Sizing up ServiceNow Impact, an app for keeping digital changes on track

Bill McDermott (Service Today)

Bill McDermott (Service Today)

Credits: ServiceNow

ServiceNow is very high, with increased subscription revenue of 30 percent year-on-year and renewal rates of approximately 99 percent, CEO Bill McDermott recently boasted-so why does the vendor see the need for Impact, a new tool designed to help customers get more value from their subscription?

Because ServiceNow is cloud-based, the renewal rate is “a unique measure” to be proud of, says Adam Mansfield, a practice leader at UpperEdge, a consultancy that advises IT sourcing businesses: “If you start using it, it’s very difficult. . in renewal to stay away. “

Renewal is almost a given: What CIOs are debating is whether they need the amount they’ve made to spend, or whether they’ll add it to their portfolio-and those decisions are based on the apparent cost of the subscription, he says.

Impact’s goal, he believes, is primarily to encourage ServiceNow customers to expand their consumption of the company’s offerings.

McDermott said on Jan. 26, in the same conference call where he discussed renewal rates: “As this experience accelerates user usage, we expect a significant impact of the mix with the wider consumption of our growing portfolio of solutions. “

Another challenge for ServiceNow is determining what it is used for, at a time when Microsoft, and a host of other companies are offering workflow automation as part of their portfolios of software, said Daniel Newman, chief analyst at Futurum Research.

“This overlap is becoming increasingly difficult for CIOs to bypass,” he said. “Everybody’s trying to be everyone.”

Paul Fipps, senior vice president of customer and partner excellence at ServiceNow, recognizes that getting more out of technology investments is a recurring theme in the company’s conversations with its customers.

“It’s not always an issue with ServiceNow, but in a broader way, how do we know value more quickly from the technology we’re investing in?” he says.

Businesses have spent trillions on digital transformation, but in just between a quarter and a half are realizing the return on investment they expect – a “value gap” that ServiceNow doesn’t want its customers to suffer, he said.

Impact is one way to bridge the value gap, says Fipps, a former CIO at Under Armor who estimates he spent more than a billion dollars on enterprise software in his career.

ServiceNow Impact explained

The impact is accessible through a new app built on ServiceNow’s own Now Platform and available in four tiers-a simplification compared to the previous 14 different customer success offers available as point solutions , says Fipps.


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