The Business Value of ServiceNow – A Look at IT, HR, Business Apps, and Customer Service

Our customers often tell me ServiceNow has changed the very nature of their day-to-day work. Productivity has increased; IT resolution times were slashed; automation replaced manual work; HR cases have been cut dramatically. These comments put a smile on my face every time. But when I asked how much value our customers were extracting, I often heard “so much we don’t need to spend the time to measure.”

I wanted more specifics. What exactly are the benefits to our customers? Can they be quantified?

Forrester Consulting agreed to help. After interviewing executives in seventeen companies, Forrester completed a Total Economic Impact™ study of  how ServiceNow adds value to IT, HR, and Customer Service[1].

Let’s look at a few key results.

IT productivity: up 20%

Who doesn’t want to be more productive? Our IT solutions automate, centralize, and integrate processes. The result? Fewer number of IT touches and incidents.

The monthly volume of service incidents requests goes down dramatically; our customers have seen a 66% reduction through self-service. And IT employees find it easier to access information on the web and mobile platforms.

IT outages: down 25%

One of the key values to our customers is fewer unplanned IT interruptions. We achieve this by correlating critical business services with infrastructure.

Our customers are seeing 25% reductions in high-importance and critical incidents. Recovery times have gone down 50%. Thousands of hours of wasted annual IT effort can be removed this way.

Greg Downer, Senior IT Director, Oshkosh, had this to say: “If you didn’t believe that incident and change management are correlated, then we certainly can prove it. Performance Analytics helps us ensure we’re focusing on the right priorities and SLAs.”

Business applications: delivered in nearly 1/3 the time

Any application developer knows that aging on-premises systems and native code slow down development. Application development accelerates 290% with ServiceNow. Our clients can deliver the benefits of business applications six months sooner than would have been possible with native code. The keys to this outcome are code reuse and out-of-the-box integration.

Customer service: 10-point increase in Net Promoter Score (NPS)

With Customer Service Management, companies start seeing NPS increases in the first 10 months after implementation. How? Customer service agents are better equipped to resolve or route customer issues; cases get routed quickly to the right agents for resolution; teams share information more easily and get to the root cause of complex cases faster; customer interactions become more informed and efficient. Having visibility to service-level targets and key performance indicators empowers our clients to take immediate action and elevate the customer experience.

HR service delivery: 50% of HR inquiries handled instantly

Many HR departments spend time on repetitive administrative tasks at the expense of strategic activities. Some lack a centralized HR information repository. The result? High HR caseloads that slow employees and companies down. Close analysis of our customers’ data found that HR cases were cut in half.

How do we accomplish this? Through self-service, employees find answers quicker; and manual processes are replaced by automated workflows. Employees have a better experience and become more productive when their questions are answered immediately. HR capacity is effectively increased.

Forrester calculated an ROI of 258% over three years. I think you’ll agree this is an impressive number. Please share your own news on value realization with your account team. Many transformation stories have been shared in our NowForums, and I look forward to hearing more in May at Knowledge18—our largest customer event.

Want to learn more? Download the Forrester Total Economic Impact™ study or view the infographics.

Find out more about our solutions.

[1] The Total Economic Impact™ Of ServiceNow For IT, HR, And Customer Service, a September 2017 commissioned study conducted by Forrester Consulting on behalf of ServiceNow.

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Michael Hubbard
Michael Hubbard is an advisor to executives of the largest firms in the world on obtaining value from enterprise software and technology. As the global vice president for ServiceNow Inspire, he spearheads growth of the second company in history to achieve $1B in software‑as‑a‑service subscription revenue. Hubbard served as a global vice president at VMware, a cloud technology innovator as they grew from $800m to over $6B in revenue. He helped the company’s most transformative and successful customers to attain cloud computing and IT‑as‑a‑service outcomes. Previous to that, he served in various application leadership roles with Oracle after delivering multi‑year enterprise‑wide customer consulting engagements with SAP, EDS, and ATKearney. Hubbard holds a Bachelor of Science in mechanical engineering from University of Illinois, and certifications in technology and program delivery from Stanford University, SAP, Oracle, and VMware.

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