Forget about products – sell projects Companies at the cutting edge are selling programmes, not things, writes Antonio Nieto-Rodriguez
In the beginning, companies sold products. And then they sold services. In recent years, the fashionable suggestion has been that companies sell solutions, solving the needs and aspirations of customers. Companies, indeed, do all of these things. But, increasingly, what companies sell are projects. Take Philips, the Dutch landmark company founded in Eindhoven in 1891 by Gerard Philips and his father Frederik with the production of carbon-filament lamps. Despite being a cash-rich company, Philips has been blamed, for several decades, for its Dialogue Q2 2018
lack of innovation culture. Five years ago, to address this problem, and to deal with the fierce competition, Philips’ board of directors decided to split the organization in three diﬀerent companies: 1 consumer health 2 lighting 3 healthcare
The strategic programme was named Accelerate. It aimed to transform each new independent company into a focused organization and accelerate growth.