Close Cookie Notice

Welcome to the MIT CISR website!

This site uses cookies. Review our Privacy Statement.

Working Paper hero
Working Paper: Case Study

Transforming Royal Philips to Reinvent Healthcare in the Digital Age

Learn how Royal Philips transformed itself in order to reinvent healthcare in the digital age.
CASE STUDY

An in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education)

Abstract

Royal Philips’s goal was to use innovation to improve the lives of three billion people a year by 2025. To reach that goal, the company was shifting from selling medical products in a transactional manner to providing integrated healthcare solutions based on digital health technology (“HealthTech”). This shift required a dual transformation. On one hand, the company needed to transform how healthcare was conducted. Healthcare professionals would have to change the way they worked and reimbursement schemes needed to change to incentivize payers, providers, and patients in vastly different ways. On the other hand, Philips needed to redesign how it worked internally. The company componentized its business, introduced digital platforms, and co-created integrated solutions with the various stakeholders of the healthcare industry. In other words: Royal Philips was transforming itself in order to reinvent healthcare in the digital age.

Access More Research!

Any registered, logged-in user of the website can read many MIT CISR Working Papers in the webpage from 90 days after publication, plus download a PDF of the publication. Members of MIT CISR Patron and Sponsor organizations get access to additional content.

Second, participants from Philips were learning which business components could be reused, and how components could be configured to meet customer needs. The idea behind co-creating a solution was not only that individual customers would get a solution to their specific problem, but also that Philips would identify common requirements to make its solutions business scalable. 

About the Authors

Profile picture for user mmocker@mit.edu

Martin Mocker, MIT Sloan Center for Information Systems Research (CISR)

Profile picture for user jross@mit.edu

Jeanne W. Ross, MIT Sloan Center for Information Systems Research (CISR)

MIT SLOAN CENTER FOR INFORMATION SYSTEMS RESEARCH 

Founded in 1974 and grounded in the MIT tradition of rigorous field-based research, MIT CISR helps executives meet the challenge of leading dynamic, global, and information-intensive organizations. Through research, teaching, and events, the center stimulates interaction among scholars, students, and practitioners. More than ninety firms sponsor our work and participate in our consortium. 

MIT CISR Patrons
AlixPartners
Avanade
Axway, Inc.
Cognizant
Microsoft Corporation
Pegasystems Inc.
PricewaterhouseCoopers
Standard Bank Group (South Africa)
The Ogilvy Group
MIT CISR Sponsors
Allstate Insurance Company
Amcor
ANZ Banking Group (Australia)
Australian Taxation Office
AustralianSuper
Banco Azteca (Mexico)
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of Queensland (Australia)
BNP Paribas (France)
Bristol-Myers Squibb
Cabot Corporation
CarMax
Caterpillar, Inc.
CEMEX (Mexico)
Charles River Laboratories, Inc.
CIBC (Canada)
Cochlear Limited (Australia)
Commonwealth Superannuation Corp. (Australia)
Credit Suisse (Switzerland)
Cuscal Limited (Australia)
CVS Health
DBS Bank Ltd. (Singapore)
Doosan Corporation (Korea)
ExxonMobil Global Services Company
Ferrovial Corporacion, S.A. (Spain)
Fidelity Investments
Fomento Economico Mexicano, S.A.B., de C.V.
Fortum (Finland)
General Mills, Inc.
General Motors Corporation
Henkel AG & Co. (Germany)
Hitachi, Ltd. (Japan)
HSBC Technology & Services (USA) Inc.
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Koç Holding (Turkey)
Markel Corporation
Mercer
National Australia Bank Ltd.
Nomura Holdings, Inc. (Japan)
Nomura Research Institute, Ltd. Systems Consulting Division (Japan)
OECD
Pacific Life Insurance Company
Pioneer Natural Resources USA Inc.
Posten Norge AS (Norway)
Principal Financial Group
Procter & Gamble
QBE
Raytheon Technologies
Reserve Bank of Australia
Royal Philips (Netherlands)
Santander UK/Grupo Santander
SC Global Tubular Solutions
Scentre Group Limited (Australia)
Schneider Electric Industries SAS (France)
Scotts Miracle-Gro
SIGMAXYZ Inc. (Japan)
State Street Corp.
Stockland (Australia)
Suncorp Group (Australia)
Teck Resources Limited (Canada)
Tetra Pak (Sweden)
Trinity Health
Truist Financial Corporation
UniSuper Management Pty Ltd (Australia)
USAA
Webster Bank, N.A.
Westpac Banking Corporation (Australia)
WestRock Company
Wolters Kluwer
Zoetis Services LLC
Find Us
Center for Information Systems Research
Massachusetts Institute of Technology
Sloan School of Management
245 First Street, E94-15th Floor
Cambridge, MA 02142
 
617-253-2348