportunity: Creel Price is currently in a

very smart way building with his Decisionship (www.decisionship.com) a huge

database to help Business Owners and Managers to get unstuck and arrive at

sensible decisions faster. Clearly a threat to conventional Business & Executive

Coaches, who perhaps might have had the business of these people.

So what are currently the options that clients are having when trying to resolve

certain issues or getting un-stuck?

3. Market Trends

Based on the author's own observation of the market field there are currently 4

categories of Coaching-solutions for Coachees available:

Current Coaching-solutions:

A human Coach: Homo sapiens, who choose the profession of becoming a

Coach. Surely, they might utilize technologies to connect with their clients:

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http://www.decisionship.com/http://www.decisionship.com/


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i.e. via phone, VOIP, noomii (Coach Directory), eMail, but otherwise it is

down to two individuals (or more if it is Group Coaching).

A stand-alone technology solution: Mostly mobile applications, that mirror

certain processes within the Coaching relationship: value clarification, goal

setting, accountability, milestones, motivation, gratitude exercises, but

are otherwise detached from the real Coach. i.e. iPhone Apps: Goal

Achiever, Niggle, SuperBetter, ...

A hybrid solution (Coach focused): the Coach outsources certain aspects

of the Coaching relationship to high-tech solutions: i.e. continuous client

reflections like JournalEngineTM Software (www.journalengine.com)

A hybrid solution (Technology focused): the Client is most of the time

interacting with the system to define goals, reflect and measure success

but is able to connect to a real (human) Coach whenever the need for

deeper questioning is arising. i.e. SuccessWizard

(www.successwizard.com ), invivoplay (www.invivoplay.com)

3.1. Limitations

Ben Croft, Founder and President of WBECS noted: The challenges around the

analysis requires a human / a Coach. The questions (as asked in niggle) are great

as an introduction to Coaching and as a novelty people will be using it but

afterwards they don't see enough value to continue it7 Croft points out, that it is

necessary to take these developments to the next level. In other words to ensure a

7 Interview with Ben Croft, 3rd September 2012 during the Asia-Pacific Coaching Conference in

Singapore.

7
http://www.journalengine.com/http://www.successwizard.com/http://www.invivoplay.com/http://www.journalengine.com/http://www.successwizard.com/http://www.invivoplay.com/


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value-added analysis or help in the decision-making arena. The future clearly

holds immense opportunities for those who try to invent the wheel in a new way!

4. Success Factors

The key success factors are those elements that are necessary in order succeed

in a changed market field. Coaches, who are interested in utilizing new

technologies and firm believers of creating passive income models, should

consider the following factors:

Adaptability: just because Coaching has been done in a certain way does

not mean it will have to stay this way forever. Telephone and VOIP enabled

Coaching people on the side of the planet. New systems will enable new forms of

Coaching.

Visionary thinking: if you could think boldly how would your

Coach/Coaching-tool-in-the-pocket look like? What features does it need to hold?

What sets it apart from the competitors?

Courage: if one does not come equipped with a degree in IT the task of

creating a Coaching Application can feel overwhelming and challenging. The

author noticed that many Coaching applications that are currently in the market

have been created by developers without any former Coaching Training or

certification. In order to protect the Coaching profession it would be wise if real

Coaches are giving their input on these developments and steering the project.

Trust in partnering: Who says one has to do it alone? Finding a suitable

partner and creating a lasting cooperation is a key success point in any venture.

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Besides a Coaching Partner one may find suitable developers and IT specialists

on platforms like www.elance.com

5. The other side

In the introduction the author questioned if it is worth to join the hype. Well, as

much as there is an opportunity for new technologies to get developed and new

avenues for Coaching to be opened up. In the same way there will be - perhaps a

smaller niche - opening up for Coaches, who are putting up little retreat islands to

escape all of the Technology craze. We are able to connect with more and more

people at the speed of light and yet what does it help if the answer to our very

own problems lie within us! Then it is better to unplug yourself and look inwards!

6. Final conclusion

After conducting many interviews with different market players, the author comes

to the conclusion that the current changes in the market field is not only an

addition to the current Distribution Channels as we have seen it in VOIP (i.e.

skype) for example. It furthermore challenges the future Coach to think about

his/her very own Business Strategy and what alliances it shall entail.

Even though current IT Coaching solutions, as well as AI systems are no substitute

for interactions with a real human, they do have the potential to improve our quality

of life. Especially in a time when proactivity and constant self-development are

becoming a precondition for being successful in life, virtual therapy and coaching

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http://www.elance.com/http://www.elance.com/


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can be expected to continue gaining popularity.8 The same message comes from

niggle Insider Lydia Kimmerling: Human touch can not be replaced9 and the

long-term plans for niggle is to incorporate a connection to a real Coach (i.e.

accessible via Coaching credits).

But regardless if a client is choosing technology or the conventional path of human

interaction there is no doubt that in both cases the success of reaching set goals

is determined by the client's level of commitment.

It is an interesting and exciting time to be part of and one should not miss the

opportunities that lie outside the box = thinking within the given circumstances.

A year from now you will wish you had started today. -Karen Lamb

8 Max Celko, 10th March 2012 - The Freud Apps: AI, Virtual Life Coaching, and the Future of



9 Skype Interview with Lydia Kimmerling on 23rd August 2012. Questionnaire see in the appendix.

10
http://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=allhttp://bigthink.com/hybrid-reality/the-freud-apps-ai-virtual-life-coaching-and-the-future-of-psychotherapy?page=all


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Appendices:

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Interview with Lydia Kimmerling at TNM CoachingGroup

How did you come up with the idea of creating 'niggle'?

Please describe in your own words how 'niggle' diers from other

market solutions?

Do you have any insights who are the current users of niggle?

(Demographics?)

What is your users' motivation to use 'niggle' instead of

contacting one of the many real Coaches out there?

Do you have people criticizing your App? If yes, what are their

arguments?

What plans do you have for the future of 'niggle'? An extension?

Other languages?

I highly appreciate your answers and I am sure it will greatly help me in

my research paper.

Thank you!

Anja Serfontein360analyse

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Skype: Here.for.u.

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