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The Total Economic Impact™ Of ServiceNow: Cost savings, reducing legacy system costs

Posted by David de Matias Batalla on Jun 1, 2017 4:28:43 PM
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A primary benefit experienced by interviewed customers was a consolidation of multiple systems, licenses, or outsource contracts into one platform license with ServiceNow. Some customers had gone through a series of acquisitions that left them with redundant and siloed ticketing systems.

Others had a legacy on-premises service management solution that was costly to maintain and upgrade and required too much customization. Still other customers relied on outsourced providers to manage their tickets, but they found that those tickets were rarely resolved on first contact and were frequently routed multiple times to different teams (along with recontacts to the end user submitting the request). By implementing ServiceNow, the organization was able to consolidate on a single platform, service catalog, and system of record, saving it several million dollars in costs.

According to Greg Downer, senior IT director of Oshkosh Corporation: “We did a full business case across the enterprise and determined that if we were able to truly shut off all of the systems and get everybody on a common global IT system across all of these service management areas, we would save $3 million over four years. That was nothing other than licensing, maintenance, and services directly related to maintaining and running the software platform in-house.”

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For the composite organization, Forrester assumes that:

  • The organization’s previous environment included on-premises service management technology, along with multiple other systems, such as SharePoint, Excel, and Lotus Notes.
  • The organization could consolidate licenses and contracts because ServiceNow offered a comprehensive platform.
  • The organization could avoid hardware and upgrade costs by moving to a cloud-based platform. The amount by which costs can be reduced varies by.
  • The number of different redundant systems in place. › The size of the outsource contracts in place.

To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year risk-adjusted total of $4,132,500.

Source: Forrester

Topics: CIO, customerservice, HR, Technology, CSM, Cloud, CEO, SaaS, Digitaltransformation, SilverStorm, ServiceNow, report, servicemanagement, devops, agile

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