Philips 2015 Annual Report Download - page 62

Sector performance 6.4.1
62 Annual Report 2015
Philips Healthcare Incubator
The Philips Healthcare Incubator is a group dedicated
to identifying, developing and bringing breakthrough
products and services to market that will drive the future
of healthcare. One of the ventures is Digital Pathology
Solutions, which empowers pathologists with a
complete connected digital pathology solution that is
designed to optimize productivity and workow, and
ultimately to improve the quality of diagnosis.
Another venture is Handheld Diagnostics, with its
Minicare proposition, which provides direct diagnostic
information at the patients’ bedside, enabling
physicians to make medical decisions on the spot.
Based on innovative technologies, we have designed
easy-to-use, patient-centric IVD (in-vitro diagnostics)-
enabled solutions and connected services that have the
potential to revolutionize health management and
improve existing workows. The Home Clinical
Monitoring venture performs remote monitoring to
support patients during chemotherapy. Finally, the
acquisition of the Danish medical technology company
Unisensor led to the establishment of Philips Biocell,
which has released the oCelloScope System, an
analytical instrument that is, among other applications,
used within microbiological studies on a research
application basis.
Philips Emerging Business Areas
Philips Emerging Business Areas identify, create and
grow new activities that are outside the scope of the
current operating businesses. The portfolio is managed
on a venturing basis. The opportunities and business
models identied by the individual new business
activities determine the approach to commercial
partnerships, sourcing of technology, and platforms to
reach customers. Current examples of successful new
solution businesses or enablers for these include
Horticulture LED Solutions*, Light for Health,
Photonics, Wearable Sensing Technologies, Elder Care
Solutions and Mental Vitality.
Philips Horticulture LED Solutions stands for solutions
that improve growers’ business performance. With
customized ‘light recipes’ we can help optimize crop
yield and quality. We combine crop growth knowledge
and technology, and value long-term partnerships in
business and research. Hundreds of projects have been
realized in dierent regions in dierent segments. In
July 2015, Philips CEO Frans van Houten opened the
state-of-the-art GrowWise Center at the High Tech
Campus in Eindhoven, the Netherlands. Research being
conducted by Philips will provide tailor-made LED light
recipes, making it possible for producers to increase
their yields and grow tasty and healthy food indoors all
year round, while reducing waste, limiting food miles
and using practically no land or water.
Leveraging its advanced understanding of the
biological eects of light, a team of Philips Light for
Health researchers, collaborating with leading research
institutions and hospitals, has developed a number of
products like Philips BlueControl, which feature LED
light and oer proven medical benets.
Philips Photonics is a global leader in VCSEL
technology and designs, manufactures, markets and
sells VCSEL-based solutions for data communications,
consumer and industrial applications. VCSELs are LED-
like lasers enabling applications like gesture control,
environmental sensing, precise scene illumination for
surveillance cameras, and ultra-fast data
communication. Philips Photonics has enabled the
introduction of laser-based PC mice and high-bit-rate
active optical cables, as well as introducing VCSEL-
based solutions for industrial processing of plastic
materials.
* Philips Horticulture LED Solutions will move to Philips
Lighting in 2016.
Philips Intellectual Property & Standards
Philips IP&S proactively pursues the creation of new
Intellectual Property (IP) in close co-operation with
Philips’ operating businesses and Philips Group
Innovation. IP&S is a leading industrial IP organization
providing world-class IP solutions to Philips’
businesses to support their growth, competitiveness
and protability.
Philips’ IP portfolio currently consists of 76,000 patent
rights, 47,000 trademarks, 91,000 design rights and
5,000 domain names. Philips led 1,750 patents in 2015,
with a strong focus on the growth areas in health and
well-being.
IP&S participates in the setting of standards to create
new business opportunities for the Philips operating
businesses. A substantial portion of revenue and costs
is allocated to the operating businesses. Philips
believes its business as a whole is not materially
dependent on any particular patent or license, or any
particular group of patents and licenses.
Group and Regional Costs
Group and Regional organizations support the creation
of value, connecting Philips with key stakeholders,
especially our employees, customers, governments
and society. These organizations include the Executive
Committee, Brand Management, Sustainability, New
Venture Integration, the Group functions related to
strategy, human resources, legal and nance, as well as
country and regional management.
Accelerate! investments
Innovation, Group & Services plays an important role in
the Accelerate! program, notably by helping to improve
the end-to-end value chain. The End2End approach
consists of three core processes: Idea-to-Market,
Market-to-Order, and Order-to-Cash. Innovation,
Group & Services supports a more ecient and eective
Idea-to-Market process in ve focal areas: speeding up
time-to-market, portfolio optimization, driving