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
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 call-backs which centralized system could make possible achieve Q2: How was value created in this model? OTISLINE proved to be greatly beneficial to the company in terms of following value propositions- 1. Responsiveness: Fact: Reduced response time to up to 1 second, enabled component specific problems to be tackled and increased visibility of the company
operations sectors to improve innovation, quality, cost, and speed * Convert the culture and migrate core business competencies from product and service management to customer solution management and logistics and information management * OTISLINE Customer Service Center * Centralize customer service system to improve service delivery, response time, and cumulative product issues in the field * Improveperformance visibility of the elevator service business to management
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 transition. The