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The Numbers Behind ServiceNow’s Adoption Rate in Enterprise Organizations

In March, Acorio released our second annual ServiceNow Insight and Vision Report. New data unearthed in the 2020 Report supports and expands the assertion that the pace of Digital Transformation has dramatically accelerated. ServiceNow has now successfully positioned itself into the Enterprise fabric for the world’s leading companies, backed by a nearly 20 percent growth of organizations using four or more applications of the platform. In today’s excerpt, we’re looking exclusively at data from Enterprise organizations (5,001 or more employees).

While transformation is hard for every company, major global enterprises and Fortune 500 face an additional layer of entropy and complexity on their path to digitization.

The following chapter puts these global leaders up on a pedestal, examining what the largest companies (with 5,001 or more employees) are doing with ServiceNow, their strategy, where they are succeeding, and what their pain points are.

IT leads ServiceNow investments, but Asset Management and HR made strides in 2020

When looking at the business departments who are leveraging ServiceNow at the Enterprise level:

  • Over 94 percent of Enterprise companies are using ServiceNow for their IT, including IT Service Management (ITSM) and IT Operations Management (ITBM).
  • Forty-nine percent are deploying Asset Management
  • Thirty-five percent leverage HR Service Delivery, and
  • Twenty-seven percent are utilizing IT Business Management

While this data tracks with the overall survey results, we see a few interesting trends:

  • Enterprise companies nearly double Medium-sized companies (1,001 to 5,000 employees) in the rate of implementation of ServiceNow for their HR departments.
  • Security Operations also sees more prevalence in Enterprise versus Medium-sized companies, at 26 percent adoption and 15 percent respectively.

On the Customer Service front, we see a slightly more nuanced picture emerge. Data from last year’s Insight and Vision Report showed Medium-sized companies much more likely to utilize the ServiceNow platform for CSM. This gap in Enterprise vs. Mid-sized CSM adoption closed to inside a few percentage points this year, with 27 percent of Enterprise first deploying CSM with ServiceNow against the Medium firms’ 29 percent.

In what function do you use ServiceNow? Bar chart of enterprise companies

Still, with large organizations leading investment in other leading platform expansion plays, it leaves one to wonder why the lag with CSM? There are several reasons why we might find trailing CSM investments in large organizations. CSM is far from a one-size-fits-all application, and the adoption of (and investment in) alternative Customer Support and Experience products has been historically more significant for large organizations – making ServiceNow a replacement alternative rather than new investment. Finally, many enterprise orgs have siloed or even outsourced Customer Support models, making ServiceNow’s connected platform might not be the answer for every business.

See the section titled Top Trends for more details on platform expansion.

Struggling with the pace of change

From talent shortage to security and enterprise agility, every company has its fair share of challenges when it comes to digital transformation.

Topping the list for these large companies are; Our Roadmap just Keeps Growing – Once One Module is Implemented, Even More Departments Want Us to Support Them, The Cost of the Technology and Implementation, and We Lack Experienced Resources (Internal or External) to do the Work.

While Enterprise companies mirror the overall survey results for challenges, they notably spike above the trend link when asked, Our Organization is Resistant to the Necessary Change Required to Effectively Implement Service Management.

Here, Enterprise organizations answered in the affirmative nearly 32 percent of the time (compared to the overall 25 percent).

In preceding chapters, we discussed the increasing drive to embrace technology. That acceleration specifically impacts our Enterprise clients in the rising pace of new application code release dates, and the shrinking time to market for new technologies. These shifting timelines is forcing companies accustomed to a four-year release cycle to adapt to change faster.

Businesses must learn how to integrate technology release cycles into their production and service cycles. And large companies are being hit by this more than most, many with decades worth of data and infrastructure to map over to a new way of business. In the following sections keep this frame of fast technology in mind as we discuss roadmaps, out-of-the-box solutions, and organizational risk.

ServiceNow Report preview