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OTIS ELEVATOR
The e*Logistic initiative caused the operating profit to grow, but the working capital had nearly doubled. o The main reason to this was streamlining of process. o They got the complete business process right from getting order to production to delivery to maintenance under one system which helped in effective monitoring, and reducing the turn-around time. o This got done with number of intermediary processes which saved money and time. For example sales representative did not have to mail documents as they were available on system, the system automatically generated reminder mails. The OTISLINE would be successful because it aimed at response less than 1 sec for 98% of time this is prime essence of service industry, in which you make the customer experience good for them not to leave you. Relevance and analysis The case illustrates changes made to the Otis elevator maintenance and order fulfillment areas with help of the IT systems. OTISLINE was a customer service center which was created because of the change in the organizations Elevator maintenance. With the increase in competition in the market and service accounting to the greater portion of the profit then sales of new unit caused Otis to work on it customer service as service contracts were given out based on responsiveness, quality and price. OTISLINE was introduced to provide a 24x7 service concept, it was a service dispatch group of 160 people working 24hrs a day to respond to customer in less than a second. Combined with this was REM elevator monitoring which enabled microprocessor enabled elevator to log performance to one of the monitoring computers, hence Otis people knew of the problem before they were reported. OTISLINE helped Otis improve performance because in service industry the key determining factor is the response time the customer receives, with automation and effective monitoring Otis had an edge over its competitors. Order fulfillment which means order to hand over cycle took roughly 8 to 18 months or more depending upon the customer, with e*Logistics it changed significantly to deliver quality products and service to customer. The e*Logistics information transformation project was initiated to facilitate business process reengineering that was taking place throughout the company. The idea of e*Logistics was to integrate all the business process i.e. project proposal, sales processing, order fulfillment, field installation and closing activities under one entity. The information required to all the concerned entities were available during their phase on the system, this omitted the time lag required to pass on information between processes hence speeding up the cycle. There was a very less probability that things or deadlines be missed because on every process reminder e-mails were sent. This initiative will make Otis very strong in the competitive market because with the automation of the complete process cycle will improve the turnaround time significantly, and it is also in-line with the new objective to be number one in service excellence. There has already been significant rise in working capital in 2003 which has almost doubled. Both the initiatives are going to work for Otis because it knows that dissatisfaction in customers is not because of the product but because of service and both these initiative aim at improving the services rendered. Works Cited
OTIS ELEVATOR
Otis Elevator: Accelerating Business Transformation with IT (HBS:9-305-048)