Otis Elevator: Accelerating Business transformation with IT

Ravi Setia Harpreet Singh Bawa Sugandha Rattan Amol Singh

Introduction to case
OTIS elevators invested heavily upon IT to capture analyze, and disseminate data Earlier, their systems provided escalator, elevator and walkway services which evolved with increase in no. of customers In 1853, the company started with the invention of safety brake elevator OTIS operates worldwide, with headquarter in the U.S Vision- To become the recognized leader in service excellence among all companies not just elevator companies worldwide.

Company Background
The company was named after its founder Elisha Graves Otis -1853 Its parent company was UTC united technologies. Mr bousbib became the vice president of OTIS- 2002 Revenues climbed up from $ 6 billion to $ 8 billion- from 2000- 2003 Otis had 1.5 million elevators and 100,000 escalators operating throughout the world. They sold products to more than 200 countries.- 2004

Early Application of IT
OTISLINE-Customer Service Center - could respond to customers immediately
- improved quality of service - speeding communication

REM- Elevator Monitoring

- microprocessor-based elevator
- operate at maximum performance

Stages in next transformation wave

Engineering -regionally driven product strategy to a global one
-SIMBA-2001 -reduced the inventory from 72 motors to 10

Supply chain -streamlined manufacturing operations from 52-26 factories

-reorganization of supply management function into new single global supply chain

Sales and field operator -SIP(Sales and installation process)

-helped define customer needs and bring sales and field installation teams together for proposal discussion

E*logistics
Critical enabler of info transformation It provided IT systems to facilitate business process re-engineering that was taking place throughout the company. Project team was made up of experts in areas of sales, field and order management along with IT project managers.

Di Francesco --Project Director e*logistics as a means of connecting sales- factory -field operations through the Web. According to him
everyone in the company would come in contact with the e*logistics program, since it so thoroughly spanned the value chain. Thats the key thing that gets me and the team up everyday

Technology in the project relied on

open standards

internet-based communication

workflow tools back-end integration

with established enterprise system

Project proposal
Simple forms filled out on paper Sale supervisors and field installation supervisors required to review and approve the project as a part of prebid process. The new process was completely electronic E*logistic program fed the proposals information directly into Otis financial systems.

Sales processing
At first orders were a) booked, validated and scheduled manually The elogistic program a) Automated the work flow b) Reduce inventory levels c) Eliminate wastes E logistic made the changes easy to record and visible to the entire supply chain.

Order fulfillment
Contract logistic centers.(CLC) CLC did no manufacturing they manage the supply chain including otis factories, suppliers, field feed back and product improvement process At first CLC only placed orders with the single Sub system integrators SSI CLC eventually could order multiple SSIs wherever they could find lowest cost for required quality and delivery times Network technologies like intranet and internet made it easy for CLC to see all orders across the supply chain.

Field installation
Historically had been no automated global standardized project management tools for field installation. Site condition were impossible to control They were now prompted to check site progress by work flows and could communicate job status by emails

Closing activities
with elogistics workflow was triggered prompting a series of customers contacts and billing this was expected to result in more accurate billing of change orders, higher conversion of new equipment to maintenance contracts, and faster collections

Problems
Problem 1
Challenges of e*logistics

Problem 2
Delivery of e*logistics program

To deliver worldclass service. Personal

Internet problem challenge s

Problem 3

Dominance and profitability

To deliver world-class service.

Improve their current model

Incorporating analytics to ERP and CRM

data in a quantitative manner provide reliable, cost effective logistical and service support to customers world-wide.

Dominance and profitability

explore different avenues of growth

quantitative data to assist in statistical analysis integrating an and DM analytical component to their current ERP systems

highly reliable and high success rate

Service sector is ideal differentiate themselves from the competition.

profitable, economies of scale and scope, demand is steady.

Conclusion

Otis
ERP
E*logistics

CRM
ACA SIP

Project proposals

Sales processing

Order Fulfillment

Filed Installation

Closing Activities

Analysis..?????

1. Upper Level management must support these activities

2. Single analytics initiative must be in place (integrating its E*Logistics, SIP, and ACA)

3. System must be enterprise wide and the firms focus must be directly on utilizing analytics in all aspects of the business
4. Analytical culture must be present and they should hire individual who knows how to use of statistical and quantitative analysis 5. An iterative cycle of establishing metrics and monitoring performance must be implemented