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The document discusses Philips' IntelliVue Patient Monitoring System. It provides an overview of the system, its features and target markets. It then analyzes the system using frameworks like SWOT, Porter's Five Forces and the marketing mix. Finally, it discusses servitization strategies and a go-to-market strategy for new services.

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0% found this document useful (0 votes)
92 views19 pages

Document Details: Page 1 of 19 - Cover Page Submission ID Trn:oid:::1:2837256103

The document discusses Philips' IntelliVue Patient Monitoring System. It provides an overview of the system, its features and target markets. It then analyzes the system using frameworks like SWOT, Porter's Five Forces and the marketing mix. Finally, it discusses servitization strategies and a go-to-market strategy for new services.

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mesay83
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Table of Contents
I. Introduction ........................................................................................................................ 3
II. Data collection methods and sources: ............................................................................... 3
III. Background of the Company: ......................................................................................... 5
1) Brief History: ................................................................................................................... 5
2) Overview of Products and Services: ............................................................................... 6
3) Customer Base and Target Market:................................................................................. 6

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4) Market Share:.................................................................................................................. 7
IV. Discussion on selected B2B product: Philips IntelliVue Patient Monitoring System ...... 7
1) Overview of Philips IntelliVue Patient Monitoring System ............................................. 7
2) Customer Segments ........................................................................................................ 8
3) Target Market .................................................................................................................. 8
V. Framework analysis on selected B2B product .................................................................... 9
1) SWOT Analysis: ................................................................................................................ 9
2) Porter's Five Forces Analysis: ........................................................................................10
3) Marketing Mix Framework:...........................................................................................10
VI. Servitization Strategies: ................................................................................................12
1) Use-Oriented Servitization Strategy: ............................................................................12
2) Result-Oriented Servitization Strategy: .........................................................................13
VII. Marketing Strategy for the new Service (Servitization) ................................................14
1) GO-TO MARKET STRATEGY ............................................................................................14
VIII. Conclusion .....................................................................................................................15
IX. References .....................................................................................................................17

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I. Introduction

In an era marked by rapid technological advancements and shifting healthcare paradigms, the

role of innovative solutions in revolutionizing patient care and clinical practice has never

been more pronounced. This introductory chapter serves as a gateway to our exploration of

the transformative potential of the Philips IntelliVue Patient Monitoring System within the

context of the dynamic healthcare technology landscape.

The rationale behind our selection of Philips and its IntelliVue system for analysis is

grounded in the company's distinguished legacy as a pioneer in healthcare technology and the

growing significance of remote patient monitoring solutions in modern healthcare delivery

models. As healthcare systems worldwide grapple with challenges such as rising patient

acuity, escalating healthcare costs, and the demand for personalized, patient-centric care, the

IntelliVue system emerges as a beacon of innovation, offering advanced capabilities for real-

time patient data monitoring, clinical decision support, and remote health management.

Against this backdrop, our report aims to delve deep into the intricacies of the IntelliVue

system, elucidating its features, functionalities, and strategic implications for healthcare

providers, technology companies, and patients alike. Through a multi-faceted analysis

encompassing SWOT analysis, Porter's Five Forces analysis, and examination of the

marketing mix, we endeavor to unearth actionable insights that can inform strategic decision-

making and foster innovation within the healthcare technology ecosystem.

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Structured to provide a comprehensive overview of the IntelliVue system and its broader

implications, this report is organized into distinct chapters that sequentially unravel the

intricacies of our analysis. From the historical trajectory of Philips as a company to the

strategic imperatives driving the adoption of servitization strategies in the B2B product

market, each chapter serves as a building block in our quest to illuminate the

transformative potential of the IntelliVue system and the strategic imperatives shaping the

future of healthcare technology.

II. Data collection methods and sources:

The data collection methods that we used in the process of preparing this report are:

 Observations: To collect data, observations entail methodically observing and

documenting actions, occasions, or procedures. Both controlled and uncontrolled

environments can be used for observations, which can also be organized or

unstructured.

 Company Reports: A company's financial performance, operations, and strategies are

detailed in its company reports. The company's website, annual reports, and other

financial publications are the places to find these reports.

 Publications from the Government: Publications from the Government offer data on a

range of subjects, including industry trends, economic indicators, and demographics.

Libraries and official websites are good places to find these publications.

 Internet Resources: social media, blogs, and news articles are a few examples of

online resources that can offer insightful information on a particular subject. But it's

crucial to confirm the authority and dependability of the sources.

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 Academic Journals: These publications offer in-depth analysis on a range of subjects

and can be an invaluable resource for information needed for a report. Online

databases or academic libraries can provide access to these journals.

III. Background of the Company:

1) Brief History:
Philips, founded in 1891 by Gerard Philips and his father Frederik, initially focused on

manufacturing carbon-filament lamps. The company quickly expanded its product line to

include other electrical appliances. By the early 20th century, Philips had established itself as

a leading global producer of light bulbs.

In the 1920s and 1930s, Philips expanded its operations internationally, setting up

subsidiaries in various countries. During World War II, the company's factories in the

Netherlands were heavily damaged, but it managed to rebuild and resume production after

the war.

In the post-war period, Philips diversified its product range, venturing into consumer

electronics such as radios and televisions. The company also played a significant role in the

development of new technologies, including the Compact Cassette and the Compact Disc.

Throughout the latter half of the 20th century, Philips continued to innovate and expand into

new markets. It established a strong presence in the healthcare sector, developing medical

imaging equipment and other healthcare technologies.

In the 21st century, Philips underwent a series of strategic transformations, focusing more on

healthcare technology, consumer lifestyle products, and lighting solutions. The company sold

off its consumer electronics division to concentrate on its core businesses.

Today, Philips is a diversified health and well-being company, with a focus on healthcare

technology, consumer products, and lighting solutions. It remains one of the world's leading

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innovators in these fields, committed to improving people's lives through its innovative

products and solutions.

2) Overview of Products and Services:


Philips offers a diverse portfolio of products and services across multiple sectors:

 Healthcare: Philips Healthcare division provides a wide range of medical devices,

diagnostic imaging systems, healthcare informatics solutions, and patient monitoring

systems. These include MRI machines, CT scanners, ultrasound systems, patient

monitors, and telehealth solutions.

 Consumer Electronics: Philips is well-known for its consumer electronics products,

including televisions, audio equipment, household appliances, and personal care

products such as electric shavers and toothbrushes.

 Lighting: As one of the pioneers in lighting technology, Philips offers innovative

lighting solutions for homes, businesses, and public spaces. This includes LED

lighting, smart lighting systems, and specialty lighting products.

 Other Sectors: Philips also operates in sectors such as automotive lighting,

professional lighting solutions for industries and infrastructure, and connected home

technology.

3) Customer Base and Target Market:


Philips serves a diverse customer base across various industries and sectors:

 Healthcare Institutions: Hospitals, clinics, diagnostic centers, and healthcare

facilities are key customers for Philips Healthcare division. These institutions rely on

Philips' medical devices and solutions to provide quality patient care and improve

clinical outcomes.

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 Consumers: Philips' consumer electronics products target individual consumers

seeking high-quality audio-visual equipment, household appliances, personal care

products, and lighting solutions for their homes.

 Businesses and Industries: Philips provides lighting solutions and professional

services to businesses, industries, and infrastructure projects worldwide. This includes

retail stores, offices, factories, sports stadiums, and public infrastructure projects.

4) Market Share:
In the healthcare sector, Philips holds a significant market share in various segments,

including medical imaging equipment, patient monitoring systems, and healthcare

informatics solutions. The company's commitment to innovation, quality, and customer

satisfaction has contributed to its strong market position globally.

Philips' long-standing history of innovation, diversified product portfolio, and focus on

customer-centric solutions have solidified its position as a leading technology company with

a strong presence in healthcare, consumer electronics, and lighting sectors. With a relentless

commitment to research and development, Philips continues to drive innovation and shape

the future of technology across multiple industries.

IV. Discussion on selected B2B product: Philips IntelliVue Patient Monitoring

System

1) Overview of Philips IntelliVue Patient Monitoring System


The Philips IntelliVue Patient Monitoring System is a sophisticated healthcare solution

designed to provide real-time patient data monitoring for healthcare providers. It

encompasses a range of monitoring devices and software solutions aimed at improving

patient care and clinical outcomes. The system allows healthcare professionals to remotely

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monitor various vital signs and physiological parameters of patients, such as heart rate, blood

pressure, oxygen saturation, and more, in real-time.

2) Customer Segments
The primary customer segments for the Philips IntelliVue Patient Monitoring System include:

 Hospitals and Healthcare Facilities: The system caters to hospitals, clinics, and

healthcare facilities of all sizes, ranging from small outpatient clinics to large tertiary

care hospitals.

 Healthcare Professionals: Doctors, nurses, and other healthcare professionals who

require accurate and timely patient data for clinical decision-making are key users of

the IntelliVue system.

 Home Healthcare Providers: With the growing trend towards home-based

healthcare services, the IntelliVue system also targets home healthcare providers who

need remote monitoring capabilities for patients receiving care at home.

3) Target Market
The target market for the Philips IntelliVue Patient Monitoring System includes:

 Acute Care Settings: Hospitals and intensive care units where continuous monitoring

of critical patients is essential.

 Emergency Departments: For immediate patient assessment and monitoring upon

admission.

 Long-term Care Facilities: Nursing homes and rehabilitation centers where

continuous monitoring of patients' vital signs is necessary.

 Home Healthcare: Remote monitoring solutions for patients receiving care at home.

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V. Framework analysis on selected B2B product

We use three major frameworks in this chapter to conduct a thorough analysis of the chosen

B2B product in the healthcare industry: the Porter's Five Forces analysis, the SWOT analysis,

and the Marketing Mix framework.

1) SWOT Analysis :
To start, let's look at the strengths, weaknesses, opportunities, and threats related to Philips

medical equipment. Philips' robust brand image, cutting-edge technology, and wide range of

products catering to different medical specialisations could be considered advantages.

Weaknesses could include obstacles like expensive startup expenses, difficult upkeep needs,

or potential gaps in product offers as compared to rivals. Opportunities could come from new

developments in technology, global market expansion, or healthcare trends. Potential hazards

may arise from fierce rivalry, modifications to regulations, or unpredictability in the economy

impacting healthcare expenditures.

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2) Porter's Five Forces Analysis :

Threat of New Entrants: Moderate

 Entry barriers include high initial capital investment, stringent regulatory

requirements, and the need for advanced technological capabilities.

 However, the growing demand for remote patient monitoring and healthcare

technology presents opportunities for new entrants to enter the market.

Bargaining Power of Buyers: High

 Buyers, such as hospitals and healthcare facilities, have significant bargaining power

due to the availability of alternative patient monitoring solutions and the importance

of cost-effectiveness in healthcare procurement.

 Price sensitivity and the ability to negotiate volume discounts can impact Philips'

pricing strategies and profitability.

Bargaining Power of Suppliers: Low to Moderate

 Suppliers of key components and technologies for patient monitoring systems may

have some bargaining power, but Philips' strong relationships with suppliers and

economies of scale mitigate this threat.

 However, disruptions in the supply chain or dependency on specific suppliers could

impact production and distribution.

Threat of Substitutes: Moderate

 Substitutes for patient monitoring systems include alternative monitoring

technologies, manual monitoring methods, and non-traditional healthcare solutions.

 However, the critical nature of patient monitoring in healthcare settings and the need

for real-time data make the threat of substitutes relatively moderate.

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Competitive Rivalry: High

 The healthcare technology market is characterized by intense competition, with

several major players vying for market share.

 Competitors offer similar patient monitoring solutions, and differentiation is crucial

for Philips to maintain a competitive edge.

3) Marketing Mix Framework :

Finally, we look at Philips' approach to the marketing mix for medical equipment. We

examine the way in which Philips markets its goods (Product), taking into account elements

including technological capabilities, dependability, and alternatives for customisation to cater

to a wide range of consumer demands. Value-based pricing, which represents the superior

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quality and functionality of Philips equipment in comparison to rivals, is one of the pricing

methods (Price). Distribution channels (Place) play a crucial role in providing healthcare

providers with worldwide accessibility, whether via partnerships, direct sales, or internet

platforms. Targeted advertising, attendance at medical conferences, and

educational programmes highlighting Philips' technological innovations and clinical results

are examples of promotional activities (Promotion).

VI. Servitization Strategies:

Servitization Strategies for Philips IntelliVue Patient Monitoring System to Philips Remote

Health Monitoring Service.

1) Use-Oriented Servitization Strategy:


Philips can implement a use-oriented servitization strategy by transitioning from selling

hardware (monitoring devices) to offering a comprehensive remote health monitoring service.

This service would include:

 Telehealth Consultations: Philips can offer virtual consultations with healthcare

professionals through its remote health monitoring platform. Patients can access

healthcare advice and guidance from the comfort of their homes, reducing the need

for in-person visits.

 Continuous Monitoring: The service would provide continuous monitoring of

patients' vital signs using Philips monitoring devices. Healthcare professionals can

remotely monitor patients' health status in real-time and intervene promptly in case of

any abnormalities.

 Personalized Health Plans: Philips can develop personalized health plans for each

patient based on their medical history, risk factors, and current health status. These

plans can include dietary recommendations, exercise routines, medication schedules,

and other interventions tailored to individual patient needs.

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2) Result-Oriented Servitization Strategy:


In addition to the use-oriented strategy, Philips can implement result-oriented servitization

strategies to enhance the value proposition of its remote health monitoring service. This may

include:

 Outcome-Based Pricing: Philips can offer outcome-based pricing models where the

cost of the service is linked to the health outcomes achieved by patients. For example,

the company could charge based on metrics such as reduced hospital readmissions,

improved medication adherence, or better disease management outcomes.

 Performance Guarantees: Philips can provide performance guarantees to healthcare

providers, promising certain levels of improvement in patient outcomes or operational

efficiencies. If these targets are not met, Philips could offer compensation or

additional support to rectify the issue.

 Data Analytics and Insights: The remote health monitoring service can leverage

advanced data analytics capabilities to provide actionable insights to healthcare

providers. Philips can analyze the data collected from monitoring devices to identify

trends, predict health deterioration, and optimize treatment plans, thereby improving

overall patient outcomes.

By adopting these servitization strategies, Philips can transform its IntelliVue Patient

Monitoring System into a comprehensive remote health monitoring service that offers not

only hardware but also valuable healthcare insights and outcomes. This shift towards service-

oriented offerings aligns with the evolving needs of the healthcare industry and positions

Philips as a leader in remote patient care and management.

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VII. Marketing Strategy for the new Service (Servitization)

1) GO-TO MARKET STRATEGY


 Target market: Determine which demographics and regions will most benefit from

the service, with an emphasis on high-burden conditions like chronic kidney disease,

diabetes, COPD, hypertension, and congestive heart failure. To reach patients with

these conditions, think about collaborating with insurance companies and healthcare

providers.

 Partnerships: Form strategic alliances with employers, insurance companies, and

medical facilities to advertise the service and highlight its benefits for patients'

outcomes and financial savings. Think about including the service in wellness

initiatives for staff members or as an added benefit for insurance policies.

 Clinical programs: Create clinical programs targeted at particular

patient demographics to demonstrate the service's efficacy and inspire trust in

medical professionals. In order to carry out clinical trials and publish studies on the

effectiveness of the service, think about collaborating with academic medical centers

or research institutes.

 User friendly devices: Create user-friendly gadgets that don't require broadband

connectivity to make sure that low-income people, people who live in rural areas, and

people who live in cities without dependable internet access can all use them. To

guarantee that patients can operate the devices efficiently, think about providing

instruction and support services.

 Support infrastructure: Give patients the assistance they need to make sure they get

test strips and other supplies they need. To include these supplies in the service, think

about collaborating with pharmacies or companies that provide medical supplies.

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 Data security: In order to safeguard patient data and preserve confidentiality,

emphasize the significance of data security and privacy. Use risk-based defense-in-

depth security measures. To prove that the service is dedicated to protecting customer

data, think about obtaining certifications like HIPAA compliance.

Philips can establish itself as a pioneer in the telehealth industry by putting these tactics into

practice and providing a thorough and individualized approach to managing chronic

conditions that enhances patient outcomes and lowers medical expenses.

VIII. Conclusion

In conclusion As we draw the curtains on our comprehensive analysis of the Philips

IntelliVue Patient Monitoring System, it becomes abundantly clear that the convergence of

innovation, technology, and customer-centricity lies at the heart of the healthcare industry's

transformative journey. Summarizing the key findings of our exploration, we reaffirm the

critical role of servitization strategies in driving value creation, differentiation, and customer

engagement in the B2B product market.

From our examination of Philips' strategic trajectory to the delineation of the competitive

dynamics shaping the healthcare technology landscape, our report has unearthed a myriad of

insights that underscore the imperative for companies to embrace innovation, collaboration,

and customer-centricity in their pursuit of sustainable growth and competitive advantage. In

the ever-evolving healthcare landscape, characterized by demographic shifts, regulatory

complexities, and technological disruptions, the IntelliVue system emerges as a testament to

Philips' unwavering commitment to advancing the frontiers of healthcare technology and

delivering tangible value to its customers and stakeholders.

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Looking ahead, we posit that the integration of servitization strategies into B2B product

offerings will remain a cornerstone of success for companies seeking to navigate the

complexities of the healthcare technology market. By embracing a holistic approach to

product development, service delivery, and customer engagement, firms can position

themselves at the vanguard of innovation, driving positive outcomes for patients, healthcare

providers, and society at large.

In closing, we extend our gratitude to all stakeholders who have contributed to the realization

of this report, from the dedicated professionals at Philips to the visionary leaders shaping the

future of healthcare. As we embark on the next phase of our journey, let us remain steadfast

in our commitment to innovation, collaboration, and excellence, harnessing the

transformative power of technology to build a healthier, more resilient future for generations

to come.

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IX. References

Kim, M., et al. (2023). Usability Study on Patient Monitoring Systems: An Evaluation
of a User Interface Based on User Experience and Preference. Journal Name,
Volume(Issue), Page Range.

Koenig, M., et al. (2021). Patient Monitoring Alarms in an Intensive Care Unit:
Observational Study With Do-It-Yourself Instructions. Journal Name, Volume(Issue),
Page Range.

Philips Healthcare. (n.d.). Benefits of Standardizing Patient Monitoring White Paper.


Retrieved from https://www.usa.philips.com/c-dam/b2bhc/us/services/benefits-of-
standardizing-patient-monitoring-white-paper.pdf[3

Philips Healthcare Australia. (n.d.). IntelliVue X3 | Philips. Retrieved from


https://www.philips.com.au/healthcare/product/HC867030/intellivue-x3-patient-
monitor[4]

Philips Healthcare. (n.d.). Stay connected. Retrieved from


https://www.documents.philips.com/assets/20220708/907841cdadee4aa29550aecc010
73cd9.pdf[5]

SWOT and PESTLE Analysis. (n.d.). SWOT Analysis of Philips | Business


Management & Marketing. Retrieved from https://swotandpestleanalysis.com/swot-
analysis-of-philips/

IIDE. (2021). Elaborate Marketing Mix of Philips - 4Ps Covered. Retrieved


from https://iide.co/case-studies/marketing-mix-of-philips/

Reference for Business. (n.d.). Philips Electronics N.V. - Company Profile,


Information, Business Description, History, Background Information on Philips
Electronics N.V. Retrieved from
https://www.referenceforbusiness.com/history2/26/Philips-Electronics-N-V.html

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