Objectives

Become world leader in service o Bousbib's vision: "To become the recognized leader in service excellence o among all companies%mdash;not just elevator companiesworldwide." Bousbib challenged ... launch a new initiative that would help make Otis the

#1 service company in the world p 235/15 Continue strong revenue growth Maintain / improve operating margins, already substantially above industry averages Establish strategic advantage in emerging markets e.g. China Make the transition from a manufacturing to a service organization Reorient Otis to a customer-centric organization Employ technology to provide an information advantage over service company competitors

Competitors
FedEx, UPS, Procter & Gamble, Other Supply Chain Companies like The Wheels Group and Exel plc.

Decisions
Test Tom and Ryan

Problems, opportunities and risks

Problem 1: Challenges for e*Logistics p 233/13 Problem 2: Otis needed to embrace a culture of service and to develop the processes needed to deliver world-class service. Otis had to re-define its processes, beyond service support tools like OTISLINE customer service center and REM elevatore monitoring. Problem 3: The major problem facing Otis how can they can continue their dominance and profitability within a new market space, which is providing global logistics and service support to firms of any kind, while leveraging their investments in IT.

Evidence Alternatives
Alternative 1: Improve upon their current business model by incorporating analytics to their ERP and CRM systems. By utilizing analytics, Otis will be able to use the data in a quantitative manner to provide reliable, cost effective logistical and service support to customers world-wide. - This is also consistent with the vision of President Ari Bousbib and his recommendation to the parent company UTC. Alternative 2: Continue to partner and outsource many of the service and logistical based work to those members within their value chain, while focusing on its standard business

model of providing elevator and escalator service to developing nations, such as China and India.

Persuasions
Rationale For Alternative 1: Eventually the demand for industrial goods will subside, as is evident in the decrease in demand for elevators and escalators in the United States. In order to continue profitability, Otis must explore different avenues of growth. The service sector is ideal because it is highly profitable, requires economies of scale and scope, and the demand is steady. All of these aforementioned characteristics are aligned with Otis core competencies and corporate vision. By integrating an analytical component to their current ERP systems, they will further differentiate themselves from the competition. Additionally, using quantitative data to assist in statistical analysis and decision making is highly reliable, factually based, and has an extremely high success rate. Rationale Against Alternative 2: New demand is stabilizing in developed countries such as the U.S. and Europe. Also competition is fierce amongst those developing nations. Otis is not getting the full return on investment from their IT systems and they are not differentiating themselves. Furthermore, Otis is still operating in a fragmented value-chain and is susceptible to disconnects between its CLCs and DCs. Cycle-times will not improve.

Criteria Action(s)
Implementation: Otis currently utilizes three major ERP and CRM systems, which are E*Logistics, SIP, and ACA, to support the following functional areas: project proposals, sales processing, order fulfillment, field installation, and closing activities. But if they are to implement an analytical component to these systems the following steps must be taken. First, upper level management must be in support of this strategy and provide the necessary resources. Second, a single analytics initiative must be in place, which will require integrating its E*Logistics, SIP, and ACA into one transparent system avoid of inconsistencies and possessing standardization1. Next, the system must be enterprise wide and the firms focus must be directly on utilizing analytics in all aspects of the business. An analytical culture must be present within Otis and the firm must hire and promote those subject matter experts or individuals that comprehend and champion the use of statistical and quantitative analysis to assist in decision making. Finally, an iterative cycle of establishing metrics and monitoring performance must be implemented. If Otis follows such a plan, it will be able to succeed in the new market space and successfully compete in this data centric environment.

Lessons Experience Misc

Analytics - I (RR) used the Competing on Analytics to strengthen my argument. We may want to attempt to incorporate 1 or 2 more of the readings if possible.

Analytics are enabled by merging the system that now supports pre-sales, demand forecasting, logistics with the new proposed system that tracks customer relationships and maintenance functions. We can propose a system that has federated access to distributed data stores that combine eLogistics information with that of the new databases created for customer relationship and maintenance information (including sensor fusion information, predictive maintenance functions.) New models for customer satisfaction that incorporate data from all of these points of view can be evolved on a quarterly basis to preclude falling utility of the model over time. o Adoption and success rates of the new system would be tracked by several metrics... - p 234/14 para 2

Executive Summary
Possible Text for the executive summary.(Maybe you could use some of this for the setup) Since the 1980s Otis has invested heavily upon IT to capture, analyze, and disseminate data in order to provide valuable logistical and service solutions to customers all over the world. Originally these systems were to support Otis industrial based business model of providing elevator, escalator, and moving walkway services, but over time and with the vast array of clientele, their IT systems have evolved into something much more. These IT systems have transformed and now provide enterprise wide support to all players within the value chain. However, Otis is primed to take the next step in service by integrating an analytic component to their existing network of IT systems. The analytical system must be transparent, flexible, and scalable, yet provide for a certain degree of standardization in order to reduce training costs and increase efficiencies. Also, Otis must follow and implementation plan if it is to successfully implement this analytical component to its existing ERP and CRM systems. Additionally, the competitive landscape will change as Otis will be in direct competition with firms such as UPS, FedEx, Proctor&Gamble, The Wheels Group, and Exel plc that have recognized the value in service and logistic markets.

Manufacturing

ERP brings visibility into Madras Cements' business

Ramco's e.Applications (ERP) helped Madras Cements streamline its information flow. It has resulted in efficient capacity planning and utilisation and helped eliminate wastage MCL had several 'islands' of systems (its own legacy applications) running across its three manufacturing plants and its corporate office in Chennai. In order to gain a competitive advantage, it had begun investing in computerising its payroll, finance, inventory, and invoicing systems in 1985. However over time every plant had its own

systems, platforms, and processes. Due to a lack of integration and different reporting formats across plants, reports got delayed and accounts did not tally. The flow of information to the corporate office was not on time. Key information such as financial and production details were not uniformly available and there was a mismatch of information generated by production plants sent to the corporate office. This resulted in unnecessary delays in preparing a monthly accounts report. Shopping for software inhouse Once the management decided to go in for an ERP system, the first choice was Ramco Systems' e.Applications. C V C Rao, general manager-Information Technology, Madras Cements, says, Packages from other ERP vendors were not seriously considered as the top management felt that choosing a package from our own group company would ensure smoother implementation and better servicing. In case of any problem we would be able to fix it faster since the software is supplied by a group company. It was also felt that implementing Ramco e.Applications would ensure smoother integration with other Ramco applications such as the real time system and open cost mining system used by MCL. e.Applications had a suite of Web-enabled products for the cement vertical. This version offered continuous process productions suite, productivity tools and reporting formats. A phased implementation The first phase of the implementation was undertaken in November 1999 and was completed in about eight months. The major task was to map existing processes across nine functional modules such as-finance, sales, logistics, CPP (Continuous Process Production), ore management systems, maintenance, customisations for sales and logistics and HR, and to create a standard set of 'to be' processes, and then test them. The team consisted of people from the plant and the corporate office. It took a month per module to map the existing processes and convert them into 'to be' processes. There were a few customisation problems. Rao explains, Some of the processes within the ERP system had to be shrunk to handle the huge volume of invoices (six lakh per annum) being generated by MCL's plants. This was followed by a comprehensive training programme, which covered the basic overview of ERP as well as details about the impact of ERP on each of the nine e.Applications modules. Advantage e.Applications The implementation has streamlined transactions systems across plants. It has helped MCL develop an in-house MIS (Management Information System), which helps the management get information from its plants on a daily basis. There was a substantial improvement in capacity utilisation across the organisation. For instance, it was found that some costly mining equipment was under utilised. After comprehensive analysis of mines, equipment and shift (labour) performance, 60 percent of heavy equipment has been withdrawn from operations due to poor performance and underutilisation. The number of shifts has been reduced from three to two and by continuous monitoring, production and processes have been synchronised. The implementation in a nut shell
Company Product Locations connected Modules being implemented No of users Operating System Database Servers Cost Madras Cements is a cement manufacturer. It also goes by the name Ramco Cements. Ramco e.Applications 3.1 C Rel 5 Chennai, RR Nagar, Jayanthipuram, Alathiyur Finance, sales, logistics, CPP (Continuous Process Production), ore management systems, maintenance, customisations for sales, logistics and HR 350 users Windows 2003 SQL Server 2000 12 Compaq ProLiant 5500 servers (Pentium III dual Processor, 1GB RAM and 36 GB HDD) Rs 12 crore (cost includes ERP package, hardware, OS, database and networking)