Innovation in practice: Philips Applied Technologies

Abstract

Different business environments within Philips demand different innovation approaches. In a high-tech business-to-business environment with demanding lead customers, innovation is driven by customer intimacy. In a fast-moving business-to-consumer environment, a combination of consumer marketing intelligence and technology is required, captured in a clear process to meet the critical time-to-market requirements. Innovation outside the existing business scope of the regular Philips divisions is handled separately. The role of Philips Applied Technologies (Apptech) is described, including competencies and processes. The central questions addressed in this paper are: 'Which innovation models are being used by Philips?' and 'What is the role of Apptech in the innovation processes and how does Apptech effectuate its role?' An open approach is evolving wherein innovation is performed in international networks of partners in new markets and with complementary skills. Assuming the task of integrator in such a network, entrepreneurs and lead customers complete the current technical and process-oriented capabilities of Apptech. Copyright © 2006 Inderscience Enterprises Ltd.