Otis Elevator Harvard Case Solution & Analysis

In the case an Otis manager stated “To achieve continuous transformation, the e*Logistics program makes sure the business process sticks”.   How did the information systems supporting the e*Logistics program make these business processes “stick” and create institutionalized best practices.

The company can gain numerous benefits from the information system that the company is currently using. The information systems gain importance when the data is being processed from the company inputs and is used for the management of the everyday operations. However, considering Otis Company, the re-engineering in its business processes was taking place all over the company.

The IT tools such as e*Logistics, OTISLINE, REM and many more, played a vital role in the success of its business processes, especially the role of e*Logistics was very encouraging. Though the capital of the company was doubled with the implementation of e*Logistics. Even though e*Logistics was a powerful tool for the company and its implementation was fruitful for the company, however, it was equally supported by the information system.

As mentioned in the statement of the Otis manager, he emphasized on bringing continuous changes in the business processes of the company. To achieve the changes in the processes it was considered necessary to effectively use e*Logistics for bringing improvements in the business processes and sustainability. For this purpose, the information system gave support to the e*Logistics in many ways in the business processes.For example, one of the business processes of the company was Project Proposal.

This process included the functions of creating a proposal and the involvement of sales supervisors and field-installation supervisors for reviewing and approving the project. In this process, handling the data was very essential. The data was spread across the whole system and had to be entered in order to share. Through the implementation of e*Logistics the whole system got automated and the data were integrated.

Technology was used to handle the basic steps and this aided in allowing the easy management of the changes that occurred in the data. This was supported by the Web-based front end, a back-end database and the technology of workflow that helped each individual user for interacting with the system according to the assigned roles.The Web-based technology supports e*Logistics program for performing its functions effectively in the Project proposal, as this process involves the flow and sharing of the data.

Another example of Sales Processing process can be considered. The sales processing involves the functions such as booking the order, validating and scheduling the proposal.The induction of e*Logistics program was helpful in the automation of the workflow of all the activities involved in the Sales Processing and electronic circulation of the key documents in all the appropriate personnel.The automation is carried out in the booking the orders and inserting the data into the financial systems of the standard interfaces such as the Hyperion.

Hyperion was the system through which the data was being rolled from all around the world into the corporate systems. Through e*Logistics program the changes are easily recorded and the information system assists the program to easily manage the changes. Through the helping hand of information system, e*Logistics program can aid in the improvement of business processes.

How did each of these initiatives (OTISLINE and e*Logistics) impact Otis’ competitive position and what was senior management’s critical role in each?

The president of Otis Elevator, Bousbib, knew the importance of the service and maintenance. He aimed for Otis to be the customer centric service company and also planned for integration of different stages which were involved in the development cycle of elevators. In order to achieve gains, he launched different IT programs. Bousbib recognized the importance of providing services to the customers with the manufacturing of elevators.

Being a service company meant providing services to the customers which are error free. He focused on maintaining the elevators with the manufacturing. In providing the services to the customers, he focused on IT tools such as OTISLINE and REM elevator monitoring so that the assistance could be provided to the customers in terms of maintenance and other issues regarding the elevators.The aim of the upper management of Otis was to provide consistent quality products and services to all of its customers.

After seeing the success of OTISLINE and its return on the investment, the upper management of OTIS set their goals for further investment in IT integration and achieving benefits from it. Therefore, a major IT tool was introduced by the senior management of Otis and named it as e*Logistics in order to enable the sustainability and to bring improvement in the business processes of the company.........................................

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