The Economics of ServiceNow – Building a Business Case for Platform Investment

Are you looking to implement ServiceNow for your business? Then, obviously, your conversations with the decision makers will often begin with costs.

ServiceNow implementation indeed demands a significant investment. But more than the cost, it is about the value your decision will help you derive.

That’s because ServiceNow isn’t just another software. It is a strategic enabler that helps transform the way you work. Therefore, you must understand the economics of ServiceNow to build a solid business case.

As providers of ServiceNow consulting services, we often come across prospects that struggle with the platform’s investments. That, precisely, brings us to this blog.

Here, we’ve provided some generic guidelines to help businesses build a solid business case for ServiceNow investment and make the most from it.

Shifting the Mindset – From Cost Center to Value Creator

Often, many IT leaders think of ServiceNow as merely a tool to save IT costs. 

Of course, saving IT costs is surely part of the investment equation. But it isn’t the only one. What matters more than costs is the economic value of ServiceNow.

It lies in its ability to drive enterprise-wide value by unifying siloed systems and automating intricate workflows.

This demands a significant shift in the leader’s approach. Therefore, while investing in ServiceNow, don’t think about saving X dollars. Instead, focus on the value in terms of employee productivity and reducing service outages.

Measuring RoI: Focusing on What’s Important

A credible business demands numbers. Therefore, while demonstrating RoI, you must focus on three quantifiable categories. These include;

• Efficiency Gains: This includes calculating the reduction in manual tasks and the time you save through automation. Remember, even modest time savings, when multiplied across thousands of transactions, can drive significant returns!
• Cost Avoidance: Next, you can measure savings from factors like incident downtime, legacy system maintenance, reduced software sprawl, etc. ServiceNow helps do it in various ways. Its unified platform replaces multiple siloed tools, consolidating licensing and support costs.
• Value Acceleration: Calculate the increased speed to market for new services or process changes. Faster delivery cycles translate into a competitive advantage and result in greater customer satisfaction.

For instance, you usually envisage a return on investment of up to 3X over three years after deploying ServiceNow strategically.

Struggling to align ServiceNow with business goals? Diacto’s consulting services guide you through measurable ROI and value realization

Aligning the Platform with the Business

Technology outcomes are practically useless if they don’t align with your business’s priorities. Therefore, a solid economic case usually connects technology results to your company’s objectives. So, instead of positioning ServiceNow as just an IT tool, you must link its capabilities to your business’s strategic goals. Some factors can include;

• Revenue Growth: Streamlining service delivery results in quicker customer onboarding and enhanced uptime.
• Employee Productivity: Unifying self-service portals helps reduce friction and amplify the digital employee experience.
• Risk Reduction: Automating compliance and audit trails curbs penalties and helps you improve governance.

Your approach and perspective matter a lot. Often, it drives the implementation outcomes. If you look at ServiceNow as just a tool, you would only yield tactical outcomes. But if you consider it a growth enabler, you will also gain strategic benefits.

Focusing on the Value of Each Phase

ServiceNow development services and implementation are phase-based. Therefore, you must see a phased roadmap of value realization. Here’s how you can do it.

• Foundation: Begin with core ITSM to stabilize IT operations.
• Expansion: Automate other areas like finance, HR, and customer service.
• Optimization: Optimize outcomes with AI, predictive analytics, etc.
• Continuous Improvement: Work closely with your provider of ServiceNow consulting services to improve your ServiceNow outcomes continuously.

Each of the above phases must include measurable KPIs. For example, at the foundation level, you can quantify the impact by calculating the reduction in downtime and increase in system uptime. Next, you can measure the impact of automation by calculating the increase in departmental productivity.

Building Stakeholder Trust and Confidence

To secure the funding you require to onboard ServiceNow, your business case must resonate with the decision making layer of your organization. The key is to highlight the benefits of ServiceNow to the respective C-Suite executive. For example,

• Chief Financial Officer: Show TCO, payback period, and long-term scalability.
• Chief Information Officer: Highlight platform flexibility, integration capabilities, and potential for innovation.
• Chief Executive Officer: Demonstrate value in terms of operational efficiency and process standardization.
• Chief Marketing Officer: Emphasize how digital workflows improve employee and client experiences.

Final Thoughts!

Remember, while building a business case for ServiceNow, you shouldn’t just highlight or justify the costs. More than that, you must focus on articulating the platform’s power to transform your business. While the above guidelines can help, expert handholding can help you be more specific. This is where Diacto Technologies, one of the leading providers of ServiceNow consulting services, steps in. Our consulting support involves preparing an effective business case (in your company’s context) to highlight and help decision makers realize the true economic value of ServiceNow.

Want to know more about ServiceNow development services and consulting support? Please email us at info@diacto.com.