Creativity in Organization (Philips)

Philips Electronics is one of the world most recognized and one of the largest consumer electronics, lighting and medical systems manufacturer which originated from Holland. Employing more than 14,500 peoples around the world and has reached sales of 27 billions euro in 2006 is really an astounding large firms to operate. During the course of history since it was formed by Gerard Philips in 1861, the company has been in forefront of new technology and certain product innovation that put the name of company high in world electronics consumer market. The innovations from Philips really change the way we enjoy, the way we live and the way we use this innovation in our daily life. Most notable products innovation from Philips is the compact cassette, compact disk and digital video disk. Few strategies that were used in Philips to make the true leader of creativity and innovation today are:

Constant improvement to current products

Philips is already a pioneer since 1963 as the first European company to do audio compact cassette as a media for audio storage. This is the important invention that popularizes the entertainment industry as cassette can record more efficiently that LP. Compact cassette is smaller and easier to bring than magnetic tape drive and introduction of complement products such as walkman has make this is the standard format in industry. While compact cassette still enjoys a popular success in the world in 1980s, Philips begins to improve the products even though it may end up cannibalizing its own current successful product. Philips collaborates with Sony to produce compact disk which has bigger storage and better audio quality retention and it becomes a popular music media surpassing compact cassette sales revenue now.

Focus on complementary
Philips focuses on dual use technology which is important and can be sold in 2 market segment. For example is introduction of compact disk and compact disk player by Philips. By introducing compact disk, Philips is also joining into production of compact disk player which is essential for its revenues. Dual use technology is good because Philips still can focus on its core technology royalty payment (CD) lets say it fail in CD player market thus it can still generating income for long term.

Philips Innovative Campus
The campus will be important to enhance and driving force behind the Philips innovation strategy that is significant for business growth and revenues opportunities. The design and product realization facilities are integrate into Philips business models.

Drive for technological leader.
Being a technological leader in new technology will enable us earning hefty amount of returns in copyrights. For example is the introduction of compact disk where Philips and Sony is earning a share for every pieces produce as their copyrights payment. Royalty payment for technological leader is not compensate them for their technological breakthrough which a lot of resources, knowledge and money has been invested and this can generated a long term cash flow t Philips annually whether its business is good or not.


Creative workforce does not face age barrier.
People in Philips are encourage to excel and contribute creatively no matter what their age is because each one of us is unique and our opinion will stand if it is suitable to the market needs.