group 9: philips

1. PHILIPS HEALTHCARE

2. Porter’s Value Chain Model

3. Logistics
 All the inbound and outbound logistics are outsourced to
UPS.
 On-site warehousing
 Direct supply from manufacturing units.

4. Overview of Manufacturing
Manufacturing Plants
Strategic Acquisitions

5. Transnational Production Systems
Transnational Vertical Integration
A very high percentage of components and products is
now purchased, rather than manufactured in-house.

6. Marketing Mix - Product
Imaging Systems Patient Monitoring
Informatics,
Solutions & Services Customer Services

7. Marketing Mix - Product
35%
6%
32%
27%
Total Sales as of 2014
Imaging Systems Informatics, Solutions & Services
Patient Monitoring Solutions Customer Services

8. Marketing Mix - Price
Pricing in terms of B2B.
• Who is the buyer?
• Competitors?
• Negotiation!
Different pricing strategy between different product lines.
• Important factors
• Technology and Innovation

9. Marketing Mix - Place

10. Marketing Mix - Promotion
Traditional
 Medical Congresses
 Conferences
 Exhibitions of non-profit organisations for better health
such as HIMSS
Digital

11. LEADERSHIP AND MANAGEMENT
“I want to enable our managers, local market teams and business
units to take charge and to do what is best for Philips. A timely
decision may be right or wrong; a decision that comes too late is
always wrong. By allowing our market teams to resource to win, we
can continue making successful investments. Innovation will remain
a cornerstone of our strategy. Investing in innovation is part of
investing in growth. But we must base our bets on a very profound
understanding of local markets and customers.”
-Frans van Houten, President and CEO Royal Philips

12. McKinsey 7-S Framework
Shared
Values
Structure
Style
Strategy
Skills
Staffs
System

13. Organisational Structure –
Executive Committee
CEO
Frans van Houten
Chief Strategy & Innovation Officer
Jim Andrew
Chief Legal Officer
Marnix van Ginneken
Chief Human Resource Officer
Denise Haylor
Chief Market Leader
Ronald de Jong
Chief Executive Officer Greater China
Patrick Kung
Chief Executive Officer Philips Consumer Lifestyle
Pieter Nota
Chief Executive Officer Philips Lighting
Eric Rondolat
Chief Financial Officer
Ron Wirahadiraksa
Chief Executive Officer Asean & Pacific
Damien Cummings
Chief Domestic Appliances
Andrea Ragneti

14. Human Resource
66
68
70
72
74
76
78
80
2009 2010 2011 2012 2013 2014
Employee Engagement Index
Employee engagement is the key to Philips competitive advantage

15. Human Resource - Training
Philips implement
• online training course
for employees for
General Business
Principles
• e-learning where
managers are invited
to host dialogue
sessions with their
teams

16. Human Resource –
Global Talent Acquisition Strategy
• Philips employee referral
• Internal Hire
• Proactively source by recruiter
• Digital career channel
• Philips careers website

17. Human Resource –
Philips University
• For Managers
• They implement one Central Management System to raise
the quality of standardisation and simplification for
managers of all levels.
• For Leaders
• In Leadership, academy delivers a simplified and
comprehensive system of leadership initiatives to create a
long term leadership pipeline at all levels and cross all
parts.

18. Technology - Innovation
 1st biphasic AED
 1st US airline save
 1st AED for children and infants
 1st AED designed specifically for home
 1st and only over the counter AED
 1st AED to implement a ‘Quick Shock’ algorithm. Our
AEDs are typically able to deliver a shock in less than 8
seconds after CPR.

19. Technology - Innovation
Philips builds relationships to improve innovation efficiency with
• Academic partners
• Industrial partners
around the world and they share the related financial exposure.
Open Innovation
• “Inside-out” innovation
o Make Philips’s skills and resources available to the outside world.
• “Outside-in” innovation
o Partnerships with organizations and governments (i.e. Salesforce.com)

20. R&Ds Around The World
Focus on research imaging product (i.e. X-ray)
Focus on research home healthcare products (i.e. sleep therapy systems) and early detection of disease (i.e. cardiology)
Focus on research clinical sites, provide clinical decision support and medical ultrasound
Research Centres
Aachen, Germany
Molecular Imaging
Systems
Personal Health
Solutions
X-Ray Imaging
Systems
Hamburg, Germany
Diagnostic imaging
systems
Image-guided
intervention and
therapy
Medical image
processing
Eindhoven,
Netherlands
Diagnostic imaging
Patient care
Home healthcare
Shanghai, China
Chronic disease
management
Imaging system
solutions
Home healthcare for
the Chinese market
Bangalore, India
Cardiology
Perinatal care
Women’s health
Cambridge, UK
Home healthcare for
the UK market
Briarcliff, NY, USA
Controls,
Communication, &
Healthcare
Informatics
Clinical Informatics,
Interventional, &
Translational
Solutions
Ultrasound,
Photonics, and
Bioinformatics

21. Financial Management
 3rd Party Payments
 3rd Party Receivables
 Inter-company transfers
 Liquidity Management

22. Procurement
 Perform and Transfer
 Competitive networks or supplier ‘Ecosystems’
 Policies and Procedures
 Supplier Sustainability & Environment