Outside-in approach in product development: Lighting for electrical cars. Wolfgang Schiene PMM GBU AL June 21, 2013
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1 Outside-in approach in product development: Lighting for electrical cars Wolfgang Schiene PMM GBU AL June 21, 2013
2 Content Philips Company Profile Outside-in approach in product development: From product development to business development One example: Lighting for electrical vehicles PMM GBU AL, June 21,
3 Philips corporate information PMM GBU AL, June 21, 2013
4 Royal Philips Electronics Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on improving people s lives through meaningful innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of sense and simplicity. PMM GBU AL, June 21,
5 Philips: a globally recognized brand Our global reach Philips is a global company with operations over all continents. The world s 41st most valuable brand in 2011 Philips increased brand value by 29% in the last five years Value of the Philips brand USD billions PMM GBU AL, June 21,
6 A strongly diversified industrial group Philips Healthcare Businesses 1 Sales & services geographies 1 Philips Consumer Lifestyle Businesses 1 2 Geographies 1 Imaging Systems Home Healthcare Solutions Patient Care and Clinical Informatics Customer Services North America International Emerging Markets Personal Care Health & Wellness Domestic Appliances Television Audio Video Multimedia Accessories Mature Markets Emerging Markets 39% 14% 21% 26% 45% 35% 20% 13% 7% 17% 36% 13% 10% 60% 40% Philips Lighting Customer Segments Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive 24% 17% 17% 11% 13% 5% 2% 3% 8% 22.6 Billion sales in ,000+ People employed worldwide in 100 countries PMM GBU AL, June 21, % of sales invested in R&D in Patent Rights in
7 Philips Automotive OEM PMM GBU AL, June 21, 2013
8 Philips Automotive mission We believe in simply enhancing people s life on the move by creating meaningful innovations that make their mobility experience, safer, more environmentally friendly and stylish. PMM GBU AL, June 21,
9 Industrial footprint San Jose, California Aachen, Germany Eindhoven, NL Plauen, Germany Pabianice, Poland Chartres, France Penang, Malaysia Songzi, China Singapore Shanghai, China Production facilities* Research & Application labs *Our state-of-the-art processes and facilities are ISO and TS14949 certified PMM GBU AL, June 21,
10 Philips Automotive solutions Lighting solutions 2 Wheeler applications Car applications Truck/ Bus applications Mobility solutions Air purification In-car entertainment Workshop lamps PMM GBU AL, June 21,
11 Portfolio information PMM GBU AL, June 21, 2013
12 Product applications Front turn LUXEON Rebel HiPer Vision products Side marker SuperFlux SignalSure HiPer Vision products Rear combination lamp SnapLED LUXEON Rebel SignalSure HiPer Vision products Headlight - HB/LB LUXEON Altilon Xenon products (D5S, ) Halogen lamps (H8, ) Front fog LUXEON Altilon LUXEON Rebel HiPer Vision Halogen lamps (H8, H11) Daytime Running Lamp LUXEON Rebel HiPer Vision products Mirror turn SnapLED SuperFlux SignalSure CHMSL SnapLED SuperFlux SignalSure PMM GBU AL, June 21,
13 Star products - Bulbs D1 NBV Xenon D5S Halogen Hi2RLL HiPer NCC PMM GBU AL, June 21,
14 Our customers PMM GBU AL, June 21,
15 Our products are used by PMM GBU AL, June 21,
16 Philips Automotive has been shaping the market since 1980 History of car headlighting technology s 2000s 2010s ~ s Incandescent 10 Lm/W 1970s Halogen H1, H4 ~20 Lm/W 1980s Halogen H7 ~25 Lm/W LED... 90Lm/W Xenon HID ~90Lm/W OLED (rear/interior) & Laser Confidential PMM GBU AL, May 31, 2012
17 Automotive is undergoing historical transformation A changing world provides opportunities The world's mobility needs are changing with higher personalization & customization Geographical spotlights are changing with global demand fueled by emerging countries Tighter governmental restrictions & increased environmental awareness pushes our industry towards energy efficient mobility means Breakthrough LED technology is changing and shaping the industry Health & Wellness will become the focus area of car manufactures in the next decade PMM GBU AL, June 21,
18 So, we need to change our way of innovation... PMM GBU AL, June 21,
19 Everything that can be invented has been invented Charles H.Duell - Commissioner, US Patent Office1899 PMM GBU AL, June 21,
20 Number of competitors Innovation along product lifecycle Blue Ocean Unmet need solved in a new way Peak I can do it better and cheaper Red Ocean End-Game / Golden Tail LED HID 25W HID 35W Halogen Time PMM GBU AL, June 21,
21 Product Creation Process (PCP) - day before yesterday Study Phase Product Development Process Development Idea Product PMM GBU AL, June 21,
22 If I had asked people what they wanted, they would have said faster horses. Henry Ford PMM GBU AL, June 21,
23 Market Introduction Process & PCP - yesterday Concept Business & Market Plan Market Introduction Maintenance / Phase Out Joint brainstorm sessions Marketing Study Phase Product Development Process Development Development Product PMM GBU AL, June 21,
24 Disruptive Technologies PMM GBU AL, June 21,
25 Business Creation Process: Today One integrated process involving all stakeholders Planning Execution BG BUs Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Marketing & Development & Sales Customer Feedback PMM GBU AL, June 21,
26 Key elements in BCP Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Market trends Market analysis Portfolio Analysis Business Potential Insights Proposition Concepts Validation of proposition Technical feasibility Business Case Technical specification Customer specific requirements Industrialization Market introduction Release Customer need Customer satisfaction PMM GBU AL, June 21,
27 Let's now invent a lamp for electrical vehicles... (BCP Quick run) PMM GBU AL, June 21,
28 BCP Planning Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Market analysis: expected market shares in 2020 Source: BCG (2009), The Comeback of the Electric Car? (rev. 2) p.7 What does it mean: Opportunity or Threat? PMM GBU AL, June 21,
29 BCP Planning Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Other companies are thinking in a similar direction Source: PMM GBU AL, June 21,
30 BCP Concept Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Collection and validation of insights: 100% electrical cars Source: Internet Majority of hybrid cars today are still "micro hybrids" "An electrical car is an energy crisis on wheels" Energy consumption, weight and space are of key relevance Lighting (front / rear ) has become a key differentiator PMM GBU AL, June 21,
31 BCP Application & Solution Strategic Planning Portfolio Management Potential technical solutions for HB/LB (e-cars): Concept Application & Solution Go-To- Market + - Halogen (Reflection) LED low end LED high end Xenon 25W Low costs Standardized building blocks "Price-Performance-Ratio" Style "LED-inside" Lowest power consumption Sophisticated style "LED-inside" Beam performance Low power consumption Style (projection + bluish light) "Xenon-inside" Beam performance Medium power consumption Standardized building blocks High power consumption "old fashioned style" Non-standardized building blocks (engineering effort) Beam performance Price (compared to halogen) Non-standardized building blocks (engineering effort) Weight/Size High Price Price (compared to halogen) PMM GBU AL, June 21,
32 BCP Application & Solution Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Philips D5S at a glance Xenon look & safety Outperforms halogen Compactness of halogen system Weight & energy reduced Easy mounting Regulated and standardized PMM GBU AL, June 21,
33 Halogen Safety & Comfort? with standard Halogen Light PMM GBU AL, June 21,
34 D5S Safety & Comfort! with Xenon Light: Longer beam Wider beam Daylight color PMM GBU AL, June 21,
35 BCP Go-To- Market Strategic Planning Portfolio Management Concept Application & Solution Go-To- Market Demo e-car of TU/e equipped with Philips 25W Xenon D5S PMM GBU AL, June 21,
36 Innovation distinguishes between a leader and a follower. Steve Jobs PMM GBU AL, June 21,
37 Thank you very much for your attention! Questions?
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