Mark Mortell (FleishmanHillard) and Richard Wergan (Royal Phillips) presentation at the ICCO Summit 2014 in New Delhi

1. Transformation – a 24/7 reality
Richard Wergan Royal Philips and Mark Mortell OneVoice
New Delhi October 2014
ICCO Global Summit

2. IF YOU ARE IN BUSINESS…
YOU’VE GOT PROBLEMS…
David Burk

3. GLOBAL TRENDS
The Re-imagination of Everything

4. EVERYTHING THAT CAN BE DIGITAL – WILL BE
DIGITAL
EVERYTHING THAT CAN BE CONNECTED
– WILL BE CONNECTED

5. Everyone will be hyper-connected
Africa (6%)
Aisa (44%)
Europe (23%)
Middle East (3%)
North America (13%)
Latin America/Carib. (10%)
Oceania/Australia (1%)
In just over 10 years, 528% increase in online
users now dominated by Asia… but wherever you
are the trend is a steep, upward curve.
Africa (6%)
Asia (44%)
Europe (23%)
Middle East (3%)
North America (13%)
Latin America/Carib. (10%)
Oceania/Australia (1%)

6. Everywhere…
1.1 BILLION 3G SUBSCRIBERS… 37% GROWTH

7. • There are now more connected devices than
human beings
To everything…

8. THE RE-IMAGINATION OF NEARLY
EVERYTHING*
*Following material adapted from KPCB’s Presentation: Internet Trends 2012

9. Computing escapes the desktop

10. Objects become intelligent

11. All points become a point of sale

12. Entertainment leaves the building

13. Navigation goes off the map

14. Workforce replaces workplace

15. Music enters the cloud

16. Books are everywhere

17. Photography becomes ubiquitous

18. Journalism is a by product of ubiquitous connectivity

19. Press Release
REIMAGINING COMMUNICATIONS
Television
THEN

20. Press Release
REIMAGINING COMMUNICATIONS
Television
NOW

21. Brands now have
tremendous direct
reach

22. Some brands “out-reach” major publishers
Brands are now media companies
12,530,474 25,164,485 63,378,241 124,679,586 145,866,966
Estimated Reach* Estimated Reach* Estimated Reach* Fans on social Estimated Reach*

23. Digital is the centre of human attention
23

24. CCS EU BIG5, 2012
63%
OF 24-54
HOUSEHOLDS OWN
3+ CONNECTED
DEVICES
7.5
HRS
PER DAY INFRONT
OF CONNECTED
DEVICES
ALL ADULTS
We are Hyper-connected and
“Always-Addressable”

25. Social is the dominant mode of communication
25

26. Commodities
Goods
Services
Experiences
Transformation
Shift – availability to desirability

27. Markets
Consumer needs, behaviours and
expectations
‘Attention’ is now in new places
New content creators ….everyday
Transformation 24/7
All Change…

29. VT:
1. Global brand video

31. In 2013,
Philips improved
1.8 billion
lives with our
innovation

32. A
Transforming
Business

33. We see a growing
need for healthcare
2000 2050
The world’s population aged 60 and older

34. We see increased focus
on personal well-being
Only 62% of
people around
the globe rate
their current state
of health and
well-being as
“good” or “very
good”.
Well-being of people around the world

35. We see rising demand
for energy-efficient
solutions
Lighting
The world’s energy consumption
Average saving
we can make by
switching to
energy-efficient
lighting solutions
40%

36. We manage a dynamic portfolio and we
turn unexpected possibilities into
great innovations
+40 59,000 7%
of sales
businesses patents in R&D

37. Accelerate!
delivering meaningful innovation to
our customers in local markets
faster and
better than the competition.

38. Continuous Transformation
Accelerate! change and performance improvement program making Philips a more agile
and entrepreneurial innovator.
resource
business/market
combinations
to win
end-to-end
customer
value chains
simpler,
standardized
operating
model
growth and
performance
culture
more customer
focused

39. Philips leverages strengths across businesses and markets
Philips Group Portfolio
Deep Market
Insights
Technology
Innovation
Global
Footprint
The Philips
Brand
Our People
Supported by a strong balance sheet
• Global market leader
in Lighting
• Top 3 Healthcare
player
• Leadership positions
in over half of Group
revenues
• Technology and
know-how
• Strong IP
• Regional R&D
centers
• Loyal customer base
in 100+ countries
• 36% of group
revenues from
growth geographies
• World’s 40th most
valuable brand
• Brand value of
$10 billion
• Content driven
communications
• Employee
Engagement Index
exceeds high
performance
benchmark
• Culturally diverse
top-200 leadership
team

40. Global Communications Partnership

41. A
Transforming
Business Digital
is core to everything we do

43. Philips Smart Air Purifier

44. Meaningful
digital value
propositions

45. Create lighting
that matches
your activity,
or mood

47. VT:
9. Google glass edit video

48. Accelerate! Journey continues

49. Headlines Outlet
“Philips Plans to Split into Two Companies “ WSJ
Philips Business to Keep Cooperating on New Products Bloomberg
“Breaking with Tradition, Philips Splits off Lighting” Reuters
“ Uit elkaar is voor Philips Beter “
(Splitting is better for Philips)
NRC (Netherlands)
Philips Outlines Plans to slip into Healthtech, Lighting Solutions The Hindu Business Line
Proactive media outreach:
Capital Markets Day 2014

50. Focused on the EUR 100+ billion HealthTech
opportunity
Serving the Health Continuum
Leveraging strengths of Healthcare and
Consumer Lifestyle
Royal Philips
Focused on the EUR 60+
billion Lighting solutions
opportunity
Establishing stand-alone Lighting
structure
Philips Lighting
Transforming into two focused companies
• Higher growth and
profitability
• Improved customer focus in
attractive markets
• Faster decision making
• Lean overhead structure
• Considering options for
capital market access for
Philips Lighting
• Release capital for
investments in growth

52. How Communications can
make the difference
Transformation 24/7

53. 1. Brand Relevance
Transformation 24/7

55. 1. Brand Relevance
2. Aligned Organisation
Transformation 24/7

56. VT:
4. Time delay video

57. Centres of Excellence replace Operational Teams
Government &
Public Affairs
InnovationFinancial
Comms
Issues &
Crisis Comms
SustainabilityBusiness
Transform.
Strategic &
Management
Comms
Integrated Activation & Campaign Planning
Conversations & Campaigning
Content Optimization & Management (Curation)
New Operating Model

59. 1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
Transformation 24/7

60. • There are now more connected devices than
human beings
In the “always on” world

61. EPIC: Big, bold, strategic activations that seek
mass reach and involve long lead times and
multi-channel planning (e.g. Brand refresh )
TENTPOLE: mid-range activities that draft on
a cultural agenda or seasonal cycles (e.g.
WEF, IFA etc.)
DRUMBEAT: Always-on blend of social and
press office content that builds reach,
relevance and buzz and helps “win the
newsfeed”
Content is managed at 3 speeds

62. Headlines Outlet
“Visiq, nouveau système d’ échographie mobile de Philips “ L’Echo (Belgium)
“Hightech Business in de Kankerzorg”
(hightech business in cancer therapy)
Financieele Dagblad
(Netherlands)
“‘Affordable Innovative Product” Harian Metro (Malaysia)
Philips showcases innovations for HealthCare, Lighting” The Nation (Thailand)
“Hospital in your Hands” Maariv (Israel)
RTL Z

63. Headlines Outlet
“Connectivity creates value for Consumers : Philips” CNBC
“Philips goes all-in on the connected home “ USA Today
“The Top 5 Hottest Tech Products from IFA 2014” Forbes
Philips Wants to Cure Aches With Wireless Drug-Free Pain Relievers Gizmodo (Australia)
“Low-Fat Fryer, this is Smart Living” JoongAng Ilbo (Korea)

64. 1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
Transformation 24/7

65. …the unexpected happens!

66. 1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise around Content
Transformation 24/7

67. A Great Story- will capture our curiosity

68. …Provoke Questions

69. …Transport us to another place and time

70. …Surprise!

71. …Move and Inspire

72. Stories are old…
The environment
is new…

73. Importance of Rhythm

74. Annual report
Microsite security breach
Hue launch
Aluminium issue
Q1 financial results Rijksmuseum
Prolonging the length of time and shape of the news cycle

75. Modern News Cycle: Tactics
Lengthening the
conversation cycle
Develop responsive newsroom capabilities
Segment audience into communities of
interest
Optimise for multiple platforms
Search Engine Optimisation
Raising the
Conversation cycle
Influencer Outreach
Advocacy programmes
Celebrity Endorsements
Content partnerships
Native advertising
Network coordination
Heightening the reach of the
news cycle

76. The World is a NewsFeed

78. Winning the newsfeed
ATTENTION
Friends: a growing source of attention, distribution and
loyalty.
Editors: Influence still matters. Having an influencer relations
programme is critical
Robots: Algorithms increasingly stand between ourselves
and our audience. Ignore them at your peril

81. 1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise around Content
6. Measure, Monitor and Adapt
Transformation 24/7

82. MEASUREMENT & ROI
Possible Financial Impact -
ROI
ACTION
What actions if any has the
target audience taken?
INFLUENCE
How we influenced
perceptions & attitudes of
the target audience
ENGAGEMENTEXPOSURE
Who is interacting &
engaging with our
content? How and
where?
To what degree have
we created exposure
to content and
message?
Non-Financial Impact – Value

83. The Online Portal
• Interactive online dashboard
• Historical data available
• Data viewable by business unit and by
market
• Data available on the type of coverage
generated by journalists.
Evaluation
Winner

84. Reporting
• Snap-shot of KPIs:
– Traditional media
– Key blogs
• Month-on-month perspective
• Performance by market and
business unit
• Competitor analysis
• Contextual analysis of KPI drivers
and implications/insights

85. 1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise around Content
6. Measure, Monitor and Adapt
Transformation 24/7

86. Transformation – a 24/7 reality
Richard Wergan Royal Philips and Mark Mortell OneVoice
New Delhi October 2014
ICCO Global Summit