PHILPS strategy to meet the opportunity to adjust organizational change or key initiatives

Tamkang University invited Taiwan state-owned enterprises should be the general manager of PHILPS Bai Jiansheng before the share "from Li Torgovnik Pu see international business transformation strategy in EMBA speech". He pointed out that PHILPS's business transformation and transformation plan has two main axes, one to consider the mission vision to redefine the scope of business; the other is the direction of the core strategic adjustment.

Bai Jiansheng said, when the enterprise is faced with great external environment change, the past rigid equation (action inertia) can not only lead the enterprises to continue to profit growth, even in the enterprise to survive the crisis, at this time, enterprises take the policy actions of the transformation of the mode of operation, is often the factor that enterprises can successfully transition and growth.

The impact of the Internet bubble core business

Holland PHILPS is a more than 120 years history of the multinational electronics company, from 1996 to 2000, has faced the huge financial losses, and in 2000 the network began to bubble, a direct impact on the company's core business is the original body, semiconductor and components, in order to survive and to the pursuit of sustainable growth, launched a program of business transformation and change.

Bai Jiansheng pointed out that PHILPS before mid 90s is the product and technology oriented, launched the first bulb from 1891 to the vacuum tube, tape recorder, CD, etc. are the innovation fiery moment to the terminal of the invention, and consumer electronics products, establish the huge investment needs of the semiconductor and electronics the vertical component of the supply chain.

In order to grasp the key components in favor of the development of consumer electronics, technology and product oriented semiconductor, electronic components supply chain development at that time really has its necessity.

"Just dropped later internal management cost increase, vertical integration efficiency, coupled with the Internet bubble in 2000 to the semiconductor and related components have a great impact, it began a make snap in organization change". Bai Jiansheng said.

Organizational change to enhance brand value

After a 97 loss and non core business department is demolished, according to the mission and vision to "through meaningful innovation to improve people's lives", to provide people with integrated solutions based innovation direction, re business category is defined as "health care, quality of life and the lighting industry in three areas, from high volatility, high capital intensity, and low profit blocks, focus on profitable growth opportunities in transition areas.

Bai Jiansheng said, before mid 90s, PHILPS in the consumer electronics industry as the main is to "vertical integration" as its core strategy, after re adjust the business category, with integrated brand management as the core, to enhance the brand value for the direction of thinking strategy.

This stage from the global trend in looking for new market opportunities, innovation ability and market demand are connected, and strategic acquisitions as a means, under the optimization of high growth and high profit + + Organization "criteria for mergers and acquisitions, bought 40 new business, strengthen the business combination in medical care, the quality of life and lighting three horizontal extension.

Bai Jiansheng, for example, through the direction of thinking innovation strategy to people pay more attention to the overall solutions, PHILPS in the past few years has won numerous awards, such as the 2014 47 product iF award, and 39 products are Red Dot and Interbrand2014 award, among the best global brands ranked one of the top 100, the brand value is as high as 10 billion 300 million dollars, compared to ten years ago was up to 234%.

The most impressive is that in the process of organizational change in the transition, the most common employee resistance, did not occur.

Bai Jiansheng said, according to the survey in the organizational transformation today, as many as 75% of employees to work in PHILPS glory. This should be attributed to PHILPS has always been a smooth organizational communication culture, not just formal communication, informal communication in the corner coffee PHILPS readily visible.

A strategy focused vision planning blueprint

The U.S. "fortune" magazine (Fortune) has praised PHILPS successful business transformation is a classic case of reform of textbook ", PHILPS's business transformation, not only a clear and focused strategy direction, more won the hearts of organizational vision blueprint for guidance.

Bai Jiansheng stressed that PHILPS is committed to building a healthier world through innovation, the goal of improving the lives of 3 billion people by the year 2025. At the same time, will also let the same enthusiasm of people in this service, work together to create the value of excellence.

The associate professor at Tamkang University EMBA Zhang Junhui believes that transformation of international business strategy from PHILPS, and the father of leading change John. Kurt (John P. Kotter) views agree without prior without previous consultation successful organizational change, originated in the "sense of crisis", "organizational vision" as a guide, and the corresponding development strategies and enough focus the target, through continuous communication, authorized actions, continue to promote reform, and inject new organizational culture.

Peter (Peter F. Drucker) also said that in twenty-first Century the biggest challenge is to manage the leadership change, the most important strategy is to abandon yesterday. Sull (Donald N.) also pointed out that breaking the cumulative action inertia, in order to ensure the successful transformation.

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