Otis Elevator

ACCELERATING BUSINESS TRANSFORMATION WITH IT

OTIS-An Introduction
Subsidiary of UTC
Post acquisition
Revenue: $1bn to $7.9bn
Op Profit: $300mn to $1.38bn
Op margin: 1% to 17.4%
Vision:
To become the recognized leader in service excellence among all companies, not just
elevator companies, worldwide.

Organizational Transformation
Making things Moving things
Manufacturing Service
To achieve this, Otis had to redefine its business processes include other sides of the
business such as new-equipment design, supply chain, new equipment delivery and
field installation.

Industry
Elevator Manufacturer
Contractor/Architecture/Building Owner
Performance
Price
Reputation

Elevator Service
Building Owner/Property Manager
Responsiveness
Quality

Market attractiveness
Steady demand
Low barriers to entry
High profitability

Early application of IT
OTISLINE
160 operators
24X7 Service
1 second response time

REM elevator monitoring

Microprocessor based monitoring
Pro active service
Reduce service unavailability

e*Logistics Information
Transformation
Initiative to facilitate organization wide
BPR
Connect sales, factory & field operations
Prioritizing information flow over material
flow

e*Logistics Information
Transformation
Project
Proposal

Sales
Processi
ng

Order
Fulfilmen
t

Field
Installati
on

Complete electronic process enabling easier execution by end users

e*Logistics automated the following elements in the process,
Gathering account information
Determining elevator configuration
Proposal preparation

Closing
Activities

e*Logistics Information
Transformation
Project
Proposal

Sales
Processi
ng

Order
Fulfilmen
t

Field
Installati
on

Closing
Activities

Booking order and directly feeding data into Otis financial systems.
Post contract award Otis supervisor inspects job site for readiness.
During sales cycle reengineering of orders possible through e*Logistics program.
Enabled clear visibility throughout the entire supply chain

e*Logistics Information
Transformation
Project
Proposal

Sales
Processi
ng

Order
Fulfilmen
t

Field
Installati
on

Closing
Activities

Creation of regional CLCs to replace the old practice of sales reps faxing the docs
CLCs handled all logistics and information flows. Well equipped knowledgeable
resources.
Network technologies enabled CLCs to sell orders across supply chain and could
source materails from anywhere in the world
Major responsibilities include, communication, estimating, product administration,
customer service, material handling, Quality assurance etc.

e*Logistics Information
Transformation
Project
Proposal

Sales
Processi
ng

Order
Fulfilmen
t

Field
Installati
on

Closing
Activities

Site readiness checked by field installation supervisors and reports through

e*Logistics program.
e*Logistics program replaced the push system with the pull system.
This enabled low inventory levels and lean manufacturing flows
Additional changes to the order could be easily made before the order was
released to the CLC

e*Logistics Information
Transformation
Project
Proposal

Sales
Processi
ng

Order
Fulfilmen
t

Field
Installati
on

Closing
Activities

Transitioning the unit into the required product at the customer site
On final job confirmation e*Logistics program triggered the series of customer
contacts and biliing cycles
This resulted in accurate billings and faster collections

IT Infrastructure
Hardware
50 financial systems
15 different manufacturing systems
1000 local-area networks
600 wide-area networks (WANs) in US, 400
internationally
30 types of routers and switches supporting
3000 applications
60000 orders/year out of 300000 proposals

Software
Internal sales modules
Microsoft.NET development
tools
Supply chain & field systems
JD Edwards ONEWORLD
Systems access, security,
connectivity UTC employee
portal
E*logistics combined all three IT processes: Function IT, Network IT,
and Enterprise IT.
Function IT such as the use of workflow tools and reducing the number of engineering CADs enabled
OTISs departments to function more efficiently.
Network IT freed the flow of information facilitating collaboration between departments.
Enterprise IT helped centralize the ordering, estimating, and contract processes.

Challenges
Delivery of the program to the desktop
More than 20000 pcs over 1000 different locations
Important to standardize the infrastructure and understand how the application can perform
across WANs, LANs

One wrong switch/wrong Internet configuration impact the performance of all

Personnel challenges
Users: 1500 sales representatives, 1500 field-installation supervisors around the world
Process training and substantial technology needed

After an installation, benefits become visible after approximately 6 months

2-3 months, data entry and system initialization; , 1 month, tech and tool training; 3-4 months,
staff full adaptation

Scaling the system to be used by all field-installation supervisors

field-installation times materially reduced for regions

The way forward.

Multiple systems floating around

Investments in
Technology alone
cannot help Otis
achieve its vision
Companies that invest
heavily in IT and make
corresponding
changes to their
business processes
tend to have higher
productivity and
higher market values
than other companies.

THANK YOU