Philips 2014 Annual Report Download - page 10

Our strategic focus 4
10 Annual Report 2014
4Our strategic focus
4.1 Addressing global challenges
For 124 years, Philips has been a leader in building and shaping markets with our
meaningful innovations. We have always been guided by our passion to improve
people’s lives – true to our vision of making the world healthier and more sustainable
through innovation.
In 2014 we announced the next phase of our Accelerate! transformation, moving from a
holding company structured around multiple divisions to two stand-alone operating
companies – in HealthTech and Lighting Solutions – with the ambition of capturing
growth and creating value, both leveraging the trusted Philips brand.
Market opportunities
With our understanding of many of the longer-term challenges our world faces, we see major opportunities to apply
our innovative competencies and create value for our stakeholders by delivering technology solutions that improve
people’s lives more eectively.
We see a growing need for integrated health care delivery
As the population gets older, with more chronic and lifestyle-related diseases, health care systems are struggling to
increase access and quality of care while managing spiraling costs. At the same time, people are increasingly looking
for new ways to proactively monitor and manage their health. This is driving the convergence of professional health care
and consumer end-markets across the health continuum.
With customers expressing a need for integrated solutions, Royal Philips’ businesses in HealthTech – with their combined
clinical and consumer capabilities and cloud-based digital health platform – are well positioned to capture growth in
an increasingly connected world, where people are wanting to live healthier lives and societies are looking for more
eective and lower-cost solutions along the health continuum. Their total addressable market is estimated at over EUR
100 billion.
Health continuum model
Healthy living Prevention Diagnosis Treatment Recovery Home care
Consumers
increasingly
engaged in their
health journey
Increased
emphasis on
population health
Ongoing focus on
total quality and
cost of care
Care shifting to
lower-cost settings
and homes