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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.

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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

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

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

MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)

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 seventy-five firms sponsor our work and participate in our consortium. 

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