ServiceNow threw AI into the digital transformation ROI problem

Looking to accelerate ROI on IT digital transformation projects, ServiceNow delivers an offer that combines an AI-based recommendation engine with a collection of support tools and technical support.

When ServiceNow started developing its new software, called ServiceNow Impact, two years ago, it interviewed 500 of its customers along with 200 software buyers. What the company learned from those conversations is that most organizations are incapable of mapping out a strategic vision for change and then making that map an operating model.

IDC estimated in a report released this month that users have spent approximately $ 3 trillion on digital transformation projects over the past three years. However, less than half of those companies said those projects delivered the expected results.

At the root of the “value gap,” as IDC describes, is the proliferation of point projects that don’t work well together, the growing need for companies to allocate resources to maintaining legacy IT systems, and the continuing shortage of trained personnel.

“The biggest challenge to any digital innovation project in development or in today’s marketplace is the proliferation of point product projects,” said Geoff Woollacott, chief analyst at Technology Business Research. “That situation often indicates a lack of agreement at the C-suite level. This is why the CEO needs to participate in the project early and show leadership.”

Aaron Fulkerson

The main focus of ServiceNow’s new offering is to present IT pros with a user-friendly experience, allowing them to collect information about what they hope to achieve, according to Aaron Fulkerson, general manager of ServiceNow Impact . The software maps that information to the company’s operating model, allowing users to maximize use of its personalization engine.

The personalization engine allows users to make recommendations about training, what their next best course of action is and any new tools they can deploy for the task at hand. The machine can help users set up value tracking dashboards.

“What’s different about this approach is we capture what the customer expects to get from their investment and mapping those expectations into a new software product faster that helps them fully realize their investment,” he said. by Fulkerson.

One analyst said ServiceNow is heading in the right direction with its approach to solving some of the barriers faced by IT pros in digital transformation initiatives.

Stephen Elliot

“We see customers demanding more‘ how to ’expertise, personalization, paper-based tools and a result-based approach on their journey with technology vendors,” said Stephen Elliot, vice group president at IDC. “The market is changing, and so is the way technology vendors manage their customer lifecycles.”

The ability to manage the customer lifecycle is becoming a competitive sword, Elliot added, pointing out that CEOs and CIOs are looking for strategic vendor relationships that accelerate, in a measurable way, their digital innovations.

“Aligning technology with business strategy has always been very difficult,” Elliot said. “Proving [to CEOs] that investments in technology can drive business strategy is more difficult. ”

The biggest challenge to any digital transformation project … is the proliferation of point product projects. [It] usually indicates a lack of agreement at the C-suite level.