Sense And Simplicity Case Study

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Evaluate of the Phlips ‘’ Sense and |Simplicity’’

Under President/CEO Gerard Kleisterlee’s watch as Chairman of the Board of Management, he introduced Towards One Philips to simplify business structure streamlining 14 product divisions down to 5 product divisions. Today, all businesses are now organized under three sectors—Healthcare, Lighting and Consumer Lifestyle—internalizing the brand positioning “Sense and Sensibility” launched in 2004 to propel Philips into exciting new markets the 21st century has to offer.

People have begun to see it as more than a consumer electronics producer; they saw Philips as part of their lifestyle. In an increasingly technology-driven world, complex operations frustrate consumers. They questioned: “If technology
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With diverse member backgrounds, the think tank-and-sounding board shows Philips insights into what simplicity means for people in all aspects of their lives and in different cultures.

“There’s only one answer to commoditization, and that’s innovation but in adding more features,” remarked Rudy Provoost, chief executive officer of Philips Electronics in an interview with Guardian Unlimited in May 2007.

“Consumer electronics has been too much electronics and not enough consumer. I’m in the consumer experience business. It’s all about offering consumer great experiences, rather than the ‘tech & spec’ game. Philips is a very different company in that sense.”

“Sense and Simplicity” goes hand-in-hand with beauty and brains. It’s a tricky combination; one that Philips has got the formula down pat, with a fashion powerhouse of a partner that has a long, distinguished history to
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“Our cooperation creates a unique value proposition combining Philips’ leadership in innovation and Swarovski luxury aspiration. These new products will change the way women interact with innovation and technology.”

Provoost is certain there a lifestyle business cannot do without a fashion component. “If you think of it from a consumer point of view, it’s about product design and brand fit — we did a lot of work with Swarovski to understand their brand claim ‘Poetry of Precision’. I now have a chief design officer reporting directly to me, because design is the bridge between invention and innovation. That’s where you differentiate.”

And from the well-conceived union, Philips’ new design-driven business direction in driving global growth is evident. Design starts the product cycle and ends with sales and marketing. Manufacturing, logistics and servicing is now outsourced. The company is investing in innovation centers in the Far East instead to stay ahead of the

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