Philips 2014 Annual Report Download - page 46

Sector performance 6.1.2
46 Annual Report 2014
broad and deep clinical expertise and technology
leadership across the health continuum and
commitment to customer collaboration are core to our
business and truly dierentiate us.
Philips is one of the world’s leading health care
companies (based on sales) along with General Electric
and Siemens. The competitive landscape in the health
care industry is evolving with the emergence of a
considerable number of new market players. The
United States, our largest market, represented 40% of
Healthcare’s global sales in 2014, followed by China,
Japan and Germany. Growth geographies accounted
for 25% of Healthcare sales. Philips Healthcare has
approximately 37,000 employees worldwide.
In 2014, our Healthcare business was organized around
four strategic business groups, including the newly
formed Healthcare Informatics, Solutions & Services
group, which brings together key assets across
Healthcare to address opportunities arising from rapid
changes in the industry and the increasing importance
of technologies, such as mobile devices, the Cloud,
social media, Big Data and the Internet of Things. In
2014, these business groups were:
•Imaging Systems: Integrated clinical solutions that
include radiation oncology and portfolio
management; advanced diagnostic imaging,
including computed tomography (CT), magnetic
resonance imaging (MRI) and molecular imaging (MI);
diagnostic X-ray, including digital X-ray and
mammography; interventional X-ray, encompassing
cardiology, radiology, surgery and other areas; and
ultrasound, a modality with diverse customers and
broad clinical presence
•Patient Care & Monitoring Solutions: Enterprise-
wide patient monitoring solutions, from value
solutions to sophisticated connected solutions, for
real-time clinical information at the patient’s
bedside; patient analytics, patient monitoring and
clinical decision support systems; mother and child
care, including products and solutions for pregnancy,
labor and delivery, newborn and neonatal intensive
care and the transition home; and therapeutic care,
including cardiac resuscitation, emergency care
solutions, therapeutic temperature management,
anesthesia care, hospital respiratory systems and
ventilation, sleep management, respiratory care and
non-invasive ventilation
•Customer Services: Product and solution services
and support, including clinical support and
performance services; education and value-added
services; installation; remote proactive monitoring;
and customer service agreement
•Healthcare Informatics, Solutions & Services:
Advanced Healthcare IT consisting of integrated
software solutions, imaging informatics for radiology
and cardiology departments, Picture Archiving and
Communication systems (PACS) and fully integrated
Electronic Medical Record (EMR) systems; a
professional services business (Healthcare
Transformation Services) spanning consulting,
education, clinical and business performance
improvement, program management, system
integration services; specialized solutions including
care coordination, home monitoring to make the
aging experience better, and primary and secondary
care solutions to expand access to care in emerging
markets. All solutions and software businesses will be
supported by the Philips HealthSuite Digital Platform
to enable interoperability, Big Data analytics,
optimized workows and care pathways, rapid
application development, enhanced patient
centricity and engagement.
Philips Healthcare
Total sales by business as a %
2014
35Imaging Systems
32Patient Care & Monitoring Solutions
6
Healthcare Informatics,
Solutions & Services
27Customer Services
Sales at Healthcare are generally higher in the second
half of the year largely due to the timing of new product
availability and customer spending patterns.
Regulatory requirements
Philips Healthcare is subject to extensive regulation. We
are committed to compliance with regulatory product
approval and quality system requirements in every
market we serve, by addressing specic terms and
conditions of local and national regulatory authorities,
including the US FDA, the SFDA in China, and other
comparable foreign agencies. Obtaining regulatory
approval is costly and time-consuming, but a
prerequisite for market introduction.
Progress was made in 2014 in the remediation of the
quality management system at our Healthcare facility
in Cleveland, Ohio. Following external certication of
the updated quality management system we resumed
production, which had been voluntarily suspended
earlier in the year, with production ramp-up expected
to continue through 2015.
With regard to sourcing, please refer to sub-section
14.2.8, Supplier indicators, of this Annual Report.
6.1.3 2014 highlights
The health continuum of healthy living, prevention,
diagnosis, treatment, recovery and home care
remained a growing and exciting market for Philips
Healthcare. Leveraging our portfolio, insights and