Philips 2012 Annual Report Download - page 80

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6 Sector performance 6.4 - 6.4
80 Annual Report 2012
6.4 Innovation, Group & Services
“Innovation is absolutely core to what Philips is, and the way it
ensures competitive edge and long-term value creation. We’re
all about creating value through innovation more quickly, and
making sure we earn that return on investment. In 2012 we
continued optimizing our innovation portfolio and improved
execution. At the same time, we are placing increasing emphasis
on initiatives designed to leverage our intellectual property
leadership.” Jim Andrew, Chief Innovation & Strategy Officer
Introduction
Innovation, Group & Services comprises the activities of
the Group headquarters, including Philips’ global
management and sustainability programs, country and
regional management costs, and costs of pension and
other postretirement benefit plans, as well as Group
Innovation and New Venture Integration. Additionally,
the global shared business services for purchasing, finance,
human resources, IT, real estate and supply are reported
in this sector.
Innovation, Group & Services plays an important role in
the Accelerate! program, notably by helping to improve
the end-to-end value chain. The end-to-end approach
consists of three core processes: Idea to Market, Market
to Order, and Order to Cash. Innovation, Group &
Services supports Idea to Market in five focal areas:
Speeding up time to market, Portfolio optimization,
Driving breakthrough innovation, Improving innovation
competences, and Restoring the image of Philips as an