1 / 30

Philips - GSSI

Philips: Organizing Around Customer and Market Transforming an Hi-tech company into a Health and Wellbeing organization. Philips - GSSI. June 2011. Company story: Unlocking Philips’ full potential. Our journey. 2010: Organizing Around Customer and Market. How will we create our success?.

una
Download Presentation

Philips - GSSI

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Philips: Organizing Around Customer and MarketTransforming an Hi-tech company into a Health and Wellbeing organization Philips - GSSI June 2011

  2. Company story: Unlocking Philips’ full potential Our journey 2010: Organizing Around Customer and Market How will we create our success? We believe we can build a great promising future…. 2

  3. Let’s talk about our journey… 3

  4. A well-respected, blue-chipcompany for 120 years Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales over EUR 25.4 billion in 2010 (USD 33.8 billion) 33% of sales generated in emerging markets Globally recognized brand (world top 50)Our brand value doubled to $8.7bln since 2004 119,000 employees Sales and service outlets in over 100 countries €1.6 billion investment in R&D, 6% of sales 50,000 patent rights – 36,000 registered trademarks – 63,000 design rights 4

  5. Our focus on improving people’s livesOur portfolio leverages critical global trends Aging population Increased consumer empowerment and sustainable lifestyles Climate change and sustainable development Rise of emerging markets 5 5

  6. Unique leadership positions in many marketsCurrent NPS leadership positions1 Healthcare Regional Cardio vascular Global Patient Monitoring Regional Cardiac resuscitation Regional Radiation Oncology Systems Global Ultrasound Regional Home Healthcare Consumer Lifestyle Regional Male electric shaving & grooming Global Mother and Child Care Regional Power Toothbrushes Global Female depilation Global Steam irons Regional Blenders Global Juicers Lighting Regional Automotive Lighting Global Professional Luminaires Global Lamps Global High Power LEDs Global Lighting Electronics Regional Consumer Luminaires 1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally 6 1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally

  7. The world’s 42nd most valuable brand in 2010Brand value doubled since 2004 Value of the Philips brand* USD billions • A strong brand drives salesA significant amount of sales is attributable to the brand alone: • Healthcare 29% • Consumer Lifestyle 24% • Lighting 21% High brand value growth With 7% in 2010, Philips outpacing the average value increase of 4% shown by other brands Strong internal brand82% of employees are “proud to work for Philips” Brand campaign 2010 Developing thought leadership in health and well-being and making our trusted brand promise of ‘sense and simplicity’ meaningful in this area 7 * Source: Interbrand Brand Valuation 2010

  8. Philips defined: we are… “…a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being.” Health and well-being A commitment to healthy, fulfilled lives in our communities and societies our world Meaningful innovations Improving people’s lives Going beyond technology Introduced at the right time 8

  9. Creating meaningful innovationsImproving lives in new ways Gain deep insights into people’s needs and aspirationsby following a process requiring end-user input at every stage Transform insights into innovationsby combining the diverse perspectives of different disciplines “Learn fast, fail cheap” by applying a rigorous process to assess value potential early Lead in open innovationby working closely together with partners in a spirit of open innovation 9

  10. 2010: Organizing Around Customer and Market 10

  11. OACM business contextAfter ~ two years of “crisis” growth and leadership is back on the agenda Dubai Summit 2007 Summit October 2009 “Levers for Growth”* “Cost Agility & Execution” Vision 2010 bottom line Vision 2010 top-line Summit September 2008 Summit February 2010 “Cash is King” “Driving growth” *Levers addressed include granularity of growth; superior customer experience (NPS); innovation to win; and leading to win 11

  12. Introducing the 4 Es modelWe identified 4 key enablers that should capture link existing Sector programs and global program management Enable (IT) Engage (EES) • High performing companies always show an high level of engagement (commitment) of their sales force • Sales people are the real ambassador of the company in front of the outside world • Integral profitability reporting • B2B Online • One CRM • Pricing • BMCs • Local programs within the Sectors to increase Market centricity • DELIGHT! • RnB • OACM/District Model • Commercial Competences, assessment and training • Talent Management (acquisition, reviewing and retention) • Career Path Empower (Organization) Enhance (Capabilities /NPS) 12

  13. Enhance: Commercial CapabilitiesCompetences stock taken and reinforcing partnership M&S in Commercial Organization • Increase customer centricity by empowering local markets and customer facing staff Reinforcing Partnership Marketing and Sales in “Downstream Organization”, from Commonalities of Competences to Commonalities on Business Impact. • Building Talent Management around Commercial Organizations • Basic Competences Toolkit for ‘Downstream Organization’: One Commercial Competency Framework • Empower country organizations in change management projects: Alignment Sectors and Countries • Drive competency building for different channels/way to market: Competency for future success • Continuously assessing and training Sales Force: 360 On Line Development Survey for Sales force ww - Review the Sales/IKAM Curriculum • Setting high standard of recruiting: Talent Staffing 13

  14. Enable: Value Space and Sales enablersThe Customer Excellence Value Space focuses on enabling the sales force with relevant tools and processes Category Management analytics Chat for Consumer Care Great feedback on the application from the CatMan global forum in Prague, October Enable chat as a channel to communicate with consumer on their pre and post purchase needs. +50% consumer NPS increase versus Calls with the call centers. -50% cost of chat versus calls of the call centers. (18 million touch points a year) 5 high- and 23 low level processes signed of by LI and CL Focus area Strong focus on key programs • Management Agenda • Philips OACM One CRM, Pricing, VIPP • Philips Growth China • VS CE Focus InStore (POS) Excellence, B2C Online, OneMobile • Customer Excellence flagship projects: • OneCRM – Pricing - Instore (POS) Excellence (CL) - OneMobile (HC) • Focus programs in other Value Spaces: • VIPP in Information excellence • B2B Online in Marketing Excellence Example enablers 14

  15. What will define our success? 15

  16. We risk to lose our relevance As we grew scale and efficiency increasingly became competitive drivers… We centralized decision making, drove uniformity in products and systems and so were able to tightly manage our costs... Now we’ve lost some of our agility, speed of decision making and adaptability to local needs. Competition is growing faster, and our market share loss across many businesses confirms the immediate urgency to act...

  17. We must accelerate to seize our opportunity Our future success depends on our ability to understand and anticipate customer requirements and act on these quickly… Recognizing local and global trends - aging population, urbanization and sustainability… We must team up to excel by using our global power combined with strong entrepreneurship in our Markets.... to act quicker, drive local innovation and accelerate growth… 17 17

  18. A commercial shift in summary 5 shifts Changes and benefits Aligning Market Clusters Define 17 market clusters lead by teams with the same geographical scope. Will enable gaining traction in the market place 1 Strengthening Market Teams Fully dedicated Market leaders and Sector Market leaders in 10 out of those 17 markets. Will increase capacity, focus and dedication 2 Enabling decision Making Closer To The Customer The BMC handshake and the collaborative P&L enable people to team up to excel, taking ownership and win in the market place 3 Resourcing to meet Our Growth Ambitions The business priorities in Markets will be underpinned and properly resourced to win for short and long term growth goals 4 Support for Local Business Opportunities Investments will be made in improving BMC performance as well as business development and new business creation 5 18

  19. Our new mindsets and behaviors Mindsets and behaviors What they concretely mean for Customer Centricity Eager to win 1 • 9/28/2014 • Identify growth opportunities on top of BMC plans • 9/28/2014 • Building required local capabilities • Take an outside in perspective, serve our customers • Adapt to the diversity of Businesses and Markets • Ensure speed of action, outpace competition • Resource to win for long term leadership Take ownership 2 • 9/28/2014, e.g. local teams have local room to act • 9/28/2014, remove roadblocks that stop us from winning • Take courageous decisions • Empower and hold each other accountable to deliver • Execute rigorously, see things through • Focus on results over activity Team up to excel 3 • 9/28/2014 between businesses and markets, e.g. co-create the strategic plan and co-ownership for the P&L • Identify opportunities for cooperation or synergies • Have open and tough dialogues, productive conclusions • Collaborate, leverage each other • Celebrate success • Learn, improve, develop ver 4 June 2011

  20. We believe we can build a great promising future…. 20

  21. Philips investment propositionVision 2015 “Philips’ strategy is to become the leading company in health and well-being. We believe that a steadily growing demand for healthcare, a healthy lifestyle and energy-efficient lighting solutions will – driven by an aging population, increased environmental awareness and expanding emerging markets – allow Philips to generate double-digit EBITA margins.” • Main financial objectives: • Comparable sales growth on annual average basis equal to real GDP + a minimum of 2% • Reported EBITA margin between 10% and 13% of sales of which: Healthcare 16-18% Consumer Lifestyle 9-11% Lighting 12-14% • Grow EPS at double the rate of comparable annual sales growth • Generate a return on invested capital of at least 4% above Weighted Average Cost of Capital 21

  22. Sustainability as a driver for growth Health and well-being solutions that make a difference Philips SimplyHealthy@Schools SimplyHealthy@Schools program reaches children across new borders, teaching them about healthy lifestyles • Our commitment • One of the strategic drivers behind our targets is a commitment to sustainability • Success of EcoVision4 program: Our Green Product sales represented around 30% of sales in 2009, 3 years ahead of our 2012 target EcoVision5 program Targets for the period 2010 – 2015 • Bringing care to more than 500 million people • Improving the energy efficiency of Philips overall portfolio by 50% • Doubling the global collection and recycling amounts of our products, as well as double the amount of recycled materials in our products 22 22

  23. Livable cities: Improving health and well-being in the urban environment Rapid urbanization More than half the world’s population already lives in cities and urban areas – this is predicted to rise to almost 70% by 2050 New social, economic and environmental challenges Safety and security, overcrowding. Pressure on resources, clean air and water, energy and waste management. Public health, longer life expectancy, anxiety levels. A sense of physical, economic and social well-being.

  24. Livable cities How can we make a difference for the people who inhabit, work in and visit them? As a leading global company in health and well-being, Philips is helping define and shape the dialogue on livable cities.

  25. Listening - Recent initiativesMaking sense of what people need ThePhilips Center for Health and Well-being has successfully identified obstacles to improving people’s health and well-being (e.g. insufficient access to healthcare and a need to feel safer and more secure) and is instrumental in suggesting solutions to overcome them. . Philips and the Financial Times organized the Urban Regeneration Conference which brought together senior figures from across the UK to discuss strategies for enhancing economic vitality of the country’s urban centers. Philips’ Index for Health and Well-being is a worldwide survey for determining how people feel about their living environment. For example, a recent poll we conducted in America identified safety/crime rate, local hospitals and access to healthcare facilities as the main areas of concern among citizens. ‘Keeping Cities Livable’ a consultation event we organized in 2009, brought various independent experts, global agenda-setters and opinion leaders together. Key outcomes included the need to focus on social cohesion, leading a healthy urban lifestyle, security and the city as a brand. With a good night’s rest being a major issue for countless city dwellers, we commissioned several surveys on sleeping in various countries world-wide in 2009. In India, 93% of people surveyed across 25 different cities fell into the category ‘sleep deprived’! 25

  26. Facilitating - Recent initiativesEncouraging and connecting stakeholders At the UN Climate Change Conference in Copenhagen we showed world leaders how innovation in lighting can significantly improve a city’s energy efficiency. The Livable Cities Award is a new Philips initiative designed to generate practical, achievable ideas for improving the health and well-being of people living in cities. The 3 categories cover well-being outdoors, independent living and healthy lifestyle at work and home. Our partnership with the World Green Building Council includes the ambition to improve the energy efficiency of cities by 40% over the next decade. The Philips Center for Health and Well-beingfunctions as a think tank in whichkey stake-holders can come together, exchange views and inspire each other on how to make our cities more appealing and fulfilling places to be. We are a signatory of the World Business Council for Sustainable Development’s manifesto on energy efficiency in buildings. The city.people.light awards, organized jointly by Philips and the Lighting Urban Community International Association, highlight the contribution lighting can make to the well-being of those living in, working in or visiting a city. 26

  27. Creating - Recent initiatives Lighting solutions that make a difference We contribute to the sense of calm and connection with one’s surroundings in an urban environment through our solutions for city streets, homes, offices, shops, hospitals, hotels as well as the automotive and entertainment industries. In doing so we ‘simply enhance life with light’. Cities often want to reinforce and strengthen their identities by using our colorful LED lighting solutions, invigorating skylines and landmarks in a sustainable and easy-to-realize way. Our Light on Demand concept enables municipalities to save energy through outdoor lighting which provides bright, white LED light as pedestrians approach and then dims when they walk away. This leads to lower energy consumption and less light spill without sacrificing safety. Philips provides lamps for one in three outdoor light pointsacross the globe. We are currently working on series of multi-purpose intelligent solutions, for instance, street furniture. A luminaire, as well as providing light, could then also function as a sign, interface, landmark and bench. The first dedicated solar-powered LED floodlighting is ideal for environments with little or no access to mains electricity.It helps strengthen the local community by illuminating sports events, schools and night-time commerce. 27

  28. Living in a city should be an opportunity to thrive, not a burden Livable Cities is an achievable vision As long as the citizen is empowered to participate in the dialog and there is sufficient cooperation between city dwellers and the public and private sectors. Joint ownership Livable Cities is not an ‘ownable’ space but rather a shared, public forum which encompasses and engages every layer of society. Pragmatic innovation Solutions firmly grounded in practical applications – already available today – will help secure the long-term future of our cities and their citizens. Our role In addition to developing relevant solutions, we are also facilitating dialogue, encouraging partnerships and sharing key insights among stakeholders.

  29. Vision 2015Our ambition Philips wants to be a global leader in health and well-being, becoming the preferred brand in the majority of our chosen markets. We believe Philips is uniquely positioned for growth through its ability to simply make a difference to people’s lives with meaningful, sustainable innovations.

More Related