Development initiatives lift KONE’s performance to a new level
In 2007, KONE continued to implement the development programs it launched in 2005. The programs were deployed to transform KONE into a truly global and customer-driven company.
As a result of the ongoing programs, a number of new solutions and working methods have been launched. For example, KONE has renewed its customer segmentation model, extensive training has been given in sales and sales management and a new customer relationship management (CRM) system is in place in almost every country organization. Additionally, KONE has launched a number of e-business tools.
New products and services have been released in all the main markets to better meet local requirements. In sourcing activities, partnerships with selected key suppliers have been developed. KONE’s maintenance technicians have been trained for a new preventive maintenance method that ensures uniform, high-quality maintenance all over the world. Similarly, installation methods have been industrialized for both new equipment and modernization activities.
As a result of these extensive development programs, KONE has managed to better align its processes globally, increase customer focus and improve the competitiveness of its offerings. These improvements have led to increased productivity, the expansion of accessible markets and a stronger market position. Further gains are expected to occur once all new processes are in full operation.
Urbanization highlights the importance of efficient people flow
Urbanization and economic growth continue to increase the demand for new elevators, escalators and related services, especially in Asia, but also in other continents. In addition, modernization is the main driver of demand in Europe and North America.
Currently, 3 billion people live in urban areas worldwide and this number is expected to reach 5 billion by 2030. By 2015, the number of metropolises with over 5 million inhabitants is estimated to increase from 35 to 50 (U.N. World Urbanization Prospects 2007). These changes will be most evident in Asia, where new equipment sales are heavily concentrated, with more than one quarter of new elevators and one half of new escalators being installed in China.
Rapid urbanization highlights the importance of efficient people flow. More people need to be transported in a same space, at the same time. This requires higher vertical travel, higher speeds, improved space-efficiency but at the same time increased capacity and efficient services to run equipment 24/7 without interruption. At the same time, the elevator and escalator industry is being challenged by demands for more efficient energy utilization, more versatile services and the tightening of safety standards and regulations.
In Europe and North America, urban areas create growth potential also for equipment repairs and modernizations. It is estimated that more than two-thirds of all elevators and escalators in operation are over 20 years old, and therefore in the need of modernization. In addition, due to the more stringent standards being set for safety, performance and accessibility, there is an increasing need for equipment upgrades and modernizations. Over half of the world’s elevators and escalators in operation are currently located in Europe and nearly 20 percent are in the United States.