ServiceNow aims to attract CEOs and extend use cases beyond IT

ServiceNow hopes to transform from becoming a strategic supplier of CIO to a digital transformation engine for CEO. The script written by SAP CEO Bill McDermott (Bill McDermott) is rapidly being used to grow the company.

The company started as an IT service platform and has now expanded to customer service and human resources. Its third-party developer ecosystem has also expanded use cases. Now, McDermott is vertically integrating ServiceNow with industry-specific use cases and recruitment system integrators.

In the fourth quarter earnings conference call for ServiceNow, McDermott was as enthusiastic as ever. The chief salesperson made a grand plan for ServiceNow and bet it could increase annual revenue. And he has a good foundation for cooperation.

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ServiceNow reported revenue of US$951.8 million in the fourth quarter, a 33% increase over the same period last year. As a result of the one-time tax benefit, the net income was 598.7 million US dollars. According to Non-GAAP (Non-GAAP), earnings per share were $186.9 million, or 96 cents per share. In 2019, ServiceNow reported revenue of US$3.46 billion and net income of US$626.7 million.

During the quarter, ServiceNow had 76 transactions with a total value of more than US$1 million, mainly due to IT service management. By 2020, ServiceNow expects subscription revenue to be between US$4.22 billion and US$4.24 billion, an increase of 30% over 2019.

plan

During a conference call with analysts, McDermott drew up ServiceNow’s expansion plan.

IT is the starting point of digital transformation, and we are a strong strategic partner of global CIOs. CIOs are struggling with fragmented traditional technology instead of providing the experience employees and customers really need. Our IT workflow provides a single platform from planning to operations to service management. We are modernizing IT to provide high-performance services through modern experience. This allows us not only to enhance the core of IT working principles. It also expanded the scope of IT itself. We are doing this throughout the enterprise, which is driving the momentum of our broad product portfolio, including fast-growing HR and CSM products. Customers are realizing the strategic value of combining ServiceNow IT workflow with HR, CSM, security, GRC, financial settlement and developers, etc., thereby bringing greater value to the entire enterprise.

McDermott plans to use Now Platform with an architecture and data model, and plans to attract more CEOs in terms of digital transformation. McDermott explained, for example, ServiceNow aims to be an “action system” to complement the system of records.

McDermott’s view is that ServiceNow can solve problems end-to-end, rather than temporarily. For CEOs, ServiceNow may be a way to increase employee engagement, customer loyalty and productivity. He cited the victories of the Veterans Administration, the Department of Defense, Bristol-Myers Squibb and Roche. McDermott said: “The opportunity to expand ServiceNow is right in front of us, and our goal is to achieve revenues of $10 billion and above.”

The focus of ServiceNow in 2020 is as follows:

• Become an innovator in C-Suite and the market.
• Attract customers through “world-class machines to market”.
• “Forced to multiply by ServiceNow” with partners.
• Create product experiences for staff.
• Collaboration among ServiceNow’s 10,371 employees.

McDermott said: “ServiceNow is hungry and humble. We are always committed to serving our customers.” “I really want to lead the next phase of ServiceNow’s journey.”

Analyst buys. Patrick Walravens, an analyst at JMP Securities, said in the research report:

We still believe that ServiceNow should flourish under the leadership of McDermott. In the past 20 years, we have been following his career, and we pointed out three contributions he will make in the short term: 1) Mr. McDermott is clearly making Push his noble spirit to a climax. The energy level of the business and the 11-day customer journey on three continents he started this week; 2) Mr. McDermott should also help open the doors of many CEOs for ServiceNow, which has been known to CIOs in history; 3) He Focus on establishing partnerships with companies such as Microsoft, Deloitte and Accenture.

Can it work

McDermott (McDermott) inherited a strong, well-functioning company that only needs more attention and sales strategy. It is very likely that McDermott can provide support for the growth of ServiceNow without causing a lot of interference and disrupting the overall plan.

He said that ServiceNow will not change the scope of sales and that the plan actually revolves around global expansion. In the fourth quarter, 65 percent of ServiceNow’s revenue came from North America.

McDermott pointed out:

We will put it on the market in various regions like today. We can expand our footprint. Obviously, we will focus on industries such as banking and telecommunications. I cited some examples of partners. You know that we have done a good job of supervision. You can see this in the public sector in the United States. You can see a lot of transactions in Australia. I am now really encouraged by my work in the procurement center, because I want to expand into an end-to-end solution provider in the enterprise, and the backbone is IT. This is unique to ServiceNow, because every company wants to become a technology company. Ideally, every company wants to become a software company, but it all starts with the technical backbone.

We can proceed. We have proven this to the Human Resources Department. We have proven this to the customer service management department. We can prove it with the chief operating officer. We can prove this to people with risk and compliance, and of course, now we can also prove it to the CEO. I am especially excited about this, because I have been calling on Rolodex, asking me to provide new and innovative ways to help them, either by improving the workflow to save costs, or by bringing more revenue and growth through them to manage them more effectively Business.