PowerPoint Presentation

| 9:50 AM - 10:10 AMUntapping the IoHT

PRESENTERLiat Ben-ZurSVP, Digital Technology and Connected Propositions Royal Philips@LiatBenZur

#DigitalHealthCES

Creating a healthier future through digital innovation

Liat Ben-Zur

Head of Digital Technology and Connected Propositions, Philips January 8, 2015

#Creating a healthier future through digital innovation2

@LiatBenZur

Image courtesy CES, Ibtimes, NYT, CNBC, CNET

#3[BACK AT CES]

Delighted to be back at CES. The biggest technology show in the world: a true Tech and Gadget Walhalla.

For the past two days I have been walking around, been checking out all the new cool gadgets that are being introduced.

And then you see this show really is a perfect thermometer to see whats going on in the world around us.

Last year it was said that CES showed that IoT was real. And it is, but this year we are moving from the Internet of Things to the Internet of Health Things.

@LiatBenZur

#4[CONNECTED BABY TECH IS HOT]

And it caught my attention that connected baby tech is really an item here at this years CES.

IoT & Babies is really hot. We see all these devices here that are helping parents to measure and monitor their newborns. We are also launching some cool new things for ourselves.

It made me think.

will there soon come a day that our babies have more data than poop?

And are parents going to be more at ease and calm when all devices are sending over their triggers, alarm bells, notifications, advices and what more .

And that triggers an important question .

. how are we going to deal with these millions of data points that we are collecting together? What is the next step in this journey called IoT.

Collecting millions of data points @LiatBenZur

#[PHILIPS IS COLLECTING MILLIONS OF DATA POINTS]

At Philips we are also collecting millions of data points across millions of devices. More than 7 million to be precise, this number is growing by the day.

What we have learned is that there is a lot more to it. Its really about making that data meaningful, actionable .

And if you do . we think you can make a big difference support people living more healthy lives. Young . old . and all that comes in between. At Philips this is the fundamental problem that we are trying to solve.

Because we are confident, that if you CAN solve that problem (and we can), we can have a major impact on peoples lives.

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Number of persons aged 80 or over

Source: UN Dept of economics and social affairs

201520502100(in 100 millions)@LiatBenZur

#[TRENDS]

Well, lets go through some trends and numbers together .. that show how today, at this day and age, things are really coming together and we have this perfect storm to make the difference.

Globally, the number of people aged 80 and over is expected to increase from 125 million to 434 million in 2050 and 944 million in 2100. 6

Chronic conditionsSource: WHO

400m500m1,5 bndiabetesrespiratory diseaseat risk of cardiovascular disease@LiatBenZur

#And there is a vast growing number of (actually also) young people living with chronic conditions such as diabetes, heart conditions and respiratory conditions due to unhealthy lifestyles.

Today, we have 400M people living with diabetes.500 million have to deal with respiratory diseases.A staggering 1.5 billion live with high blood pressure at risk for severe heart conditions.The WHO states that childhood obesity is one of the most serious public health challenges of the 21st century. 42 million children under the age of 5 were overweight or obese in 2013.

This is clearly unsustainable, so clearly something needs to be done. (Today in the United States about 75% of healthcare costs are spent on chronic diseases.) Thats simply not sustainable.

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Healthcare spending at tipping point

Source: OECS, McKinseyExtrapolation

GDP +2%(historic rate)GDP +1%(half of historic rate)GDP +2%

As % of GDP OECD countries

#[TIPPING POINT]

The healthcare system is at a tipping point.

In the European Union 70% to 80% of healthcare costs are spent on chronic diseases. This corresponds to a 700 billion financial burden.

The US has a healthcare spending of 3.2 Trillion dollar in 2015. 17% of GBP. A 4.9% increase compared to the year before. About 75% of healthcare costs are spent on chronic diseases. {Source: Health Affairs. Report National Health Expenditure Projections, 201424: Spending Growth Faster Than Recent Trends}

If we want to do something we need to go from a system focusing on reactive care to a system that focuses on reactive care and prevention. Where continuous monitoring helps to prevent going to the hospital.Connected digital health services can help people living with severe chronic conditions to live as normal as possible lives with a stable condition.8

From reactive to proactive healthLeveraging connectivity of devices around us@LiatBenZur

#[FROM REACTIVE TO PROACTIVE CARE]

The key question is how do we leverage the connectivity of devices around us? How do we benefit it from it? How do we live healthier, happier lives as a result of our connected world?

If we want to do something we need to go from a system focusing on reactive care to a system that focuses on reactive care and prevention. Where continuous monitoring helps to prevent going to the hospital.Connected digital health services can help people living with severe chronic conditions to live as normal as possible lives with a stable condition.

The key question is how do we leverage the connectivity of devices around us? How do we benefit it from it? How do we live healthier, happier lives as a result of our connected world?

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Islands of data

@LiatBenZur

#[CONNECTING ISLANDS OF DATA]

The thing is, today still most of these devices are still islands , each separately connected to the internet. Instead of the Internet of Things, they often are the Internet of Thing.

And we have all these devices creating large data pools but in the end only few of us know how can we act upon it?

Look, I wear a smartwatch myself, actually two of them. On my x hand I have my Apple Watch on my right hand I have our new Philips Watch.

But whats the use of gathering truckloads of data of my heart rate or sleep? It just islands in yet a new silo. However, this data becomes relevant when this data is connected to the context of an individual person or patient and given automatically provided at the right time.

For instance if it adds to managing my cholesterol or if it would be integrated in a sleep app/program and helps me fall asleep better if I would have a sleep problem.

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A longitudinal personalized overviewMonitoring, informatics and connected care@LiatBenZur

#[CREATING LONGITUDINAL AND PERSONALIZED OVERVIEW OF OUR HEALTH]

Today, the technology is finally emerging that we can capture the data from all of these devices in one place and start to build up a bigger, more complete picture of our health and wellbeing. It means that information sent from those weight scales or watches or light bulbs or medical scanners will combine to uncover insights about their user that can make a big difference to their lives

We can now create a longitudinal personalized overview and make that data contextual and then actionable.

But this is far from easy. You need to think how to aggregate data from all these different sources. How do you remove noise, make it accurate, cleanse it and respect privacy.

All these issues need to be solved. Next big question is . then what?

We also need experts and behavioral change experts, nutritionists and the-for-you-relevant-care providers to review this data and turn it into meaningful coaching and insights, lifestyle recommendations.

Otherwise its just a whole lot of stressful data. And you wouldnt know what to do with.

As companies we need to connect the dots with the right clinical expertise that is how healthcare is going to be changed.11

#[EXAMPLES]

Let me give you some examples.

For elderly as Philips we have Lifeline, a Personal Emergency Response System. Now a PERS in itself is not new. But imagine. Through this wearable device we have gathered more than 40 years of data and we are making this digital solution for eldery smart with new advanced algorithms that can tap into hospital EMRs and can track behavioral changes. By combining all this data we can make it contextual, see things happen. We can actually see changes in the way people sitting down, standing up, moving about in their chairs.

By interpreting this data in the right way we can see 30 days in advance if someones health is deteriorating and is going to be in need for emergency transportation to the hospitals.

By doing so we can keep them out of the hospital and make sure they can live at home as long as possible.

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#Lets give you an example for the young.

Whether you are or have been the parent of a newborn, you know it doesnt come easy. Unfortunately, babies can t tell you exactly how they feel, what they want or why they are upset other than crying, obviously. As the IoT continues to evolve, we can expect to see a growing number of innovations focused around enhanced safety and convenience for those with children.13

#We see a lot of cool and useful connected technologies this year in the area of mother and child that support the parents and babies.

We envision data integrating and data analytics as an enabler to support the entire journey from the early stages of pregnancy to setting the steps as new parents.

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The first 1000 days of a child's lifeare critical for their long term health

270 daysPregnancy365 days1st year365 days2nd year

#[GIVING TIMELY, RELEVANT AND PERSONALIZED ADVISE]

The first 1000 days of a child's life are critical for their long term health. 85% of a child brain is developed in the first 1000 daysGood nutrition during pregnancy and in the first 2 years after birth are crucial for brain development, physical growth and long term health.

The choices you make now even before conception have a lasting effect on your baby.

Becoming new parents is a challenge. You need to adjust to your new role. And every step is new! Its about changing your own diet and lifestyle during pregnancy. The struggle with breastfeeding or feeding. The monitoring of weight gain. Its about sharing experiences with others too.

Giving tailored advice on lifestyle, continuous monitoring of mother and helping people to share their questions, doubts, best practices are all elements than can be of great added value to support this essential start in a babys life.

Sharing data on mothers health and the development of the baby in a setting of networked care that involves family, obstetricians, gynecologists, and maternity centers. We think the gained data-driven insights into your own lifestyle and the health of your baby may lead to better-informed decision making for the parents and for the care team involved.15

Mum is becomingincreasingly digital

#[PARENTS ARE BECOMING DIGITAL]

And the time is now.

Because we have a generation of Millennials that grew up with the internet in place, smart phones and social media ready to take advantage of the possibilities of today.

They are highly digital, extremely social and almost always connected.

And about 84% of them are now becoming parents.

76% turn to their mobiles first when they want advice on parenting.

They spend over 17 hrs a week on social media.

And they use technology to share experiences and to take better care of their children.

Knowing this we believe data can give every baby a voice providing mum and dad with the insights and relevant content they need, when they need it most.

@LiatBenZur

#[PARENTAL PLATFORM]

Now, we developed a platform that combines the data from devices, manual input, and medical information with analytics so that it can take into account that every baby is unique we can tailor a supportive solution around him or her and the parents.

How this would work?

Well, lets have a look at three scenarios.

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#[VIDEOS]Video: https://filmpreview.lukkien.com/filmpreview/?link=201511194b281d

Scenario 1 Tim was born at 2.47 am. Healthy boy. The uGrow platform is used to measure each and every milestone. They measure his development making sure he stays on track.

Scenario 2 Alex was a bigger baby. He struggled to regain his birth weight. uGrown helped the parent to understand what is normal, get professional advice and reassurance.

Scenario 3 Eva was premature born. Fragile, often sick. Mom and dad need to monitor and measure a lot. The uGrow platform gives the ability to track and monitor the changes. 18

A connected ecosystem@LiatBenZur

#[CREATING ECOSYSTEM]

This digital parenting platform connects wirelessly to other products such as our Philips Avent uGrow Smart Baby Monitor.

And we are now integrating our entire Avent mother and child care portfolio with products, content and services this platform gives parents reinsurance, confidence, connectivity and advice.19

A connected ecosystem

@LiatBenZur

#[CREATING ECOSYSTEM]

And you might wonder, is this platform just for connecting Philips products?

No, absolutely not. Its open. There are so many cool products around here. We want to work together with you. We want data to go into our platform and help you get meaning out of it.

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Part of a bigger ecosystemParentingCardiologyOncology

@LiatBenZur

#[CREATING ECOSYSTEM]

And we have many more products in place that support the entire journey.

Fair chance that the first image you ever saw of your child is made with a Philips ultrasound. Our monitoring solutions ensure the safe delivery of millions of newborns across the world each year.

Its the future integration of all this information that will empower parents and care givers to make better informed decisions that benefit mother, father and child.

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Enabled by one open source digital platform@LiatBenZur

#[ENABLED BY HEALTHSUITE DIGITAL PLATFORM]

For this we have develop and open infrastructure.

The uGrow platform just shown is enabled by what we call our HealthSuite digital platform. And, its just one of the example.The HealthSuite digital platform is an open and secure cloud-based, IT infrastructure that supports the collection of all types of data related to our health, allowing for integration and analysis of this data to enable more personalized health and care management on a personal and population level, supporting both individual people and health systems at large.It enables to integrate personal health data with medical data to enable better care decision making. It enables the sharing of information and fosters collaboration.No longer bits and pieces scattered around but a comprehensive overview that helps build longer term and personalized health plans.

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Collaboration leads to the best innovation@LiatBenZur

#[WORKING TOGETHER]

This is not something that we do in isolation. We want to do this in collaboration with partners, start-ups, our clinical partners, and our industry partners.

Because next to Philips there are many start-ups and others that have great solutions in place that could add to these ecosystems.

Therefore our platform supports open standards en interoperability: essential for the Internet of Health Things to work. It has an open health data infrastructure to spawn a new wave of innovation. People can use the platform and its API. Within the next months we will release our SDK to encourage developers to start build applications on our platform, leverage its connectivity, analytics and 7 million devices in the cloud.

Q&A

Q. How can I join the HSDP platform with my device or application? A. Early 2016 a developer portal will be launched. Q. When will the SDK be available?A. Philips is working to create a suite of open application programming interfaces (APIs) that can be used by developers to create innovative applications for anyone interested in improving health, including consumers, hospitals and health systems. This Developers Toolkit is expected to be available early this year.Q. Can I download the SDK somewhere? If so, were?A. Not yet. It will be part of the Developer Portal. There our API library will grow and be available.

COST

Q: What does it cost to use the platform for consumers and healthcare providers? A: This varies per product or service. Consumer health apps and platforms that work with our devices now come free, but at later stages, as they evolve and grow in functionality, may involve a fee when tapping into more specialized programs or services. The specialized programs will be for a fee. We cannot be more specific at this stage.

The Philips Lumify app-based ultrasound solution that works based on a subscription model that offers professional medical technology, training, services and starts at $199,- a month.For hospital services we are also looking into pricing models, per patient, monthly or annual fees or pricing based on the capacity or functionality that is being tapped into are looked into.

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#Together, we can start build that healthier future.Thank you.24

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