Philips 2005 Annual Report Download - page 15

Philips Annual Report 2005 15
Our brand promise: “sense and simplicity”
In 2004 and 2005 we entered a key phase in our
transformation towards One Philips with the launch and
roll-out of our new brand positioning and our brand
promiseof“senseandsimplicity”.Wermlybelievethat
simplicity is the key to successful technology. We want to
offer our customers straightforward solutions that meet
their needs and wishes. Accordingly, we are committed
to designing our products, systems and services around
the people who will be using them. So, no matter how
advanced they are, they make sense and are simple to use.
But “sense and simplicity” is much more than simply an
advertisingcampaign–itdenesthecriteriaagainstwhich
we gauge everything we do and make. It also expresses how
we want to be perceived by all our stakeholders: open and
transparent, approachable, easy to do business with.
Our strategy
We see tremendous potential in both developed and
emerging markets and we believe continuous innovation is
the key to realizing this potential, helping us to transcend
the innovation-to-commoditization cycle and to achieve
sustainedprotability.
True innovation will, we expect, move us beyond incremental
improvement to create new product/service categories
thatredenethebordersofourindustryandgenerate
newgrowthandprotability.
Wehavedenedasix-pointstrategyforattainingourgoal:
•Increaseprotabilitythroughre-allocationofresources
towards opportunities offering more consistent and
higher returns;
• Leverage the Philips brand and our core competencies in
healthcare, lifestyle and technology to grow in selected
categories and geographies;
• Build partnerships with key customers and suppliers,
both in the business-to-business and business-to-
consumer areas;
• Continue to invest in maintaining world-class innovation
and leverage our strong intellectual property position;
• Strengthen our leadership competencies;
• Drive productivity through business transformation and
operational excellence.
Our competencies
Understanding our markets and the needs of our customers
is our starting point for innovation and entrepreneurship.
Reectingourcommitmentto“senseandsimplicity”,we
are continuing to enrich our design process by integrating
established design skills with input from other disciplines
such as the human sciences, technology and business, while
at the same time maintaining our investment in technology
leadership. And we are continuing to engage in partnerships
–inneweldsandinnewways,forexampleembedding
global key account management Philips-wide for greater
customer intimacy, and strengthening relationships
with suppliers.
It is our belief that socially and environmentally responsible
behaviorcontributestosustainedprotablegrowthand
value creation. Our company’s founders, Anton and
Gerard Philips, saw no difference between business and
sustainable business. Putting people at the center was
inherent to their way of working.
Only our people can realize our strategy, sustain and develop
our capabilities and ultimately deliver on our promises to
our external stakeholders. Accordingly, we are further
developing and leveraging our people competencies, e.g.
embedding diversity and inclusion in career development
programs. This is essential in order to secure the quality
of leadership required to take our company forward –
leaders who pursue market insight, establish innovative
strategies, inspire commitment, leverage capabilities,
champion people’s growth and drive relentlessly for results.
“Sense and simplicity” is our brand promise. We are committed
to designing our products, systems and services around the
people who will be using them. So, no matter how advanced
they are, they make sense and are simple to use.