Otis Elevator Case

The Otis Elevator company founded in 1853 has grown to 7.9 Billion dollar enterprise. It is an integral part of United Technologies contributing 35% to its profits. The growth of Otis has been manly due to acquisitions across the world; this activity has bought in many different working methods and organization culture. Otis had many competitors in various parts of world including foreign multinationals Hitachi, Kone etc. The market for new elevators was maturing and there were fewer orders for new products. Soon, the buyers were selecting the company by its service rather than its product line. So, providing services to the elevators proved high profitable and long term service contracts were bundled has a part of new orders. Throughout time the business focus of OTIS have changed. Today the focus has moved from the manufacturing area towards a more total solution, where the most important is to provide a high class customer service. This is to be seen through their vision: “To become the recognized leader in service excellence among all companies – not just elevator companies – worldwide.”

Bousbib has a head of Otis realized the importance and high profitability of service and maintenance. He envisioned Otis to be customer centric service company and planned to integrate different stages of elevator development cycle. He decided to focus on new-equipment business cycle and set for achieving five fold improvement described has BHAG. The plan was to reduce the order-to-hand-over cycle within five years. These gains were to be achieved through coordinated effort of multiple ongoing change programs in engineering, supply chain, and sales and filed operations. In addition, a major IT initiative, the e*Logistics program, was established to enable and sustain the quantum leap program.
The Bousbib recommended change is very good but relatively difficult to implement. The sheer size of Otis Company makes it very large scale implementation. The integration of sales