We will be featuring executives from companies with unique brand stories.Premium JapanExecutive interview by representative Mio Shimamura. Through the products and services they create, as well as their corporate philosophy, we will unravel the essence of the ``Japanese sensibilities'' and ``Japanese aesthetic sense'' that their brands express. A healthcare company celebrating its 130th anniversary this yearWe spoke to Hiroyuki Tsutsumi, President and Representative Director of Philips Japan, the Japanese subsidiary of Philips.

After 130 years of continuous innovation, from a home appliance manufacturer to a health tech company

Philips was founded in Amsterdam, Netherlands in 1891 and has developed into a global manufacturer of home appliances. It entered Japan about 60 years ago and is well-known for products such as shavers and electric toothbrushes, but in the past 10 years it has also given up its home appliances and audio business as well as its original lighting business to become a company that provides healthcare-related items and solutions. It is being reborn as a tech company.

“In July of this year, we sold our general home appliances division and became a 7% healthcare business. Philips has always been a company that is always looking ahead. We are thinking about what kind of value we should create as a company, and we need to flexibly change our business format."

Even though it is one of the world's largest consumer electronics companies, it reads the future, accurately grasps business needs, and makes drastic changes to its direction. The result was a path to becoming a health tech company.

“The other thing is where our company's value lies.Our purpose is to improve the lives of 2030 billion people by 25. To achieve this, we believed that Philips' value lies in focusing on healthcare that is accepted as an effective method by many people."

In fact, Philips was the first company in the world to create cassette tapes. Since then, the company has developed a corporate culture that is always ahead of the times and welcomes unprecedented challenges, such as co-developing CDs with Sony.

"We are a company that is constantly innovating. Without that innovation, we might not have lasted 130 years. That's why we have to keep changing, so it's tough every day (lol)."

Repeated challenges without fear of failure will yield results.

In a corporate culture that constantly demands challenges, what we tell our staff is to "fail."

"I'm not telling you to succeed at all. If you fail, it's important not to worry about it, but to take immediate action. It's okay to fail again. The risk of doing something is clearly less than the risk of not doing it. My personality is also super positive (lol). I'll make mistakes, but I want to take advantage of them. I don't think I'll get any results if I don't stay positive and have fun."

At Philips, there are no worries about being forced to follow decisions made by the head office, which is common in foreign companies.

“There are no instructions from the head office, and it is basically up to Japan. There are rules and standard models that we have to follow, but how to draw up a game plan and play is completely up to us. Instead, the responsibility is heavy, and Japan is required to be clear about what it wants to do.In the end, what is important is how much value we can create, not just the temporary results. The key is whether or not the results will lead to results.In short, we need to operate in a long-term sustainable manner while still producing results.”

Philips Japan has also entered healthcare mobility (Medical MaaS Mobility as a Service), which has introduced systems such as online medical treatment. We are developing partnerships with various local governments, universities/medical institutions, and even companies in other industries, such as health tech-centered health town development with Aomori City and Minokamo City, all of which are led by Philips Japan. It was realized.

"We have built an ecosystem with more than 160 medical institutions, local governments, and companies, but Japan is the only country that has built such a large system.In the future, we hope that this method will spread not only to Japan but also to other parts of the world. I think there is a lot of possibility.”

A fair perspective on the world comes from the experience of a global company

His willingness to respond flexibly to various changes and take on new challenges is not only part of Philips' corporate culture, but is also consistent with Mr. Tsutsumi's approach to business. Since joining NEC after graduating from university, he has gained management experience at companies with diverse cultural backgrounds, including Cisco Systems, Samsung, and Philips. Because of his background, he values ​​a fair perspective on the world, even in the face of globalization.

"I don't think business can be successful unless you first understand the culture of the country. There are cultures where people just try and solve problems if they arise, and there are cultures where people move forward while always assuming risks and thinking about how to deal with them. I think it would be wrong to judge that business won't work or that it doesn't suit us without understanding that culture.''

Therefore, the most important thing in business is communication between people. Having experienced companies with different cultures such as Japan, America, Asia, and Europe, I am more aware of the importance of these basics.

``Philips in particular is a company that values ​​teamwork and people.In fact, we hold a training camp for top management every year.The location each time is a great natural setting like the Grand Canyon.We are not allowed to bring cellphones or PCs in for a week. We walk through the wilderness and live in tents. I'm also participating, and it's just like a military boot camp (lol). Of course you have to think about business strategy, but first of all, it's extreme. During the session, participants dig into their own subconscious and think about what they should do.Furthermore, while increasing trust among participants, they ultimately think about what they should do as a company and what value they should create for customers. In a sense, this may be a more Japanese approach than that of Japanese companies, as it involves team building and self-training."

The Japanese way of thinking is the Japanese sense of beauty.

For Mr. Tsutsumi, who is familiar with such diverse cultures and business settings, what does he think Japan's aesthetic sense lies in?

``First of all, Japanese people tend to think that they are the majority.However, Japanese people are actually a minority, as they are the only people who speak Japanese.His history, culture, and ways of thinking are unique to Japan. If you realize this difference, you will realize that the things that Japanese people do and think on a daily basis are themselves part of Japanese beauty.”

Tsutsumi says that the sense of beauty is not only rooted in history and culture, but also in the way Japanese people think.

``For example, I believe that Japanese humility and politeness are part of their sense of beauty.Furthermore, Japanese people can always view the past, present, and future with a certain balance.In some countries, it is important to respect the past. There is the idea that we only look at the immediate future, and on the other hand, there is also the idea that we don't need the past anymore and that it is better to look into the future. It may seem like a lot of work, but in reality they have a great sense of balance in everything they do.I think that's what the Japanese sense of beauty is all about.

To live a rich life. The infinite future of healthcare

This September, we launched the HeartStart HS9 Home, a home-use AED that anyone can easily operate, in Japan. The scope of healthcare that Philips is involved in is truly limitless, from medical solutions such as eICU and digital pathology to in-home home care such as eHomeCare and oral health care products.

"From now on, I think it will be possible to measure a person's vital signs such as body temperature and blood pressure without contact. That way, you can know your physical condition 24 hours a day, 365 days a year, even if you are at home. The way home medical care is provided will also change. In addition, the workflow of doctors and nurses will change in hospitals, and nursing stations may no longer be necessary.As these base technologies already exist, such an AI hospital is not far off in the future.

In his private life, Mr. Tsutsumi is also a watch enthusiast.

"Time is really important to me. I don't want to regret every minute and second. I want to spend more time thinking, 'I'm glad I did what I did,' rather than 'I wish I had done that then.'" I own a variety of watches, but basically they are useless unless they have a second hand (lol).I like the feeling of each second ticking down.''

Just as Mr. Tsutsumi puts his thoughts into every second, each minute and every second is given equally to everyone. Philips' technology is sure to change people's lives as they learn how to use it meaningfully and use their time without regrets. I look forward to a future where health tech supports our health in a variety of situations and everyone can enjoy a rich time.

Hiroyuki Tsutsumi

Born in Yamanashi Prefecture in 1962. After graduating from Keio University Faculty of Science and Engineering in 1985, joined NEC. He joined Cisco Systems in 2004 and became a director in 2006. In 2007, he graduated from Stanford University Business School. In 2009, he became vice president of Cisco Systems, Inc. In 2015, he became CEO of Samsung Electronics Japan. He joined Philips Japan in 2016 as vice president. Current position since 2017.

Mio Shimamura