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Philips Global Introduction English
- 2. Building the leading company in health and well-being An introduction to Philips
- 3. “ A global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being ”
- 4. Health and well-being What do we mean by this? A commitment to: healthy, fulfilled lives our communities and societies our world
- 5. Meaningful innovations What do we mean by this? improving people’s lives going beyond technology introduced at the right time
- 6. The world needs meaningful innovations to respond to today’s dramatic global changes
- 7. Aging populations… Without changes to the healthcare system, 25% of the working population would be needed to provide today’s level of care by 2040* (*for a typical western healthcare system)
- 8. Globalization and the rise of emerging markets… Emerging markets already produce 28% of global GDP
- 9. Empowered consumers… Companies need to find new ways of gaining business
- 10. Climate change and sustainable development… Almost one-fifth of global electricity consumption is used for lighting
- 11. … an opportunity to work together to improve the quality of people’s lives and live our brand promise Energy efficiency Personalized experiences Personal well-being Homecare, independent living Better healthcare for all, at lower cost
- 12. “ sense and simplicity” What do we mean by this? advanced easy to use designed around you
- 13. Putting “sense and simplicity” into practice in health and well-being
- 15. “ From the onset of a heart attack to the start of treatment, speed is vital – every second counts” Paramedic
- 16. Cardiologist “ How can we shorten the ‘time to treatment’?”
- 17. Meaningful innovation “ It’s thanks to HeartStart that I’m still here. I feel I’ve been given a second chance to raise my kids” Most widely recognized and recommended cardiac emergency response device worldwide Part of a complete “discovery to treatment” solution Philips HeartStart MRx helps cut time to treatment by transmitting vital ECG data directly from the ambulance en route to the hospital.
- 19. “ I hate waking up on dark winter mornings: I feel tired, lethargic and a bit down” Common complaint
- 20. Common complaint “ Why can’t I always wake up like I do in summer?”
- 21. Experts “ It’s all to do with the intensity of light before we wake up”
- 22. Meaningful innovation By emitting light that simulates the rising sun in your bedroom, Philips’ wake-up light gently prepares your body to wake up. “ I immediately noticed a difference – it feels just like waking up naturally” 9 out of 10 consumers say it wakes them up pleasantly Sales exceeded expectations by 42% Customers’ No. 1 preferred product in its category
- 24. Office worker “ My office lighting is so harsh and cold. I wish I could change it…”
- 25. Researcher “ Light tone and intensity has profound effects on the energy levels of human-beings”
- 26. Building owner “ To attract and retain good tenants I need flexible, high-quality spaces”
- 27. Meaningful innovation Using the new possibilities offered by LED lighting, DayWave enables people to create an inspiring, enjoyable office environment by varying the color and intensity of lighting to suit their mood and activity. “ No other form could better express the flexibility of LED technology” - Architectenkrant, april 2008, issue 216 “ Enables an entirely new level of comfort for functional applications” - Electromagazine, May 2008
- 28. Philips the business
- 29. Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales over EUR 23 billion (USD 32 billion) 30% in emerging economies 116,000 employees Sales and service outlets in over 100 countries Globally recognized brand (world top 50) Our brand value almost doubled to $8.1bn since 2004 € 1.6 billion investment in R&D, 7% of sales 55,000 patent rights – 33,000 registered trademarks – 49,000 design rights A well-respected, blue-chip company for over 100 years
- 31. Healthcare Our health and well-being offer is powered by three sectors Consumer Lifestyle Lighting
- 32. Clinical care systems Global market leadership for automated external defibrillators Home healthcare solutions No.1 provider of personal emergency response services in the US Patient monitoring Leadership position offering significant reduction in mortality and length of stay in ICUs equipped with VISICU eICU Imaging systems Cardiovascular X-ray is no.1 in overall manufacturing satisfaction Customer services No.1 in service performance in patient monitoring systems and ultrasound The power of Healthcare Further strengthening our global leadership
- 33. The power of Consumer Lifestyle Focusing on differentiating leading businesses Mother and childcare Philips AVENT is market leader. Its feeding bottles have been clinically proven to reduce colic* *A t 2 weeks of age, babies fed with the AVENT bottle experienced less colic than babies fed with a conventional bottle Male electric shaving No.1, with every second shaver in the world being a Philips shaver Power toothbrushes Philips Sonicare is the no.1 recommended sonic toothbrush brand by dental professionals worldwide Domestic appliances Over one million ‘healthy living’ aluminum Juicers sold since launch TVs Philips invented the successful ambilight flat TV concept
- 34. Lamps Market leader: 1 out of every 4 lamps used worldwide is a Philips lamp Professional luminaires No.1 lighting 65% of world’s top airports and 30% of offices, hospitals and landmarks Consumer luminaires Market leader and front runner in driving the switch to energy efficient lighting LED applications Strong presence across the complete solid state lighting chain Automotive lighting Leads the market, with one-in-three cars worldwide using Philips automotive lighting The power of Lighting Further strengthening our global leadership
- 35. Healthcare Giving people the best healthcare possible
- 36. We’re dedicated to understanding the challenges people face – and helping them overcome them every day. We strive to improve the quality of people’s lives and continue raising the bar on clinical excellence at lower cost. Because healthcare simplified means improving healthcare for everyone. People focused. Healthcare simplified. Healthcare Giving people the best healthcare possible
- 37. Consumer Lifestyle Making a difference to the way people live their lives
- 38. Living well, looking good and feeling great Enhancing the home Sharing life's experiences with family and friends Enabling people to live healthier, more enjoyable and more rewarding lifestyles Consumer Lifestyle Making a difference to the way people live their lives
- 39. Lighting Simply enhancing life with light
- 40. Innovating new lighting solutions based on proven consumer insights. Global leader in sustainable lighting projects for cities, offices, workplaces and homes. New business areas (e.g. solid-state lighting) provide energy-efficient solutions that reduce lighting’s environmental impact. Lighting Simply enhancing life with light
- 41. Sustainability Innovation process What makes us different Driven by our brand promise “sense and simplicity” Philips people Customer relationships Leadership positions Emerging Markets
- 42. Gain deep insights into people’s needs and aspirations by following a process requiring end-user input at every stage Transform insights into innovations by combining the diverse perspectives of different disciplines “ Learn fast, fail cheap” by applying a rigorous process to assess value potential early Lead in open innovation by working closely together with partners in a spirit of open innovation Creating meaningful innovations Improving lives in new ways
- 47. We are leaders in many markets Examples of key leadership positions Male shaving #1 Global, Arcitec and Nivea for men Cardiovascular Market #1 Global, Cath Labs Professional Lighting #1 Global, City Beautification; sports lighting Care and Resuscitation #1 Global, AEDs (Automated External Defibrillators) Coffee makers #1 Western Europe, Senseo Consumer Lighting #1 Global, LED-based luminaires Patient Monitoring #1 Global, Critical Care Rechargeable toothbrushes #1 US # 2 Global, Flexcare Lamps #1 Global, Energy-efficient lighting Healthcare Consumer Lifestyle Lighting
Hinweis der Redaktion
- If I had to describe Philips in a single sentence, I would say it is “ a global company of leading businesses… … creating value with meaningful innovations that improve people’s health and well-being .” That’s a very general description, but in the next 30 minutes or so, I hope to give you a taste of what this means in practice.
- What do we actually mean by our scope of Health and Well-being ? We mean that we want to help people live a healthy, fulfilled life. But our focus extends beyond the individual : it reflects our commitment to the sustainability of our communities, our societies , our world.
- A key phrase in this description is “meaningful innovations” . What do we mean by that? We mean new ideas, new approaches, new solutions that make lives simpler , more enjoyable, more productive – in professional as well as personal environments. “ meaningful innovations” are ones which deliver on our brand promise of “sense and simplicity”. With meaningful innovation we also mean that they are driven by user needs, not by technology per se. Innovation can also be a new experience, a new design, a new business model. “ Meaningful” also means that innovations are well timed and introduced when they really make sense.
- We believe that these “meaningful innovations” are going to become increasingly important. They will help people meet the dramatic global challenges that we’re all going to be facing in the coming decades.
- Take for instance aging populations. It’s expected that within 40 years, one in every four people will be over 60; more us us are going to get ill: Without changes to the healthcare system, 25% of the working population would be needed to provide today’s level of care by 2040* (*for a typical western healthcare system) . The number of people aged over 60 will double from 500m today to 1 billion by 2015.
- At the same time, globalization and urbanization will continue to change the places and communities we live and work in. The world economic scene will also change, as the markets we currently describe as ‘emerging’ take on an even more central role. They already produce 28% of global GDP (gross domestic product). 99% of future population growth will be in emerging markets Emerging economies are expected to account for 2/3 rd of global GDP by 2016
- And as companies – from all corners of the world – compete ever more strongly for business, consumers will become increasingly empowered . Consumers are also increasingly focused on their Health and Well-being and look for products that fit their lifestyle. They’ll be able to pick and choose. So companies – like Philips – will have to work even harder for their business. And the only way we’ll be able to do this successfully is to give customers and consumers exactly what they want and need .
- And then there’s climate change , of course. As we know, this is going to force us all to make changes if we’re to achieve sustainable development . But we are already taking advantage of the opportunities that are out there. For instance, almost one-fifth of global electricity consumption is used for commercial and domestic lighting. But did you know that , right now, we could almost cut this figure in half* simply by replacing existing lamps with energy-saving ones – and we’d be improving the quality of the light, too! (*actual figure: 12%). 19% of global electricity consumption is used for lighting; Energy efficient lighting can save 40%...or 600 power stations worth of energy
- The challenges we are facing are tough, but we see such challenges as an opportunity – an opportunity to work together with others to improve the quality of people’s lives. We are already delivering on our brand promise of “sense and simplicity” in a range of areas covering professional, environmental – as well as personal – realms: - Energy efficiency - Personalized experiences - Personal well-being - Home care, independent living - and better healthcare for all – at lower cost
- Let’s pause just a moment on our brand promise. We’ve mentioned it several times, but it really does drive what we do. Our brand promise of “sense and simplicity” is a promise we make to all our stakeholders. It encapsulates our commitment to deliver solutions that are advanced easy to use and designed around the needs of all our users.
- OK, you say, that’s good fighting talk. But actions speak louder than words. Show us what you’ve been doing so far. Show us how you’ve been putting this into practice . I want to show you now 3 examples of how our brand promise drives our activities . What these examples all have in common is that they’re based on what people told us . To find out what was “meaningful” to them, we listened carefully to their concerns, their wishes, their aspirations. And then we developed something that would give them what they wanted – in a way that was easy for them . In other words, we took our brand promise – “sense and simplicity” – seriously.
- Has anyone in your family ever died of a heart attack or stroke? It wouldn’t be surprising, because it’s the No. 1 cause of death in the world, for both men and women. And the best way of surviving an attack is to get treatment as fast as possible.
- From the onset of a heart attack to the start of treatment, speed is vital – every second counts. Many older people have told us that they’re worried that if their partner were to have a heart attack, they might die just because they didn’t get treatment in time.
- And cardiologists and neurologists have told us that one of their main professional goals is to shorten the time between when a heart attack or stroke occurs and the moment they can start treatment .
- Insights like these led us to look at the whole emergency care cycle for cardiac patients from a new angle, looking not so much at how fast we can get the patient to hospital, but how fast we can, in effect, get the hospital to the patient . What doctors need first is information about the patient’s condition. So we came up with a highly portable defibrillator – HeartStart MRx . It cuts down time-to-treatment by transmitting vital ECG data directly from the ambulance en route to the hospital. Today, HeartStart is the most widely recognized and recommended cardiac emergency response device in the world, and has helped make us the global No. 1 in patient monitoring. In the meantime, we’ve made HeartStart part of a total “discovery to treatment” solution.
- …… .On a more everyday level, we’ve also been listening to people talk about a more common problem. ……… I wonder how many of you just “love” it when the alarm clock goes off on a cold, dark winter morning… Well, I can tell you, a lot of people told us they hate it!
- They feel tired, lethargic and even a bit down …
- … so different from summer, when they wake up easily and with lots of energy.
- Clinicians have told us that there’s actually a scientific basis for that summertime feeling. It’s all to do with the intensity of the light in the room before we wake up. Gradually increasing the level of light just 30 minutes before you wake up boosts energy levels and makes people more alert.
- Well, we thought, that’s worth knowing! And armed with that information, we set ourselves the task of creating a light that gradually gets brighter – just like the rising sun. The result was the Wake-Up Light. This emits light in a way that simulates the rising sun in your bedroom , and gently prepares your body to wake up. <CLICK TO FADE IMAGE TO DAY> It’s been a big success: 9 out of 10 people who have one say it wakes them up pleasantly, and sales have exceeded expectations by 42%. It’s also customers’ No. 1 preferred product in its category.
- Our third example looks at how millions of people around the world spend most of their daylight hours working in offices lit by artificial light .
- If you ask them, many have told us they feel that their office lighting is harsh and cold. They’d love to be able to change it, depending on the light conditions outside and what they’re doing – - focused light for reading documents or for detailed manual work, - or subdued lighting , for working at a computer screen – or just relaxing.
- Our researchers told us the way natural light varies in intensity and color during the day affects how people feel, and can have a positive effect on mood.
- And we also talked to owners of office buildings. They told us that to attract and retain good tenants, they need office spaces to be flexible and of high quality.
- Taking all this on board, we looked at how we could create a more natural working environment, one in which the light can be infinitely varied. The result was DayWave. This office lighting system uses the new possibilities offered by LED lighting: it enables you to create an inspiring, enjoyable office environment – easily – just by varying the color and intensity of the lighting to suit your how you feel or what you are doing. DayWave is still very new, but it’s already turning out to be very successful. It’s really popular with office staff, and it’s been acclaimed in the professional media for its innovative use of LED technology and its unique design.
- I hope I’ve now given you a good idea of what we do, why we do it, and how we do it. As I’ve mentioned earlier, we focus on Health and Well-being. But we’re also very clearly in business to create value for our shareholders.
- Let’s now look at how our health and well-being offer is powered by our three sectors: Healthcare, Consumer Lifestyle, Lighting
- In Healthcare , for instance, we’ve further strengthening our leadership positions in a number of key areas across the care cycle – essentially, from prevention to cure (or long-term disease management) you’ll find a leading Philips solution. We are the global market leader in automated external defibrillators . We talked earlier about aging populations: well, in the US, under the name Lifeline, we’re the No. 1 provider of personal emergency response services , especially for older people. We’re also a leader in patient monitoring in intensive care units . Our VISICU eICU solution provides a sort of air-traffic-control service to guide hospital staff at a distance – ideal when there are too few staff. This not only significantly cuts patient mortality rates in Intensive Care, it also substantially reduces costly stays in intensive care units. Our cardiovascular X-ray solutions are ranked No. 1 in overall manufacturing satisfaction, and we’re also number one in service performance for patient monitoring systems and ultrasound.
- Moving from life saving to life enhancing, our Consumer Lifestyle sector has also produced some top innovations over the past few years, as is continues its focus on differentiating profitable businesses. In our Philips Avent Mother and Childcare business, for instance, we’ve developed the only feeding bottle to be clinically proven to reduce colic . (*A t 2 weeks of age, babies fed with the AVENT bottle experienced less colic than babies fed with a conventional bottle We continue to be the world leader in electric shaving , and have sold more than half a billion electric shavers so far – making every 2nd shaver a Philips shaver! Our Sonicare toothbrush has been impressing consumers worldwide. Today, it’s the No. 1 power toothbrush recommended by dentists. We are also market leader in kitchen appliances – take our ‘healthy living’ aluminum Juicer, more than one million have been sold since its launch!
- Finally, we have some equally impressive statistics in our Lighting sector. Did you know, for example, that: 1 in every 4 lamps worldwide is a Philips lamp? 65% of the world’s top airports and 30% of offices, hospitals and landmarks are lit by Philips? Our energy-saving lamps use 80% less energy – and last longer than ordinary lamps? Philips Lumiled Lighting is the world leader in high-power LEDs? And you probably don’t know it, but a third of you sitting in this room are likely to have Philips lamps in your car headlights. All these business sectors are No.1 in their markets! What’s more , 31% of Philips Lighting’s sales come from emerging markets. We’re No. 1 in lighting in China. We’re extending our distribution network there by adding 35 outlets a day!
- I’d now like to take a closer look at today’s innovations. We aim to give people the best healthcare possible . That means we put people – the patient and the healthcare professional – at the center of things.
- Of course, healthcare is a big field, and we obviously can’t do everything. So we concentrate on combating some of today’s most deadly and debilitating diseases, especially in the fields of cardiology , oncology , critical care and women’s healthcare . “ People focused. Healthcare simplified.” Our approach, you will remember, is to try to simplify things for our customers in hospitals and clinics, as well as their patients: We are dedicated to understanding their challenges, and helping them overcome them. At the same time, we know that healthcare professionals are always aiming to raise the bar on clinical excellence, while not raising – and in fact preferably lowering – the cost ! “ Healthcare simplified” means better healthcare for everyone .
- Let’s now take a look at our latest work from Consumer Lifestyle . First of all, though, what do we mean by ‘Lifestyle’?
- Well, to us lifestyle is about making a difference to the way people live their lives . It’s about living well, looking good and feeling great. It’s about enhancing the home, and sharing life's experiences with family and friends. And it's about enabling people to live healthier, more enjoyable and more rewarding lifestyles.
- Light and lighting is extremely important to the quality of people’s lives . It determines our mood , it extends our vision – so that we can do things at times and in places that were once impossible – and it’s important to our safety . But it also requires energy – energy that we need to conserve as much as possible.
- We are innovating in new lighting solutions that are based on proven consumer insights. At the same time, we’re continuously looking for advanced solutions that have minimal environmental cost, making us the global leader in sustainable lighting projects for cities, offices, workplaces and homes. New solid-state lighting technologies are key to this.
- You’ve seen now something of what we do at Philips. But how do we do what we do? To answer that question, let me take you behind the scenes … ...I’d say it lies in three things, all of which are driven by our brand promise . First, our repeatable, rigorous process to create meaningful innovations Second, our relationships with our customers , which leads to customer loyalty , a key factor in promoting growth and profitability And third, the quality of our people – our highly engaged team.
- We have established an innovation process which enables us to create meaningful innovation, time after time. We do this by gaining deep insights into people’s needs and aspirations; end-user input is required at every stage of the process. Our marketers, designers and R&D scientists then work together, sometimes with external specialists, to transform these insights into meaningful innovations - so that we can enrich lives in new ways. The process has rigorous steps to assess value potential and enable early decision making - “Learn fast, fail cheap” - Over 30% of our solutions taken forward to the market are in the top 20% of industry benchmarks. And by working closely together with partners, we can lead in a spirit of open innovation. All this means that our meaningful innovations are not just plucked from the air; they’re not the product of an individual mind. They’re the product of teamwork and a well-defined creative process. That means they’re not one-off events , lucky hits. On the contrary: they can be generated one after the other , in a continuous stream – and you have seen examples of this today.
- Customer loyalty is fundamental to growth and profitability. To win the trust of our customers and partners we follow processes to understand and anticipate their needs To monitor our effectiveness we use a simple and highly effective method, the Net Promoter Score , to measure our success in building strong, customer-centric relationships . Essentially, this involves asking customers one simple question: “How likely is it you would you recommend this company/product to a friend or colleague?” You can follow this up with further questions or contact, which in turn can lead to key customer insights that will help us guide our business better and improve our relationships with our customers. The end result, if we do it right, is that we win promoters for our company and our brand .
- At Philips we view leadership as a catalyst to achieve business ambitions to drive organizational capabilities and to drive engagement It is therefore key that we have our strong leadership team – it is formed by diverse top-60 leaders. They focus on managing the current economic downturn while building the business for future wins. We also believe living our Company values is key to helping accelerate Philips’ growth journey and to this effect we are judged by how we achieve, as well as what we achieve. It is proven that an engaged workforce is a competitive advantage. We are currently successfully working towards high performance norms in our measurements of employee engagement this year. And, by nurturing all talent in line with our strategies, we optimize individual performance, and offer fast-track, stretch opportunities for top talent as we prepare our leaders of tomorrow.
- Thank-you for spending your time listening today.