Overview of ServiceNow
ServiceNow is a SaaS (Software as a Service) cloud computing company founded in 2003 by developer Fred Luddy and headquartered in Santa Clara, California. ServiceNow’s core offering is a ready-built platform that enables a business to streamline and automate routine work tasks and make projects flow smoothly using a single data model. Businesses that use ServiceNow are able to rapidly achieve improved self-service capabilities for all users (both employees and customers) and elevated efficiencies in service operations.
During its early years, ServiceNow was marketed as an ITSM (Information Technology Service Management) solution and garnered rapid adoption from IT professionals. However, because of its elegant, intuitive platform design, ServiceNow has increasingly been incorporated into other service and business units across a growing list of industries. Moreover, ServiceNow serves up business intelligence, including KPIs, through ServiceNow Performance Analytics, enabling teams responsible for managing services to convert insights into improvements.
Today, ServiceNow is experiencing notable growth in CSM (Customer Service Management), ITBM (Information Technology Business Management), PPM (Project Portfolio Management), and ITOM (Information Technology Operations Management).
ServiceNow as a Company
ServiceNow (Stock Symbol: NOW) as a company is a software company with more than $2 billion in annual sales. ServiceNow experienced more than a 40% subscription increase from 2017 to 2018. As of March 2018, 536 of the company’s customers had an ACV (Annual Contract Value) of over $1 million, which represents a 43% increase over the year prior.
Business customers are happy with ServiceNow. The company enjoys a 98% renewal rate, and in 2018, Forbes named ServiceNow the Most Innovative Company in the World.
Caption: Forbes Magazine has named ServiceNow the Most Innovative Company in the World.
Gartner and ServiceNow
The global research and advisory company Gartner (Stock symbol: IT) has the following to say about ServiceNow’s strengths:
ServiceNow dominates customer shortlists, and its ITSM tools’ revenue market share is double that of the closest competitor, making it the prime target for technology and implementation partners. The size of the ServiceNow partner network has created a wide range of choices for customers seeking implementation support.
ServiceNow has been improving its wider ITOM capabilities in recent years through the maturation of earlier acquisitions that complement its ITSM product, including service dependency mapping for Configuration Management Database (CMDB).
ServiceNow’s global reach is improving, with more regions reporting higher availability of local sales and implementation partners than in ServiceNow competitor markets.
In the Gartner ITSM Magic Quadrant, ServiceNow is identified as one of only two Leaders in the ITSM industry. ServiceNow is rated highest for ability to execute on vision. ServiceNow has been identified as an ITSM Industry Leader for the past five consecutive years. The full 2018 ITSM Magic Quadrant report can be downloaded from Gartner.
Gartner 2018 ITSM Magic Quadrant
ServiceNow and Partners
ServiceNow is implemented through a network of partners that sell software licenses to customers and offer their professional development services. Crossfuze is one of a limited number of ServiceNow partners to be named a Gold Partner. ServiceNow recognized Crossfuze in 2018 for having the highest customer satisfaction rating among Americas partners.
Modern Services Priorities
ServiceNow is distinguished by three overarching principles that have guided the development and evolution of its business solutions:
ServiceNow focuses on accelerating the speed of IT service delivery, with a consumerized experience and service intelligence. Similar to a sophisticated online store, ServiceNow offers users a low-friction experience in which the software often anticipates the user’s needs.
ServiceNow helps companies achieve their digital transformation goals by aligning IT and business initiatives with IT Operations Management; Governance, Risk, and Compliance (GRC); IT Business Management; and Software Asset Management (SAM).
ServiceNow fuels strategic business growth across an organization. In particular, ServiceNow offers automated, user-friendly solutions for areas such as Security Operations, Customer Service Management, Human Resources, Facilities, and Business Applications.
Operating Challenges ServiceNow Addresses
Organizations want a modern service management solution in the cloud that can streamline and automate repetitive tasks, gain real-time visibility, and switch their investments toward innovation. That’s because businesses today face a number of operating challenges:
Higher Cost of Operations
Legacy systems are growing increasingly complex and expensive to maintain, with past investments rendered obsolete by changing technologies and user requirements. ServiceNow offers an extensible, scalable platform that future-proofs costs and drives continuous innovation. ServiceNow runs on universal components that are used again and again by new apps and data. These apps and data expand the strength of a business’s digital foundation.
Challenges with Manual App Development
Businesses traditionally start from scratch in developing custom applications, which can create delays and backlogs. ServiceNow solves application development backlogs by accelerating custom app development by as much as 400%, according to Forrester Consulting research. ServiceNow achieves these results by safely extending application development to low/no-code developers. Businesses start with a rich set of ServiceNow application building blocks that can be re-used on a shared services-ready platform.
Processes Spanning Multiple Systems
Businesses often build infrastructure that is complex to manage, with multiple systems that don’t integrate effectively. ServiceNow offers “no data silos” architecture and simplified integration with auto-generated and scripted APIs. The same (single) platform can be used for all development and delivery.
Resistance to Change Legacy Systems and Workflows
Organizations often face an uphill battle trying to modernize entrenched legacy systems and established workflows. ServiceNow offers interfaces and capabilities that convince employees that ServiceNow can deliver modern, customizable user experiences and native mobile (i.e., with no additional mobile development needed). Anyone in the organization can quickly build apps that digitize the business and enhance employee and customer experiences.
The Business Impact
On average, ServiceNow customers enjoy a 195% ROI and payback in less than nine months, including a 20% increase in IT productivity, according to Forrester Consulting’s 2017 report The Total Economic Impact of ServiceNow.
While Forrester provides numerous statistics quantifying ServiceNow’s ROI, businesses also should develop a customized ServiceNow business case for their own organization. Crossfuze can create a detailed ServiceNow business case for any qualified organization that requests one.