Tag: Enterprise platform services

How Enterprises Can Achieve Full Value from ServiceNow Investments | Blog

In response to changing market demands, ServiceNow has expanded its platform over the past two years, from primarily managing IT workflows to providing full enterprise solutions. Read on to learn the best practices from industry leaders to ensure your greatest return from ServiceNow investments.   

Since our inaugural ServiceNow Services PEAK Matrix Assessment in 2020, the software company has significantly expanded its portfolio to go beyond IT Service Management (ITSM) to new offerings that help clients drive business growth, increase resilience, and enhance employee productivity.

Our recently published second edition of the assessment found about 65% of enterprises are exploring scaling up ServiceNow investments for end-to-end process modernization. CIOs who have upgraded their IT workflow on ServiceNow are now looking to transform business processes and integrate the platform with existing systems of record, engagement, and intelligence.

Based on our interactions with industry leaders, we recommend enterprises consider the following factors when seeking to modernize their business processes with ServiceNow:

  1. Shift away from IT to business Key Performance Indicators (KPIs)

The watermelon effect of KPIs in ITSM is not new. Over the past two years, we have addressed several situations where ServiceNow clients struggled with having all the metrics look green on the outside but are red on the inside.

The reason often is two-fold – tracking irrelevant metrics and overreliance on IT metrics. Enterprises need to track relevant metrics closely tied to business outcomes while being aware of the pitfalls in measuring these metrics.

ServiceNow customers are tracking business KPIs such as customer experience, reduction in touchpoints, percentage of issues resolved by self-healing, and cost efficiency. Leading service partners are proactively collaborating with customers to course correct and update KPIs and tracking methods during quarterly and mid-year reviews.

  1. Minimize customization

Early adopters leveraged ServiceNow to make custom applications and create a final product that mimicked organizational processes. These solutions were developed on the go to meet demand. As ServiceNow continues to push new and improved versions, it has become very difficult and costly for these customers to make updates due to the huge technical debt.

Clients that adopted ServiceNow largely out-of-box are more agile and tend to benefit from improved processes. Enterprises should modernize their processes to fit the standard offerings and minimize customization or wait for the offerings to sufficiently mature before investing.

  1. Select the right transformation partner

We think Albert Einstein’s famous statement, “The definition of insanity is doing the same thing over and over and expecting different results,” unfortunately, applies here. Most enterprises need qualified staff to help guide and manage the project over multiple years. They also need to deal with unplanned turnover, the ServiceNow talent gap, inflexible contracts that don’t allow for strategy changes, ever-shrinking budgets, and, last but not least, the desire to have measurable outcomes. But often, enterprises end up using the same vendor selection and RFP processes without taking these factors into account.

Leading enterprises have not only updated their vendor selection methods but also have started planning for attrition, contractual flexibility, and outcome accountability right at the beginning of the engagement.

Large enterprises now are more open to engaging with specialist ServiceNow partners for module-specific requirements, especially for non-ITSM products such as Human Resources Service Delivery (HRSD), Customer Service Management (CSM), and Governance, Risk, and Compliance (GRC). This is mainly owing to the specialized focus and right mix of flexibility and agility that large Global System Integrators (GSIs) often fail to offer.

We are closely tracking demand and supply-side developments in ServiceNow. For more insights, see our report, ServiceNow Services PEAK Matrix Assessment 2022, which sheds light on the ServiceNow partner ecosystem.

We would like to hear your thoughts on your ServiceNow investments and the growing adoption of innovative operating models to achieve business outcomes. Please reach out to us at [email protected] and [email protected].

You ca also find out What’s Ahead After a Decade of Digital Transformation in this webinar as we share perspectives on what’s in store for the digital transformation industry.

Things May Never Go Back to Normal for Enterprise Platform Services | Blog

At the onset of the pandemic, a lot of software buying decisions were put on freeze, ongoing implementations had huge scope changes, and enterprise software needs dramatically shifted towards the cloud and SaaS.

Executives who are responsible for their organizations’ enterprise platform services are well aware of the disruption caused by the COVID-19 crisis. Here are three things that happened in 2020 that were not so normal.

  • Accelerated project timelines – At the beginning of 2021, UPS rolled out ServiceNow ITSM globally in 27 weeks; in a normal year, a project of this scale would have taken at least two years. While greenfield rollouts were few, there was a massive jump in projects that were incremental in nature, often related to platform modernization, new module implementation, and functionality improvement. The delivery timelines for these projects also drastically improved, in some cases up to three times faster, especially in verticals such as retail, healthcare, and manufacturing.
  • Shift from high on-premise to 100 percent remote delivery – A global service provider signed and delivered a US$10 million+ engagement for S/4 HANA implementation across nine manufacturing locations, replacing two legacy ERP systems, all in just 11 months and all remotely. In 2020, we saw multiple such examples where going from RFP to blueprinting to go-live and subsequent improvements happened in a complete remote model. For an industry that had historically emphasized on delivery teams to be on-premise, this was a huge shift.
  • Scope changes on the fly – Enterprise platform service deals typically have many scope changes simply due to their scale and the impact they have on business processes. These scope changes normally lead to enterprises’ dissatisfaction as service partners are not flexible with all the changes. While in 2019 ~25 percent of enterprises ended up meaningfully changing the scope during the entire course of platform implementation, this number jumped to ~60 percent in 2020.

Doing the above three things while maintaining the quality of delivery is nowhere close to normal. Our research suggests a 27 percent y/y improvement in average CSAT scores for enterprise platform services delivered in 2020, which is a testament to the fact that service partners and technology vendors did an amazing job of meeting enterprise expectations. (Based on feedback from 88 enterprises in CY2020 and 70 enterprises in CY2019, across multiple PEAK Matrix® assessments of enterprise platform services research.)

As we move out of the pandemic phase over the course of 2021, a lot of these not-so-normal things will not go back. That means enterprises will have a herculean task of ensuring that their service partners continue to meet their raised expectation bars and their future enterprise platform priorities. This makes the partner selection process critical.

Here are five things that enterprises should do when selecting their enterprise platform services partner in 2021:

  • Evaluate remote delivery capability – Remote delivery is here to stay. While over the last year we saw some service providers doing an amazing job of implementing projects over Zoom calls using multiple tools and collaboration solutions, many others still have a steep learning curve ahead. Enterprises should look for service providers’ investment in repackaging disparate tools into a single offering, which improves the overall reliability of services. IBM’s Dynamic Delivery, TCS’s Location Independent Agile, and Wipro’s Agile Anywhere are a few examples.
  • Check for talent with industry expertise – By virtue of multiple failed digital transformation initiatives, many enterprises have realized the importance of process modernization over just digital transformation. The increasing adoption of Pega and ServiceNow along with investments by other tech vendors such as Microsoft, Oracle, and SAP to build industry expertise into their software is a strong indication that having industry and process expertise from here on will be critical. In fact, in a recent work for a client on the need and urgency of industry- and function-specific talent, we discovered that 45 percent of enterprises regard it as vital, while 37 percent see it as good-to-have. Additionally, 66 percent of enterprises were willing to pay high price premiums for such talent. (Based on Everest Group research with 175 CXOs of enterprises with revenue > US$1 billion.)
  • Evaluate integration competency –  There is a huge difference between a go-live system and a system that is useful. With the increasing sprawl of SaaS, both internal and external integration has become a massive challenge for enterprises. For example, in our recently published Salesforce assessment, we found that almost 70 percent of enterprises struggle with integrating Salesforce with other applications and platforms within and outside the Salesforce ecosystem. Enterprise should look for service provider’s investment in building expertise and solutions that bridge this integration gap.
  • Look for capabilities across the entire stack – Any cloud platform that is implemented today will double its functionality scope next year; Salesforce and ServiceNow are the best examples of this. Thus, enterprises need to have a long-term horizon and should not partner with a service provider that has a hard time keeping up with the selected tech vendor’s innovation and only has capabilities around the vendor’s product offerings.
  • Ensure your service partner can be a thought partner – If there was one thing that this pandemic taught us regarding digital transformation, it would be that it is not only for the Walmart and Daimlers of the world; it is also for our local retail store and small-scale car manufacturing company. Thus, innovation is no longer a good to have or value-add in overall service delivery satisfaction…it is a must-have. Enterprises should evaluate if the service provider has processes that can systematize innovation even when delivering projects remotely.

What has been your experience with enterprise platforms and their service partners? Please share with me at [email protected].

Request a briefing with our experts to discuss the 2022 key issues presented in our 12 days of insights.

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