Philips 2015 Annual Report Download - page 60

Sector performance 6.4
60 Annual Report 2015
6.4 Innovation, Group & Services
• Philips moved its North American Research
organization to the Cambridge, Mass. area to benet
from the vibrant innovation ecosystem and to
facilitate collaboration with Massachusetts Institute
of Technology (MIT), academic hospitals, and
business partners. Also the new site will be truly
interdisciplinary, co-locating various functions like
upstream marketing, strategy, design, digital
accelerator, and early-stage ventures.
• Philips became the second-largest patent applicant
in the world for patents led at the European Patent
Oce (EPO).
• Philips Design celebrated 90 years of design legacy
with a record-breaking 156 design awards.
Introduction
In 2015, Innovation, Group & Services comprised the
activities of Philips Group Innovation, Group
headquarters, including country and regional
management, and certain costs of pension and other
post-retirement benet plans. Additionally, the global
shared business services for procurement, nance,
human resources, IT and real estate are reported in this
sector.
6.4.1 About Innovation, Group & Services in 2015
Philips Group Innovation
At Philips, our innovation eorts are closely aligned
with our business strategy. Philips Group Innovation
(PGI) feeds the innovation pipeline, enabling its
business partners – the Philips operating businesses –
to create new business options through new
technologies, new business creation, and intellectual
property management and development. Focused
research and development improvement activities
drive time-to-market eciency and increased
innovation eectiveness.
PGI boosts innovation from idea to product as co-
creator and strategic partner for the Philips businesses
and complementary Open Innovation ecosystem
partners. It does so through cooperation between
research, design, marketing, strategy and businesses in
interdisciplinary teams along the innovation chain, from
front-end to rst-of-a-kind product development. In
addition, PGI opens up new value spaces beyond the
direct scope of current businesses (Emerging Business
Areas), manages the Company-funded R&D portfolio,
and creates synergies for cross-sector initiatives.
PGI encompasses Philips Research, Philips Innovation
Services, the Philips Innovation Campus in Bangalore,
the Philips Innovation Center Shanghai, the Philips
Innovation Labs in Cambridge (USA), the Philips Africa
Innovation Hub, Philips Design, the Philips HealthTech
Incubator, and the Emerging Business Areas. In total,
PGI employs some 5,000 professionals around the
globe.
PGI actively participates in Open Innovation through
relationships with academic and industrial partners, as
well as via European and regional projects, in order to
improve innovation eectiveness and eciency,
capture and generate new ideas, enhance technology
partnering capabilities, and share the related nancial
exposure. The High Tech Campus in Eindhoven
(Netherlands), the Philips Innovation Campus in
Bangalore (India), the Philips Innovation Center in
Shanghai (China) and the Philips Cambridge Innovation
Labs (USA) are prime examples of environments
enabling Open Innovation.
Through Open Innovation, Philips seeks to apply new
thinking to solving major societal issues. A great
example is the ve-year alliance between Philips
Research and Massachusetts Institute of Technology
(MIT) aimed at speeding up advancements in health
technology solutions to help address society’s most
pressing challenges in healthcare, as well as digital
connected lighting systems to address the need to
make cities more livable and sustainable. With a total
budget of USD 25 million for the ve-year term, this is
the largest research alliance undertaken by the
company in the region. Philips researchers will be
collaborating intensely with MIT faculty and PhD
students on jointly dened research programs and
Open Innovation projects.
Philips Research
Philips Research is the main partner of Philips’
operating businesses for technology-enabled
innovation. It creates new technologies and the related
intellectual property, which enables Philips to grow in
businesses and markets. Together with the businesses
and the markets, Philips Research co-creates
innovations to strengthen the core businesses as well
as to open up new opportunities in adjacent business
areas. Research’s innovation pipeline is aligned with
Philips’ vision and strategy and inspired by unmet
customer needs as well as major societal challenges.
In the area of Healthcare, we continue to engage with
customers in novel ways to discover unmet needs and
co-create solutions with our partners. The Digital
Accelerator and the recently opened HealthSuite Lab
at the High Tech Campus in Eindhoven, for example,
enable us to fast-track the development and execution
of new care models and solutions, together with
partners and customers such as hospital networks,
supported by the latest digital technologies and rapid
prototyping. Through research partnerships, such as
our agreements with Stockholm County Council and
Karolinska University Hospital, researchers from
dierent industries, hospitals and academia are
brought together to facilitate closer links between the
delivery of care and clinical research.