Gaining business from information technology: The case of Otis elevator, France

Abstract

Otis Elevator, France, a leader in the sale and service of elevators and related products in the French market, started reviewing the managerial and operational procedures surrounding the processing of a customer order in 1986. The resulting ‘Master Plan’ project aimed at simplifying these procedures, from the initial contact with the customer through the installation of the elevator, with decentralization of responsibility driving the design. Central to the Master Plan was the need to adjust the organizational structure to the decentralization of responsibility and to develop new IT applications to support business and management activities. These applications, developed between 1986 and 1992, concerned negotiation, sales/contract management, invoicing/accounts receivable, purchasing management, and accounting. Tawfik Jelassi describes a case study of the ‘Master Plan’ project at Otis Elevator, France, the development methodology used and the role played by different groups within the company. A special emphasis is put on the identification of new IT applications, their inter-dependence with the organizational changes, and the subsequent implementation process. An underlying issue that the case addresses is the business value of information technology and the strategic advantage that it can provide to a company.