Smart business models transformation from products towards solutions, based on circular economy Bogdan Rogala General Manager CEE June 14 th, 2017
The global market is going through a multi-dimensional change with over half of companies on the Fortune 500 disappearing since the year 2000 due to disruptive technologies and business models 1 June 14 th, 2017
Many traditional companies, with well-established market positions, had to give way to their digital competitors Tower Records BlockBuster Video Borders Kodak itunes Netflix Amazon.com Nikon Source: http://www.webpreneurblog.com 2 June 14 th, 2017
Companies, which successfully transformed their business model and market approach From coffee manufacturer to non food online & offline brand From classic telecom to banking, energy and ICT services From luminaires and bulbs manufacturer to energy savings solutions 3 June 14 th, 2017
Degree of economic impact (functions industries, geographics) Digitalization is no more an option, it is an imperative PERVASIVE Digital product & infrastructure Products (music, entertainment, etc.) Infrastructure (telco, software, IT etc.) Digital distribution & web strategy Web strategy (e-commerce in retail, electronics, etc.) Creating efficiency in web strategy (government, etc.) Digital transformation & business models Mobile revolution Social media Analytics Hyper digitization LIMITED Late 1990s 2000s 2010s 4 June 14 th, 2017
Companies with ambitions to win in the new marketplace, have to proactively respond to global mega trends TECHNOLOGY ECOLOGY IoT Growing Population Big data Automation Resource scarcity Climate change INTEGRATION SUSTAINABILITY 5 June 14 th, 2017
Mega trends drive the shift of the global economy from linear to circular A Shift from Linear to Circular 6 June 14 th, 2017
Circular economy keeps products and materials in re-use cycle for maximum efficiency and sustainability Reverse logistics Business models 4 building blocks Design Collaboration 7 June 14 th, 2017
Level of commitment and scope of offering Responding to market dynamics, Philips go-to-market strategy and relationships with customers have changed fundamentally SYSTEMS & SERVICES MANAGED SERVICE Plan & design Finance Build Operate Maintain & optimize Performance guarantee TP&S PRODUCTS SUPPLY Time 8 June 14 th, 2017
Philips Lighting shift from products to services could only be possible through a deep internal transformation PRODUCT ORGANIZATION SERVICE ORGANIZATION Driven by strong R&D and manufacturing capabilities Transactional / push cooperation Strong indirect channel focus Limited end-user insights Fragmented processes Product-oriented sales skills Homogenous teams Focus on push / sell-in Underinvested sales force tools Fragmented local tools Customers & demand Organization structure Competencies & attitudes Tools & processes Pulling ideas from the marketplace Consumer centric approach Partnerships & ecosystem co-creation New End-User channel E2E process thinking Resource to win Mindset change (sell the outcome) Solution selling competencies Motivational reward system Advanced CRM system (SFDC) as a backbone for sales process Sales analytics 9 June 14 th, 2017
We help our clients to create employee-centric office spaces ACTIVITY - RELATED WORK ENVIROMENT BRAND OFFICE INSPIRE & ENGAGE CONNECTED SPACES 10 June 14 th, 2017
Entire cities are becoming smarter with lighting management system being the Smart City backbone Integrated system management Data in cloud 3 Weather stations, noise testing and air pollution levels 5 ITS integration 4 Intelligent light management 2 1 Charging stations for electric vehicles 11 June 13 th, 2017
Philips HUE - outstanding IoT solution for smart homes System ready to operate at your fingertips Designed to meet your individual needs Perfect combination of LED lighting and IoT technology 12 June 14 th, 2017
New partnerships and innovative business models are the key to success in the digital age 1 The technology is proven and ready to use 2 It is time to speed up the technology adoption 3 Long-term and complex digital solutions require future proof partnerships 13 June 14 th, 2017
Thank you