Services and Solutions

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Greg SebaskyEVP and GM Customer Services

Services and solutions“Improving the Experience of the Patient and the People who care for them”

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• Supporting market share gains• Enhanced service delivery/NPS• Lifecycle socket protection/conversion

programs• Segmented service contract portfolio

Lifecycle Services Professional Services Expansion

• Healing environments• Clinical education/continuing education• Consulting • Managed equipment services

Reputation, relationships and preference

Customized service portfolio, Increased NPS and market share

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People focused

• Patient comfort• Improved workflow• Staff capabilities• Financial performance

Care cycle driven Care anywhereMeaningful innovation

• Healing environments• Utilization improvement• Clinical education• Customized contracts• Managed services

Strategy execution proof pointsPeople Focused. Healthcare Simplified.

• Ambient Design:- ED- Oncology- Cardiology

• Value product service contracts.

• Breast screening

Key strategies for improved customer experience

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• Hardware reliability & SW stability

• Fault tolerance and ‘safe modes”

• Product health monitoring• Plug & play field

Replaceable units • Reduced time for field

change orders

1. Dramatically improve product reliability & availability

2. Increase product monitoring & remote/on-site service capability

• Increase connectivity and reach-ability of equipment

• Implement machine alerting & proactive monitoring

• Improve product telemetry and diagnose-ability

• Implement advanced diagnostic tools and common platforms

Fast & RemoteService

High System Availability

• Mobility solutions for rapid access to Information, knowledge, & support

• Improved collaboration between engineers/clinical teams & business units

• Rapid issue escalation and feedback

3. Empower and enable our customer facing employees

4. Empower and enable our customers

• Clear customer relationship ownership and advocacy

• Service requests and support via chat, email, SMS, and VOIP

• Mobile enabled self-service portal for on-line information, updates, service histories

Customer Engagement

High EmployeeEngagement

Segmented service contract portfolioCustomer service agreement enhancement program

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• Fully based on segmentation of Customer needs

• New modular structure• Addressing new segments• Growth potential, higher contract

penetration in installed base• Better price realization

• Customer driven market research including conjoint (3000+ customers)

• Need based segmentation• Segment driven development of

portfolio

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Customer Needs

Personalized and Customized Support

Transforming Generic to Customized Support

2006 2010 2015

Key EmergingInternational MarketsNorth America

Global installed base expansionImaging systems

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IB CAGR2006 - 2010

IB CAGR 2010 - 2015

4%

Mid-Single digit

Installed Base (IB) Expansion largely in growth geographies. Mature geographies benefit from replacement demand with better “mix”

Installed Base Development (Units)

Key Growth Geographies1

North America

International

1 Key growth geographies: Greater China, Russia, Ukraine, Belarus, Latam, India

0% 20% 40% 60% 80%

Financial challenges

Healthcare reform 

Governmental mandates

Patient safety and quality

Physician‐hospital …

Care for the uninsured

Patient satisfaction

Personnel shortages

Technology

Capacity2010

2009

Customers increasingly buying professional services to improve healthcare delivery and fiscal viability

Source: American College of Healthcare Executives Source: UTD Consulting, Beijing

Philips professional servicesDiverse business and operational performance challenges globally

Research from ACHE2010 Executive Survey

Key Issues captured in market research conducted by Philips China

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Professional services support the operational performance goals of health care organizations

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Healing environments

€ 1.4B

Health care consulting

€ 2.3B

Education services

€ 2B

Managed equipment Services

€ 4BProviding technology

and maintenance outsourcing for better long-term managed

resources.

Supporting the development of health care staffs with onsite and online education

opportunities.

Helping to create an improved healing

environment for both patients and staff.

Collaborating with health care organizations to define and implement

sustainable improvements to realize their growth goals.

€ 10B addressable market for new servicesaddressing customers’ fundamental needs

Ambient healing environments

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• Patient receives positive distraction

• Reduced anxiety/stress• Improved customer

experience• Increased satisfaction

• Improved staff satisfaction and staff retention

• Increased throughput• Increased efficiency

• Improved clinical outcomes

• Improved quality of care• Improved patient safety• Reduced sedation

“Designing hospital care settings that help patients to recover more quickly and to feel better, by providing evidence-based physical and psychological means to staff, patients and loved ones.”

Patient EconomicsClinical

Ambient experience interactive tour

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Hospital Group in UK, € 170M, 2006-2021

Large hospital in Spain, € 23M, 2009-2019

Large hospital in Spain, € 28M, 2009-2019

Large hospital in Netherlands,€ 17M, 2007-2017

Large hospital in UK, € 42M, 2009-2034

Large hospital in Norway, € 27M, 2007

MediServ managed servicesA long term strategic partnership that can provide you with all your medical equipment at a fixed fee for a multi year term

Various hospitals, China, 2003-2012

MediQuip Turnkey servicesA partnership that takes you seamlessly from technology specification and procurement to implementation of a fully working solution

Large hospital in Netherlands, € 22M, 2009-2019

> 260 hospitals, Tanzania, Ghana, Zambia, > € 80M, 2000 - 2009

Hospital in Mexico, € 7M, 2009-2014

MediGo Pay-per-use servicesThe service that provides Philips medical technologies on a pay-per-use basis

Hospital in Brazil, € 7M, 2008-2013

Hospital in India, € 4M, 2009-2016

Hospital in Japan, € 3M, 2009-2016

Managed servicesExamples of how Philips adapts it business to solvecapital and technology needs of customers

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Key takeaways

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Leadership in service satisfaction• Increase first time fix and remote fix• High system availability• End-to-end enablement of employees• Enhanced transparency and customer engagement

Grow lifecycle services business• New segment based service portfolio based on

validated customer needs• Installed base, mix, price realization drive

consistent growth and margin expansion

New business models• Healing Environments: Ambient Experience• Specialized health care consulting practices• Clinical and continuing education services• Managed services