...Case Analysis of Schindler By University of Maryland University College AMBA 660 Week 8 August 31, 2012 Introduction The paper will discuss the challenges faced by Silvio Napoli, in carrying out Schindler’s expansion into the Indian elevator market at the request of the VRA, the corporate committee of Schindler which included Alfred Schindler (CEO), Luc Bonnard (Vice Chairman), and Alfred Spoerri (CFO). To begin Silvio Napoli, a young MBA from France, a third-country national, was fully responsible for the Indian expansion, and he had to get operations up and running and profitable in for years. His challenges included staffing and implementing a business plan he developed. Napoli’s plan two basic premises 1) to sell standardized elevators in India, and 2) outsource manufacturing and logistics in India. Napoli’s plan had success earlier in his career in 1995 with the Swatch Project that bested industry standard 20- to 30- week cycles by 50% with this same approach. Other challenges faced by Napoli included pressure in family his family life as a result of poor planning and no employee assistance program to get his family acclimated to Indian culture. That poor work-life balance distracted Napoli to the point where he could focus on neither his work, nor personal life. After 8 months he had not installed one unit and had orders that were contrary to the standardization strategy his entire business plan was based on. Government activities that affected Schindler’s...
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...Otis and the Central Role of Information and IT May 18, 2011 I. Key Business Objectives Bousbib developed several key business objectives in response to the changing operational landscape of elevators, escalators and moving walkways industry. No longer would Otis be considered an “old-line industrial company.” Among these key initiatives and changes were: * Vision: Become the “recognized leader in service excellence among all companies – not just elevator companies – worldwide.” * Culture: Change the norms, values and processes of Otis – how they do business – so that the company focus shifts from a manufacturing company to that of a service company. Become the number one service company in the world. * Systems/Functions: Both systems and business functions need to be changed to align their processes and procedures with the new company vision and culture. This included integrating pre-existing systems already established in the company such as Otisline and REM and go from managing the flow of products, to managing the flow of information. * Growth: Provide excellent service in mature elevator regions as service and repair account for 75% of revenues in these locations. Expand to key growth areas and emerging markets such as China in order to win new business and stay ahead of their competitors. * Redefine Services: Go beyond traditional support tools such as Otisline and REM and include new equipment design, supply chain, new equipment delivery...
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...Summary of the case Otis Elevator was founded by Elisha Graves Otis, the inventor of the safety-brake elevator, in 1853. The main business of Otis was to design, manufacture, install and provide service for elevators and relevant products such as moving walkways and escalators. The market was very competitive in the elevator industry, and Otis investigated that customer cancelled maintenance agreements due to dissatisfaction for service quality rather than product quality. In order to increase its market share and become the well-known leader in service excellence among all companies worldwide, the goal of Otis was to differentiate itself from other companies through logistics and service. Otis’s objectives were 1. To improve innovation, quality, cost and speed during the continuous transformation process and; 2. To move Otis core business from product and service management to customer solution management, and in the end to logistics and information management. Using a single finance and manufacturing system enabled Otis to add value to its entire supply chain. Below, two main transformation waves shown the progress of changes from the manufacturing company toward a total solution company to customers by Otis. Firstly, Otis introduced OTISLINE and REM, which facilitated the company to increase the efficiency of customer service and customer satisfaction. OTISLINE was a 24 hour customer service center, which produced excess callback reports to improve product...
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...Otis Elevator: Accelerating Business Transformation With IT Otis Elevator, a subsidiary of United Technology, has witnessed many transformations since Elisha Graves Otis first found the company in 1853. As a result of these transformations, the company has become the leader in its industry as the world’s largest manufacturer, installer, and servicer of elevators, escalators, and moving walkways. Across the world, the company has over 1.5 billion elevators and over 100,000 escalators in operation, with some operating inside some of the world’s most prominent building structures. Today, mainly informational technology (IT) is responsible for the company becoming the leader of its industry. During the years from 2000 to 2004, the company experienced significant growth and grew to over 61,000 employees with operations in over 200 countries. As this growth occurred, the elevator service market became more stable as there were now elevators installed in almost all buildings in the world’s major cities. The company’s profits now relied heavily on the service and repair of elevators and escalators. The problem at hand was that the company was facing new competitors in the global market, including other similar elevators manufacturers and also other companies that exclusively offered elevator services and repairs. At this point in time the then president of Otis Elevators, Ari Bousbib, knew it was time to remake the company “To become the recognized leader in service excellence among...
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...different countries (Europe, Mexico, and the far east.) and the interviews were spoken in different languages depending on the nationality who they were asking questions to. * * The Kone key informants (person who gives information to others) where interviewed on the telephone and email: 1. The specific role that language is perceived to play in horizontal communication. 2. Language training in Kole * * Those informants intervewees represented: 1. Human resources 2. Language training 3. Management development 4. Technical training 5. Customer Service * * * The company: * * Who is Kone Elevators? * It is one of the leading business in the world for elevators and escalators. * In 2000 the companies net sales totaled to 2.6 Billion EUR which is about 13 Billion AED....
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...Business Context/Key Business Drivers * Otis is the largest manufacture, installer, and servicer of elevators, escalators, and moving walkways in the world * Specialize in logistics, service excellence, and total solutions for customers * Key drivers: * Transform the culture of Otis to become a single-customer centric business model to increase profitability, attract new and maintain current customers to beat out competition * Shift focus of the Otisfrom manufacturing to logistics and information management Initiative Objectives/Benefits * Redefining the processes in the engineering, supply chain, sales, and field operations sectors to improve innovation, quality, cost, and speed * Convert the culture and migrate core business competencies from product and service management to customer solution management and logistics and information management * OTISLINE Customer Service Center * Centralize customer service system to improve service delivery, response time, and cumulative product issues in the field * Improveperformance visibility of the elevator service business to management * Reduce callbacks, improve product reliability resulting in improved customer satisfaction, thereby, reducing maintenance contract cancellations * Restructuring the company, eliminating several layers of management and speeding communication between field mechanics, customers, and company management * REM elevator monitoring ...
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...Napoli Case Study Schindler Holdings Ltd. is a Swiss-based company that designs and produces elevators and escalators. Silvio Napoli, who is Schindler Holdings’ head of corporate planning manager in Switzerland has been relocated to New Delhi and has been promoted to vice president. Napoli obtained his new position by creating a business plan that strived for “core standardized products,” which meant that the production of elevators in India would be simple and of minimal design. Napoli thought the plan of producing standardized elevators would be a great idea and create a competitive advantage over other companies that made customized elevators. This plan in actual fact turned out to be a failure due to certain factors. Due to high import costs, many foreign elevator companies were forced to manufacture locally. Since Napoli knew about this situation, he decided to do things a different way. To keep costs low, Napoli would have elevator parts outsourced by local suppliers in Europe. However, when Napoli looked over the transfer prices he noticed that they were 30 percent above the costs he had originally calculated. When he contacted the company to complain, it turned out that a new transfer system had been created, so raising costs were necessary. Also, while communicating to one of his leading managers in India, Napoli had discovered that the company had accepted an order for an expensive glass customized elevator, instead of the original standard elevator...
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...Otis Elevator: Accelerating Business Transformation with IT Otis was the largest manufacturer, installer, and servicer of elevators, escalators, and moving walkways in the world. Otis Elevator company has reformed itself as a service oriented company from an old line industrial company. This was possible due to the company’s focus on orders of magnitude improvements in logistics and service. It has integrated all the functions needed in perspective of customer and developed a single customer-centric business model. One Interesting fact is that 80% of the company’s revenue comes from outside the united states. This emphasizes that globalization played a significant role in terms of customer base, revenue. So, going forward the company should concentrate in expanding it’s operations all over the world, especially the emerging economies and attaining diversified customer database. One can easily infer form Otis transformation that Information Technology, Improvement in information flow and understanding market trend, customer needs plays a major role in changing the face of the company. Otis has restructured itself taking upon the fact that customer service, maintenance contributes more to the market along with the sales. OTISLINE Customer service center is one of the early IT applications in Otis which helped Otis dispatch group respond to customer in less than a sec. IT applications aids in improving visibility of business performance to management and...
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...OITS Assignment Report Group F2 OTISLINE Group Members Shirsho Biswas (0344/48) Shridhar Jaiswal (0347/48) Shubhkarman Singh Sidhu (0350/48) Q1. What might be the motivation for Otis to launch this project? Ans. The elevator service business alone was $2 billion, which was almost twice that of product sales. Also it was a more stable market than the product sales market. It was essential that this part of the business ran as effectively and efficiently as possible. Customer call-back responsiveness was the main factor on which this business depended. Earlier, when they used commercial answering services to attend non-primetime calls, the quality of service varied greatly since the answering services did not have the same motivation as the company to provide a fast response to the customer. NAO had earlier calculated that reducing call-backs for each installed elevator, by one a year, the company would save $5million annually. By launching OTISLINE, OTIS expected to improve the responsiveness and quality of their call-back service significantly, and thus saving a significant amount of money and increasing their share of the highly profitable elevator service business. Q2. How was value created in the product? Ans. OTISLINE created strong value for the company. It provided a real competitive advantage to OTIS with its ability to collapse both distance and time, providing in faster responses to customers and better maintenance procedures. The marketing services improved...
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...Escalators People take for granted the many things that we use today. Most people never wonder why or how anything that they have come to use operates. Every day, hundreds of people go to shopping malls and places of business, many using a certain item of transportation that they do not even tend to think about. Escalators. Escalators are, in fact, a type of transportation. Just as any vehicle can get you to point A from point B, escalators do the same. Escalators are a type of transportation moving people using a conveyor type system. It is a moving staircase that moves up or down using a conveyor belt and tracks. The system keeps each step horizontal for the passenger to rest easily in place. However, before they were used for practical transportation, escalators were used more so as amusement. The first patent relating to an escalator like machine was granted in 1859 to Massachusetts resident, Jesse Reno for a steam driven unit. On March 15, 1892, Jesse Reno patented his moving stairs (or inclined elevator as he called it). In 1895, Jesse Reno created a new ride at Coney Island from his patented design, a moving stairway that elevated passengers on a twenty-five degree angle. The escalator as we know it was later redesigned by Charles Seeberger in 1897, who created the name 'escalator' from the word 'scala', which is Latin for steps and the word 'elevator', which had already been invented. Charles Seeberger, together with the Otis Elevator Company produced...
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...Department of Languages Research Paper Pros and Cons Of Using Escalator Autumn 2015 Done by: Orazaliyev Daulet Group: IS137R Advisor: senior-lecturer Kaldarova A. Almaty, 2015 Abstract This research was designed to know opinions of people related to escalators. The idea was to introduce and reinforce the importance of escalators usage in our life, is it so necessary. The research ran for about 2 months during the autumn of 2015. Participants were different persons in a street, were asked some questions about their thoughts escalator in subway. Results show that most of people prefer escalator rather than use stairs. Table of contents I. Introduction 1. Statement of problem II. Body 1. Functions of Escalator 1.1 What is an escalator? 1.2 Application 2. Pros and Cons 2.1 Pros 2.2 Cons III. Conclusion IV. References V. Appendices Introduction The main topic of my research is about pros and cons of using escalator. It is determined by the increased importance of the escalator and its role in our life. As I guess, escalator is the kind of technique which has many advantages, but also it has some harmful impacts. That is why this problem has still being unsolved in many countries. Some years ago, the first subway was opened in Almaty, 2011, dedicated to Kazakhstan’s 20 years of Independence. I think, it is each right to use escalator in subway or not, nevertheless it is up to your case. Then...
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...TIS ELEVATOR Accelerating Business Transformation with IT Company Background Otis Elevator is named for the company’s founder, Elisha Graves Otis, who invented the “safety brake elevator” in 1853, then become of the company under United Technologies (UTC). Otis core business was the design, manufacture, installation, and service of elevators and related products, including escalators and moving walkways. By 2004, Otis had 1.5 million elevators and 100,000 escalators operating throughout the world. Otis had elevators in 10 of the world’s 20 tallest buildings and more than 1.4 million elevators and escalators under maintenance. Otis sold products in more than 200 countries and territories. Engineering headquarters was in Farmington, Connecticut with international facilities in Japan, France, Germany, Spain, Korea, and China. Revenues climbed from $6 billion in 2000 to $8 billion by the end of 2003 with 80% coming from outside the United States. The company had always provided solid and steady profit contribution to UTC since its acquisition more than 25 years earlier. In the period from 2000 through 2003, Otis’s contribution to UTC’s profit increased from 25% to 35%. Otis’s sales and profit growth helped drive the strong performance of UTC, which had projected revenue of $35 billion for 2004, 14% over 2003’s. Early Application of IT (OTISLINE) In The early 1980s, Otis created a centralized customer service system to dispatch service mechanics. IT worked...
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...then the company’s main focus was to design and manufacture the safety systems according to the customers need. The Otis Elevator Company became a subsidiary of United Technologies (UTC). It is one of the largest manufacturing industries in the world. It not only manufactures but also installs the equipment in the respective customer desired locations. It then continues its relationship with the customers by providing timely service facilities. It was soon recognized as a leader in service excellence among all the companies. The main competitors included multinational companies such as Hitachi, Kinetek, KONE, etc. Otis grew aggressively by acquiring elevator business in China. By 2004, the company had 1.5 million elevators and 100,000 escalators operating in the world. Its revenues increased by $6 billion. The company was a huge success. Initiatives taken to improvise 1. OTISLINE customer service center During any service emergency, the service panel was dispatched from the local offices that caused huge delay time and hence decreasing customer satisfaction. The OTISLINE customer service center was created to dispatch service mechanics on immediate requests. The main aim was to implement 24x7 concept. This initiative also allowed Otis to produce ‘excess’ callback reports for various levels of management. The managers had the information they needed to manage services business operations relatively easier. This concept changed the expectancy within the customers and...
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...OTISLINE Otis Elevator was the world leader in elevator sales and services with $2 billion in revenues in 1984. New equipment sales and service of elevators formed the two main business segments in the industry. Otis led the former category owing to its technological superior and reliable products. The service market was competitive and had many players. Otis had opportunity to gain a bigger market share in this by delivering better service at a competitive price to its customers. Investing in OTISLINE Service market was more fragmented than the new equipment sales. Company’s market share dependent on responsiveness, price and quality. Responsiveness to customer call backs was seen as the main differentiating factor in assessing the quality of a service company. OTISLINE not only helped in this regard but also improved Otis’ service by impacting the following headers: Customer Service – Call back responsiveness was greatly enhanced since OTISLINE made service available 24 hours a day and reduced the time to fulfil the service requests. Microprocessors technology – The future of elevator technology lied in microprocessors and to provide servicing to those microprocessor powered elevators required access to propriety information which small service providers would not have. Thus Otis with OTISLINE would have a comparative advantage in better handling the needs of the future. Process automation – Otis had historically pursued automation of their manual process, OTISLINE...
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