Philips aims to improve the lives of three billion people by 2025 by transitioning from analog products to connected propositions and new business models enabled by digital technologies and marketing. This digital transformation requires innovative customer engagement through real-time insights, personalized content and services. Philips is developing direct-to-consumer eCommerce and mobile-first strategies to deepen customer relationships and engage consumers anytime, anywhere through timely, relevant experiences. Successful execution of these digital initiatives requires strong leadership, governance, prioritization, talent management and change management to deliver transformation at scale across the large organization.

1. Merce Willekens,Philips Pavan Malladi, Wipro
October17,2017
Drive the Digital Customer Journey
Through Innovative Engagement

2. 2
Philips aims to improve the lives of three billion people by 2025

3. 3
From analog
products
to connected
propositions
From connected
propositions to
new
business
models
From new
business
models
to digitizing
marketing

4. From analog products
to connected propositions

5. 5
Supporting the healthy development of your child via real-time insights,
personalized content improved professional services.

6. 6
No more battling with your kids to brush!

7. From connected propositions
to new business models

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NEW BUSINESS MODELS
SubscriptionmodelsSoftwaredownloads ConfigurationsIn-apppurchases

9. 9
Realizing the potential of a truly tailored shave.

10. From new business models
to digitizing marketing

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Today’s digitally empowered customer moves at their own pace.
When and wherever they want to,
faster than ever before.
Philips.com
Shop
Stories
Philips
comm-
unities
My
Philips
Support
Philips
APIs
Other Philips domains
Philips apps,
devices and
services using API
Philips
Properties
Get support
Browse / buy
Get inspired
Online
Ads
Review &
Compare
Search
engines
Community
Social
media
Online
shopping
Social
shopping
External apps,
devices and
services using API
CompareLearn
Share / Get Info /
Inspire
Browse / buy
Interact
Exchange data
Family & Friends
Experts &
Influencers
Offline
CONSUMER
CUSTOMER
GOVERNMENT

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Delivering digital transformation
through capability teams,
enabling the organization to
drive digital marketing results.
v
v
v
v
v v
SOCIAL
.COM,
CONTENT & MOBILE
SEARCH
CRM & CAMPAIGN
DIGITAL SALES
DIGITAL ANALYTICS
Digital
Transformation

13. 13
Mobile-First
CX
P2P
Recommendations
(Mobile)
Search
App
Marketing
Content
Marketing
Social& IM
Professional
Endorsements
Connected
POS
CRM E-Commerce
Engaging consumers anytime, anywhere on touch points that matter -
delivering timely, relevant and personalized experiences in real-time.

14. Why should Philips sell directly online?

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A Direct To Consumer eCommerce proposition allows for deep 1:1 consumer
engagement through a great brand customer experience.

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D2C eCommerce allows to deepen the relationships with consumers by
tailoring every interaction to their specific needs

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Consumers expect manufacturers to build relationships with them
CapGemini 2014: research report 2014 Digital
1. 67% of consumers expect to connect and buy directly from the manufacturer
2. The percentage of manufacturers selling directly to consumers will increase from 24 percent to 41 percent over the next year.
3. 53% anticipate an increase in ordering at manufacturer through app or 3rd party app
4. DTC opportunity ranged from 2% to 40% of total sales for a manufacturer

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The eCommerce program, building an integrated eCommerce highway for B2C and B2B
Harmonized eCommerce Backbone New proposition development
Configuration
1. Moving from different legacy solutions towards one harmonized solution (Hybris) for our consumers & customers
2. Driving growth from our (new) propositions Products / Services/ Solutions

19. Executional challenges

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Don’t expect creating an online shop is easy…

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The journey so far…
It’s a balancing act between agility, stability & capability deployment
1. Started small with campaign stores only before today delivering through 4 scrum teams in Scaled Agile mode
2. Complexity of feature delivery across 4 different environments and with FDA validation.
3. Strong governance between Philips, Wipro and hybris – solving key issues and ensuring high season readiness.
Infra Servicesfor TUI UK & I
from Nov’04
Oct 2015
TUI Germany,UKD Service Desk,
STO, Ex-THG shops Apr 2016
Nov2016
First Choice + Thomson integration
and additional Support take over
May 2017
Current engagement
extendeduntil June 2017
Aug2017
Aug2017
Oct 2017
July 2015
Project kick off
First e-
Commerce
Campaign
Full E
commerce
store rollout
Store roll out
18 countries
Subscription
Introduction
Central
Backend
IntegrationUSA
Marketing
aligned public
domain
Microsite
Dental
professional
site

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Digital Transformation =
20% Strategy
80% Execution
--------------------------------------------
Execution =
20% Project Management
80% Change Management

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Build a vision and
operating model in digital
function:
Digital marketing is
organized along the main
themes of consumer
obsession, with full
coverage of the customer
decision journey
Convert
& Sell
Register
& Retain
ONE Digital Marketing Vision
Operational Excellence
Digital Marketing Foundation
Data & Analytics Content Privacy & Compliance
Drive Traffic
& Acquire
Mobility Personalization & Targeting Performance Management
Digital Strategic Framework
EXECUTIVE LEADERSHIP COMMITTMENT IS KEY!

24. Key takeaways

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KEY TAKE AWAYS
While it isn’t simple, focus and prioritization can deliver digital transformation at scale in an organization
Must haves:
§ C-Suite support and regular check-in’s on progress
§ Digital in the top company priorities and cascaded to all employees
§ Aligned KPI’s and measurement across the business
§ Develop a rigorous benchmark and maturity index to measure progress
§ Ensure foundations in place, develop new capabilities in agile/lean way
§ Create roadmaps, share vision and adjust along the way
§ Develop two speed mentality – some people in German cars others in horse and buggy – drive together and get
everyone in a car on same highway – different lanes/different speeds.
§ Manage Digital Talent

26. Thank you.
Contact information:
Merce Willekens, Philips
Head of D2C/B2B eCommerce PH
+31 61 13 30 283
Pavan Malladi, Wipro
+31 65 26 72 690

27. Appendix

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Digital transformation @ philips
MARGIN
REVENUEExternalFocus
InternalFocus
2 Digital
Leadership

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Improving patient outcomes by connecting physicians and patients
wherever care is needed.