elogistics program

e*Logistics program

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


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

Project Proposal

Sales Processing

Order Fulfilment

Field Installation

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

Project Proposal

Sales Processing

Order Fulfilment

Field Installation

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.

Project Proposal

Sales Processing

Order Fulfilment

Field Installation

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

Project Proposal

Sales Processing

Order Fulfilment

Field Installation

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

Project Proposal

Sales Processing

Order Fulfilment

Field Installation

Closing Activities

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.

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.

Multiple systems floating around

Should ideally move from a multiple systems to one unified Package solution

SIMBA

E-Logistics

SSIs

Workflows

Hyperion

Encourage unified ERP/CRM systems

THANK YOU

elogistics program

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