The Use of IT to Gain a Competitive Advantage at Otis
The establishment of OTISLINE helped the company gain a competitive advantage by enhancing its information services, customer service, control of mechanisms, and marketing. Thus, Brad Robertson, the director of service operations, admitted that “OTISLINE improved the visibility of our service business and helps management and local office personnel to provide quality service to our customers more effectively” (“OTISLINE(A),” n.d., p.4). This means that the IT solution implemented by the company became an effective measure to address and resolve current issues, which created the basis for further evolution and development.
As one of the leading companies offering outstanding elevators and maintenance services, the company has numerous employees and clients. Thus, in many cases, difficulties with processing information acquired from clients were observed. Moreover, the lack of effectiveness in answering clients’ calls and reporting problematic issues was observed. For this reason, integrating centralized customer service and a system including information about all recent issues contributed to generating a significant competitive advantage. Thus, the responsiveness to customer callbacks increased, while the reduction of callbacks for each installed elevator would help to save around $5 million annually (“OTISLINE(A),” n.d., p.4). It became a significant improvement and created the basis for future evolution.
Additionally, OTISLINE was used to control other areas of the company’s work, such as marketing, control of service mechanisms, and information management. As a result, Otis Elevators acquired the chance to overcome its rivals by reducing response time and increasing client satisfaction levels. In such a way, implementing IT technologies helped enhance the work of the central systems and departments and gain a competitive advantage vital for further development.
Adjustment of the Value Chain by Using IT at Otis
Otis adjusted marketing, sales, service, and human resource management elements by implementing IT technology and making it fundamental to the company’s work. For instance, elevator sales were enhanced by using a system that “New equipment sales representatives could access the New Equipment Sales (NES) application by calling OTISLINE” (“OTISLINE(A),” n.d., p. 7). Similar adjustments were made in other spheres as the company switched towards using information systems to improve its functioning. Furthermore, “With OTISLINE, instead of filing a written report for each callback, the service mechanics called OTISLINE, described the situation when they arrived at the building, and reported the steps taken to repair the elevator” (“OTISLINE(A)” n.d., p. 7). In such a way, adjustments were made to the most essential elements of the value chain.
The given approach to implementing the technology became effective and helped avoid failures. Using OTISLINE as the basis for future improvement, the top management impacted the primary value activities, such as sales, service, control of service mechanics, and work with clients. These became enhanced by using information systems to access the necessary information, cooperate with clients, consider their claims, and reduce response time. Secondary value activities, such as employee performance, were modified by additional training to ensure new mechanisms were adopted and used to attain better outcomes. As a result, the IT solution became a critical part of the firm’s work.
In such a way, the company’s value chain, including both primary and secondary value activities, was modified. It implied the reliance on new models of interacting with clients and sharing information. OTISLINE and information services “changed the way NAO does business” (“OTISLINE(A),” n.d., p. 4). As a result, the company managed to preserve its leading positions and adapt to the new strategy successfully. IT solutions established the basis for further improvement and the firm’s ability to remain a leader in the sphere.
Other Adjustments at OTISLINE
Accommodation of OTISLINE required system improvement and staff training for them to be able to work with the new software. First, “an IBM 3083 was installed in early 1983 to replace the IBM 370/158, and by 1985 extensive peripheral equipment, including state-of-the-art direct access storage devices, tape drives, and telecommunications equipment, had been installed” (“OTISLINE(A),” n.d., p.4). Second, “New hires received from four to six weeks of in-house training,” which included using OTISLINE, the IBM displays, and operating new systems (“OTISLINE(A),” n.d., p. 5). These accommodations were critical to ensuring the company had the necessary infrastructure and the employees could work following new demands.
Replacement of the old computers and peripheral equipment can be justified by the scope of the new tasks that had to be performed using IT. A large number of clients and calls and the need to process big amounts of information required more powerful computers to ensure the process is simple and there are no delays. At the same time, the employees lacked experience working with OTISLINE and the devices necessary for successful cooperation with clients. For this reason, both training and buying new equipment were necessary steps and created the ground for improvement.
Altogether, the system improvement and training were critical tasks to accommodate OTISLINE and guarantee its successful integration with the company and the main process occurring within it. The disregard of these aspects would have resulted in the collapse because of the outdated equipment and its inability to support the work of the new information system. Training also reduced the level of uncertainty and resistance to change, which simplified the implementation of new solutions and guaranteed that the staff could use them.
The Most Effective Change Management Approaches at Otis
Integrating the new IT solutions, Otis utilized Lewin’s change management model, which implies unfreezing, changing, and refreezing stages. The company created the vision of change: “Otis management decided to create a North American customer service center to dispatch service mechanics, in response to callbacks, 24 hours a day” (“OTISLINE(A),” n.d., p.4). It supported the staff and made all necessary alterations during the change phase. Finally, Otis made using IT a standard practice during the refreeze stage: “This can translate into a real competitive advantage. We’re confident that it will, and we are investing accordingly” (“OTISLINE(A),” n.d., p. 10). The effectiveness of the approach is evidenced by several factors.
First, the realization of why change is required helped to select the best possible approaches. For instance, before using OTISLINE, “management became aware of many service problems only if there was a customer complaint” (“OTISLINE(A),” n.d., p. 4). The specialists realized that it might negatively impact customer relations and company performance. As a result, the need for change was acknowledged, and a new approach toward managing customer relations and callbacks was introduced. Second, employees were provided much support during the change phase, which implied training and gradual integration of the new practices.
In such a way, Lewin’s approach to change management was an effective way to alter the company’s work and guarantee it would succeed in the future. Devoting attention to emerging issues during each phase, the top management avoided failures and guaranteed that IT systems would successfully integrate into the organization’s work. The model also minimized resistance to change and established the basis for following improvement, which is essential for any change management process.
Lessons Learned from the Otis Case
Otis’s approach to utilizing IT shows that the change and shift to new practices should be aligned with the current strategic goals, needs, and budget and supported by the trained staff. For instance, the case shows that “Because of the strategic nature of the OTISLINE application, a large portion of the information services budget was earmarked for its support” (“OTISLINE(A),” n.d., p. 5). Furthermore, “The OTISLINE Service Center was staffed by highly skilled dispatchers” (“OTISLINE(A),” n.d., p. 5). This evidences that the decision to start using IT was not spontaneous. It resulted from the understanding that “the quality of the answering services varied greatly” (“OTISLINE(A),” n.d., p. 4). For this reason, the company realized the need for new approaches and selected a potent strategy to implement them.
The lessons from the methods used by Otis can be used in similar situations. A shift towards digitalized solutions and IT technologies should be made only when the company has the prepared staff and equipment that might support the incentive. It is also essential to consider the existing budget and determine whether it can cover all spending and help to avoid problems in the future. It means that when managing an organization, it is essential to consider the existing strategic goals and align them with the IT solutions.
Altogether, Otis managed to preserve its competitive advantage by changing its approach to working with clients, providing major services, and marketing. Integrating IT systems became an advantageous decision linked to the company’s needs. For this reason, the same approach can be used in other cases or in managing my own organization. Technology integration requires staff training, investment, and a correct understanding of the current problems. Otherwise, there is a high risk of failure and inability to achieve existing goals.
Reference
OTISLINE(A). (n.d.).