Otisline - 795 Words

1. Otis has been the market leader in both sales and service segments. Consider the time when OTISLINE was just being conceived. Why do they need to do anything at all, and that too in the service sector? Higher Margins in Services-Elevator industry was highly competitive with players comprising Otis, Westinghouse, Dover, Montgomery, Schindler, U.S. Elevator and Fujitec. Otis was the industry leader in sales and service. The manufacturing companies were more focused on getting service contract rather than sales because the income proportion was substantially high in services as compare to sales. Also due to price wars in Sales, the margin was lower while services accounted for greater profit margin Direct correlation between†¦show more content†¦Implementation of Otisline would lead to high quality service, minimize response time and decrease operation cost for the organization which would provide Otis a competitive edge over it’s competitors. 3. What would be the risks associated with OTISLINE? How did they try to take care of those? Risks associated with Otis line and its implementation are- †¢ Cost overrun : Due to its strategic nature, a large share of IT budget was allocated to Otis line. The data center budget was also propped up to support Otis line. Also huge costs had to be incurred for training highly skilled dispatchers. Hence if Otis line does not succeed in getting customer satisfaction new sales, it would lead to huge financial loss for the firm. Otis has properly planned and phased its implementation in part so that based on initial success/failure, it can decide to expand. †¢ Threat of Competitors: Since there is nothing breakthrough about Otis line, its very easy for other competitors to adopt improve the Otisline system. To counter this, Otis has leveraged Otisline to implement NES (new equipment sales) application which would help them get new customers. Also it has marketed its service philosophy of responsiveness, reliability, innovation, communication, and teamwork and customer satisfaction and improved upon it. †¢ Concerns of Field office managers: Field office managers were concerned that Otisline system would decrease their control over dispatching of serviceShow MoreRelatedOtisline769 Words   |  4 PagesOTISLINE CASE ANALYSIS Group – E1 1. Why might be the motivation for Otis to launch this project? Otis, a subsidiary of United Technologies Corporation, was the first elevator company to introduce microchip into the elevator mechanism. It incorporated the latest technology into its elevators, (indicating that Otis was investing in the technology as it saw some advantage out of it.) Otis installed its first computer IBM 1401 in 1965 to automate maintenance billing which was used for production controlRead MoreCase Study on Otisline900 Words   |  4 Pagesemployed by NAO in 1985, most handled both call-backs and preventive maintenance. According to NAO OTIS could save up to $5 million by reducing call-backs which centralized system could make possible achieve Q2: How was value created in this model? OTISLINE proved to be greatly beneficial to the company in terms of following value propositions- 1. Responsiveness: Fact: Reduced response time to up to 1 second, enabled component specific problems to be tackled and increased visibility of the companyRead MoreOtis705 Words   |  3 Pagesoperations sectors to improve innovation, quality, cost, and speed * Convert the culture and migrate core business competencies from product and service management to customer solution management and logistics and information management * OTISLINE Customer Service Center * Centralize customer service system to improve service delivery, response time, and cumulative product issues in the field * Improveperformance visibility of the elevator service business to management Read MoreCase Aanalysis759 Words   |  4 PagesCase Assignment for Otis Elevator 1. How hard do you think installing OTISLINE was in 1990? In my opinion, apparently installing OTISLINE would confront with many difficulties in 1990, however, these difficulties may be less comprehensive than those problems confronted when establishing the e*Logistics program. The OTISLINE customer service center was a centralized customer service system to dispatch service mechanics. When IT implemented this 24*7 concept, they should deal with key problemsRead MoreA Brief Look at Otis Elevators806 Words   |  3 Pages SCM, reduce cycle time, centralize services, get recognized as a service company rather than manufacturing. Initiative Objective/Benefits Objectives Benefits Otis wanted to centralize service delivery, response time and product issues. †¢ With OTISLINE, 160 people together worked 24 hours a day †¢ Drastically reduced response time of 1 second or less/customer †¢ Aggregated information from multiple data sources Impart Knowledge of the problem to senior management before it became critical. †¢ ImprovedRead MoreOtis Elevators Case Study Essay examples640 Words   |  3 Pagesresolve them. In the past, we may not have had cross organizational communication; our employees now, however, need to be knowledgeable about our entire process to be effective. One advantage we have is the familiarity of past IT systems such as SIP, OTISLINE, REM, and SIMBA on which the e*Logistics program will be based. I also recommend that we educate employees, suppliers and customers about the benefits realized by the implementation of the e*Logistics program to ensure a smooth transition. The