Philips chooses Singapore as key springboard to realize global Connected Planet vision

Tuesday, November 04, 2003

Electronics MNC will invest S$150 million in next five years on this initiative

Philips announced today the choice of Singapore as a key strategic center to realize its global Connected Planet vision. In a partnership with the Economic Development Board of Singapore (EDB), Philips will invest S$150 million in the next five years to develop the core competences, new business creation facilities and global business model needed to bring Connected Planet to market.

Philips announced its Connected Planet strategy at the IFA consumer electronics show at Berlin in late August. The Connected Planet vision is about enabling people to access and enjoy digital content anywhere and anytime in the home and beyond with a vanguard portfolio of consumer products and technologies. Under this umbrella, Philips will further broaden its application of wireless, broadband and mobile enabling technologies to provide seamless accessibility to entertainment, information and servi

Projects that will be executed in Singapore will share as well as contribute to the overall knowledge base and innovations that Philips engineers globally are working on for Connected Planet. The core competencies that will be developed with the support of the EDB will include technology and design know-how, knowledge management, interoperability and systems integration. Product development efforts will include work on display technology, AV technology, communications as well as wireless networking. There will also be software development in all aspects of connectivity and content management

New business application creation efforts will include test labs in the form of in-house setups, large-scale live user trials and incubation cooperation - leading eventually to a Philips node within Fusionpolis, Singapore’s blueprint for a world class networked environment to work, live, play, learn and experiment, dedicated to the Infocomms and Media industries

As Connected Planet is a totally new concept, Philips and EDB will work together to develop people competencies as well as a viable business model, including partnerships

Philips is currently a key participant of the IDA's ongoing Connected Home project. According to Mr Frans van Houten, CEO of Philips Consumer Electronics Business Groups, "We are very encouraged with the progress of the Connected Home project in Singapore. Feedback from trial users has been encouraging. This partnership with the EDB is the logical next step in our commitment to this vision that Philips shares with Singapore. With localization of development efforts, we believe we can speed up the creation of technologies that are more relevant to the local and regional environment."

This partnership with EDB will build on and move forward the efforts in product creation and innovation carried out for the Connected Home project in Singapore that was launched in the earlier part of this year. The ongoing Connected Home project in Singapore has been a significant test bed and knowledge contributor to Philips in the area of networked solutions. As a live-in trial, it has provided invaluable insights and understanding of consumer needs for the future as well as the human-machine interface for such sophisticated systems

For EDB, this partnership is important in building global leadership in new technologies and products such as DVD Recorders and Flat Panel Television sets for the Consumer Electronics sector in Singapore. At the same time, it also reinforces the long-term ties between Philips and Singapore which dates back to 1960s

Mr Teo Ming Kian, Chairman, EDB said, "Over the years, Philips has grown in step with Singapore's own pace of economic development. I am particularly pleased that Singapore now has a global part to play in Philips' future and vision of a Connected Planet, especially in the innovation, R&D and test-bedding activities of its cutting-edge products and solutions. By plugging into Singapore's network of consumers, enterprises and infrastructure, I'm confident Philips will be able to set new trends and standards and bring Connected Planet to the consumers even more effectively".

Since the inception of the Philips Innovation Campus in Singapore, it has been growing steadily with a variety of new development activities. The campus, which has some 1,000 development engineers, will see its role and activities expanding as a direct result of the Connected Planet collaboration

The Connected Planet strategy marks a significant paradigm shift for Philips in consumer electronics as it expands from selling just individual boxes or devices to selling integrated systems and solutions that work seamlessly with all other devices