Case Study: GPS Industries driving new golf technology - February 2005  

S&T looks at the growing use of WiFi technology at golf courses in North America by profiling industry leader GPS Industries, whose investors include professional golfer Greg Norman.

Based in Vancouver, Canada, GPS Industries (GPSI) develops and markets Global Positioning System (GPS) and WiFi multimedia solutions to enable managers of golf facilities, resorts, sporting events, and residential communities worldwide to generate new revenue streams and improve operational efficiencies.
The company's patented Inforemer product line provides a complete GPS golf business solution, combining a backend management information system and revenue generating modules with mobile colour handheld or cart-mounted differential GPS units, seamlessly connected via a high-speed WiFi network. GPSI's board of directors includes professional golfer and businessman Greg Norman, who has invested $3m in the company.
"Over the last year or so, our business has evolved to take advantage of the wireless developments taking place in the industry and we have moved away from our original portfolio of solely GPS products and evolved into a total business solutions provider," says Blake Ponuick, vice president of sales and marketing at GPSI.
"WiFi was initially installed at golf clubs to allow communication backwards and forwards between players, club houses and the golf shops. However, this has become more sophisticated with real-time communications and the ability to track data. We have converted golf courses into hotspots that encourage new revenue streams. Every element at a golf course can be unwired from the shop to the staff's offices - tee time sheets can be downloaded rather than printed out for example."
The GPSI WiFi systems can be used to:
· monitor how fast carts are moving on a course in order to speed up play
· allow a golfer to measure precise distances of play
· display data and leader boards during tournaments
· allow golfers to go online while at a course
· display lunch menus and take orders
· study surveillance systems and
· create and enhance conference facilities.
In terms of business models, GPS Industries sells its solutions to golf courses and properties and then charges a monthly fee in some instances or takes a revenue share in others.

Revenue streams

"A large part of my role is attracting people to the WiFi services," says Ponuick, commenting on the challenges of marketing a new technology. "For a golf course, WiFi can be a loss leader or a value added feature and we are seeing lots of creative bundling of services with wireless options."
Golf courses globally are increasingly being utilised as locations for corporate retreats for example explains Ponuick. "A wireless meeting room can be created with a full range of audio-visual capacity - and even the coffee could be ordered wirelessly. Corporate facilities are an important revenue stream for golf courses at which wireless can play an important role."
WiFi can be used creatively to send out advertising and sponsorship messages to golfers when they are on a course, says Ponuick. "Advertising in the golf industry is usually restricted to what you see in a golf shop. But with the growth in new location-based interactive devices, you get the ability to utilise positional advertising and increase the exposure of a sponsor during corporate events."

Future opportunities

Ponuick expects business to grow further for GPSI during 2005. "In the US there are over 20m laptops with WiFi-embedded capabilities and wireless technology is becoming pretty much standard within communications," he says. "And of course the good thing about a mass market is that you'll start to see costs coming down."
GPSI focused initially on the golf market which is a significant one in terms of both the numbers playing the sport and also the high net worth demographics of participants globally. However, the company is ambitious and looking further afield. "Combining GPS and WiFi technologies for other sports and markets is an obvious one for us," says Ponuick. "Our systems can be utilised easily at other spectator-type sports such as NASCAR for example and we are currently exploring new opportunities and well as expanding into new markets."
GPS Industries has already acquired the patents for GPS systems throughout 13 different countries and has a wide network of distributors across the globe. "Europe is particularly big for us," says Ponuick, "as we are starting to see significant interest for our products from some major golf courses. Because we are relying on WiFi spectrum which has no cost involved, we are able to put in solutions where others can't afford to."

For further information on GPS Industries' products and services, visit www.gpsindustries.com

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