Philips will Start Selling Smart Software for Healthcare

Philips will Start Selling Smart Software for Healthcare

Foto: Shutterstock

Philips plans to roll out software designed to help doctors improve the diagnoses of diseases such as cancer as it challenges General Electric and Siemens for a bigger share of the lucrative health-care solutions market, according to Bloomberg. The apps will improve interpretation of data such as a sequence of scans, with different colors showing up minor differences easily be missed with the naked eye, Chief Executive Officer Frans van Houten said in a media briefing.

It’s a market that could potentially grow twice as fast as Philips’ traditional business supplying scanners and other big-ticket medical gear. Software currently accounts for about 3 billion euros of the 17 billion euros in sales generated by Philips. “The world does not need much more capacity in scanners, but is especially in need of better interpretation of data,” Van Houten said, adding that currently about half of diagnoses given to patients are incorrect. “This is the holy grail that we all are after.”

Van Houten earlier this month told investors at a capital markets day in London that they should increasingly consider Philips a provider of software, as opposed to the iconic lightbulbs, TVs and CD players that have been core products during the company’s 125-year history. Philips has exited traditional businesses to focus on health care, and is streamlining its factory network and increasing spending on research to close the gap on its rivals. The Dutch company’s 12-month trailing 8.9 percent operating margin in healthcare sales lags behind GE Healthcare’s 16.9 percent and Siemens’ 15.7 percent, according to Bloomberg Intelligence.

GE is bundling software apps on its health-care cloud platform capable of linking imaging machines and patient devices. Siemens also made the first steps in the area of ​​computer-assisted detection with software that analyzes pictures for typical patterns and irregularities and support radiologists in their analysis, including in mammography and lung screening. For Philips, the diagnosis software is just one product to come out of a 300 million-euro pool of cash that’s ring-fenced for developing breakthrough products. In total, Philips spends about 1.7 billion euros on R&D annually.

More from category

Symantec Powers Consumer Security With the Microsoft Cloud

Symantec Powers Consumer Security With the Microsoft Cloud

19 Oct 2017 comment

Microsoft announced that cybersecurity leader Symantec is using the Azure cloud to help deliver its Norton consumer products to a global community of more than 50 million people and families. Azure provides Symantec with a highly reliable, trusted cloud that offers global scale and cost efficiencies.

IBM Announces Blockchain Solution to Speed Global Payments

IBM Announces Blockchain Solution to Speed Global Payments

19 Oct 2017 comment

IBM announced a new blockchain banking solution that will help financial institutions address the processes of universal cross-border payments, designed to reduce the settlement time and lower the cost of completing global payments for businesses and consumers.

AWS and Microsoft Announce Gluon, a Deep Learning Interface

AWS and Microsoft Announce Gluon, a Deep Learning Interface

17 Oct 2017 comment

Amazon Web Services and Microsoft announced a new deep learning library, called Gluon, that allows developers of all skill levels to prototype, build, train and deploy sophisticated machine learning models for the cloud, devices at the edge and mobile apps.