Restructuring Philips

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Case Details:

Case Code : BSTR170
Case Length : 19 Pages
Period : 1990-2005
Organization : Philips
Pub Date : 2005
Teaching Note :Not Available
Countries : Netherlands
Industry : Consumer Electronics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Focus On Customers

As part of its TOP initiative, Philips also began developing a range of new technologies using its traditional strength in technology research. One such technology was known as 'Connected Home.

'This technology depended heavily upon Philips'leadership in display, storage and connectivity technologies. The concept made use of wireless technologies to connect and seamlessly communicate with various household devices.

Gottfried Dutine, the CEO of Philips' Consumer Electronics division explained, "If you're watching a film in the living room and you want to move to the kitchen to wash the dishes, the content will follow along with you uninterrupted. This will happen through an integrated network of home displays, content storage and connectivity devices - what we call the Connected Home."...

The Benefits

The TOP program yielded encouraging results by bringing about a clear cultural change in Philips.

The increased collaboration between product divisions helped in knowledge sharing. An example of this collaboration was the 'Ambient Experience'project that created a personalized healthcare environment aimed at individual patient comfort and increasing the overall efficiency of a hospital's radiology department.

The project was a combined effort of Philips'Medical, Lighting, Consumer Electronics and Design divisions...


Exhibit I: Philips - History of Innovations (1926-2002)
Exhibit Ii: Philips - Financials During Restructuring under Jan Timmer
Exhibit Iii: The 'Let's Make Things Better'Campaign
Exhibit Iv: Philips - Financials during Restructuring under COR Boonstra
Exhibit V: Corporate Structure of Philips (2004)
Exhibit Vi: The 'Sense and Simplicity'Campaign
Exhibit Vii: Philips - Financials during Restructuring under Gerard Kleisterlee
Exhibit Viii: Cumulative Savings in 'IT'as a Result of Top Program

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