What Is ServiceNow IT Business Management?
Information Technology Business Management (ITBM) is a set of workflows and tools for optimally developing, delivering, and managing business services through an IT-focused lens. The goal of ITBM is to help organizations more comprehensively understand how their technology environment relates to their business goals, strategies, and needs. ITBM encompasses:
Project Portfolio Management/Strategic Portfolio Management
Resource and Demand Management
Application Portfolio Management
Operations and Finance Management
Why businesses need ITBM
Traditionally, organizations have used legacy business management systems and workflows to understand their overall business needs and how IT resources can optimally be used to support these needs. These systems require an organization to manually gather and analyze all of their data. Indeed, businesses often rely on a combination of emails, spreadsheets, manual integrations, and unstructured workflows.
As a result of these business management processes, organizations waste resources and get suboptimal outcomes:
By contrast, organizations that have mature, structured ITBM workflows and systems achieve measurably greater business outcomes. The Project Management Institute’s 2018 study found that:
Organizations with mature ITBM processes on average experience a 92% project success rate, vs. 32% for organizations without mature ITBM processes.
Organizations with mature ITBM processes waste 21 times less money than their underperforming counterparts.
Why businesses choose ServiceNow for ITBM
Strategic Portfolio Management, also known as Project Portfolio Management, is one of the key elements of mature ITBM processes. The Project Management Institute found that successful Strategic Portfolio Management has the following attributes:
Uses simple business management approaches
Connects project execution to strategy fulfillment
Creates an organizational culture around support for business management
Cultivates competencies around specific best business management practices
In 2017, Forrester Research conducted an in-depth analysis of Strategic Portfolio Management platforms. Forrester ranked ServiceNow’s ITBM platform as a Leader in the industry; it was the first time that ServiceNow was evaluated in Forrester’s annual Strategic Portfolio Management rankings. Forrester evaluated Strategic Portfolio Management vendors against 27 criteria, focusing on their offerings, strategy, and market presence.
ServiceNow scored higher than any other vendor on the portfolio management criterion.
Quantified benefits of ServiceNow ITBM
ServiceNow ITBM focuses on improving the alignment of business services, accelerating service delivery, and offering comprehensive financial visibility. Forrester Research interviewed ServiceNow ITBM customers and identified the following as key benefits of ServiceNow ITBM:
A unified platform
ServiceNow ITBM offerings are organized into three main ITBM service packages; each service package is designed to offer specific benefits to the organization:
ITBM Foundation Services: Unifies data and tools, and eradicates redundant, disparate, and conflicting siloes within the organization
ITBM Transform Services: Delivers intelligent, business-driven portfolios that provide an overview of demands and the value delivered by each, focusing on financial performance, governance, and resource utilization
ITBM Innovate Services: Incorporates use of analytical performance data and strategic business convergence to maximize value; focuses on achieving an organization’s most ambitious outcomes spanning the entire enterprise
ServiceNow as a company implemented ServiceNow ITBM within its own enterprise to quantify the benefits of ServiceNow ITBM. As a result of fully implementing ServiceNow ITBM, the ServiceNow company reported achieving the following results:
20% acceleration in time-to-value from project approval to capability delivery
60% reduction in average time to screen and approve projects
4,342 hours saved per year through real-time reporting and dashboards
$354,900 saved each year in project management costs
Where ITBM and ServiceNow are headed
The growth of the ITBM industry has been made possible through advances in cloud computing that have enabled organizations to unify and comprehensively understand historically siloed parts of their business. The firm Grand View Research estimates that the global Project Portfolio Management market will grow into an $8.9 billion industry by 2025.
Businesses are still learning how to utilize ITBM tools for maximum effectiveness. A 2018 study in the Project Management Institute found that:
Just 58% of organizations fully understand the value of project management strategy.
Only 41% have a project management office that is highly aligned to the organization’s business strategy.
ServiceNow originally introduced its ITBM offerings in 2008 and is continuing to significantly expand them. ServiceNow has stated that it is driven to invest in ITBM because the company believes ServiceNow’s service management model, combined with ServiceNow’s intelligent automation, can optimally serve organizations seeking next-generation ITBM solutions.