Philips was founded in 1891 and has transformed from primarily producing light bulbs and electronics to focusing on healthcare. Some key events include: - Starting a physics lab in 1914 and introducing medical X-rays in 1918. - Producing the first television in 1938 and introducing the compact audio cassette in 1963. - Partnering with Sony to launch the compact disc in 1982 and DVD in 1997. - Spinning off its semiconductor business in 2006 and acquiring healthcare companies from 2015-2016. - Transforming to focus on digital healthcare, partnerships, and innovation under its current CEO from 2012 onward.

1. Corporate Entrepreneurship and
Corporate Venturing Activities in
Philips
Ang Wee Sin
Fu Bonny
Lan Chaofan
Lu Yuhuan
Tan Chik Ying
A0147155E
A0147744X
A0152696U
A0152376A
A0147797H
Group 6:

2. Frederik Philips
purchased a factory
in Eindhoven to make
carbon-filament
lamps
•1891
Dr. Gilles
Holst was
hired to
start a
physics
laboratory
known as
Nat Lab.
•1914
Philips
introduced
medical X-ray
tube
•1918
Philips began
producing
radio
•1927
Started
production of
medical X-ray
equipment in
the United
States
•1933
Showcased
first
television at
the Annual
Fair in
Utrecht
•1938
Introduction of
the Philips
Synchrocyclotr
on, enabling
research into
the treatment
of malignant
tumors
•1949
Introduced
the Compact
Audio
Cassette
•1963
I Heritage of Philips I

3. Invention of optical
telecommunication
systems, the LaserVision
optical disc, and the
highly successful
Compact Disc
•1970s
Launch of the
Compact Disc –
developed
together with
Sony
•1982/83
Philips
partnered with
Sony to launch
the DVD
•1997
Philips
introduced
Ambient
Experience
•2002
Semi-conductors
business was spin off
First commercial
launch of a 3D
scanner, providing
unprecedented image
quality for CT scans
•2006
Introduced the
AlluraClarity
interventional
X-ray system
•2012
Acquisition of
Volcano,
PathXL and
Wellcentive
•2015/2016
I Heritage of Philips I

4. “We have transformed
Philips into a focused leader
in health technology,
delivering innovation to help
people manage their health
and to support care
providers in delivering care
effectively.”
Frans van Houten, CEO Philips

5. I Philips’ Transformation I
High Volume
Electronics
Medical Healthcare
Equipment Maker
Household
Product Maker
Digital Healthcare
Industry
Product Maker
Service ProviderProduct Maker
Product Designer
Product Designer
System Provider

6. I Philips’ Transformation I
1
2
3
Business
Management
Innovation
• Choose the core business areas
• Spinning off
• Focused on healthcare, lighting, and quality of life
• Become more customer-centric, more flexible and efficient company
• Focus on innovation, improve business & performance
• Introduced ‘Philips Operation System’ – Standardization
• 5 areas of focus: Customer-centric, Resource-winning, End-to-end, Operational model and cultural reform
• Change in marketization and localization
• From technology-oriented innovation to market-oriented innovation
• Creating value for consumers
• Internal digitization

7. I Partnerships I
1. Accelerate change in an
era of value-driven care
- Quality
- Access
- Affordability
- Outcomes
2. Shared accountability
- Manage Complexity
- Reduce
- costs
- Mitigate risk
- Advance innovation
I Mergers and Acquisitions I
1. Acquire critical technology
in a shorter time
2. Achieve corporate growth
in the short period
3. Expand territory
4. Attract strategic investors
5. Increase corporate value

8. I Philips’ Partnership Framework I
a. Scope Management
b. Risk Mitigation
c. Length of Term
a. Dedicated Team
b. Integrated Governance
c. Shared Accountability
a. Products
b. Services
c. Technology
d. Manpower / Expertise /
Experience
a. Technology
b. Equipment
c. Service & Management

9. I Examples I
1. Healthcare analytics capabilities
2. Cloud-hosted platform with medical related
data
3. Wellcentive has served the industry for 11
years
4. Oversees care of more than 30 million
patients
1. Philips's IPO documents : Total volume of
lamp sales is expected to decline in the
coming years because LEDs last longer.
2. To slim down its operations and narrow
its focus to healthcare.
1. Able to compliment each other
2. Expanding their markets through introducing
customers to each company
3. Leverage each other's expertise and strength
4. Either increasing its share of the existing
market, or growing the market itself.

10. Management
Customer-Centric
Resource-
Winning
End-To-EndOperational
Model
Cultural
Reform
I Management transformation I
Customer-Centric:Top-down product
development strategy Market and
customer-led
End-To-End: Straight producing line
Synchronization
Resource-Winning: Resource dispersion
Integrate internal resources
Cultural Reform: Clumsy and restricted
Flexible and efficient
Operational Model：Layers of approval
Team fully authorized

11. 21 3 4
Technology-oriented innovation
to the market–oriented
innovation
Create value for consumers
Local innovation nurturing global
market began to become the
new common trend
Build into a digital company from
internal management
Open innovation
Philips worked with many
research institutions, universities
and industries to resolve market
challenges
I Innovation Transformation I

12. I Professional Product I
New "Philips Digital Health Platform” (HealthSuite)

13. I Consumer Product I

14. HEALTH WATCH DEVELOPMENT
– INTERVIEW WITH PHILIPS’ PROJECT MANGER
From Netherland to China
R&D in China, the team located
suppliers in China to produce
localized product.
From US to China
The Health Watch was seen as
medical device and received FDA
Approval
Wearable Device
2012
Wearable devices are under normal
consumer product department.
Health Watch
2015
Wearable devices are included in health
department.

15. I Health Watch  Big Data I
• Business Channel: B2B instead of B2C, e.g. Selling to Insurance Company
• Health Watch business is going to be saturated, time for BIG DATA!!!
• Combine other watch supplier and acquire databse companies  provide better data services

16. THANK YOU