In Search of Service ExcellenceService Science Summit 28.02.2007Riitta Partanen-JokelaAssistant Vice President, Service DevelopmentKONE Corporation

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Topics

1. KONE in Brief2. KONE Strategy3. Our Customers4. Care for Life5. Service Excellence6. Service Management Challenges7. Research for Services

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KONE in Brief

• One of the world’s leading elevator and escalator companies

• Provides industry-leading elevators and escalators, and solutions for their installation, maintenance and modernization; also offers maintenance of automatic building doors

• Annual sales of about 30,000 new elevators and escalators • 600,000 elevators and escalators under maintenance contract• Sales 3,601 MEUR, Operating income 360 MEUR / 2006• 29,000 employees /2006

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Sales

66

22

12

EMEA Americas Asia-Pacific

60

40

Services New equipment

by business, % by market, %

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Employees by Job Category

New equipment sales& installation

Manufacturing

Maintenance & modernization

Administration, IT, R&D

• 29,000 people in 50 countries• 13,000 meeting customers in the field every day

5923

9

9

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KONE Strategy

KONE gives a performance edge to its customers with innovative services and solutions.

Simultaneously, KONE’s products and services are cost-competitive and its processes characterized by globally aligned operational excellence.

Our Customers

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Solutions for Customers with Different Needs

AirportsDenver Airport, USA

HotelsACCOR Novotel, Nice France

ManufacturingKONE TranSys™ freight elevator

Leisure & educationNational Grand Theatre, Beijing China

Public transportationBangkok Transit System, Thailand

MedicalHelsinki University Teaching Hospital, Finland

Care for Life

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KONE Care for Life

New equipmentinstallation

MaintenanceModernization

Full replacement

KONE takes the full life-cycle of the equipment into account.

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Maintenance service

• KONE Optimum™ service contracts, KONE remote monitoring services and 24-hour service centers create added value and peace of mind for customers.

• KONE guarantees an optimal service offering with 13,000 service,maintenance and modernization specialists in 800 locations.

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Modernization

• Modernization solutions range from replacing the existing user interface to the full replacement of the elevator.

• Care for Life Information services help customers to make the right choice.

• Efficiently installed modernization packages to reduce out-of-service times.

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Care for Life in Modernization

...to providing services and solutions.

From providing technology...

Service Excellence

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Service Excellence

1. Customer Focus • Understanding customer needs proactively• Simple, flexible, predictable service• Innovative services and solutions

2. Operational Excellence• Maintenance, call-out handling, repairs• Material management, global sourcing• Global tools and processes

3. Motivated and Skilled People• Attitude & culture• Continuous development• Collaboration

1

2

3

Service Management Challenges

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Service management challenges

• Growth through acquisitions • Varying cultures and ways of working

• Aging technicians, new work force with different competence profile

• Geographically widely distributed equipment under maintenance• Products from different manufacturers using different technologies

• Knowledge, spare parts• Varying rules and regulations to be complied

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Growth through Acquisitions

0

5000

10000

15000

20000

25000

30000

67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05

Souliers

Marryat & Scott

FiamBennie Lifts

Starlift

BassettiEPL-KONE Pty

Armor Elevator

O&K Rolltreppen

Sowitsch

BauerSabiem

Montgomery, Canada

Pragolift

Flynn-Hill

KONE Elevator IndiaMontgomery USA

Elevadores Induco

Hävemeier & Sander

Westinghouse, Europe

Asea-Graham

Bharat Bijlee Limited

Personnel

Year

Globalization milestones

U.K. Lift Company

Thai Lift Industries

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KONE Preventive maintenance process

Service technicians,vans,tools

Service routes

Optimal maintenance program

Elevators,Escalators

Customers Supervisor,Sales

Contracts

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KONE Service request process

Field mobility

tool

Customer callVoice link callRemote monitoring indicationService request through e-Optimum

Real time reportingSpares ordering

Equipment

Technician

KONE Customer Care Center

Supervisor / Back Office

Customer

Real time reporting

dispatchingNotification by SMS/e-mail/fax

Callout visible in e-Optimum

electronic communication

Research for Services

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Research for Services – How it started?

• Research for services started from technology point of view: remote monitoring and proactive maintenance.

• The whole service delivery process needed to be addressed in order to benefit from technology.

• …and customer offering?• …and human resource management?

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Reseach for Services?

• Innovations with customers• Service delivery logistics / networks• Service product data management• Service quality and measurement• Creating service culture• Learning & change management

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