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PHILIPS HEALTHCARE
Value Chain Model
HighHigh foreign investment with
extensive coordination of activities
Purest Global Strategy
PHILIPS HEALTHCARE
Country Centered Strategy
Export based strategy with decentralise marketing
Geo. Dispersed Geo. Concentrated
Coordination of Activities
Low
Configuration of Activities
Logistics
All the inbound and outbound logistics are outsourced to UPS.
On-site warehousing
Direct supply from manufacturing units.
Overview of Manufacturing
Manufacturing Plants
Strategic Acquisitions
Transnational Production Systems
Product-specialization in a Regional Market
Marketing Mix - Product
Diagnostic - ECG
Advanced Molecular Imaging X - Ray Patient Monitoring
Mother & Child CareUltrasound
Marketing Mix - Price
Standardized pricing
B2B Strategy
Competition influences Price
Marketing Mix - Place
Marketing Mix - Promotion
Traditional
Medical Congresses
Conferences
Exhibitions of non-profit organisations for better health such as HIMSS
Digital
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
McKinsey 7-S Framework
Shared Values
Structure
Style
Strategy
Skills
Staffs
System
Organisational Structure –Executive Committee
CEOFrans van Houten
Chief Strategy & Innovation OfficerJim Andrew
Chief Legal OfficerMarnix van Ginneken
Chief Human Resource OfficerDenise Haylor
Chief Market LeaderRonald de Jong
Chief Executive Officer Greater ChinaPatrick Kung
Chief Executive Officer Philips Consumer LifestylePieter Nota
Chief Executive Officer Philips LightingEric Rondolat
Chief Financial OfficerRon Wirahadiraksa
Chief Executive Officer Asean & PacificDamien Cummings
Chief Domestic AppliancesAndrea Ragneti
Human Resource
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2009 2010 2011 2012 2013 2014
Employee Engagement Index
Employee engagement is the key to Philips competitive advantage
Human Resource - Training
Human Resource –Global Talent Acquisition Strategy
• Philips employee referral
• Internal Hire
• Proactively source by recruiter
• Digital career channel
• Philips careers website
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.
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.
R&Ds Around The World
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
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
Financial Management
3rd Party Payments
3rd Party Receivables
Inter-company transfers
Liquidity Management
Procurement
Perform and Transfer
Competitive networks or supplier ‘Ecosystems’
Policies and Procedures
Supplier Sustainability & Environment