How Global Multi-Billion Dollar Companies Save $17.3M and Achieve a 195% ROI in Three Years

New Research Study Details the Total Economic ImpactTM of ServiceNow for IT Organizations

Many of the IT leaders I talk to today share with me how they are driving imperatives within their organizations to provide consumer‑like service experiences. These leaders are looking for ways to rise to this challenge while improving the productivity of their organizations as well as their employees. They also tell me how they need to improve the quality and availability of the services they provide. However, they often face the demands of operating a wide variety of costly legacy tools to manage services and operations without a global view to service performance. We are continually working with IT leaders who have embarked on an IT service delivery transformation journey to provide them with solid business rationale for organizing and structuring their IT teams and processes to deliver an optimal service experience. We thought the best way to address these questions was to share the stories of some of our customers who are achieving these goals.

Toward that end, we commissioned Forrester Consulting to assess the benefits, costs, and risks associated with investing in ServiceNow to modernize IT service management, eliminate service outages and to optimize performance with real-time analytics. They interviewed seven ServiceNow customers across industries ranging from oil and gas exploration to transportation, financial services and manufacturing. Forrester developed a customer composite and financial model to represent these 7 customers. This composite has 15,000 employees, with management of 27,000 incidents and requests per month, and on average has 5 years of experience with ServiceNow.

 

 

 

 

 

 

 

 

 

 

 

The resulting April 2017 study, The Total Economic Impact™ Of ServiceNow®, provides IT leaders with an excellent framework to evaluate the potential impact of ServiceNow on increasing IT and employee productivity, lowering infrastructure costs, increasing uptime, delivering fully automated services, and improving the employee service experience. We are very excited with the results our customers have achieved and extremely pleased to have Forrester document these outcomes for us to share. Forrester’s in-depth interviews of these companies and related financial analysis revealed that the firms experienced the following risk-adjusted ROI and benefits:

The three-year ROI of over 195% and benefits of over $17.3 million are realized through:

  1. More efficient service request, incident and change processes
  2. Improved IT operations productivity with more capabilities and shared knowledge
  3. Cost savings by eliminating underutilized licenses and technologies
  4. Reduced cost and business impact related to P1 incidents

And the customer composite achieved a payback on their investment within 9 months of implementing ServiceNow.

Through interviews with Forrester Consulting, the study participants highlighted the key benefits of investing in a new approach to managing IT Services with ServiceNow. The organization was able to:

  • Improve IT productivity and capacity through more efficient management of incidents and requests. This was achieved by removing IT touches, automatic assignment and routing. Level 3 support was able to spend 4X more time on process improvement and significantly remove process inefficiencies – 36,000 unnecessary approvals for example. These factors resulted in an overall productivity improvement of 20%, or the equivalent of giving each person in IT one extra day per week of productivity.
  • Lower infrastructure costs by $4.1M over 3 years through reductions in licensing, infrastructure, maintenance and upgrades.
  • Deliver fully automated services to the tune of 20% of services being ‘zero touch’ in the 2nd and 3rd years of the study, saving thousands of hours per month. Typical customers in the study are automating 50 services per year.
  • Increased uptime through a 25% reduction in P1 incidents as well as enabling resolution of the balance of P1 issues in half the time. One customer was able to affect this improvement when they saw a high correlation between incidents and changes with Performance Analytics.
  • Improve end user productivity and customer satisfaction by eliminating 45 minutes of work per quarter across all 15,000 employees. Not only did this save 11,250 hours, but Oshkosh noted a 6% increase in customer satisfaction scores when they compared the measure before and after implementing ServiceNow.

The interviews also revealed that the organizations are considering leveraging their investment in ServiceNow to manage the proliferation of cloud instances – cloud sprawl, increase business velocity, and further utilize Performance Analytics to gain insight into operations, monitor performance trends, prioritize work and influence hiring and outsourcing plans.

 

I encourage you to download the full research study to assess how your organization can benefit from investing in ServiceNow. You can also view the infographic for the key highlights from the study.

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Farrell Hough

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