Philips 2014 Annual Report Download - page 12

Our strategic focus 4.1
12 Annual Report 2014
4.2 How we create value
Understanding and meeting people’s needs
At Philips, our starting point is always to understand the specic challenges local people face – whether they be a
hospital director, a city planner, a doctor, a real estate developer, a consumer, etc.
Having gained these deep insights, we then apply our outstanding innovation capabilities, strong brand, global footprint
and talented and engaged people – often in value-adding partnerships – to deliver solutions that meet these needs
and make the world healthier and more sustainable.
We measure the impact our solutions are having around the world with our independently veried Lives Improved model.
We take a two-dimensional approach – social and ecological – to improving people’s lives. Products and solutions that
directly support the curative (care) or preventive (well-being) side of people’s health, determine the contribution to the
social dimension. The contribution to the ecological dimension is determined by means of our Green Product portfolio,
such as our energy-ecient lighting.
Our business system
To ensure that success is repeatable, i.e. that we create value for our stakeholders time and time again and deliver on
our mission and vision, we have adopted the Philips Business System.
Having a single business system reduces complexity, increases speed and, crucially, allows us to spend more time with
customers and driving improvement across the company.
Our mission
To improve people’s lives through meaningful innovation
Our vision
At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the
lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together
we will deliver superior value for our customers and shareholders.
Mission
Vision
Guiding Statement
Philips CAPs
Our unique strengths
Philips
Group
Strategy
Where we
invest
Philips
Excellence
How we operate
Philips Path to Value
What we deliver
Group strategy
We manage our portfolio with clearly dened strategies
and allocate resources to maximize value creation.
CAPs
We strengthen and leverage our core Capabilities,
Assets and Positions as they create dierential value:
deep customer insight, technology innovation, our
brand, global footprint, and our people.
Excellence
We are a learning organization that applies common
operating principles and practices to deliver to our
customers with excellence.
Path to Value
We dene and execute business plans that deliver
sustainable results along a credible Path to Value.
The ‘Creating value for our stakeholders’ diagram,
based on the International Integrated Reporting
Council framework, shows how – with the Philips
Business System at the heart of our endeavors – we use
six dierent forms of capital to drive value in the short,
medium and long term.