Founded

in 1891 by Gerard Philips in Netherlands.

world leader in healthcare, lifestyle and lighting. It integrates technologies and design into people-centric solutions by: based on fundamental customer insights and the brand promise of sense and simplicity.

To improve the quality of peoples life through the timely introduction of meaningful innovations.

In the world where technology increasingly touches every aspect of our daily lives, we will be a leading solutions provider in the areas of healthcare, lifestyle and enabling technology, aspiring to become the most admired company in our industry as seen by our stakeholder.

market-driven company a peoplefocused, Vision 2010 strategy establishes the character of Philips as

that is organize d around its customer and markets.

1927- First Radio was introduced.

1950- First large screen projection TV was developed.

1950(late)- transistor-based radio stations and stereophonic sound were introduced.

1963- Compact Audio Cassette for sound recording was launched. 1965- Produced first integrated circuit. 1967- Color TV was introduced in Netherlands.

1970
LAUNCHED ENERGY SAVING LAMPS

1972
Estd.A MUSIC COMPANY POLYGRAM

1974
AQUISITION OF MAGNAVOX
1975 AQUSITION OF SIGNETICS

1978
LAUNCHED LASER DISC PLAYER

1981
AQUISITION OF T.V BUSINESS OF GTE SYLVANIA USA

1983
ACQUISITION OF LIGHTING LAMP BUSINESS OF WESTINGHOUSE

PHILIPS

LIGHTING

MEDICAL SYSTEMS

CONSUMER ELECTRONICS DOMESTIC APPLIANCES &PERSONAL CARE

SEMI CONDUCTORS

COMPONENTS

LIGHTING

CONSUMER DOMESTIC ELECTRONIC APPLIANCES S &PERSONAL CARE CONSUMER T.V PORTABLE AUDIO AUDIO SYSTEMS SET TOP BOXES MP4 DVD SYSTEMS REMOTE CONTROLS LCD PROJECTORS SPEAKER SYSTEMS SHAVERS BEARD TRIMMERS HAIR CLIPPERS HAIR DRYERS VACCUM CLEANERS STEAM IRON FOOD PROCESSORS BLENDERS COFFEE MAKERS KETTLES

COMPONETS SEMI MEDICAL CONDUCTOR SYSTEMS S DISPLAY COMPONENT S OPTICAL STORAGE MOBILE DISPLAY SYSTEMS LARGE DISPLAY SYSTEMS EMERGING ELECTRONIC SOLUTIONS MULTI MARKET PRODUCTS CONSUMER SYSTEMS TELECOM TERMINALS TELECOM TERMINALS X-RAY EQUIPMENTS IMAGING IT HEALTH CARE SERVICES TRANSCRIPT ION SERVICES NUCLEAR MEDICINE ULTRASOUN D MAGNETIC RESONANCE COMPUTED TOMOGRAPH Y

LAMPS LUMINARIES LIGHTING,E LECTRONIC S,GEAR AUTOMOTIV E&SPECIAL LIGHTING BATTERIES

Introduction : In 1990 the dismal Financial performance lead to reconstructing of the company. Need: To shift the focus from High Volume to high value Business.

Introduced BEST Business Excellence through Speed and Teamwork in 1999.

 PBE

Philips Business Excellence Model PST Process Survey Tools BSC Balance Score Card

In the late 1990s the external environment was changing rapidly. Existing business structure at Philips did not support this kind of change. Competition from Asian Companies like Samsung and LG increased.

All these changes made Philips realise that its operations needed to be more flexible , innovative and value added.
Focus on the removal of SILO mentality. Reorganisation and reduction of business units. Had an existing Corporate Quality Department functioning under the Quality Policy Board.

However, Philips wanted to improve the quality of the product even more and create more innovative products.

For this , it introduced BEST (Business Excellence through Speed and Teamwork) in july 1999 , applicable across all processes , facilities and employees.

BEST involved focusing on business prioritiers , increasing the capability of business processes and bringing in better team work.

Balance Score card

Black belts etc.

Philips Business Excellence

Process survey tools

The Philips Business Excellence Model is based on the European Foundation for Quality Management (EFQM). The EFQM model is as follows:

ENABLERS PEOPLE

RESULTS PEOPLE RESULTS KEY PERFORM ANCE RESULTS

LEADERSHIP

POLICY and STRATEGY

PROCESSES

CUSTOMER RELATIONS

PARTNERSHIPS and RESOURCES

SOCIETY RESULTS

INNOVATION AND LEARNING DRIVING IMPROVEMENTS

LEADERSHIP
Define goals and show directions Set priorities Lead by example Inspire commitment Manage overall process

PROCESSES
Achieve sustainable excellent results. World class processes Deliver outstanding results Processes must be robust , simple , dynamic Adaptable to chanaging business Improve over time

RESULTS
Measuring all the business results of a company is very critical. It determines business excellence Measured by customers , employees, society and financial community

High Volume Electronics (1990s) Portfolio Restructuring Volatility Lets Make Things Better

Healthcare and lifestyle (2000s) One Philips Growth Value Creation Sense and Simplicity

 Using

it Philips aimed at communicating the companys vision and strategy to the employees and letting them know the role they require to play in realizing the mission.

 Translate

top-level targets into operational targets in the organization. It was done by encouraging constant communication & dialog between successive management levels in order to achieve a consensus on the targets to be achieved and develop better understanding between the top level mgt, who set the strategy and the employees who were involved in converting the strategy into action.

 It

believed that if a company responds to its customers by bringing in products, services, and information that they require, the customers would respond through brand loyalty. Therefore, hear customers voice by converting their complaints into opportunities by acting on them.

competence

process

customers

financial

 Customer

satisfaction Customer value creation Employee satisfaction Revenue growth Od Operational excellence

 Gap

between the desired performance and existing performance was used to set targets. 2-4 years They were measurable, realistic, time based. Criteria: analysis of market, customer base, brand value, innovation, performance.

PERSPECTIVE COMPETENCE

CSFs KNOWLEDGE TECHNOLOGY LEADERSHIP TEAMWORK

PROCESSES CUSTOMERS FINANCIAL

DRIVERS FOR PERFORMANCE VALUE PROPOSITION VALUE GROWTH PRODUCTIVITY

TOP MGT LEVEL MIDDLE MGT LEVEL

STRATEGIC REVIEW CARD OPERATIONS REVIEW CARD

LOWER MGT LEVEL

OTHER LEVEL

BUSINESS UNIT CARD

EMPLOYEE CARD

Balance Score card

Black belts etc.

Philips Business Excellence

Process survey tools

 Initiative was taken management of the company

by

top

Quality department instructed all subsidiaries about the implementation

 Through

BSC,Philips aimed at identifying the factors that could help in achieving the companys strategic goals Implementing a global BSC helped philips:

In articulating & communicating their strategy Measuring the drivers of their performance & results

 Companys

literature

was

taken

into

consideration Through this & employees inputs,a generic framework was developed In 2000,A brochure was circulated across the organization In 2001,for implementing the BSC,Philips used a reporting system In 2002,Philips used a one-page strategy document,the BSC formed a part of the document

 Philips

used BBS online system Performance indicators & CSFs were identified in every department,division with the help of BBS at Philips In 2006,Philips created an online BSC for each unit