ServiceNow’s growth strategy for McDermott-ZDNet Japan, former CEO of SAP

ServiceNow is transforming from a strategic CIO partner to a company that targets the CEO of a company that drives digital transformation. In addition, the company’s CEO Bill McDermott (Bill McDermott) tried to quickly apply SAP’s methods cultivated in the old nest to ServiceNow to drive the company’s development.

The company started as an IT service platform, but has now expanded into human resources and customer service. The company’s third-party developer ecosystem has also expanded its use cases. McDermott seeks to launch industry-specific services by combining industry-specific use cases and system integrators.

McDermott’s speech on ServiceNow’s fourth quarter earnings conference call was full of enthusiasm. As a sales expert, he has a big idea and believes that he can greatly increase annual sales. In fact, it can be said that its foundation has been established.

ServiceNow’s sales in the fourth quarter of 2019 were US$951.8 million, an increase of 33% year-on-year. Net profit was $598.7 million, partly due to temporary tax incentives. Non-GAAP profit was $186.9 million (96 cents per share). In fiscal year 2019, sales were US$3.46 billion and net income was US$626.7 million.

In the same quarter, ServiceNow said it had won 76 contracts with an annual order value of more than $1 million, mainly for IT service management. Subscription sales for fiscal year 2020 are expected to be between US$4.22 billion and US$4.24 billion. This is an increase of 30% compared to 2019.

plan

In a conference call with analysts, McDermott outlined ServiceNow’s growth strategy.

Digital transformation begins in the IT department. We are a strong strategic partner of global CIOs. CIOs struggle to deal with fragmented traditional technologies and fail to provide the experience that employees and customers really need. Our IT workflow provides planning, operations and service management on a single platform. We can modernize IT and provide high-performance services that provide the latest experience. This makes it possible to enhance the core of the IT system, but at the same time, it is expanding its IT coverage. We are doing business across the company, which is driving a broad product portfolio. Among them, products related to personnel and products related to customer service management are growing rapidly. By combining it with ServiceNow’s IT workflow, customers can get everything from human resources and customer service management, security, GRC (government risk and praise), shutdown, DevOps to bringing greater value to the entire company. Recognizing the strategic value of existence.