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3. Initiative challenges
Key Challenges
Multiple locations with 50 financial and
15 manufacturing systems with 20,000
PCs across 1,000 locations
Variety of infrastructure and networks
(WANs, LANs)
Personnel changes
Issue Resolution
A cascaded program roll-out rather than
trying to implement at all the locations at
once
Using emerging technology to simulate
the application
Technology & process training
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4. Results
The initiative was fairly successful. This can be seen from the results achieved after implementing
these strategies:
In UK market, company was able to reduce sales cycle from more than six months to less
than three months after implementation of eLogistics program.
CLCs and SSIs were a success in majority of markets. For e.g. In Japan, internal lead time was
reduced to less than one week for some products.
During long sales cycle, customers could easily re-engineer their products and changes were
easily captured across the value chain thanks to eLogistics.
In-built automated follow-up system, reducing the time spent by sales personnel in these
activities and freeing up time to pursue further leads.
This was possible because everyone involved was driven by this one singular vision of Otis
becoming the greatest service organization and knew that success of this initiative would mean
achieving that goal. Everyone from C level executives to the field personnel aligned themselves with
the strategy and its implementation and this wholesome effort is what made this such a success.
5. Relevance and analysis
The most significant process or organizational change that Otis made for the two initiatives and how
these changes affected Otiss competitive position can be summarized as follows:
a. OTISLINE This achieved two objectives. 1) Extremely agile response to customer issues and
2) Improved awareness among the top management about the service issues. To do this Otis
took help of technology and set up a system in which immediate response was assured and if
a problem kept recurring, it was automatically escalated depending on severity. I believe the
change that Otis brought about in its culture was sensitivity to customer and customer
issues. With regards to the competitive position, this initiative created a positive image of
Otis among the market as a responsible and responsive service provider. And this is exactly
what they wanted to be.
b. eLogistics To implement this Otis basically acknowledged the need to incorporate IT as a
holistic solution to transform the business processes right from design to delivery phase. This
change in mentality, culture is what made it a success; along with thorough alignment of
every stakeholder towards the common goal. This gave Otis a competitive edge in the
market in terms of faster delivery times, better capacity to incorporate changes, lesser
inventory, better return on sales, revenue and profit growth and effectively strengthened its
position as market leader.
My personal takeaways from this case are: