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
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
Business Context/Key Business Drivers * Otis is the largest manufacture, installer, and servicer of elevators, escalators, and moving walkways in the world * Specialize in logistics, service excellence, and total solutions for customers * Key drivers: * Transform the culture of Otis to become a single-customer centric business model to increase profitability, attract new and maintain current customers to beat out competition * Shift focus of the Otisfrom manufacturing to
Case Assignment for Otis Elevator 1. How hard do you think installing OTISLINE was in 1990? In my opinion, apparently installing OTISLINE would confront with many difficulties in 1990, however, these difficulties may be less comprehensive than those problems confronted when establishing the e*Logistics program. The OTISLINE customer service center was a centralized customer service system to dispatch service mechanics. When IT implemented this 24*7 concept, they should deal with key problems
SCM, reduce cycle time, centralize services, get recognized as a service company rather than manufacturing. Initiative Objective/Benefits Objectives Benefits Otis wanted to centralize service delivery, response time and product issues. • With OTISLINE, 160 people together worked 24 hours a day • Drastically reduced response time of 1 second or less/customer • Aggregated information from multiple data sources Impart Knowledge of the problem to senior management before it became critical. • Improved
resolve them. In the past, we may not have had cross organizational communication; our employees now, however, need to be knowledgeable about our entire process to be effective. One advantage we have is the familiarity of past IT systems such as SIP, OTISLINE, REM, and SIMBA on which the e*Logistics program will be based. I also recommend that we educate employees, suppliers and customers about the benefits realized by the implementation of the e*Logistics program to ensure a smooth