Set against the backdrop of evolving priorities and challenges among ServiceNow customers, the Enterprise Management company has seen some tectonic shifts in the past few months – beating Wall Street growth expectations for the past four quarters on the heels of major client expansion, continued industry-leading renewal rates, a New York launch chock full of major platform advances (like natural language search) and a new CEO, Bill McDermott of SAP, announced for the new year. All of these set the stage for ServiceNow’s growth in 2020 and beyond.
In tandem with this growth, we asked you to tell us what you think about ServiceNow – your successes, your major pain points, and what the ServiceNow platform will look like for you in the new decade. Over 400 leaders in the ServiceNow space answered.
In today’s first look at Acorio’s annual report, you’ll find out what KPIs, results, and challenges your peers measure, what’s on their ServiceNow map, what trends we see in the Service Management space, and more. The full report will be available in Q1 of 2020, but until then make sure to grab our “first look” executive summary and top seven trends, or skim a preview of the results below.
The Enterprise Service Management industry finds itself in a unique position…
From its early kickstart in IT Service Management, the concept of Service Management has grown to permeate almost every facet of the enterprise.
The number of players in this space is as large as the number of Service Management adopters, but there are a few that stand out in the age of Digital Transformation. Among those standouts, is ServiceNow. The rapid-growth Enterprise Platform stands tall, growing from its legacy ITIL roots to a mature enterprise-wide platform. Along the way, the platform has become the default Enterprise Operating System (EOS) for modern business.
TREND ONE PREVIEW. ENTERPRISE SERVICE MANAGEMENT STAYS ON TOP; ALSO STRONG: GLOBAL BUSINESS AND SHARED SERVICES INITIATIVES
For the second year in a row, Enterprise Service Management (ESM) dominates as the leading strategic priority for businesses with 73 percent of survey respondents indicating this is a current strategic initiative. This statistic is perhaps less staggering given the audience of this survey – 86% also reported they currently leverage ServiceNow in their organization.
It is telling that this concept of optimizing service components of a digital company is so embedded in modern organizations that it outpaces the well-marketed concept of “Digital Transformation” by just over 16 percentage points.
That’s not to say Digital Transformation’s spotlight is over, as over 61 percent of organizations report a current digital transformation initiative active in 2019. Looking at this data together, we can infer that the majority of companies are looking to empower their teams by digitizing Service Management across the entire enterprise.
A harbinger of this platform expansion comes in the form of rising interest in Shared and Global Business Services (GBS) initiatives over the past year. This year, nearly 40 percent of organizations have some kind of unified service desk strategy underway, a five percent jump in a single year. This is consistent with trends Acorio is seeing on the ground at major customers in a host of industries – from Manufacturing and Aerospace, to Government, Healthcare and Biotech.
“This year, nearly 40 percent of orgs have some kind of unified service desk strategy.”
GBS streamlines and digitally powers many of the general and admin tasks that happen on the back end of a transaction, alleviating business units from dealing with the transactional time, allowing more time to focus on more complex challenges. While this may sound similar to ESM strategies in some regards, Digital transformation is, in fact, an enabler for GBS strategy, by aligning the right resources and assets from multiple function areas, IT, finance, HR, etc. to handle these tasks with and then incorporating automation, digital data harvesting, analytics, self-service, and other digital tools. As we move into an increasingly tight economic time it is not surprising this model of high productivity is seeing a bump up in business priorities.
Finally, it’s worth noting that AI and Machine Learning strategies lost a little energy year over year. While this still ranks in the Top Three for all initiatives in the past year, it dropped three percentage points last year to hold at 46 percent. While not that statistically significant, AI and Machine learning still have a bit to go to prove value in real-world settings, although Acorio is very bullish on these technologies.
TREND SIX PREVIEW. CHALLENGING PLATFORM EXPANSION WILL BE THE STORY OF 2020, BUT KEEP AN EYE ON EXECUTIVE BUY-IN
Taking the number one spot for ServiceNow platform challenges, at nearly 43 percent, was the response “Our roadmap just keeps growing – once one module is implemented, even more departments want us to support them.” Interestingly, our top three challenges from 2018; Roadmap Growth, Cost of Technology, and Lack of Experienced Resources, saw year over year decreases.
In fact, “The Cost of Technology and Implementation,” previously the top challenge at 45 percent, dropped to be the second biggest challenge at just over 40 percent. In this year’s data, the most significant decrease we saw related to challenges facing ServiceNow customers was the category of “Resistance to necessary change to effectively implement the platform”, which dropped by over eight percent to only 25 percent.
This goes hand in hand with the increased adoption of ServiceNow roadmaps. See Trend Two on page 7 for more details. Based on client experiences, we added a response option to vet the relative challenge clients are facing with executive sponsorship. In the first year that reply accrued over 18 percent of all companies facing that challenge.
Get the rest…
Now is your chance to get the complete Insight and Vision Executive Summary, full of industry observations and real-world stories from ServiceNow users and practitioners.