Otis Case Analysis, 05/16/2012
Business Context/Key Business Drivers
1. Otis Elevator, at the time of this case, was the largest manufacturer, installer and servicer of elevators, escalators and moving walkways in the world. In 2003, revenues totaled $7.9 billion with a profit margin of 17.4%. The company had a very strong position in the market, both in manufacturing and installation, and in servicing existing accounts, especially internationally, where most of the growth was coming from.
2. The key Business Driver for this initiative was to become a recognized leader in service excellence among all companies. The company wanted to embrace its culture of service and to ...view middle of the document...
* Substantial technology and process training was needed for all users.
* Time for people to adapt and to see visible results.
* Ability to standardize the infrastructure on all 20,000 PCs in a 1,000 locations and to understand how the app would perform across wide & local area networks.
2. These challenges were addressed by rolling out the program at select countries, which was referred as pilot countries. Management selected regions based on need and return on investment. This enabled management to closely watch results and it also limited the impact on company wide operations due to the targeting of specific regions. As mentioned in the case, management was pleased with the progress and the program was proceeding according to schedule.
1. If the program roll out continues to go according to plan, I believe that this initiate will turn out to be very successful for Otis Elevator. I expect that the e*Logistics initiative, together with the SIMBA program in engineering, the ACE program in Supply Chain and the SIP program in Sales and Field Operations, will increase efficiency, quality and cost, as well as improve Otis Elevator’s customer service efforts.
2. My assessment of this initiative’s success is based on the fact that the case clearly provides supporting evidence that the program improved Otis’ business processes by improving the...