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IT Solutions Transform the IT experience—service, operations, and management—to accelerate business value

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Transform the IT experience 2

Executive summary

Using the information you provided, the value your organization could achieve by switching to ServiceNow IT solutions has been analyzed based on Forrester Consulting models.

Higher Productivity

Reduced Impact of High - Priority

Your value: [$AAA]

Incidents

Achieve increased productivity by automating

Your value: [$CCC] service requests and incidents, self-service, improved meeting efficiency, and reduced audit

Achieve reduced impact from high-priority incidents, reduced resolution time, and reduced support effort.

downtime for employees through early issue identification and improved resolutions that result in fewer outages.

Improved Project Performance and

Reduced and Avoided Costs Accelerated Returns

Your value: [$DDD]

Your value: [$BBB]

Enjoy reduced and avoided costs through

Achieve improved project performance through a variety of ServiceNow applications including:

reduced effort on IT maintenance, avoided development costs, and avoided legacy solution

IT Business Management (ITBM), IT Operations

annual costs.

Management (ITOM), Performance Analytics, and the IT Service Management (ITSM) CAB Workbench.$3,010,447

$1,002,409

$3,231,131

$1,990,972

Transform the IT experience 3

Introduction and overview

Your company can expect to save an estimated $9,234,958 $X,XXX,XXX annually by switching to ServiceNow IT solutions.

Based on your input, this document reflects tangible opportunities to increase productivity by automating service requests and incidents, self-service, improving meeting efficiency, and reducing audit support effort with ServiceNow.

SAVE Your results represent a quantified business case and expected business value benefits you’ll get from switching to ServiceNow IT solutions.

Calculations are based on a financial model constructed by Forrester Consulting,

$X,XXX,XXX $9,234,958 applying the TEI methodology to data from interviews with actual ServiceNow customers.

Google Data Warehouse
Modernization Maturity Model

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Additional business values

Interviewed organizations stated the following reasons they chose ServiceNow IT solutions to address their challenges:

Cloud-first strategy

A director of service management in the computer software industry said: “ServiceNow was built natively in the cloud; the speed of our business is growing, we needed a cloud-native platform with broad adoption and an agile delivery model. The alternative hosted solutions weren’t able to compete.”

Extensible platform

A director of IT strategy and planning stated: “What sold it for us was the wider platform capability; the ServiceNow platform is highly extensible. It operates like a genuine mobile platform where we can build whatever we want on it. It’s the qualitative promise there in terms of wider integration, automation, and simplification. We built a business case, but those factors we didn’t quantify are what sold us on ServiceNow.”

Robust nature that is continuously updated

A platform architect for a conglomerate told Forrester: “The other cloud systems we looked at were too lightweight. We needed a real enterprise solution that would not only replace our ITSM system but have more capabilities around the ServiceNow configuration management database (CMDB), a good service catalogue and user request portal, automation, etc. ServiceNow is very robust in all of those things. Additionally, we saw growth and investment in the platform, and that really excited us as well.”

Recommended IT solutions, continued

Virtual Agent

Solve high-volume and common requests quickly to reduce cost, increase customer satisfaction, and keep agents focused on more pressing issues with preconfigured, automated chatbots. Empower customers, partners, and employees with consistent, scalable, and always-on self-service interactions to get instant information and kick off workflows across the enterprise.

• Improve service by providing customers and employees instant answers through 24/7 automated support.

• Reduce agent workload by resolving common requests so your employees can spend more time on complex inquiries.

• Scale business efficiency by lowering costs and handling higher volumes of routine tasks.

Learn more

Predictive Intelligence

Resolve issues faster using machine learning to intelligently categorize, route, prioritize, and assign issues with recommendations based on patterns and context.

• Automatically categorize tasks using the power of machine learning and your historical data.

• Decrease resolution times and errors through accurate classification and assignment predictions.

• Increase agent productivity by saving time spent manually identifying major incidents and issues.

Learn more

Continual Improvement

Drive new levels of service efficiency by automatically initiating and tracking service improvements across the enterprise. Take continual improvement from theory to reality with a structured framework that brings together people, processes, and data in one place to achieve service excellence in any process.

Learn more

Performance Analytics

Drive digital transformation with real-time insight into business performance to proactively optimize business services, improve processes, and align with organizational goals. Provide stakeholders with trusted, in-platform data and secure, simple access to key performance indicators (KPIs) to make smarter decisions that result in better service quality and increased efficiency.

Learn more

Transform the IT experience 11

Model values

Reminder: Here are the values that you provided and are being used to drive the business value analysis and estimated outcomes.

Variable

Total number of employees (FTE)

Number of projects annually

Default Value* Your Value**

17,500

100

Need to make changes to your report?

Click here to estimate the potential business value of switching to ServiceNow IT solutions.

CUSTOMIZE YOUR RESULTS

Results are based on research performed in 2019 by Forrester Consulting, commissioned by ServiceNow and calculated in May 2019. All values are estimates and should not be considered promises of realized value. * This is the default value. ServiceNow provides this value based on the commissioned study. ** This is the value used in your calculation. If you didn’t enter any value, the calculation is based on the default value.

[#AAA] 17,500

Number of service requests and incidents (annual)

262,500

[#BBB] 262,500

Average time in hours to resolve IT tickets

0.5

[#CCC] 0.50

Number of employees (FTE) supporting audits

4[#DDD] 4Average fully burdened IT Support (fulfiller) salary (USD)

$96,000

[#EEE] $96,000

Average hours to resolve a high-priority incident

4

[#FFF] 4[#GGG] 100

Transform the IT experience 12

About the Forrester TEI study

The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.

1. Due Diligence

We interviewed Forrester analysts and ServiceNow staff to gather data as to the business value of switching to ServiceNow IT solutions.

2. Customer Interviews

We interviewed 10 organizations using ServiceNow solutions to obtain real-world data with respect to the costs, benefits, and risks of switching to ServiceNow IT applications.

3. Composite Organization

We designed a composite organization based on the characteristics of the interviewed organizations.

4. Financial Model Framework

We constructed a risk-adjusted financial model representative of the interviews using the TEI methodology.

Disclosures Readers should be aware of the following:

This analysis is based on a study commissioned by ServiceNow and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential value that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the report to determine the appropriateness of switching to ServiceNow IT solutions.

5. Case Study

We employed three fundamental elements of TEI in modeling the impact of switching to ServiceNow IT solutions: benefits, flexibility, and risks. Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions.

ServiceNow reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

ServiceNow provided the customer names for the interviews but did not participate in the interviews.

Transform the IT experience 13

Reduced Impact of High-Priority Incidents

How to realize benefits

You can see a reduction of high-priority incidents by using machine learning and a variety of ServiceNow applications and services, including: ITSM, ITOM, and Performance Analytics. With ServiceNow, you can restore services fast after an unplanned interruption or major incident by investigating the root cause to quickly resolve critical service disruptions. You can use trend analysis and periodic service configuration reviews to minimize and prevent future issues.

In its June 2019 study, The Total Economic ImpactTM of ServiceNow IT Applications— commissioned by and conducted on behalf of ServiceNow—Forrester Consulting found that the interviewed organizations described how they reduced the impact of high-priority incidents, reduced the resolution time of high-priority incidents, and reduced downtime for employees with early identification of issues and improved resolution capability.

$BBB

Your expected annual value What this means for you in terms of dollars

Avoiding the costs associated with high-priority incidents translates into [value $BBB] for your organization. That’s money and time your organization can redirect toward innovation and improving processes.

“We’ve improved our ability to respond to major incidents.

We’ve got a much more effective CMDB in ServiceNow, which means we have a better situational awareness of our environment.”

Director of IT strategy and planning, energy industry

How this benefit is calculated The following risk-adjusted benefits reflect the financial analysis associated with

the composite organization. With ServiceNow, the impact of high-priority incidents was reduced by $3 million. This is due to a 25% reduction in high-priority incidents, a

$1,002,409

50% reduction in time to resolve high-priority incidents, and reduced downtime for employees due to critical application outages.

Transform the IT experience 5

Improved Project Performance and Accelerated Returns

How to realize benefits

These benefits, improved project performance and faster returns, can be achieved through a variety of ServiceNow applications and services, including: ITBM, ITOM, and Performance Analytics. ServiceNow gives you full visibility from idea to execution. You can easily plan and prioritize projects, track planned and unplanned work, and with agile management, testing, and collaboration tools, improve productivity and service delivery. With ServiceNow, you can control IT change processes to minimize the change risks and costs.

In its June 2019 study, The Total Economic ImpactTM of ServiceNow IT Applications— commissioned by and conducted on behalf of ServiceNow—Forrester Consulting found that interviewed organizations noted that project schedule performance improved by 20% and project budget performance increased by 25%.

What this means for you in terms of dollars

Improved project performance and accelerated returns with ServiceNow translates into [value $CC for your organization. The savings associated with switching to ServiceNow can be reallocated to higher value, more innovative projects and services.

“We don’t miss deadlines anymore; I can’t remember the last

time we missed a day. Before, it wasn’t unusual for projects to essentially go to twice the original budget, we don’t have that issue anymore.”

Director of service management, government

$CCC

Your expected annual value

How this benefit is calculated The following risk-adjusted benefits reflect the financial analysis associated

with the composite organization. With ServiceNow, project performance and accelerated returns improved by $4.8 million.

$3,231,131

Interviewed organizations noted that projects were now being completed on time (20% faster) and on budget (improved 25%).

Transform the IT experience 6

Reduced and Avoided Costs

How to realize benefits

These benefits, reduced and avoided costs, can be achieved through a variety of ServiceNow applications and services, including: ITSM, ITOM, ITBM, ITAM, Performance Analytics, and continuous upgrades. Interviewed organizations described the reduced and avoided costs as: reduced effort on IT maintenance, avoided development costs (as each ServiceNow upgrade contains features and functions customers would have developed internally or outsourced), and avoided legacy solution annual costs (consolidated licenses and infrastructure costs, along with an avoided major upgrade of the legacy solution).

In its June 2019 study, The Total Economic ImpactTM of ServiceNow IT Applications— commissioned by and conducted on behalf of ServiceNow—Forrester Consulting found that interviewed organizations were able to reduce IT maintenance effort by three FTEs, avoided $200,000 in development costs each year, and avoided legacy solution costs of $2.4 million.

What this means for you in terms of dollars

Reducing IT maintenance and development costs and avoiding legacy solution costs with ServiceNow translates into [value $DDD] for your organization. The savings associated with switching to ServiceNow can be reallocated to higher value, more innovative projects and services.

“Almost every release, ServiceNow comes out with a new

feature or technology that we were ready to develop on our own. I’m effectively eliminating $200,000 a year that I would have paid for new software.”

Director of service management, computer software industry

$DDD

Your expected annual value

How this benefit is calculated The following risk-adjusted benefits reflect the financial analysis associated with the

composite organization. With ServiceNow, the reduced and avoided costs were

$1,990,972

$6 million. This is due to reduced effort on IT maintenance, avoided development costs, and avoided legacy solution costs.

Transform the IT experience 7

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