Royal Philips Health System

A report submitted to
Prof. Prakash Satyavageeswaran

In partial fulfilment of the requirements of the course

B2B Marketing

By
Ayushraj Chouhan (188064)
Rutuja Mundhe (188155)
Shantanu Mondol ()

On
11-08-2019
Executive Summary
Initially working manually, Philips faced the problem of handling large customer data and they
felt a need to improve lead identification, communication between marketing and sales team.
They collaborated with Oracle Eloqua for redesigning its way of working. Storing data in
standardized secured data reduced the chance of misplacing, increased visibility in end-to-end
process and better communication between sales and marketing team. In comparative analysis,
it is found that they performed better than their customers and lies in the 4th quadrant
(Digitization Champion) of Digitization Matrix.
Royal Philips Health Systems
Company Background
Royal Philips (or Philips) is a multinational conglomerate corporation, with its core functioning
in the healthcare and electronics sector. These sectors are defined as –

 Philips Healthcare
Production of healthcare devices and solutions for hospitals i.e. imaging systems,
monitoring products and healthcare informatics. Contributes 42% of all sales
 Philips Consumer Lifestyle
Production and sales of personal care, domestic appliances and well-being products i.e.
trimmers. Contributes 21% of all sales
 Philips Lighting
Production and sales of lightings and electronics i.e. LEDs, bulbs, decorative lightings, and
office lightings. Contributes 37% of all sales

Initially, Philips was an electronics company till 2013 where it sold its business to Funai
Electric. After that in 2015, they snapped American medical device maker Volcano for $1.2
billion. Since 2016, Philips has shifted its focus mainly on Healthcare and in three years, they
have transformed themselves into a focused leader in health technology. Currently, around
77000 people are employed in Philips. Healthcare sector is further divided into – Diagnosis
and Treatment, Personal Health, and Connected Care and Health Informatics.

Philips Healthcare focuses mainly on – patients and care providers. They are currently working
in more than 100 countries and their aim is to improve patient outcomes and providing
innovative and sustainable healthcare solutions that meet the demands of patients in home and
at hospital.

The main challenges faced by Philips while transforming themselves into this segment were:
 requirement of high-quality manpower
 lack of awareness, constraining them to metros and tier-1 cities
 non-existing regulations in the industry, causing hindrance to professionals

Digital transformation:
As Royal Philips is one of leading solution provider for healthcare industry, they have very
large customer base in B2C as well as in B2B. To track and manage these thousands of
customer at various touch point manually was tedious task. In these process chances were high
on missing out on important lead or not maintaining relationship with customer, this might lead
to losing out on revenue.
Digital@Scale initiative
So Royal Philips went with new initiative called Digital@Scale initiative, a global campaign
across all business units for digital transformation of CRM in both B2B and B2C. In B2B lead
management and maintain relation with customer was key value addition. For this Royal
Philips implemented Oracle Marketing Cloud (OMC). The new initiative OMC was to select
ideal customer using integrated information. Information was gathered from cross channel,
social marketing and data management to give personalised experience to all customer through
all marketing channels.
Oracle Eloqua makes easy for marketers to plan and bring about campaigns to provide
personalise customer experience. It also has integrated lead management system. In B2B
important steps for converting leads to sales qualified leads are knowing your leads, scoring
your leads then marketing qualified leads to sales accepted leads to sales qualified leads. Eloqua
provides solution by scoring lead regularly based to any change in profile or activity by
prospective lead. The lead score was chosen by either customer profile score or customer
engagement score. Using this Royal Philips’s team recognised that sales and marketing team
can monitor end to end process of customer conversion and will not miss out on any data or
opportunity. This initiative was to make information flow seamless within sales and marketing
teams across globe and all business divisions. And to define KPIs to see visible effects of the
new CRM and lead management programme.
Key solutions provided by oracle Eloqua are all customers data stored centrally to reduce the
chances of misplacing the data. Full integration of sales representatives and CRM along with
new framework of lead progression. Training the staff to come on board was also the key
implementation strategy because any of these would not have worked without trained sales and
marketing staff. Initially it was implemented in UK and Ireland.

Comparative framework
In generic company where lead management might be manual process and in Royal Philips
Health Systems they have started with CRM and other campaign digitally. Later other
companies might have started with these trends but then those company will be in second
quadrant i.e. the trend follower. Sometimes it’s good to be in trend follower in disruptive
changes as success of implementation is not guaranteed over there but when it comes to
improve the existing processes to by taking advantage of technology it’s better to be in third or
fourth quadrant. Philips being itself innovation based company, they are in fourth quadrant of
this digital transformation and strategic level.
 Source: https://www.scs-luettgen.com/en/digitalization-matrix/

Results of digital transformation matrix

Critically, the new capacity has provided better visibility to both fresh and current leaders in
marketing and sales, bringing the two departments closer together as they work through
prospects.
Additional advantages included:
 Leads that are carefully prepared so that only the most appropriate leads are given to
the sales team by Eloqua.
 Higher quality leads produced by digital activity generate more confidence from sales
 Improved possibilities for customer engagement throughout the life cycle of the client.
 Clear visibility to judge achievement with immediately available reports by the primary
KPIs.
Within 9 months of initiative implementation in UK and Ireland, Philips Health system sales
team could pipeline sales worth € 9M (Oracle, 2018). Apart from this they could secure up to
600 B2B Marketing Qualified Leads.
So from above results we can say that Philips is clearly in digital champion quadrant by using
digital asset efficiently.

Conclusion
Healthcare is very critical business itself. Maintaining the relation with customer and get to
know there needs and solve them is important part of Philips. So with help of Oracle Marketing
Cloud and Oracle Eloqua Philips health system manage to create ideal leads and pursue them
throughout the processes. This gave them advantage over competitors as it improved
communication between Philips and client as well as between different divisions of Philips
health systems to facilitate flow of information.
https://www.oracle.com/customers/philips-mktg-cld-story-q.html
https://en.wikipedia.org/wiki/Philips