Is SRAM Tricking Us Into the Future? The Hammerhead Clue

I believe that SRAM is already laying the groundwork for their next big innovation, and it's hidden in plain sight. Ever since the release of the current generation of the Red groupset, SRAM has been including a Hammerhead bike computer if you buy the whole groupset. I thought this was interesting because most customers who are considering buying a Red-level groupset already have a computer. It felt to me like SRAM was willing to include it for free and make less margin in order to get more of these units out into the world. At this time, I thought it was an interesting move, but I excused it as not notable because the margin must be good at this level, so I didn't think too much about it. Fast forward to earlier this week, when SRAM released more components, some of which include the same computer, I started to think this may be more than what meets the eye.

Over the last few years, SRAM has been operating strategically, and in doing so, they have been able to bring some products to market that no other company can match. One of the best examples of this is how SRAM was able to convince the industry to adopt the UDH. Then, once there were enough frames being made with the UDH, SRAM dropped the Transmission drivetrain system that used the UDH platform to attach the derailleur to the bike in a way that is undeniably better and different than anything any other company can do. The way they tricked the industry into adoption first, then used this user base to bring a product to market was brilliant. This is what I think they are doing with the Hammerhead computer.

The next era for SRAM and the industry, I believe, is more integration between the electronics that we use for biking. SRAM has a large portfolio of brands, and we are already seeing lots of integration between these products. For example, you can control your RockShox suspension with your SRAM shifter buttons, and your tire pressure can be transmitted from your Zipp wheels to your bike computer. In this world of electronic integration, SRAM has lots of pieces of the puzzle, but what they don’t have is a popular computer or ride-tracking app to collect data and have developing control of. I'm not sure what exactly SRAM is planning, but what I am proposing is that the next strategic move involves using ride data that is collected by the Hammerhead computer.

There are a few directions that I see SRAM using a computer platform to create new products. Some are software products, and some are hardware products. On the software side, SRAM could use data that they collect in a few different ways. First off, they could create a mapping platform, but I think that would be aiming to create something more innovative and suited to their strengths. With this in mind, I think it is more likely that SRAM would attempt to build integrations with components. This could look like things such as auto-shifting if your cadence moves outside of a specific range, or even SRAM tracking suspension and shifting data that is tied to GPS data. Using this information, they could build all types of new products.

On the hardware side, I think that it would make sense for SRAM to pursue a computer that is integrated into a Zipp bar/stem combo. This would be on-trend for riders to continue to make their bike setups cleaner. The big picture would be that SRAM is giving away computers now to try to normalize their computer system before selling customers on a built-in version.

Data and an active user base enable lots of potential for new innovations. Similar to how I was totally surprised by how the Transmission system built on the UDH, I suspect that we will all be surprised to see how SRAM will build on the Hammerhead platform.