philips analysis on innovation

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Omar Andazola Savanna Werner Amanda Kruger Jordan Sparks

LOCATED IN NETHERLANDS

• Capital: Amsterdam

• Currency: Dutch Guilder (Euro)

• Population: 16.8 million (2016)

• Official language: Dutch

• GDP: $752.55 Billion

• GDP Per Capita: 50,793

• Stock price: PHG (NYSE)

• $28.94 -0.17 (-0.58%)

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NETHERLANDS FACTS

Largest City Main Exports Main Imports

Amsterdam779,808

Exports $525 billion (2014 est.)Export goods machinery and equipment,

chemicals, fuels; foodstuffsImports $552 billion

Import goods: Crude petroleum, cars, andcomputers, packaged medicine

How Netherlands Innovates

The Netherlands ranks among the top countries on the OECD Easeof Entrepreneurship Index

The Dutch government is recognising the value of social innovationon a national policy level in the ‘Top Sectors’, there's a Dutch policyto support cooperation and business between industries, science

and government.

How Netherlands Innovates

Successful long term socioeconomic Strong human resource baseCreation and growth of new development New approaches and practices in innovation procurement Strong evaluation cultureFailure to diversify into sectors of growing global importance Use of public funding

Philips Vision

“At Philips, we strive to make the

world healthier and more

sustainable through innovation. Our

goal is to improve the lives of 3

billion people a year by 2025. We

will be the best place to work for

people who share our passion.

Together we will deliver superior

value for our customers and

shareholders.”

PHILIPS HISTORY

Establishment

1891 1920 1927

Philips mass producedconsumer goods anddiversified its product

range

Idea for an electricshaver

PHILIPS HISTORY

1950 2001

1st large screenprojection TV

2001 Philips launched aprogram called “Towards

One Philips”

32,256 LED Philips light bulbs featured onthe New Years ball drop

in Time's Square

2009

About Philips

Engineering and Electronics Company

Operative in more than 60 countries

3 Main Divisions

Philips Consumer Lifestyle Philips Healthcare Philips Lighting

About Philips

Number 1 in lamps Number 1 in electric shavers Leader in flat screen TV's

Leading Innovator in all three product lines

Phillips Products

Sales Performance

Total Sales(Millions)

Green Products(Millions)

2014

2014

2015

2015

Sales: 27,039.33Sales Growth: 2%Net Income: 734.98

Sales: 23,857.38Sales Growth: (1)%Net Income: 458.39

Sales: 12,340.79Sales Growth: (1.7)%

Sales: 14,514.51Sales Growth: (2)%

International Presence

Personal HealthDefinite Diagnosis Minimally Invasive Guided TherapyPopulated Health ManagementConnected Care

5 Priorities

Sales(Millions) EMEA - 8,865.60ASIA -7,797.00

NORTH AMERICA -9,029.57LATIN AMERICA -1,350.81

Innovation at Phillips

Innovation Products that MotivatePhilips Innovation Services

Get samples and prototypesOutsource part of development project

Incremental Innovation- Lighting Systems

Energy efficiencySustainabilityOperational cost reduction

Innovations that Characterize PhilipsPhilips Research

Introduces meaningful innovationsFinds technology options for healthand well-being innovations

Open innovation

Inside-outOutside-in

Technological Innovations

Philips Innovation Campus- Bangalore, India

Develops innovative products and solutions for PhilipsHealthcare devices, lighting solutions, digital innovationsDevelopment of global renewable energy solutions

Digital Innovation Team

Developing digitally connected products, services, andapps

Marketing Innovations

Focused on the customer

Integrated cross-channel digital marketing systemBehavioral targetingGlobal campaigns, local implementation

Positioning StrategyPhilips' new brand positioning is all about promising customers a more comfortable and more

straightforward relationship with technology and with Philips.

It believes that somewhere along the way the promise of the Technology Revolution to make our lives easier,simpler and better is not being delivered.

In many respects the technology industry has made things more complex. Philips is, therefore, offering asolution.

Research showed that people are asking for greater simplicity in their lives and in their dealings with technology. They wanttechnology that gets the job done without drawing attention to itself. Most users are put off by the need to read and

understand a complicated manual before they can try out their new purchase.

'Products are designed around you'. 'Products are easy to experience'. Products are advanced'.

Distribution

CEO: FRANS VAN HOUTEN

Communication

More Aboout Phillips

More About Phillips

Any Questions?