MIT Sloan Management Review

Leadership and Organization Studies, Management of Technology and Innovation

The Line Takes the Leadership — IS Management in a Wired Society

By John F. Rockart

July 15, 1988

FOURTH GENERATION INFORMATION TECHNOLOGY opens up business opportunities that call for line management leadership in system conception and implementation. The role of information systems (IS) managers, too, must grow as a result of changing technology. This paper examines the reasons for and implications of these important role changes. Ed.

WHEN GEORGE DAVID conceptualized an approach to elevator maintenance based on a centralized computer communications network, he had no idea it would become a notable example of the use of information technology to gain competitive advantage. Yet the story of the major improvement in customer service made possible by OTISLINE, the Otis system, has been told and retold from the lectern and in the trade press. David, formerly head of Otis North America and now CEO of Otis Elevator Company, was something of a trailblazer: an executive outside the IS function proposing and implementing a major change in how the company used information systems.

The system itself is striking. Previously, loosely coordinated, decentralized maintenance efforts were carried out in more than one hundred local offices; now Otis centrally coordinates the efforts of its nationwide repair force. Trouble calls are taken by highly trained, often multilingual operators who work from a computer screen to record all data concerning the problem elevator. Repair personnel are dispatched via a telephone/beeper system. Upon completion of the maintenance, all relevant information is once again recorded in the computer.

The advantages the system provides to Otis are manifold. Perhaps most important is senior management’s increased ability to view the status of maintenance efforts nationwide. A specialist can quickly be directed to a particular customer with a difficult problem. Frequent trouble from a... To read the complete article, login or sign-up using the form below.

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