Driving value creation with sustainable impact
2022 was a difficult year for Philips as its business and financial performance suffered due to insufficient focus in execution, quality and supply challenges, and a complex operating model. Going forward, Philips will address these operational challenges, improve performance, and drive progressive value creation through a strategy of a) focused organic growth, b) scalable people and patient-centric innovation, and c) reliable execution, prioritizing patient safety and quality, supply chain reliability, and a simplified operating model. All enabled by a reinvigorated culture of accountability and strengthened health technology talent and capabilities.
Focused organic growth
We will focus investments to accelerate growth and margin expansion in areas – Image Guided Therapy, Ultrasound, Monitoring, and Personal Health – where we have strong #1 or #2 positions (today we already generate over 70% of revenues in businesses with such leadership positions in the hospital and the home). We will also scale our new Enterprise Informatics business, and drive margin improvement in Diagnostic Imaging.