Q1: Why did OTIS launch this project?
Background: OTIS was a market leader in both the aspects of elevator industry i.e. sales and services. However, the services industry despite being very stable had become very competitive due to entrance of many small players since services involved higher margin on profits, which attracted many entrants in the field. An elevator service company would be typically invited on the basis of responsiveness, quality and price. OTIS was able to charge premium for its products because of its established name but it had to maintain the quality and customer satisfaction high to get new installation contracts (more sales) and service contracts. It all started for OTIS with a companywide cost reduction program…show more content… Implication: The system not only improved and tracked the responsiveness to customer calls, but also provided reports of response-time statistics that could be reviewed with customers. The company could therefore start offering a guaranteed response time to customers because of OTISLINE’s capabilities.
Fact: Quality of services also improved owing to centralization of the system. This was made possible through centralized records accessible to all, hence improving overall efficiency of the system.
Implication: Not only it improved communication between the customers and manufacturer, but it also provided the sales and service department with an effective submission of various reports to the management.
3. Reliability of data:
Fact: Standardization of procedures through efficient data management. This enabled trend analysis for flawed designs of products and corrective mechanisms to tackle it in advance.
Integration of services enabled management to be able to handle and monitor the system in a better way and work to make it more reliable.
Implication: Reliability data could be used by management to allocate resources to locations with recurring problems. Engineering could also investigate trends that could be an indicator of flawed design or problem.
4. Customer Satisfactions:
All the above lead to greater customer satisfaction and thus improved company’s reputation in services. Also it empowered Otis to compete