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Transformation – a 24/7 reality
Richard Wergan Royal Philips and Mark Mortell OneVoice
New Delhi October 2014
ICCO Global ...
IF YOU ARE IN BUSINESS…
YOU’VE GOT PROBLEMS…
David Burk
GLOBAL TRENDS
The Re-imagination of Everything
EVERYTHING THAT CAN BE DIGITAL – WILL BE
DIGITAL
EVERYTHING THAT CAN BE CONNECTED
– WILL BE CONNECTED
Everyone will be hyper-connected
Africa (6%)
Aisa (44%)
Europe (23%)
Middle East (3%)
North America (13%)
Latin America/Ca...
Everywhere…
1.1 BILLION 3G SUBSCRIBERS… 37% GROWTH
• There are now more connected devices than
human beings
To everything…
THE RE-IMAGINATION OF NEARLY
EVERYTHING*
*Following material adapted from KPCB’s Presentation: Internet Trends 2012
Computing escapes the desktop
Objects become intelligent
All points become a point of sale
Entertainment leaves the building
Navigation goes off the map
Workforce replaces workplace
Music enters the cloud
Books are everywhere
Photography becomes ubiquitous
Journalism is a by product of ubiquitous connectivity
Press Release
REIMAGINING COMMUNICATIONS
Television
THEN
Press Release
REIMAGINING COMMUNICATIONS
Television
NOW
Brands now have
tremendous direct
reach
Some brands “out-reach” major publishers
Brands are now media companies
12,530,474 25,164,485 63,378,241 124,679,586 145,8...
Digital is the centre of human attention
23
CCS EU BIG5, 2012
63%
OF 24-54
HOUSEHOLDS OWN
3+ CONNECTED
DEVICES
7.5
HRS
PER DAY INFRONT
OF CONNECTED
DEVICES
ALL ADULTS...
Social is the dominant mode of communication
25
Commodities
Goods
Services
Experiences
Transformation
Shift – availability to desirability
Markets
Consumer needs, behaviours and
expectations
‘Attention’ is now in new places
New content creators ….everyday
Trans...
VT:
1. Global brand video
In 2013,
Philips improved
1.8 billion
lives with our
innovation
A
Transforming
Business
We see a growing
need for healthcare
2000 2050
The world’s population aged 60 and older
We see increased focus
on personal well-being
Only 62% of
people around
the globe rate
their current state
of health and
w...
We see rising demand
for energy-efficient
solutions
Lighting
The world’s energy consumption
Average saving
we can make by
...
We manage a dynamic portfolio and we
turn unexpected possibilities into
great innovations
+40 59,000 7%
of sales
businesse...
Accelerate!
delivering meaningful innovation to
our customers in local markets
faster and
better than the competition.
Continuous Transformation
Accelerate! change and performance improvement program making Philips a more agile
and entrepren...
Philips leverages strengths across businesses and markets
Philips Group Portfolio
Deep Market
Insights
Technology
Innovati...
Global Communications Partnership
A
Transforming
Business Digital
is core to everything we do
Philips Smart Air Purifier
Meaningful
digital value
propositions
Create lighting
that matches
your activity,
or mood
VT:
9. Google glass edit video
Accelerate! Journey continues
Headlines Outlet
“Philips Plans to Split into Two Companies “ WSJ
Philips Business to Keep Cooperating on New Products Blo...
Focused on the EUR 100+ billion HealthTech
opportunity
Serving the Health Continuum
Leveraging strengths of Healthcare and...
How Communications can
make the difference
Transformation 24/7
1. Brand Relevance
Transformation 24/7
1. Brand Relevance
2. Aligned Organisation
Transformation 24/7
VT:
4. Time delay video
Centres of Excellence replace Operational Teams
Government &
Public Affairs
InnovationFinancial
Comms
Issues &
Crisis Comm...
1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
Transformation 24/7
• There are now more connected devices than
human beings
In the “always on” world
EPIC: Big, bold, strategic activations that seek
mass reach and involve long lead times and
multi-channel planning (e.g. B...
Headlines Outlet
“Visiq, nouveau système d’ échographie mobile de Philips “ L’Echo (Belgium)
“Hightech Business in de Kank...
Headlines Outlet
“Connectivity creates value for Consumers : Philips” CNBC
“Philips goes all-in on the connected home “ US...
1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
Transformation 24...
…the unexpected happens!
1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise aroun...
A Great Story- will capture our curiosity
…Provoke Questions
…Transport us to another place and time
…Surprise!
…Move and Inspire
Stories are old…
The environment
is new…
Importance of Rhythm
Annual report
Microsite security breach
Hue launch
Aluminium issue
Q1 financial results Rijksmuseum
Prolonging the length ...
Modern News Cycle: Tactics
Lengthening the
conversation cycle
Develop responsive newsroom capabilities
Segment audience in...
The World is a NewsFeed
Winning the newsfeed
ATTENTION
Friends: a growing source of attention, distribution and
loyalty.
Editors: Influence still ...
1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise aroun...
MEASUREMENT & ROI
Possible Financial Impact -
ROI
ACTION
What actions if any has the
target audience taken?
INFLUENCE
How ...
The Online Portal
• Interactive online dashboard
• Historical data available
• Data viewable by business unit and by
marke...
Reporting
• Snap-shot of KPIs:
– Traditional media
– Key blogs
• Month-on-month perspective
• Performance by market and
bu...
1. Brand Relevance
2. Aligned Organisation
3. Being Prepared - for what you know
4. ….and what you don’t
5. Organise aroun...
Transformation – a 24/7 reality
Richard Wergan Royal Philips and Mark Mortell OneVoice
New Delhi October 2014
ICCO Global ...
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
Transformation is 24/7. How do global communications professionals deal with this new reality?
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Transformation is 24/7. How do global communications professionals deal with this new reality?

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

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Transformation is 24/7. How do global communications professionals deal with this new reality?

  1. 1. Transformation – a 24/7 reality Richard Wergan Royal Philips and Mark Mortell OneVoice New Delhi October 2014 ICCO Global Summit
  2. 2. IF YOU ARE IN BUSINESS… YOU’VE GOT PROBLEMS… David Burk
  3. 3. GLOBAL TRENDS The Re-imagination of Everything
  4. 4. EVERYTHING THAT CAN BE DIGITAL – WILL BE DIGITAL EVERYTHING THAT CAN BE CONNECTED – WILL BE CONNECTED
  5. 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. 6. Everywhere… 1.1 BILLION 3G SUBSCRIBERS… 37% GROWTH
  7. 7. • There are now more connected devices than human beings To everything…
  8. 8. THE RE-IMAGINATION OF NEARLY EVERYTHING* *Following material adapted from KPCB’s Presentation: Internet Trends 2012
  9. 9. Computing escapes the desktop
  10. 10. Objects become intelligent
  11. 11. All points become a point of sale
  12. 12. Entertainment leaves the building
  13. 13. Navigation goes off the map
  14. 14. Workforce replaces workplace
  15. 15. Music enters the cloud
  16. 16. Books are everywhere
  17. 17. Photography becomes ubiquitous
  18. 18. Journalism is a by product of ubiquitous connectivity
  19. 19. Press Release REIMAGINING COMMUNICATIONS Television THEN
  20. 20. Press Release REIMAGINING COMMUNICATIONS Television NOW
  21. 21. Brands now have tremendous direct reach
  22. 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. 23. Digital is the centre of human attention 23
  24. 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. 25. Social is the dominant mode of communication 25
  26. 26. Commodities Goods Services Experiences Transformation Shift – availability to desirability
  27. 27. Markets Consumer needs, behaviours and expectations ‘Attention’ is now in new places New content creators ….everyday Transformation 24/7 All Change…
  28. 28. VT: 1. Global brand video
  29. 29. In 2013, Philips improved 1.8 billion lives with our innovation
  30. 30. A Transforming Business
  31. 31. We see a growing need for healthcare 2000 2050 The world’s population aged 60 and older
  32. 32. 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
  33. 33. 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%
  34. 34. We manage a dynamic portfolio and we turn unexpected possibilities into great innovations +40 59,000 7% of sales businesses patents in R&D
  35. 35. Accelerate! delivering meaningful innovation to our customers in local markets faster and better than the competition.
  36. 36. 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
  37. 37. 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
  38. 38. Global Communications Partnership
  39. 39. A Transforming Business Digital is core to everything we do
  40. 40. Philips Smart Air Purifier
  41. 41. Meaningful digital value propositions
  42. 42. Create lighting that matches your activity, or mood
  43. 43. VT: 9. Google glass edit video
  44. 44. Accelerate! Journey continues
  45. 45. 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
  46. 46. 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
  47. 47. How Communications can make the difference Transformation 24/7
  48. 48. 1. Brand Relevance Transformation 24/7
  49. 49. 1. Brand Relevance 2. Aligned Organisation Transformation 24/7
  50. 50. VT: 4. Time delay video
  51. 51. 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
  52. 52. 1. Brand Relevance 2. Aligned Organisation 3. Being Prepared - for what you know Transformation 24/7
  53. 53. • There are now more connected devices than human beings In the “always on” world
  54. 54. 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
  55. 55. 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
  56. 56. 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)
  57. 57. 1. Brand Relevance 2. Aligned Organisation 3. Being Prepared - for what you know 4. ….and what you don’t Transformation 24/7
  58. 58. …the unexpected happens!
  59. 59. 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
  60. 60. A Great Story- will capture our curiosity
  61. 61. …Provoke Questions
  62. 62. …Transport us to another place and time
  63. 63. …Surprise!
  64. 64. …Move and Inspire
  65. 65. Stories are old… The environment is new…
  66. 66. Importance of Rhythm
  67. 67. Annual report Microsite security breach Hue launch Aluminium issue Q1 financial results Rijksmuseum Prolonging the length of time and shape of the news cycle
  68. 68. 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
  69. 69. The World is a NewsFeed
  70. 70. 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
  71. 71. 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
  72. 72. 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
  73. 73. 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
  74. 74. 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
  75. 75. 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
  76. 76. Transformation – a 24/7 reality Richard Wergan Royal Philips and Mark Mortell OneVoice New Delhi October 2014 ICCO Global Summit

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