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    ELogistics Program

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    Rohit Krishnan
    Otis Elevator underwent an organizational transformation from manufacturing to service and implemented an information system called e*Logistics to connect its sales, factory, and field operations. e*Logistics automated Otis's entire sales to installation process, including proposal creation, order processing, fulfillment, installation, and closing. It provided end-to-end visibility across the entire supply chain and replaced the previous paper-based system with an electronic workflow. While e*Logistics improved processes and connectivity, its global rollout faced challenges in standardizing infrastructure across many locations and training thousands of users worldwide.

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    ELogistics Program

    Uploaded by

    Rohit Krishnan
    476 views14 pages
    Otis Elevator underwent an organizational transformation from manufacturing to service and implemented an information system called e*Logistics to connect its sales, factory, and field operations. e*Logistics automated Otis's entire sales to installation process, including proposal creation, order processing, fulfillment, installation, and closing. It provided end-to-end visibility across the entire supply chain and replaced the previous paper-based system with an electronic workflow. While e*Logistics improved processes and connectivity, its global rollout faced challenges in standardizing infrastructure across many locations and training thousands of users worldwide.

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    Otis Elevator underwent an organizational transformation from manufacturing to service and implemented an information system called e*Logistics to connect its sales, factory, and field operations. e*Logistics automated Otis's entire sales to installation process, including proposal creation, order processing, fulfillment, installation, and closing. It provided end-to-end visibility across the entire supply chain and replaced the previous paper-based system with an electronic workflow. While e*Logistics improved processes and connectivity, its global rollout faced challenges in standardizing infrastructure across many locations and training thousands of users worldwide.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    476 views14 pages

    ELogistics Program

    Uploaded by

    Rohit Krishnan
    Otis Elevator underwent an organizational transformation from manufacturing to service and implemented an information system called e*Logistics to connect its sales, factory, and field operations. e*Logistics automated Otis's entire sales to installation process, including proposal creation, order processing, fulfillment, installation, and closing. It provided end-to-end visibility across the entire supply chain and replaced the previous paper-based system with an electronic workflow. While e*Logistics improved processes and connectivity, its global rollout faced challenges in standardizing infrastructure across many locations and training thousands of users worldwide.

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    Download as pptx, pdf, or txt
    of 14

    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

    e*Logistics Information
    Transformation
    Project
    Proposal

    Sales
    Processi
    ng

    Order
    Fulfilmen
    t

    Field
    Installati
    on

    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

    Closing
    Activities

    e*Logistics Information
    Transformation
    Project
    Proposal

    Sales
    Processi
    ng

    Order
    Fulfilmen
    t

    Field
    Installati
    on

    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

    e*Logistics Information
    Transformation
    Project
    Proposal

    Sales
    Processi
    ng

    Order
    Fulfilmen
    t

    Field
    Installati
    on

    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.

    e*Logistics Information
    Transformation
    Project
    Proposal

    Sales
    Processi
    ng

    Order
    Fulfilmen
    t

    Field
    Installati
    on

    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

    e*Logistics Information
    Transformation
    Project
    Proposal

    Sales
    Processi
    ng

    Order
    Fulfilmen
    t

    Field
    Installati
    on

    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

    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.

    Multiple systems floating around

    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.

    THANK YOU

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