Otis Elevator: Accelerating Business Transformation with IT
Introduction
Otis, since 1980,s has invested a great deal in Information Technology to not only capture and analyze data, but also dispense said data and thus provide invaluable service solutions to its customers spread throughout the world. These systems were initially meant to support Otis’ industrial based business model, which was to provide elevator, escalator, and moving walkway services, but over time and with the wide array of clients, its IT system has evolved, and now offers support to all players within the value chain.
Business Context
Established over 150 years ago, Otis Elevator, named after its founder Elisha Graves Otis, is the world’s leading designer, manufacturer, installer and maintainer of elevators, escalators and moving walkways. Otis elevators and escalators have been sold in more than 200 countries worldwide. By 2004 the company had 1.5 million elevators and 100,000 escalators operating throughout the world. It had elevators in 10 of the world’s 20 tallest buildings with over 1.4 million elevators and escalators under maintenance. The company employs about 60,000 people, with nearly 90% of them working outside the US. Otis’ contribution to United Technology’s (its parent company) profit increased from 25% in 2000 to 35% in 2003. Otis’ main competitors are other multinationals like Hitachi, Mitsubishi Electric, Kinetek, ThyssenKrupp and Toshiba.
Transformations
In the early 1980s, at the urging of the then chief operating officer, George David, Otis’s management made improvements in the company’s corporate vision to obtain a strategic advantage over their competitors through the introduction of OTISLINE and the e*Logistics programs.
Elevator Maintenance Business (OTISLINE)
OTISLINE is a centralized customer service system giving customers 24/7 access to service support from the company. It was the first major change in terms of IT for Otis. Its main purpose was to...