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Philips Case StudyIntroduction:As a multinational healthcare and entertainment solutions provider Philips is a resilient symbol of how proper sourcing mechanisms can accommodate all kinds of change. As we dissect the exigencies and hurdles Philips had to overcome it is worth mentioning this case’s significant focus on operating models and its emphasis on their ability to act as effective enablers of growth. The case will describe how Philips started from a position of following the dominant industry business model and IT requirements design, to a stage where it took proactive measures to extend the extents of its organizations internal communications. This would make way for the ease of their corporate response to ever changing regulations, a constantly updated series of resource requirements (both tangible and intangible) based on shifts in consumer expectations and a firm wide cohesive IT architecture standard that would be met and followed by all IT professionals that have been outsourced contracts on behalf of Philips regardless of their methodology or commitment levels. This proactive response, titled “Accelerate” allowed Philips to move full speed into the future of its operations by abandoning projects with diminishing returns. This allowed Philips to focus more closely on open innovations which could pave effective go-to-market strategies on behalf of product design and product development. This is possible through an outreach program which invites inventors to share their ideas and helps Philips create feasibility reports on those ideas.1.Describethe strategic business issues Philips faced due to its IT governanceand sourcingapproaches priorto the Accelerate! implementation. Overly Centralized Decision making process that only included executives and not lower level designers; “When conflicts for IT resources occurred business seniority would at times trump business strategy”IT project overload was a problem and this contributed to low management standards