"We are no longer a comprehensive electromechanical enterprise." With a firm expression, it is asserted that the technicians of Royal Philips of the Netherlands. Founded in 1891, the "European Giant", the "home appliance king" TV, has begun a major transformation of its main business. The company has turned its attention to the two major businesses of “health health†and “lightingâ€.
Philips CEO Frans van Houten stressed, “We are committed to a business area that provides value to our customers. Although Philips has been in business for more than 120 years, some businesses have been 'dead' in the process. The TV business was spun off. We are an innovative company and will grow in the future through two dynamic business areas."
Philips announced on September 23, 2014 that it will split the total into two companies, one for HealthHealth and Home Appliances (HealthTech) and the other for Lighting. It is intended to split the world-famous lighting department into independent companies. From the sales in 2013, HealthTech's business is about 15 billion euros, and the lighting business is about 7 billion euros. The company intends to complete the spin-off within 12 to 18 months.
Regarding the TV business, Philips has been preparing and deploying it. The company decided to spin off the TV business in 2011. Subsequently, TP Vision, a TV business joint venture, was established jointly with Taiwan TPV Technology. In January 2014, it announced the sale of all TP Vision shares held by Philips and made a major decision to withdraw from the TV business.
For the HealthTech business, Philips believes that "there is still a lot of room for improvement" and upgraded it to "core business." The company believes that the potential market size in this area is as high as 100 billion euros. The upcoming spin-off lighting business will increase the speed and flexibility of business decisions by becoming an independent company, and is committed to developing and delivering high value-added services using LED lighting.
Philips has been through "selection and concentration" to reinvigorate and transform the main business. However, after the spin-off business, there is basically no room for "choice". The company held the "Philips Innovation Experience 2014" in Eindhoven, The Netherlands from September 29th to October 1st, 2014 in order to publicly announce its fate on the health and lighting business. General Assembly. More than 2,000 Philips employees and about 200 journalists have been convened from the Netherlands and abroad to present the latest achievements in the medical health and lighting business and the purpose of this reform. The article selected the lighting business part to share with everyone.
Lighting business: get rid of the only single product sales business model <br> <br> van Houten said, "the lighting industry is currently in a maximum period of transition since the invention of the light bulb white paper." The split of Philips as the hobby's lighting business into an independent company means that LED lighting is rapidly entering the popularization period. Although the LED lighting market continues to expand due to the replacement of incandescent bulbs and fluorescent lamps, Philips is also increasingly competing with Asian companies that have launched offensives with low-cost weapons. Because LED lighting has a long life and will take a long time to replace, Philips will transform itself into a “providing solution†rather than just providing equipment. Moreover, "the ecosystem will also be built to take the lead as a leader."
As an example of the value that LED lighting can provide, Philips at this conference disclosed an application example of the LED bulb "Philips hue" that can emit about 16.77 million color lights. Hue can control the light bulb from the smartphone via Philips's server via the Internet. This time, the company linked the product to the smartphone and automatically adjusted the color and brightness of the room's lighting according to the state of the phone.
This program is proposed for people with hearing impairments. Even people who can't hear the ringtone of the call can know that there is a call through the color change in the room. Moreover, people with hearing impairments need to use a video call method to communicate with the caller in sign language. Therefore, during the demonstration, Philips conducted control over the room illumination during the video call. The company has publicly exposed the API (application programming interface) of Hue's "Bridge" controller.
LED lighting is also being introduced into large facilities such as buildings. In the future, the market will require more precise lighting control and easier maintenance for LED lighting. Philips demonstrated LED lighting with Power over Ethernet (PoE, which can send and receive data and supply power). For example, a control signal can be sent to adjust the brightness while powering the light. In this way, a system that reduces power consumption through fine control can be realized.
Philips CEO Frans van Houten stressed, “We are committed to a business area that provides value to our customers. Although Philips has been in business for more than 120 years, some businesses have been 'dead' in the process. The TV business was spun off. We are an innovative company and will grow in the future through two dynamic business areas."
Philips announced on September 23, 2014 that it will split the total into two companies, one for HealthHealth and Home Appliances (HealthTech) and the other for Lighting. It is intended to split the world-famous lighting department into independent companies. From the sales in 2013, HealthTech's business is about 15 billion euros, and the lighting business is about 7 billion euros. The company intends to complete the spin-off within 12 to 18 months.
Regarding the TV business, Philips has been preparing and deploying it. The company decided to spin off the TV business in 2011. Subsequently, TP Vision, a TV business joint venture, was established jointly with Taiwan TPV Technology. In January 2014, it announced the sale of all TP Vision shares held by Philips and made a major decision to withdraw from the TV business.
For the HealthTech business, Philips believes that "there is still a lot of room for improvement" and upgraded it to "core business." The company believes that the potential market size in this area is as high as 100 billion euros. The upcoming spin-off lighting business will increase the speed and flexibility of business decisions by becoming an independent company, and is committed to developing and delivering high value-added services using LED lighting.
Philips has been through "selection and concentration" to reinvigorate and transform the main business. However, after the spin-off business, there is basically no room for "choice". The company held the "Philips Innovation Experience 2014" in Eindhoven, The Netherlands from September 29th to October 1st, 2014 in order to publicly announce its fate on the health and lighting business. General Assembly. More than 2,000 Philips employees and about 200 journalists have been convened from the Netherlands and abroad to present the latest achievements in the medical health and lighting business and the purpose of this reform. The article selected the lighting business part to share with everyone.
Lighting business: get rid of the only single product sales business model <br> <br> van Houten said, "the lighting industry is currently in a maximum period of transition since the invention of the light bulb white paper." The split of Philips as the hobby's lighting business into an independent company means that LED lighting is rapidly entering the popularization period. Although the LED lighting market continues to expand due to the replacement of incandescent bulbs and fluorescent lamps, Philips is also increasingly competing with Asian companies that have launched offensives with low-cost weapons. Because LED lighting has a long life and will take a long time to replace, Philips will transform itself into a “providing solution†rather than just providing equipment. Moreover, "the ecosystem will also be built to take the lead as a leader."
As an example of the value that LED lighting can provide, Philips at this conference disclosed an application example of the LED bulb "Philips hue" that can emit about 16.77 million color lights. Hue can control the light bulb from the smartphone via Philips's server via the Internet. This time, the company linked the product to the smartphone and automatically adjusted the color and brightness of the room's lighting according to the state of the phone.
This program is proposed for people with hearing impairments. Even people who can't hear the ringtone of the call can know that there is a call through the color change in the room. Moreover, people with hearing impairments need to use a video call method to communicate with the caller in sign language. Therefore, during the demonstration, Philips conducted control over the room illumination during the video call. The company has publicly exposed the API (application programming interface) of Hue's "Bridge" controller.
LED lighting is also being introduced into large facilities such as buildings. In the future, the market will require more precise lighting control and easier maintenance for LED lighting. Philips demonstrated LED lighting with Power over Ethernet (PoE, which can send and receive data and supply power). For example, a control signal can be sent to adjust the brightness while powering the light. In this way, a system that reduces power consumption through fine control can be realized.
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