Schindler: How The Elevator And Escalator Giant Rose To
Going Up @ Schindler: How the Elevatorand Escalator Giant Rose to DigitalExcellence
Schindler: Moving Humanity Digitally1 BnThe numberof people thatSchindlermoves dailyWhen you are a 140-year-old leader in an establishedindustry, how do you keep your leading position?For Michael Nilles, Chief Digital Officer of Schindler– a global provider of elevators and escalatorswith over 57,000 employees across 100 countries– the answer lies in digital technologies. “Digitaltransformation isn’t about a specific technology oreven the entire IT stack. Rather, it’s about a gamechanging adaptation to your business model to stayat the forefront of your industry1,” he says. Schindler– a company that moves a billion people daily – iscontinuously looking at technology innovations thatwill keep it at the forefront and is recognized as apioneer: Rather than wait for customers to alert it to anelevator breakdown, Schindler shares real-timealerts on current or future outages not only withtheir service engineers but also with customers.Service engineers use an app to access thisinformation in real-time and attend to the problemwithout the need for customer intervention2. Thisclosed-loop service platform where everyone hasthe same real time information is a first for theelevator industry.3 Schindler’s PORT, or Personal OccupantRequirement Terminal, is an intelligentdestination-dispatch solution for use in largebuildings. Through a combination of intelligentsoftware and simple-to-use hardware, thesystem reduces elevator times at offices by as2much as 50%. Employees are identified by theiraccess card, the fastest time to destination iscalculated, and the employee is directed to theoptimum elevator4.“Destination dispatching is when you tell us whereyou’re going before you even get on the elevator.We invented it in 1993 and are now on our thirdgeneration. Other companies are still on their first5.”Greg Ergenbright, president of Schindler U.S. andCanadian operations Schindler won the Digital Business InnovationAward 2015 for its ‘Digital Toolcase’ – anapplication that is used by more than 20,000Schindler front-line employees every day toaccess technical data, analyze errors or orderparts6. The company also won the MIT SloanCIO Leadership Award in 20157 and has beenfeatured in Forbes’ Most Innovative Companieslist multiple times in the last 5 years8.How did Schindler manage to create this level ofdigital innovation in a venerable company? Theanswer, as we have seen many a times, lies in astructured approach to digital transformation.
The Three Pillars of Schindler’s DigitalTransformationDigitizing the CustomerExperienceSchindler set out a vision to achieve ‘Leadershipthrough Customer Service’9, driven by technologyinnovation. This included an online portal – “SchindlerDashboard” – where customers could check theoperational status of their elevators or escalators,make service requests and get alerts in case ofequipment malfunction. This was also offered as amobile application (see Figure 1)10.A number of principles were key: The importance of real-time data, as GregErgenbright explains: “The type of informationwe’re offering isn’t unique, but real-time natureof it is. This level of customer service helpsSchindler win over customers who see it canhelp them be more efficient and keep their owncustomers happy11.” Putting the customer at the center of efforts. “Ourultimate goal, with all of the initiatives, is superiorcustomer experience,” says Michael Nilles,“Whereas the goal of the previous decades,which of course is still on our agenda but notthe most urgent thing, was focused on internalprocess optimization, driving efficiency. Ultimatelythe customer was benefitting as well, but he wasnot at the center of it.12 End-to-end digitization. “We have digitizedour entire relationship with our customers. Ourproducts are digitized and communicate withour customers directly. Customer interaction withSchindler workforce and back-end systems arealso digitized13” outlines Michael Nilles.Figure 1: Schindler Dashboard Mobile200MillionThe numberof data pointsthat Schindlercollects dailySource: App Store listingDigitally Transforming OperationsThe company uses a portfolio of digital technologies– such as IoT, Big Data & Analytics and Mobility – totransform its operations.Schindler has, for example, connected its elevatorswith sensors, which collect and transmit dataon parameters such as vibration, speed andtemperature. Sensors on elevators transmit alerts toa control center in case of an outage14 and Schindlercollects 200 million data points daily15. Howevercollecting the data is not the most important aspectaccording to Michael Nilles. “This data doesn’t meananything if you don’t put the right business rules andmachine-learning algorithms to it,” he says. “That’swhere we have the biggest competitive advantageas we are able to deliver a superior customer serviceexperience.” Schindler uses this data to anticipateproblems in elevators in a given area, schedulemaintenance routines and to supply spare parts.3
The Rise of Predictive Analytics for MaintenanceOur research across a range of industries shows how significant numbers of firms are using analytics for predictivemaintenance (See Figure 2).Figure 2: Percentage of Firms using Predictive Analytics for MaintenanceLife Science/PharmaConsumer y Production51%53%Source: Capgemini Consulting, “Going Big: Why Companies Need to Focus on Operational Analytics”, March 2016; Capgemini Consulting AnalysisSchindler embodies this trend. The company uses predictive maintenance to ensure downtime for its elevators isminimized. Using sensors, it collects data on temperature, pressure and speed (See Figure 3). This is transmitted throughIoT devices fitted on elevators to the backend platform to generate insights for predictive maintenance. Schindler alsoremotely monitors its elevators 24/7 and is able to turn around the faulty equipment to service 22% faster than traditionaltroubleshooting methods.2Figure 3: Sensors Collecting Data RemotelySource: Apple.com, “Elevating service and safety with real-time data”, Nov 2015“Through a more predictive approach to maintenance and remote monitoring, we can detect incidents with an elevatorbefore our customers do. Think of it as never having to bring your car back for an oil change.” - Michael NillesSources:1.2.4Apple, “Elevating service and safety with real-time data”Schindler website, “Schindler Remote Monitoring - A proactive approach to problem solving”
Creating a Digital workforce40,000The number ofinventory spareparts that atechniciancan directlyorder usingSchindler’sDigital ToolCase appSchindler’s installation and maintenance servicetechnicians, who constitute as much as 57% of itsworkforce16, are digitally empowered to leverage thevast amounts of data that the company collects.Field technicians start their day on an iPhone,which serves as an all-in-one tool that helpstechnicians work more efficiently and productively.The customized iOS apps used by technicians arepart of a wider digital tool case (See Figure 4), whichgives them all the resources they need to get the jobdone17, from error analysis to ordering spare parts18.For instance, the spare parts app element of theDigital Tool Case enables Schindler field techniciansto search an up-to-date inventory of over 40,000spare parts and order directly from customer site(see Figure 5). The field technician can also checkthe parts required for the next day’s job, order theparts in advance and have it waiting in the trucksnext morning before visiting the customer site.19“With iPhone and custom iOS apps, we’ve enabledtrue mobility for our workforce, delivering on-the-spotservice to our customers and ensuring safer equipmentaround the world.”20 Silvio Napoli, Schindler ExecutiveMember of the Board of Directors.Figure 4: Digital Tool CaseFieldLink AppFieldWiki AppGenerates jobs listed based on real-timeanalysis of Schindler’s lifts and escalatorsGives technicians access to a library ofup-to-date multimedia documentsProvides details about each job to lettechnicians know what to expect and whatparts and tools to bringA catalogue of technical information, serviceinstructions, safety guidlines and checklist isavailable at technicians’ fingertips, saving bothpaper and time spent on trainingCreates the most efficient route based on thelocation of assigned jobsDigital ToolCaseiSPECI AppSpart Part AppControls any unit simply by connecting to it withiPhone, allowing them to quickly track, seviceand maintain equipment from anywhereAllows technicians to search an accurateinventoy of over 40,000 parts and order themwithout leaving the job siteBuild with MapKit, a fully functional in-app map can use Location Services to track technicians andoffer optimized routes to job sites. Sensors track and transmit valuable equipment data, which isinterpreted in the cloud and sent directly to each technician’s iPhone with a push notificationTechnicians can quickly troubleshoot issues by consulting with colleagues with the built-in cameraand FaceTime. To access elevator controls, technicians can connect via Bluetooth using iSPECI appSource: Apple.com, “Elevating service and safety with real-time data”, November 20155
Figure 5: Snapshots of Schindler’s Digital Tool Case AppSource: Apple.com, “Elevating service and safety with real-time data”, November 2015Achieving this level of digital sophistication wasa challenging journey, as Michael Nilles explains:“It was a hard and painful journey which involvedchange management. You have to train people,make organizational adaptations so people canmake use of the new solutions.”21 However,digitizing the workforce had multiple benefits. By6using the FieldLink app, for example, the companyhas optimized its service routes for technicians,by providing them with instant access to data oniPhone and iPad, and saved 40 million kilometers ofdriving and prevented 4,435 tons of emissions peryear22.
What has been the secret of Schindler’sdigital rise?As Michael Nilles explains: “Before Schindler couldtake up higher-level digital transformative work,the company had to fortify its IT foundation. Thatfoundational work was in two areas: IT rationalizationand global business process optimization23.”A number of ingredients have been critical:Build a Digital FoundationThree phases were key, as Figure 6 illustrates: Build a robust IT platform. Standardize globaloperational efficiency.processesanddrive Achieve superior customer experience as well astransforming operations and the workforce.“We were thinking about how to gain a competitiveadvantage using new innovative and digital solutionsthat were emerging to achieve a superior customerexperience. We wanted to change the way thecustomer did business with Schindler24”. Michael NillesFigure 6: Path for Digital TransformationIT rationalizationGlobal IT infrastructurewas standardized andlegacy systems wereretiredDigitalTransformationSHAPE*Global bussinessprocess applicationwere integrated andsynchronizedConnect assets withsensors Collect Data &use Analytics EngineEstablished a globalsupply chain andmanufacturing networkin a standard andcoordinated fashionDigital Toolkit forWorkforceSchindler DashboardMobile for Customers* Schindler Harmonized Applications for Process ExcellenceSource: MIT Sloan CIO Symposium , “2015-15 Leading Digital: A Manifesto for IT and Business Executives”, June 2015Drive the Digital Transformationfrom the TopOur past research has clearly established thatsuccessful digital transformation requires a strongpartnership between IT and the business25 and theneed for a digital transformation to be a top-downexercise. Schindler blended both these requirementsby making sure their digital transformation was ledtop-down by their CIO. Michael Nilles, SchindlerGroup CIO up until April 2016 (currently ChiefDigital Officer), and who joined Schindler in 2009,is a driving force for the digital transformation inSchindler. Thanks to his leadership from the front intransforming Schindler, Michael Nilles was awardedthe 2015 CIO Leadership Award by MIT.“A lot of people say Digital is just a new buzzword.But it has reached a high maturity stage not justin terms of technology but in acceptance on thebusiness side. Digital is not just replacing the terminformation technology; it’s making use of informationtechnology, but there are more elements to it asdigital focuses more on the market, customers andtop-line growth26.” Michael Nilles7
Govern the TransformationTo be a leaderin businesstoday, youhave to be arisk-taker andlead disruptivechange.Michael Nilles“Digitization requires fast business deployment andinnovation. The agile mode of IT brings a startup culturewhich puts the user in the center of development andaccelerates digitization27.” Michael NillesFor many organizations, the challenge of digitaltransformation is achieving the change withouttheir existing operations being compromised. Toovercome this challenge, the company used a twospeed IT approach, where agile or start-up mode ITwork together with traditional IT.28Schindler created a separate unit, Schindler DigitalBusiness AG, with then-CIO Michael Nilles becomingCEO. The unit hosts innovative projects that useemerging technologies29 and has operations inShanghai, Morristown (NJ) and Lucerne.Schindler Digital was not just an evolved IT team, itwent far beyond that, as Michael Nilles explains: “Wedon’t call it IT anymore. Schindler Digital Businessdeals with everything related to digital, and wesubsumed the traditional IT fields now. So it’s both:it’s an organization that is transforming the businesstowards digital and it also sells digital solutions30.”“It’s very important for established organizationto give room for innovation, and you usually can’tdo that within the boundaries of a traditionalorganization31.”Schindler Digital BusinessSchindler created a dedicated digital unit aimed specifically at digital innovation in 2013. The teamdifferentiated itself across a range of areas:Talent -The unit combined talent from a wide variety of teams beyond traditional IT. These included R&D,service and installation, and industrial design in order to create integrated digital tools for customers andfront-line employees.Governance – Schindler created a matrix organization across functional groups for knowledge sharing. Thecompany realized that they needed a highly dexterous team in order to achieve their goals (See CapgeminiConsulting’s research on Digital Dexterity). As Michael Nilles says, “When we have a new service, we put thisteam together, and then it becomes really an organization. After two years, when this is a mature service, wemight want to dissolve the team again, and put it together in a different constitution. It’s much more dynamic,and that’s another good reason why we have it under Schindler Digital Business as a legal entity.”Collaboration – The digital unit worked closely across the business in order to develop effective digital toolsand drive their adoption by its employees. In doing so, they focused clearly on people needs. Enrico Senger,VP, Digital Strategy and Transformation explains, “People are not interested if something is digital or notdigital. They are interested in: “Does it help me to do business with the customer? Can I be more efficient?Can I do more business and how is this done?”” The unit also involved users directly in designing solutionsby ensuring they iterated rapidly in order to create minimum viable products.Source: MIT-CSIR, “The Schindler Group: Driving Innovative Service and Integration with Schindler Digital Business Ag”, April 2016ConclusionGiven the accelerated pace of technology innovationand disruption across all sectors, digital is as validfor century-old organizations as it is for newlycreated start-ups. The case of Schindler shows thatage is no barrier to injecting urgency and innovation8into the digital agenda. As Michael Nilles says, “Intraditional industries, you’re not staying in businessin the next 10 years with just your product. You canget a competitive advantage if you have relatedservices, and they will be enabled by digitization.To be a leader in business today, you have to be arisk-taker and lead disruptive change32.” Schindleris now placed on the top floor of digital players.
References1Cio.com, “CIO is pushing the right buttons”, November 20152T-Systems website, “Schindler elevators – smarter than the rest”, Accessed Nov 20153Cio.com, “CIO is pushing the right buttons”, November 20154Tsia.com, How IoT Process Optimization Can Improve Customer Outcomes”, May 20155NJBIZ.com, “Ready for lift off: Schindler Elevator feels its technology has it primed for growth”, Feb 20156Schindler Company website, Accessed Nov 20157Businesswire.com, “MIT Sloan CIO Symposium Announces Winner of the 2015 CIO Leadership Award”, May 20158Schindler website, “Schindler Named To Forbes’ Most Innovative Companies For Third Year”, Accessed Nov 20159Schindler Company website10 Schindler website, “Maintenance tracking for elevators & escalators”, Accessed Nov 201511 CIO.com, “CIO is pushing the right buttons”, Nov 201512 MIT-CSIR, “The Schindler Group: Driving Innovative Service and Integration with Schindler Digital Business Ag”, April 201613 MIT Sloan CIO Symposium , “2015-15 Leading Digital: A Manifesto for IT and Business Executives”, June 201514 T-Systems website, “Schindler elevators – smarter than the rest”, Accessed Nov 201515 Apple website, “Elevating service and safety with real-time data”, Accessed Nov 201516 Schindler Annual Report 201517 Apple.com, “Elevating service and safety with real-time data”, Nov 201518 Schindler Company website, Accessed Nov 201519 Apple website, “Elevating service and safety with real-time data”, Accessed Nov 201520 Apple.com, “Elevating service and safety with real-time data”, Nov 201521 Cio.com, “CIO is pushing the right buttons”, November 201522 Apple.com, “Elevating service and safety with real-time data”, Nov 201523 Cio.com, “CIO is pushing the right buttons”, November 201524 Cio.com, “CIO is pushing the right buttons”, November 201525 Capgemini Consulting, “The digital transformation symphony: when IT and business play in harmony”, November 201426 Computerworld, “CIO seeks ‘disruptive opportunities’”, December 201527 Apple.com, “Elevating service and safety with real-time data”, Nov 201528 Searchcio.techtarget.com, “‘Unity of effort’ vital to digital transformation”, July 201529 Computerworld, “CIO seeks ‘disruptive opportunities’”, December 201530 MIT-CSIR, “The Schindler Group: Driving Innovative Service and Integration with Schindler Digital Business Ag”, April 201631 Computerworld, “Bimodal IT: A two-pronged approach to delivering innovation and maintenance”, September 201532 Computerworld, “CIO seeks ‘disruptive opportunities’”, December 20159
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About the AuthorsJerome BuvatHead, Digital Transformation ome is head of Capgemini’s Digital Transformation Institute. He works closely with industry leaders andacademics to help organizations understand the nature and impact of digital disruptions.Subrahmanyam KVJSenior Manager, Digital Transformation hmanyam is a senior manager at the Digital Transformation Institute. He loves exploring the impact oftechnology on business and consumer behavior across industries in a world being eaten by software.Digital Transformation emini.comThe Digital Transformation Institute is Capgemini Consulting’s in-house think-tank on all things digital. The Institute publishesresearch on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network ofCapgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers inthe United Kingdom and India.The authors would like to thank Florian Meier from Schindler for taking the time to review this research paper.11
For more information, please contact:Global ContactsGunnar Ebnergunnar.ebner@capgemini.comEric FinlandUKEric GrumblattMichael ErikssonMumtaz capgemini.commumtaz.salam@capgemini.comLaurent PereaDaniel GranlyckeJohn ric KruidhofNorth AmericaNorwayAndrian PenkaGunnar pgemini.comgunnar.deinboll@capgemini.comFemke De Jagerfemke.de.jager@capgemini.comGermanyJochen Bechtoldjochen.bechtold@capgemini.comAbout Capgemini and theCollaborative Business ExperienceCapgemini Consulting is the global strategy and transformationconsulting organization of the Capgemini Group, specializingin advising and supporting enterprises in significanttransformation, from innovative strategy to execution and withan unstinting focus on results. With the new digital economycreating significant disruptions and opportunities, the globalteam of over 3,000 talented individuals work with leadingcompanies and governments to master Digital Transformation,drawing on their understanding of the digital economy andleadership in business transformation and organizationalchange.With more than 180,000 people in over 40 countries, Capgeminiis a global leader in consulting, technology and outsourcingservices. The Group reported 2015 global revenues of EUR 11.9billion. Together with its clients, Capgemini creates and deliversbusiness, technology and digital solutions that fit their needs,enabling them to achieve innovation and competitiveness. Adeeply multicultural organization, Capgemini has developed itsown way of working, the Collaborative Business ExperienceTM,and draws on Rightshore , its worldwide delivery model.Learn more about us at www.capgemini.com.Find out more at: www.capgemini-consulting.comRightshore is a trademark belonging to CapgeminiCapgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. 2016 Capgemini. All rights reserved.
Greg Ergenbright, president of Schindler U.S. and Canadian operations Schindler won the Digital Business Innovation Award 2015 for its ‘Digital Toolcase’ – an application that is used by more than 20,000 Schindler front-line employees every day to access technical data, analyze errors or order parts6. The company also won the MIT Sloan
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May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
the Schindler offi ce nearest you, please contact: U.S. Headquarters. Morristown, New Jersey Tel. 973.397.6500 www.us.schindler.com Canada Headquarters. Scarborough, Ontario Tel. 416.332.8280 www.ca.schindler.com Schindler has received renewal to ISO 14001:2004 and ISO 9001:2008 certifi cates. Schindler is a member organization of the
̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions
Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have
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Schindler ID is the latest evolution of Schindler's world-renowned Miconic 10 destination control system, already proven successful in landmark buildings in over 40 countries. A new, revolutionary era has started — the user and the elevator can communicate with each other. Personalized Schindler ID provides a wide variety of applications
The Schindler 2400 saves you time and money.Pre-defined components and mandatory data, ease planning and shorten delivery times -for asingle system or a group of up to four elevators. The Schindler 2600 freight elevator and the Schindler 2500 bed elevator belong to the same platform as the goods elevator. Brisk movement is our business
