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OTISLINE CASE ANALYSIS Group – E1 1. Why might be the motivation for Otis to launch this project? Otis, a subsidiary of United Technologies Corporation, was the first elevator company to introduce microchip into the elevator mechanism. It incorporated the latest technology into its elevators, (indicating that Otis was investing in the technology as it saw some advantage out of it.) Otis installed its first computer IBM 1401 in 1965 to automate maintenance billing which was used for production control and accounting. It kept upgrading its information systems from time to time as and when new computer or technology was available. But this still was unorganized as each department had separate technological advances, i.e. in some departments…show more content…
Available Budget: As the cost reduction program completed in 1982, OTIS Management had a budget to assess the contribution of IT systems in quality improvement of maintenance service. Cost reduction: Otisline would reduce the cost for each elevator by reducing number of callbacks per year by providing preventive maintenance. Of the 2300 service mechanics employed by NAO in 1985, most handled both call- backs and preventive maintenance. According to NAO OTIS could save up to $5 million by reducing callbacks which centralized system could make possible to achieve.

2. Analyze the risk and benefit of this project. Benefits:
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Situation specific escalations: Information on call back reports would be readily available to management which can be used to escalate to proper hierarchy levels. Increased customer Visibility: Service business of OTIS can be more clearly communicated and delivered to customers

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Synergy: Infrastructure can used to increase productivity of sales and services personnel. Sub second response: Can reduce the time taken to handle customer service requests. Priority handling: Strategic advantage to OTIS as it can guarantee, the ‘service time’ involved, to customers which requires immediate attention like hospitals etc. by providing a designated line which will be handled by the dispatcher immediately. Quick Recognition of Affected building: Dispatcher fills in the detail of

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