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

Big Data Experiment Tests Central Banking Assumptions in Norway

Big Data Experiment Tests Central Banking Assumptions in Norway

22 Jan 2017 comment

Central bankers may do well to pay less attention to the bond market and their own forecasts than they do to newspaper articles, according to Bloomberg. That’s the finding of a new algorithm-based index being tested at Norway’s central bank in Oslo. Researchers fed 26 years of news (or 459,745 news articles) from local business daily Dagens Naringsliv into a macroeconomic model to create a “newsy coincident index of business cycles” to help it gauge the state of the economy.

COMBIS launched a web portal with the biggest Cloud offer in Croatia

COMBIS launched a web portal with the biggest Cloud offer in Croatia

19 Jan 2017 comment

Leading IT service provider in Croatia COMBIS launched cloud.combis.hr, web portal that includes the widest Cloud offer in Croatia intended for business customers. Portal's goal is to educate readers about numerous possibilities of Cloud in modern business, having in mind the fact that every company has its own specific business and Cloud needs.

Android Creator Nears Comeback With

Android Creator Nears Comeback With "Essential" Phone

17 Jan 2017 comment

Just over two years after leaving Google, creator of the Android operating system Andy Rubin is preparing to take on the smartphone industry he helped create, according to BLoomberg. Rubin is planning to marry his background in software with artificial intelligence in a risky business: consumer hardware.