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    Philips New Biz Incubation Approach

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    bobaol01
    1) Technology Incubator analyzes disruptive innovations that start in niche markets and require new capabilities and patience to develop. 2) It establishes a staged new business development process run by dedicated, agile organizations and supervised at the board level. 3) Focus areas include healthcare, lifestyle, and technology, developing innovations through incubation, spin offs, licensing, or transfer to existing Philips businesses.

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    Philips New Biz Incubation Approach

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    188 views15 pages
    1) Technology Incubator analyzes disruptive innovations that start in niche markets and require new capabilities and patience to develop. 2) It establishes a staged new business development process run by dedicated, agile organizations and supervised at the board level. 3) Focus areas include healthcare, lifestyle, and technology, developing innovations through incubation, spin offs, licensing, or transfer to existing Philips businesses.

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    1) Technology Incubator analyzes disruptive innovations that start in niche markets and require new capabilities and patience to develop. 2) It establishes a staged new business development process run by dedicated, agile organizations and supervised at the board level. 3) Focus areas include healthcare, lifestyle, and technology, developing innovations through incubation, spin offs, licensing, or transfer to existing Philips businesses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    188 views15 pages

    Philips New Biz Incubation Approach

    Uploaded by

    bobaol01
    1) Technology Incubator analyzes disruptive innovations that start in niche markets and require new capabilities and patience to develop. 2) It establishes a staged new business development process run by dedicated, agile organizations and supervised at the board level. 3) Focus areas include healthcare, lifestyle, and technology, developing innovations through incubation, spin offs, licensing, or transfer to existing Philips businesses.

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    of 15

    New Business Incubation

    Jelto Smits CEO Technology Incubator Lighting and Innovation Analysts Day September 28, 2007

    Disruptive Innovations Offer Greatest Returns


    Disruptive innovations do not start in mass markets, rather in niche markets that value the unique selling point (Innovators Dilemma) Require new capabilities, non-traditional ways of working and patience, similar to the venture capital approach Therefore we established a novel way of working: A staged new business development process Run by dedicated, agile organizations Supervised at board level and Executed by entrepreneurs

    New Businesses Incubation

    Transfer to existing Philips businesses Contract R&D (adjacent) Corporate Research (disruptive) Spin Up New Business Spin Out

    Spin Off Patent / Technology licensing

    Focus Areas of Incubators


    Healthcare, Lifestyle and Technology

    applied marketing

    Healthcare and Lifestyle Incubators Market 2006 Break Away Innovation Innovation

    new

    Technology Incubator 2002

    existing

    Cost Innovation

    Feature Innovation

    existing

    new

    applied technologies

    New Business Development Boards


    Three New Business Development boards, handling incubator and sector New Business Development Chairmen: Philips board members Members:
    Philips board members Philips CTO Business CMO, CTO M&A Incubator CEOs

    New Business Stage-Gating


    Bell-Mason approach

    New Business Development Boards


    1. PreIdeation seed Gates Expansion 5. Growth & Value Capture

    2. Seed

    3. Alpha

    4. Beta

    Research Incubators Sectors

    Critical Dimensions of New Business Development


    PRODUCT/SERVICE Business Plan Delivery Marketing Sales Management Team Venture Board Cash FINANCE PEOPLE MARKETING

    Product/Service Venture platform Control Financing

    New Business Monitoring Process


    Following best practices of VC industry
    1. PreIdeation seed Gates
    PRODUCT/ SERVICE
    Business Plan Delivery Marketing Sales

    2. Seed

    3. Alpha

    4. Beta

    Expansion 5. Growth & Value Capture

    MARKET

    Product/Service

    Venture Platform

    Management

    PRODUCT/ SERVICE
    Control Financing Team Venture Board Cash

    Business Plan Delivery Marketing Sales

    MARKET

    Product/Service

    FINANCE

    PEOPLE
    Venture Platform Management

    PRODUCT/ SERVICE
    Control Financing Team Venture Board Cash

    Business Plan Delivery Marketing Sales

    MARKET

    Product/Service
    PEOPLE

    FINANCE

    Venture Platform

    Management

    Control Financing

    Team Venture Board Cash

    PRODUCT/ SERVICE

    Business Plan Delivery Marketing Sales

    MARKET

    Product/Service

    FINANCE

    PEOPLE
    Venture Platform Management
    PRODUCT/ SERVICE
    Business Plan Delivery Marketing Sales

    MARKET

    Control Financing

    Team Venture Board Cash

    Product/Service

    FINANCE

    PEOPLE
    Venture Platform Management

    Control Financing

    Team Venture Board Cash

    FINANCE

    PEOPLE

    Technology Incubator Scope and selection criteria


    Scope: Philips Corporate R&D Laboratories

    Selection Criteria: Capable & motivated team, willing to deal with the risk Disruptive technology with distinct USP Technology relevant for large markets with multiple products
    Potential sales >EUR 100 m., preferably >1 B

    Technology well protected by intellectual property Technology relevant for Philips

    Incubation Pipeline
    Portfolio Technology Incubator

    Ideation

    Pre- Seed Seed

    Business Alpha Beta Growth

    Prepare transfer

    Capture the value

    Spin-outs
    Polymer Vision (Dec-06) and Silicon Hive (Apr-07)

    Polymer Vision received EUR 21 million investment from Technology Capital SA (Lux) to commercialize the Readius rollable display Philips keeps minority shareholding Wins 2007 3GSM Global Award Silicon Hive received investment from NVP (USA) and TVM (D) to expand configurable processor business Philips keeps minority shareholding

    First Exits from Technology Incubator


    Laser Sensors, transferred to Philips Lighting (Jan-06) Potential Market >1 billion units
    Notebook Remote Control Watches Gamepad

    ultra low power design all terrain detection system single component system

    Portable Devices Printer

    Mobile Phone

    1st
    PC Mouse

    New Business Leveraged through Sectors


    amBX gaming peripherals launched by Philips CE (Aug-07)

    amBX scripting software enables (supplier)

    CEs gaming peripherals (customer)

    New Business Leveraged through Sectors


    3D, a fascinating example of disruptive innovation

    3D often spontaneously mentioned during consumer groups as an anticipated next step in creating a more immersive and captivating experience.
    - Philips 3D consumer research

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