Koninklijke Philips Electronics is a world leading company in the electronics. It enlisted their stocks in NYSE and Euro next. The company is active in four areas with employees of 120,000 in consumer electronics, medical systems, lighting and equipment, and Personal Care. The consumer electronics is the largest segment. The company sells its products to customers, mainly in Europe and Africa, North America, Latin America, Asia and the Pacific. Philips streamlined its operations through the sale of its bulky unit's semi-conductors. The goal of the company to invest in high growth areas and to redefine for making medical device, technology and personal care. The company has key products are sonic toothbrush, espresso coffee, Philips electric shaver, bulbs, flat screen TV, and its medical imaging systems. Philips ranks number one in lighting fixtures, lamps, lights, electronic and electrical lighting, and electrical shaving for men. Number two in the productions in medical imaging systems. These 3 companies are the top in the electrical and the electronic industries. A large number of factors influence in Philips for research up to sub-contracting & development and of exchange, the aging of the population and the increasing demand for energy in the world. The company conducts its operations in foreign currencies and more than 50 stores the majority of its productions and make the enterprise to the sensitive activities largely on its seat in Amsterdam.
Major competitors: General Electric (GE), Sony (SNE), and Siemens AG (SI). Philips is the leader in both bulbs and electric shaving male. The company's two largest competitors are General Electric (GE), Siemens AG (SI), (annual turnover of more than $100 billion), give and Siemens compete mainly with medical systems and the lighting. (wikinvest, 2012)
The main products of Philips are:
COLOR TELEVISION: Philips provides several kinds of television like the latest LED TV, Smart TV, LCD TV, Ultra slim TV, Conventional TV, Flat TV and broad range of digital photo frames.
WASHING MACHINE: Philips offers a wide range of washing machines, it having two ways of operation in automatic: front loading and top loading washing machine. They have two modes of operation; one is semi automatic and automatic.
AIR CONDITIONER: Philips offers is split air conditioning and window air conditioning system.
REFRIGERATOR: Philips having two kinds of refrigerator, one is direct cool refrigerator and frost free refrigerators.
MICRO OVENS: a wide range of micro ovens are grill type, solo and convection type micro ovens
MOBILE PHONES: Philips has several kinds of mobiles like windows mobiles, android phone, smart phone, camera phones. It provides both GSM/CDMA mobile phones.
INDOOR LUMINARIES: Philip has several kinds of indoor luminaries like multiple system, projectors, wall mounted TL5, several kinds of down lighting and water proof and clean room luminaries.
OUTER LUMINARIES: Philip has several outer luminaries like flood lightings,
Under canopy, makers, grazers and underwater lighting.
LAMPS: Philips has several kinds of lamps like LED Lamps, fluorescent lamps, compact high intensity discharge, halogens, starter's lights, infrared lamps and incandescent lamps.
HOME THEATRE: Philips is keeping on innovating on the home theaters for providing good sound experience to attract the customers. They provide digital Dolby system and several features like compatibility with DVD, PC, TV, and VCD, walkman and audio function. It offers several kinds of surround speakers with 6500w with theatre effect sound system.
DVD players: modernized home entertainment has several kinds players like, DVD, VCD, VCD DVD/VCD Combo players, single disc DVD, multi disc DVD and the latest one is Blu-ray technology DVD players.
Financial analysis of Philips:
The net profit for Philips from 2009-2010 is around 10.865 billion USD, while the net income is slightly reduces at 58.8 million USD. From the next year 2010-11 the net profit slightly increases from 10.865 billion to 12 billion USD, while the net income also increases from 58 million to 1.9 billion USD. The net profit and net income is slightly decreases from 12 billion to 11.225 USD. (yahoo finance, 2012)
2. INNOVATION NEEDS TO EMPLOYS IN PHILIPS
The following are the benefits that the company will get after it employs innovations:
If company starts to innovate, it will increase in its market price and value.
If the company starts to innovate, it reimbursement for the consumers.
If the company starts to innovate, it will increase its market value among the competitors and strengthens staff members and its recital.
Innovation helps the company to increase their product image.
If company starts to innovate, it will increase in its market price and value.
Shareholders for only part of the proceedings, which already owned by somebody. Thus, if the person who wants to buy a person sells, and vice versa. If a lot of people who want to buy current price and not a lot of people who want to sell the price up to the people who wanted to sell the share. When the price is so high, that the buyers do not want to continue their stock market, the price of the start. If a company on the implementation is especially important to its future prospects. A company has not been capital was taken perhaps took place under the auspices of the new Department after its effectiveness of innovative new products. Similarly, not only because the company funds in the past does not mean will continue to do so.(NYSE, 2012)
Customers enjoy the benefits of innovation:
The important information services are implicit on the reason for innovators often co-creation with customers. Written information is difficult to contact repeatedly on the interaction between customers and suppliers would be useful. Suppliers must work in close collaboration with customers throughout the process of innovation. Important supplier change innovation processes in ways that allow customers to share this knowledge. Inviting customers in the innovation process not only helps in the solution to the challenges of tacit knowledge. It also begins to opening the process of innovation in general. Innovation is the powerful tool to push your innovation. A true and sustain customer loyalty and innovation and organizations need, is a discipline of students customers. This is even more critical that organizational transparency. Customers includes students structured opportunities, contribute to the sensitivity of clients. Discovery, design and delivery. It is the identification of prevention or live situations, feelings of thought and attitudes. (open innovation, 2010)
If the company starts to innovate, it will increase its market value among the competitors and strengthens the staff members and its recital.
To cut the costs can be reality for a certain period of time. One of the minimum sizes cutting costs and often taking into account the need to ensure cost reductions should be carried out in such a way as to obtain positive emotional involvement in the cultural context. Employees must feel in some way be used to make a positive decision support and commitment to changes in behavior, which allows you to reduce costs. The employees start to think out of box which the company may find useful for further innovations. When an innovative product is launched in a market it is sure that the company will make profit but won't be so much. The company will give the employees some gifts or something in cash and thus the employees get motivated and they perform at their best. Innovation helps the employees to get more exposure of technology. However, when executive remove the redundancies only their experience and low cost and mandate to risk behaviors. These efforts will be more likely to succeed than positive inspiration, when the company is an integral part of the process. The first step toward taking the responsibility to ensure that leaders for front for the management of workers who work-line' hearts and minds. Delegated may be assigned a positive incentives.(patners, 2008)
Innovation helps the company to increase their product image:
The last 120 years Philips improve the quality of life, which is a positive innovation, Philips brand to make a solid and reliable in the world market. In the light of global trends and challenges as necessary to satisfy the demand for health care, energy efficiency and the wishes for the public good. Philips authorizes the customers' advantage from improvement by delivers on the product assure of "sense and simplicity". The brand name assured that the summarize on promise to distributing result that are sophisticated, simply to use, and fabricated around the requirements of the customers. For Philips, it calls for the mutual fertilization and surprisingly new ideas, and a combination of molecular biologists with the experts in the sensors, Microsystems and Electronics led integrated of biosensors for the computer in your pocket, the medical diagnosis. It helpful physiologists and dermatologists have come with the result of the depilation Photo-Laser a completely new concept. It opens one of the pioneer's initiatives as our cooperation in development by Sony "Hard Rock" viral disk systems like CD, DVD+RW, and the broadcast blu-ray disc. In another place, it will work with the medical solutions for picture, with the intervention megacities offices.(houten, 2010)
3. TYPES OF INNOVATION INTRODUCED IN THE COMPANY AND IT'S CHALLENGES:
There are different kinds of innovation introduced till now for improving the process, product, marketing and service innovation. There are mainly four innovations such as product innovation, marketing innovation, service innovation and process innovation.
Consult with the industry would ensures that the initiative for the challenge proved that the question through the process and comprehensive expertise, analysis the process from the beginning to the end. The company has a tailor and improves the action more than all of your support needs to be implemented. It practical method for the gap between the processes do not move. Philips beyond the headline "different symptoms to the basic issues and causes initiative process". Philips mainly focused to reduce the overall running cost of a process and in turn it helps to reduce the cost of end products. (Innovation services , 2010)
The diversity of the challenges waiting for personal success, these innovative products are grown in the ideas and ambitions of the employees. Tomorrow, the range of products can imagine, in shape and ready for the production of an hour. You could be part of these challenges. Some examples of recent innovations created by the center for innovation of Philips are indicated below. 1) Personal Care, 2) Water & Air, 3) Kitchen appliances and 4) Health care are the innovation created. (product innovation, 2012)
Philips innovation in services helps in high-tech companies and institutions art tells its services, innovation, renewal of technical expertise and hi-tech innovation in the entire process facilities. Philips mainly focused on the small/medium companies to enlarge the market place. To create Business Excellence, development and or the optimization of the operation and innovation processes. Customer focus, quality, speed, and the costs are our attention. Call the team of experts in the field with a depth of experience and a practical approach, with tangible and sustainable results. (Innovation services, 2012)
The opportunity is huge and exceptional: opens the way for new types of added value and the social change on the way to prosperity for the people and the planet. Technology plays an important role, technology alone is not sufficient. Individuals, groups and individuals, change the perspective, and recognize the uncomfortable truth that we live on a planet with finite always human inhabitants. The marketing innovation must be addressed, solutions with each other on the basis of systems thinking and new measures of success. The reflections and the associated business models to reward the obsolescence waste and often with high costs. In the future, leasing or business models are probably much more common. These have the potential for reward night-reservation longevity to avoid waste and to reduce administrative costs.
Philips done a recent innovation as follows:
Philips introduces the latest body groom and Arcitec, which is lighter, slimmer and more flexible for shaving .it having a flexible trimming head with a pivoted head and swivel for performing the full motion. The safe and easy to use for shaving and trimming with dual performance in grooming of male body hair.
Philips very sensible in using the ultra violent technology and activated carbons to provide intelligent water purifier for giving the customers continuously safe and pure water. It delivers the features of the water purifier for consumer.
Philips introduces the latest bag less vacuum cleaner with new cyclone filter technology with powerful suction powered motor with noise free and provides the stylish design. It also introduces the new mini vacuum cleaner with three powerful lithium ion batteries for the filtration process.
Philips has exclusive collection of kitchen appliances like coffee maker, bread toaster, induction stove, grinders, blenders, mixer, kettle, microwave ovens, refrigerators, washing machines for customer's needs with stylish design and its performance. The people can prepare foods and drinks easily and efficient ways.
Philips designed a Senseo coffee pod system for making two cups of coffee less than a minute and enjoys a delicious one touch espresso for making delicious taste. It introduces perfect draft internal cooling system for keep the drinks or beers for two days without change in taste.(Philips , 2012)
Philips has done an innovation:
Philip has changed the innovation in its logo
Philips changed the old from new one in the year
Philips innovating the new ideas by hiring more number of employees.
Challenges to innovation:
Philips has so many challenges among the competitors as well as own.
Competitors getting advance for leaking of sources within the company.
Inspecting the products on time
Providing good services to the customers.
Identify the issues for the company.
The illustrations are given below:
Competitors getting advance for leaking of sources within the company
"Competitive Intelligence" is a concept of collection and analysis legally publicly available information on the competitors, markets, products, etc. As most of the commercial organizations, Philips use legitimate and indeed on the edge competitive intelligence assessment techniques our competitors, partners and potential customers. All of the organizations, as well as those, for which the secrecy is of crucial importance, information about the flight to varying degrees. All kinds of information is available from the Internet, including informal sources, such as bulletin boards or discussion groups, and official publications, including annual accounts advertisements, marketing brochures, press releases, white papers, the European magazine, brochures, manuals, training manuals, information on suppliers and competitors of procurement personnel, customer relationship manager, etc. Conversely, of course, the possibility of competitors and of the enemies in the game, of such an approach clearly shows the need for the maintenance of the integrity in all high-risk situations. We support customers in the development and implementation of appropriate information security controls to reduce leakage or deliberate theft of information by industrial espionage, harmful or naÃ¯ve Insider, and occasional disclosure or loss. Work modern supply chains for environments are characterized by escalation of the precariousness, globalization, outsourcing, more short life and the dissemination of products and categories. The request which in result mismatch led of turnover lost product market, and inventory and customer dissatisfaction. (isect , 2010)
Inspecting the products on time:
The total period of time necessary for implementation of the new product on the market may be the fundamental difference between great and average power new product.
Support for NPI functionality within the enterprises should be able to manage the most important data product NPI of the attributes, methods of control, skip-los sampling plans and the attached documents within your most important part. Since these functions are not generally available within the current ERP-master, NPI solution must provide these capabilities, integration in the main part of the ERP-system inhabitants. Suppliers review as a rule, is an important step in the adoption process, there is a component or a set of a producer, the production is approved. In most businesses today, the supplier audit is a manual process. The solution must be packaged an internal audit function, Flexible management for the issues/check-lists, may vary according to suppliers, the location and the article. Creation of a bid package for the selection of a supplier involves a close collaboration between the management of products, engineering, quality, procurement and internal operations. The system should support during the inspection and take remedial beginning of production to ramps-product process. Low inspections and remedial measures in PPM in mechanism for ensuring and the final products in the process of continuous improvement. (metricstream, 2010)
Providing good services to the customers:
It is concerned fact that essentially from the customer service business. In order to provide assistance in product for allotting the process to ensure that the company for the purchase of a product and services on both sides of the customers happy and satisfied. The creation of a dynamic society requires a lot of hard work to the maintenance of the customers and the recruitment of new. In order to achieve the customers are satisfied with the behavior of their society. Service to the customer cannot be separated, because the two ministries are designed to extend the customers. Online businesses, revenue from advertising to serve the rules customers, again on their Websites. The general you will need to visit a Web site is known as the "unique visitors." reverse in other forms of business with a loyal customer base is crucial to a company's profitability. Customer care must be of a business for solving the issues for the customers. (ehow, 2012)
Identify the issues for the company:
The question to capture and maintain the consistency and validity of the products and financial information is quickly becoming a real puzzle for the hospital administrators. Data collection and maintenance correctly ensures a good patient revenue cycle, without payment is missing, delays or costly rework during the entire process. The customers will think that the company is working according to the review from the customer and they will wait for the company to introduce their next product. The systems guide for the hospital staff member in the specific issues through the collection complete and accurate information for the verification of the data entered. The dynamically driven by the information already known patient, the new information is entered and the logic specifies in the hospital administrator. (intelligent, 2012)
4.1 Introduction to innovation involve in Philips:
Philips logos changed:
The logo of the Philips has been continuous since the 1930's. First Philips shield in 1938. In worldwide Philips Company logo represents its strong image. Philips launched the slogan "sense and simplicity" in 2004, which shows a commitment to quality to the customers. Philips logo is registered trademark of Royal Philips Electronics.
Philips television in innovation:
To establish its leadership in the cinema TV category; Philips makes the ultimate cinema experience to a wider audience, expanding its range with the Cinema 21: 9 Gold Series with Smart LED TV. After the start of cinema 21: 9 Platinum Series last year in the world's first cinema proportion 3D TV, new cinema 21: 9 TV gold series. Cinema 21: 9 Gold is the first to include easy Philip 3D TV. On the basis of technology passive 3D, used glasses affordable, light and elegant, for 3D can share the family. Despite its new range of TVs Philips offers one of the most complete packages of Smart TV is available. As a result, consumers can connect to online content; music, photos and videos from your computer, Tablet PC, a smart phone or laptop; and storage of programs and movies on-demand.
Philips Audio and video system innovation:
Philips has combined two of its mainly booming innovations in audio, Sound Sphere and Fidelio, to attract music lovers the ultimate hi-fi experience. Philips Fidelio docking speaker Sound Sphere combines impressive functionality range of coupling Fidelio, high quality sound from the speaker, Philips Sound Sphere and AirPlay Â® from Apple in an impressive product. Philips Sound Hub "home theater systems are designed to meet the needs of for the customers.
Home movie and a great system for listening to music, at the same time keep their livers warehouse for many speakers and cables. The flagship of the 9000 series Sound Hub contains Titanium tweeter for crystal clear, undistorted sound. Philips also introduces several new Blu-ray players, many of which include features for Smart TV, are also included in our new TVs.
To particular adjustable design and good sound quality is the ideal companion for Philips compliance with action for sports earphones, during exercise. They have a secure fit, sweat-proof and washable is designed for sports person. Philips new series of fully adjustable floating cushion headphones are designed so that it can focus entirely on soak their own sound to fit the shape of the ear of the user to meet every single person's comfort.
Male Grooming products innovation:
Phillips is upgrading as a global leader in men's grooming products, electric men's portfolio includes 4 new product unveiling is grooming: smooth, multiple grooms and groom a beard stuck power head hair. Added a new male shaved head, laziness, or body grooming from head to toe - the exact style shows passion for the authority to achieve.
Robot vacuum cleaner innovation:
Philips introduced a PA home based robot vacuum cleaner, it is inbuilt with camera and smart navigation with these mapping technologies, and it easily flow the instruction executed in it. With these technology it steadily interlace the floors and systematically weave all over the floor and all over the floor permanent facilities on the left side right at the precise parallel path equipped with random is effectively eliminate the dirt and dust. It can recognize the position of the furniture without hitting unnoticed.(philips, 2011)
4.2 Meets several problems after innovation
Philips introduced a new 23 inch monitor with 3D full HD resolution with specification and price for the entry-level model with 3D view. Philips 3D solutions that monitor having 23inches screens that can be with a resolution of full HD support without any defect. Philips ranks number one in lighting fixtures, lamps, lights, electronic and electrical lighting, and electrical shaving for men. Number two productions in medical imaging systems, with competition with Siemens and GE in many product groups. These 3 companies are the top in the electrical and the electronic industries. Philips too faced that when they entered into the Smart TV and LED TV market.
Improper distribution channel:
If the distribution or payment can no longer be questioned, the prohibition or restriction of the products will distribute property improperly distributed or paid, or that the customer has paid the wrong most likely did not properly received and the distribution of income for the customer. The seller and wholesalers promoted more number of televisions and lighting lamps for distribution, they needs to revise the product distribution channels. (data, 2010)
4.3 Proposed Innovation in Philips:
The proposed innovation will increases the profit as well as brand image for Philips. I proposed two innovations are as follows.
Wrist brand mp3 player with thermometer
Television/ laptops are made up of glass.
Wrist brand mp3 player with thermometer:
The wrist mp3 player is made up of OLED display and its bottom side is covered with poly carbonate. The major advantage in the wrist mp3 player, where the display slides up to divulge the controls of the transport and the sound noise are conveys and its converts into the Bluetooth earphones. It is inbuilt with geo positioning system (GPS) for mostly welcomes for the athletes and walkers; it providing the navigation options, how much distance traveled with thermometer functionality will attracts the customers for check the temperature of the body.
Television/ laptops is made up of glass:
The second innovation idea is Glass TV as well as desktop. It is made up of a glass screen and round rim with stunning look and transparent glass. The keyboards are made up of decorated metal and keys are flattened and easy to use. Nowadays the trends are keep on changing depends upon needs of the customers. I suggest this glass desktop/television plays a vital role in the market for improving the brand name as well as first television/laptop made of glass. After this innovation the company's profit increases from 2% of its net sales.
Philips is going innovates the certain methods to achieve the objectives.
Research and development
Improves in distribution channels.
Customer service centers for repairing items.
Proposed implementation on innovation: