How we create value

Group strategy
We manage our portfolio with clearly defined strategies and allocate resources to maximize value creation.

We strengthen and leverage our core Capabilities, Assets and Positions as they create differential value: deep customer insight, technology innovation, our brand, global footprint, and our people.

We are a learning organization that applies common operating principles and practices to deliver to our customers with excellence.

Path to Value
We define and execute business plans that deliver sustainable results along a credible Path to Value.


The ‘Creating value for our stakeholders’ diagram, based on the International Integrated Reporting Council framework, shows how – with the Philips Business System at the heart of our endeavors – we use six different forms of capital to drive value in the short, medium and long term.


View the full diagram here


We employ diverse and talented people and give them the skills and training they need to ensure their effectiveness and their personal development and employability.
We apply our innovation and design expertise to create new products and solutions that meet local customer needs.
We raise the funds we need for our businesses from capital providers. We then allocate this capital to our businesses and markets, focusing on those areas we think offer the best prospects for growth and returns.
We apply also Lean techniques to our manufacturing processes to produce high-quality products. We manage our supply chain in a responsible way.
We are a responsible company and aim to minimize the environmental impact of our supply chain, our operations, and our products and solutions.
We engage with stakeholders and contribute to customers and society through our products and solutions, but also through our tax payments, the products and services we buy, and our investments in local communities.