SAP Innovation Awards 2023
Entry Pitch Deck
Transforming the Consumer Products Industry
and Driving Innovation & Customer Value
Philips Domestic Appliances
PUBLICCompany Information
Company Name

Philips Domestic Appliances

Headquarters

Netherlands

Industry

Appliances, Consumer Products

Web Sitehttps://www.domesticappliances.philips.com/

No of Employees 7,000

Philips Domestic Appliances (Philips DA) is a global leader in the production of kitchen, coffee, garment care, andhome care appliances. With a presence in over 100 countries, the company has a strong innovation, manufacturing, andcommercial footprint. Popular products include the Airfryer, Fully Automatic Espresso Machine with LatteGo, Perfect Care
Elite steam generator, Air Purifier and SpeedPro Max vacuum cleaner.
As a global business, we see it as a responsibility, and a privilege, to protect our planet. Sustainability is at the core of all
we do, from ensuring sustainable use of materials and energy, increasing social and environmental impact through our
supply chain, and designing our products and services responsibly. We are proud to build on a 130-year legacy fromRoyal Philips and bring our customers proven innovation across kitchen appliances, floor care, air, garment care, andcoffee.
Our Priorities

20M
Highly engaged consumers
in DA ecosystem© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

50%
Of all devices sold to
be CONNECTED

10x

D2C Revenue
growthONE DA
Digital Ecosystem

2Transforming the Consumer Products Industry and Driving
Innovation & Customer Value
Philips Domestic Appliances

Challenge

Solution

In September 2021, Philips Domestic Appliances(Philips DA) became a standalone company,
focused on long-term sustainable growth throughdigital innovation and enablement.

To simplify and harmonize its ways of working •effectively across the organization, DA made thedecision to adopt an outside-in approach, reviewing
the processes and technologies and creating a model
built for the future.

As part of the carve-out from Royal Philips, ahealthcare company, DA had to transform its entire
technology landscape and implement new end-toend processes for a consumer goods company.
Furthermore, to achieve DAs goal of building
lifetime relationships with consumers and help themturn their houses into homes, DA had to become
digital-first and insights-led, fully integrated within all
domains of the organization -- from design, to
production, to shopping carts, to home delivery in a
2-year timeframe.

30%

Enhanced Agility in market
responsiveness and Ability
to Innovate© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Outcome•

It was also important for DA to maintain a Clean-Coreand not convolute the ERP with too many applications
and custom code.
DA decided to depend on the best-practices and •processes from SAP’s Intelligent Enterprise Suite on
for their end-to-end business processes, SAP BTP•
capabilities for Collaboration & Integration and SAPRISE for better cost control to maximize the benefit.

85%Standardization &Harmonization of Business
Processes

Implemented an entirely new (greenfield) landscapeleveraging SAP’s Intelligent Enterprise suite forend-to-end best-practice business processes, inorder to bring our purpose to life and reach our
growth ambition in a sustainable way.
Built a virtual cockpit, making data available toevery employee in all domains in our organization,from Recruitment to Marketing to Sales,
empowering all employees to translate real-timeinsights into impact every single day.
Data-driven steering and decision-making, andProcess Governance using Signavio.
Agile and shorter time to value, utilize SAP BTP for
constant innovation and improvement in responseto the market and customers needs.

50%

Increased Employee
engagement

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“

Our new technology landscape is designed to improve people's lives at homethrough accelerated, meaningful innovation and provides better

responsiveness, end-to-end transparency, and data for businesses.
Corine Adams
CIO© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC”
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Participating Partner Information
TATA Consultancy Services Limited
TATA Consultancy Services Limited (TCS) is delighted to be the chosen partner in Philips Domestic
Appliances’ transformation journey in becoming an independent premium consumer electronics
company. Our context of the new age business models in the consumer industry complemented withknowledge of SAP’s latest technologies enabled us to execute Philips DA’s vision to ‘exuviate’ andtransform at a very rapid pace.

The Philips Domestic Appliances ‘Exuviate’ program is a testimony of TCS’ collaboration andcommitment to a rapidly evolving business, delivering a highly standardized SAP solution with thelatest SAP technologies, and business benefits at a pace unseen in the market, for an organization
destined to become a market leader in consumer products.
Tata Consultancy Services (tcs.com), is a leading global IT service, consulting, and business solutions organization thathas been partnering with many of the world's largest businesses in their transformation journeys for over 50 years. TCS
offers a consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services andsolutions. TCS' new brand statement, 'Building on Belief', encapsulates the active and collaborative role that TCS plays inpartnering with customers over the long term, leveraging its contextual knowledge, investments in research andinnovation, and technology expertise to help them grow, and achieve their purpose-led transformation goals.
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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Challenges and Objectives 1 of 2
Business Challenges

As a global company, Philips Domestic Appliances is facing various
challenges that are affecting the consumer goods industry.

▪

In September 2021, the company became a standalone entity fromthe parent company Royal Philips, known for its medical
devices/hospital equipment, toothbrushes, and shavers. Thischange presented DA with an opportunity for long-term sustainablegrowth through digital innovation and enablement, as part of thecarve-out.

▪

All technology and processes across the organization needed to betransformed to become a digital-first and insights-led company,
integrated within all domains of the organization: from design, to
production, to shopping carts, to home delivery.

▪

Our goal is to build lifetime relationships with our customers andhelp them turn their houses into homes. To achieve this goal, we
had to embrace digital transformation as a company philosophy,
simplify and harmonize our ways of working effectively across theorganization, and use this one-time opportunity of separating from
Philips to implement the technologies and best practices processes
from SAP end to end for all domains, in only 2 years.

▪

The ongoing supply chain crisis caused by the COVID-19 pandemic
has disrupted traditional supply chains and created shortages of
essential goods and raw materials. This situation has put pressure oncompanies to re-evaluate their supply chain strategies and find new
ways to ensure business continuity.

▪

This European geo-political situation has also affected the availabilityof raw materials and the logistics of transportation.

▪

There are also fast-paced changes in consumer behaviour andtechnology that add to the requirement of the businesses’ being more
responsive.
The modern consumer is very aware and are becoming more
conscious about the environmental impact of the products they use
and the way they are produced, and are increasingly expecting
companies to prioritize sustainability and ethical practices in theiroperations

EXUVIATE▪

“Shedding theshell”DA emerging as an independent
organization out of the shadows ofRoyal Philips© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICGROW &
TRANSFORM

Global Challenges

DA becoming a Digital First
organization focusing on newer
channels and regions“Becoming a newand stronger entity”
6Challenges and Objectives 2 of 2
Project Objectives

Why SAP▪

Create a unified, integrated, scalable solution meant to deliver
the best experiences to both DA’s customers, consumers andemployees▪

The SAP Suite provides a holistic coverage across business
functions and processes, fit for a future-oriented, modern
enterprise.

▪

Adopt Future-Fit, Standard Practices & features▪

▪

Customer centricity & intimacy through digital engagement▪

Implement with speed, with an MVP approach

The SAP Suite allows DA to simplify and harmonize ways ofworking effectively across the organization, reducing the risk
and increasing the efficiency of the transformation.

▪

Advanced Analytics of the Future based on data from Inside &Outside▪

▪

Enable agility and faster time to market▪

Rationalize current landscape & move to Cloud / SaaS

SAP’s standardized and integrated platform for data-driven
decision making enable DA to build a virtual cockpit that makes
data available to every employee in all domains in ourorganization, empowering them to make informed decisions
and drive growth.

▪

Cost predictability, Futuristic and Cloud First▪

▪

User Experience for Customers, Employees & Vendors▪

Implement Best of Suite Products with SAP Intelligent
Enterprise as Core.

RISE gives DA the ability to innovate and improve faster, andallows us to have better control over our IT infrastructure, withthe ability to scale up or down as needed, and reduces ourcapital expenditure for IT infrastructure.

▪

Royal Philips has been running on SAP for the past 30 years
and gives us the confidence of having a long-lasting, stable
and scalable suite for DA. TCS' experience and commitment
have been unparalleled - serving as a true partner in the DA
journey.

▪

Single Partner strategy for E2E services with Global Reach &long-term vision© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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Project or Use Case Details
Domestic Appliances recently separated from the Royal Philips to operate as an independent organization. There was an opportunity seen to do
things differently and create a future-fit model for a leading consumer home appliances business. The DA leadership decided to rest their trust withthe best of next generation SAP Suite of applications and adopted a greenfield implementation approach to re-write the Consumer Electronics
Industry processes with a digital-first vision. A single system integration-strategy was chosen and TATA Consultancy Services was selected to
manage the program - including organizational change management.
An internal project team was formed, and the adoption of standard was mandated in all business processes of the organization. Each workstream
was given relevant KPIs such as impact on business efficiency, harmonization of business processes, improvement to customer engagement andpositive impact to employee engagement. The project started on the principle of maintaining a Clean Core using an MVP approach with core
processes delivered for key markets in 12 months, with a future-fit full solution rolled-out to the entire global organization in the following 6 months, apace unseen in the market for the scale of implementation.

Process Before▪ Finance: Segregated applications for different functions across Financebusiness▪ Product Allocation: Stock allocation/reservation cumbersome and at Stocklevel, prone to human errors and resulted in missed sales▪ Procurement: Traditional and lacked supplier collaboration▪ People: Limited User Experience, obsolete learning solutions and employee
data segregated across systems▪ Planning: Disparate, complex and inaccurate with the need of assimilation ofdata from various sources▪ Maintenance: Limited plant maintenance capabilities with no visibility across
a common window.

▪ Customer: Product Centric, No ability to measure market/customer sentiment© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

Process After▪ Finance: Unified and integrated processes. All finance business functions arecentralized into one common application, increased productivity and efficiency▪ Product Allocation: Allocation allowed at multiple levels with product substitution
ensures better stock and promotion management resulting in increased sales.
▪ Procurement: Digitized Sourcing – Improved visibility of Supplier Inventory, Enabling
Network solution for better supplier connect with improved resiliency▪ People: Increased Employee Engagement; Creating a unified, central & personalized,
maximizing collaboration & knowledge sharing. Improved HR compliance in 53
countries.
▪ Planning: Inbuilt, Central & Predictive; Inherent demand sensing and planningcapabilities. Faster closure of Consensus plan with seamless integration between
Procurement, Production and Sales▪ Maintenance: Improved operational performance via better planning of machine
downtimes and integration with Production planning.
▪ Customer: Enabling transformation from Product centric to Consumer centricorganization, emphasis measurement of customer delight and integrate with planning8

Benefits and Outcomes 1 of 2
Business or Social

IT*▪ Faster Innovation cycles▪ Reduced Total Cost of Ownership▪ Improved Visibility into Financial Metrics - enabling
better control and planning▪ Create new Revenue streams and expand to additional
geographies▪ Better Demand sensing & planning for increased sales▪ Enhanced Customer proximity & understanding▪ Data Driven Decision making▪ Realtime Metrics Reporting▪ Best of Suite SAP technologies with common data
models used across the enterprise landscape▪ Reduced effort of integration, data exchange andconversion requirements▪ Reduced Total Cost of Ownership▪ Faster time to market & improved Agility to market
changes▪ A cloud first approach, allowing faster release &adoption cycles and greater cost predictability andcontrol.

▪ Improved User Experience▪ Leaner IT Operating Model, empowered teams, enabled
by integrated functions allowing agile ways of working▪ Socially & Environmentally more Responsible▪ IT Driving Business Objectives* IT benefits are required if you are using SAP Business Technology Platform products© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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Benefits and Outcomes 2 of 2
People Related – Personal Perspective
Business Role - Planner
Intuitive, on-demand, and all in one place, the new systemenhances my role as a planner by increasing efficiency. All thenecessary information is accessible through a single application,
resulting in a significant improvement in my team's productivity.
Employee Experience
The new system is so easy to use, the self-service function allows
me to control and manage the information that matters to me.

Customer Experience
We aspire to capture the voices of our customer and use their
feedback to create a meaningful and positive impact to their lives,
converting their houses into homes.

“

The foundation of this projectis based on developing
personalized experiences andmaking a positive impact on
people's lives throughtechnology.

Pieter Sluis,
Program Manager,
Domestic Appliances© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC”
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Architecture Best of Suite SAP Architecture© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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Deployment Details 1 of 3
Deployment status Live

Number of end users

7000

Date 1st Phase: Oct’22; 2nd Phase: April’22

Transaction Volume

0.5m Planning Lines/wk, 70K PO lines per month, 9000
Customers, 15K Products, 120 Countries

SAP® technologies used:
SAP product

Deployment
statusContribution to project1

SAP RISE with SAP S/4HANA Cloud EnterpriseManagement and Global Trade system

LIVE

Making DA a Cloud Run Intelligent Enterprise

2

SAP Business Technology PlatformLIVE

It Helps maintain a CLEAN CORE, and enables Analytics, Customer Care
Integration, Planning, Integration, Authentication, TAX integration, ML capabilities

3

SAP S/4HANA, SAP Emarsys, Sales & Service, Qualtrics,
SAP Customer Data Cloud and Customer Data PlatformLIVE

Measurable Customer Insights, Gaining Market Share in New Markets, Enablingstronger business models

4

SAP SuccessFactors – EC, PMGM, Workzone, Concur –Travel, ExpenseLIVE

Enhanced Employee Engagement and Experience

5

SAP Analytics Cloud, SAP Data Warehouse CloudLIVE

One stop solution for Business Intelligence, Planning and Analytic; Sales andFinancial planning in SAC allows better detail and control

6

SAP Integrated Business Planning, Supply Chain Control
Tower

LIVE

Improved Planning capabilities and providing Inventory visibility to all across theenterpriseLIVE

Better governance, visibility, higher savings, Digitization of Sourcing – Better
engagement and planning, Improved visibility of Supplier Inventory, Enabling
Network solution for better supplier connect with improved resiliency

7

SAP Ariba – Strategic Sourcing, Guided Buying© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

12

Deployment Details 2 of 3
Solution/App details developed on SAP BTP
The following SAP Business Technology (BTP) Solutions are part of the project:
Technology

SAP BTP Solution (list Cloud Products only)

Contribution to project1

Application Development
and Automation

SAP Work Zone; SAP Business Application Studio*; SAP Launchpad Service*; SAP CloudApplication Programming Model*; ABAP environment*; SAP BTP SDK for iOS*; SAP BTP SDK for
Android*; ABAP RESTful Application Programming Model*; SAP Process Automation*; SAP
Workflow Management*; SAP Intelligent Robotic Process Automation*

2

Extended Planning andAnalysis

SAP Analytics Cloud; SAP Data Warehouse Cloud3

Data and Analytics

SAP HANA Cloud; SAP Data Intelligence; SAP Data Warehouse Cloud; SAP Analytics Cloud;4

Integration

SAP Integration Suite; SAP Cloud Platform Integration
SAP Integration Suite, advanced event mesh;
SAP Data Intelligence Cloud

Listed on SAP Store
5

Artificial Intelligence*

Unified, Intuitive and Improved Employee
Experience; Reduced dependency on HR
business Partners and Self Service allows better
control of employee data and reporting
Improving Forecast Consumption. Faster closureof Consensus plan with seamless integration
between Procurement, Production and Sales

Realtime replication & merging of the datafrom multiple sources. Complex businessprocesses can be visualized by means of fast andclear analysis, making easier for the recipient tounderstand. Self Service Reports on the existingdata models
Common platform, allows a much-improved data
management at a lower costNO

SAP AI Business Services; SAP AI Core; SAP AI Launchpad; SAP Conversational AI

Monetized (sold to your customers) NO
Co-innovation with SAP© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

NO

Number of customers using the solution/app

The plan is to leverage AI capabilities and develop

500+self service BOTS

*Planned in next Release cycle
13Deployment Details 3 of 3
The following offerings from SAP Services and Support and other packages were
utilized during the implementation or deployment phase:x

SAP MaxAttention™

SAP Preferred Success

Managed Business Services

SAP ActiveAttention™

SAP Preferred Care, on-premise

Cloud Application Services

SAP Business Journeys

SAP Enterprise Support

Activation and Optimization Services

Embedded Launch Activities

Project Success

Learning Successx

x

Partner Success

RISE with SAP

Other:

Contribution to the project--

New Product Support, Implementation support for the newer products, such as Emarsys
Design Assurance, ensuring DA follow standard business processes as design in SAP solutions
Product Demos and Guidance to for business process adoption.
Secure a future-proof target architecture as aligned with cloud-based best-practices and the roadmap
Monitor usage, refine processes and make sure DA gets the max ROI out of the SAP products© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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Additional Information
The DA Exuviate Transformation Program is aimed at building a better tomorrow, for our employees, customers and consumers.
Philips has relied on SAP technology for over 30 years, and we once again placed our trust in SAP, whilst carving-out, and evolve DA intoa world-leading consumer home appliances business.
The project enabled us to redefine and reinvent DA’s future business. The SAP Intelligent Enterprise Suite focuses on improving employee
engagement and empowering employees to make data-driven decisions and confidently execute our vision. The technology enables a
streamlined and lean IT setup, while enhancing productivity and efficiency.
RISE with SAP S/4HANA Intelligent Enterprise establishes a foundation towards the vision of becoming a customer-centric enterprise. It
enables us to develop a holistic view of our consumers, understand their needs, respond to their feedback, and innovate and create
products that positively impact their daily lives.

We began this transformation journey using a minimum viable product (MVP) approach, starting with deployment in two complex anddemanding Markets, then adding extensive features and expanding to other Markets. Our DA colleagues, system integration partner (TataConsultancy Services) and the SAP teams collaborated smoothly towards our objectives, creating a solution that met our needs anddelivered the project at a consistent pace while continuously improving to make the enterprise more resilient and intelligent.
We are confident that the implementation of SAP S/4HANA on RISE will assist Philips Domestic Appliances in realizing its mission. This
project has certainly helped establish a leading SAP best-of-suite industry model for consumer products businesses globally.
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

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