Philips 2015 Annual Report Download - page 12
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Please find page 12 of the 2015 Philips annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Our strategic focus 4.1
12 Annual Report 2015
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Reducing
electricity
bills and
redening
the space we
live in
Government
Empowering a
sustainable
environment
Cities
Creating brighter
safer streets,
reducing costs
and carbon
footprint
Oces
Helping
business to
reduce energy,
work dierently
and provide
new
experiences
Industry
Improving
eciency and
safety and
reducing
maintenance
costs
Stadiums
Enhancing the
experience for
fans with
exible
lighting
Retail
Helping
retailers drive
sales and
build
customer
loyalty
Optimizing returns from its conventional products to fund growth, Philips Lighting is committed to innovate in LED to
outpace the market. It will continue to lead the shift to Systems, building the industry’s largest connected installed base
and capturing value through new Services business models with recurring revenue streams, e.g. Light as a Service. And,
leveraging its global scale, it will continue to strive to be its customers’ best business partner locally.
4.2 How we create value
Understanding and meeting people’s needs
Building upon our long history of innovation, we take a systematic approach to value creation. Our starting point is
always to understand the specic challenges local people face – whether they be a doctor, a real estate developer, a
hospital director, a city planner, a consumer, etc.
Having gained these deep insights, we then apply our innovative competencies, strong brand, global footprint and
talented, engaged people – often in value-adding partnerships – to deliver solutions that meet these needs. Making
the world healthier and more sustainable.
To measure the impact our solutions are having around the world, we have developed our independently veried 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-ecient lighting.
Our business system
With its four interlocking elements, the Philips Business System (PBS) is designed to help us deliver on our mission and
vision – and to ensure that success is repeatable. As we execute our strategy and invest in the best opportunities,
leverage our unique strengths and become operationally excellent, we will be able to consistently deliver value to our
customers, consumers and other stakeholders.
•Group strategy: We manage our portfolio with clearly
dened strategies and allocate resources to
maximize value creation.
•CAPs: We strengthen and leverage our core
Capabilities, Assets and Positions – our deep
customer insights, technological innovation, global
footprint, our people, and the trusted Philips brand –
as they create dierential value.
•Excellence: We are a learning organization that
applies common operating principles and practices
to deliver to our customers with excellence.
•Path to Value: We dene 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 dierent forms of capital to
drive value in the short, medium and long term.