OTIS ELEVATOR Otis’ Vision Statement as posted on their website: “We intend to be the recognized leader in service excellence among all companies—not just elevator companies—worldwide. ” • Founded 1853 by Elisha Greaves Otis, Inventor of the safety brake elevator. • Acquired by Untied Technologies (UTX) in 1976. • Second only to “Carrier” and “Pratt & Whitney” as revenue provider in UTC family of companies,(2007 stats, Otis revenue $11. 8 billion). • 63,000 employees worldwide with products offered in 200 countries and territories. Major manufacturing centers in the US, Europe and Asia. • Engineering and test centers in the United States, Austria, Brazil, China, Czech Republic, France, Germany, India, Italy, Japan, Korea and Spain. • Providing elevator, escalator, and moving walkway manufacture, installation, and service. • 2. 1 million Otis elevators and escalators in operation, 1. 6 million of which are serviced by Otis. • Service includes monitoring, maintenance, and Otisline. Continual product innovation, such as “Gen 2” gearless steel belt driven elevators and automatic monitoring. • Intense dedication to service. How Otis uses IT Tools to Generate Business Benefits In the early 1980s, Otis developed an innovative computerized, 24-hour customer service center called OTISLINE. This service center was developed to support the maintenance of their products (elevators, escalators, etc. ) by dispatching service mechanics from a centralized location, rather than from local offices.
OTISLINE permitted a faster response to customers, and a smoother communication through management of performance issues. For example, if too many callback reports occurred, a report would be generated for different levels of management to review depending on the seriousness of the problem. Since one of Otis’ main goals was to deliver optimal customer service, by reducing callbacks the company could have improved “product reliability”. An additional use of IT in the improvement of Otis operations was REM, a system created to monitor elevators from a remote computer.
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REM “enabled a microprocessor-based elevator” to check its functions and detect any problems and the location, then send the information to a technician. The technician could arrive with all the necessary information and even service the elevator before the customer noted the problem. One of the products notable for utilizing this REM technology is the Gen2 elevator model, which was introduced in more recent years and also has the latest “lifting technology”. Beyond OTISLINE and REM, Ari Bousbib wanted to take the company to a next level.
He had in mind to shift the focus towards a new equipment business cycle, and a reduced cycle time. In 2001, with the use of the SIMBA program, Otis was able to standardize the engineering process both locally as well as globally. The e*Logistics Program and Best Practices In an effort to ensure that the new best practices established by SIP remained, the e*Logistics program was implemented. This consists of IT systems that baked in the best practices through an automated system that shared data and required approvals electronically before next steps could be implemented.
Examples include: • Automating previously paper pre-bid checklist for all sales order personnel. The e*Logistics process was electronic and required review and approval by both the sales and field installation teams. • The e*Logistics system implemented best practices in sales processing with a single system that booked, validated and scheduled an approved customer order. The workflow of these activities was automated and documents were circulated electronically to the appropriate supervisory personnel. Order fulfillment became the responsibility of contract logistic centers (CLCs). The new e*Logistics systems ensured that they could manage the supply chain by accept orders from the sales sites and deliver on-time complete systems to job through standardized and automated electronic processes which produced less errors. • The e*Logistics program improved delivery scheduling by automatically sending email reminders and updates to enforce critical steps of SIP including visiting job sites and maintaining contact with the general contractors.
Field installation completion could be confirmed in the system which then automatically prompted billing which resulted in faster collections. REFERENCES “Otis Elevator: Accelerating Business Transformation with IT,” (June 22, 2005) McFarlan, F. Warren and Delacey, Brian J. Retrieved February 6, 2009 from http://harvardbusinessonline. hbsp. harvard. edu/b02/en/common/item_detail. jhtml? id=305048&referral=2340 http://www. otisworldwide. com/