ServiceNow, Inc. (NOW) Earnings Call Transcript & Summary

Hello, everyone. Thank you so much for joining us today. We're going to talk about how you can optimize enterprise assets and reduce service costs on the Now Platform with enterprise asset management and field service management. I'm Brad. More importantly, we're going to be joined by Kahled and Rob. They're both directors of product management for these applications on the Now Platform. This is nur agenda. We'll spend some time talking about the challenges. Rob will give us a nice introduction to those challenges as we're looking to optimize our enterprise assets to reduce service costs. We'll then jump right into solutioning, and we're going to have some very high-level leadership discussions here that I'll moderate with Kahled and Rob about how we can -- how ServiceNow can help both your people and your processes with our technology to accomplish these objectives. We'll then get into a summary and QA. As mentioned earlier, at the end of this presentation, there will be a survey. We'd sincerely appreciate your all feedback. It's really helpful to us so that we can make sure that future events are as optimized as possible for the audience. With that, I'm going to go ahead and turn it over to Rob. And Rob, feel free to move the slides yourself. And he's going to talk a little bit about the challenges that prevent optimizing assets and reducing service costs.

Brad, thank you very much. I just finished a [ Tear n Share-size Bank ] of M&M. So I'm a little hopped up right now. So if I'm talking a little fast Brad, slow me down, all right? All right. So we're focused on assets today. We're focused on the role of assets within your organization. And if you think about it, whether you're home office employer or whether you go into an office, you're dependent upon a lot of different assets just look around at the equipment you use day-to-day, whether it's technology assets or the assets that are within your organization, keeping the lights on, right, keeping it warm so your HVAC. And there are things that may not impact you but they may -- if they go down, they may impact your downstream customers, right? Think of you might have some issues with your server farm or some of your servers. And if something goes on there, it may impact you, but it may impact your customers who may not be able to get into your services, right? So there are lots of different assets that are involved in whatever line of business you're in. So we need to keep those operational productive to an efficient to keep your organization functioning and your customers happy. So if we focus on the assets within your organization, what do you actually need to do as a company to first, get them in, to onboard them and to manage them and understand and be able to forecast. Here's an asset we onboarded. It's lifespan is generally about 8 years and we're 7 years in, right? We need to start making a succession plan for that equipment or find a way to increase its longevity. So we need to be able to onboard and manage those tools and assets. And we need to identify and define the maintenance schedules for that equipment whether it's a laptop, there is maintenance, right? There are upgrades that happen to your laptop, whether it's an HVAC, whether it's a security system, whether it's a vehicle, doesn't matter. There are different types of maintenance schedules. Some of these may be weekly, quarterly, annual and they may change based on the duration or how old the piece of equipment is as well. And then you may have to onboard and manage external resources. Sometimes there are external resources that are involved in the support and maintenance of that equipment, right? So who are your third-party contractors or service providers? How do you onboard them? How do you allow them to come in from a security perspective? What are the processes? And then how do we step forward, how do we schedule our internal resources, our internal technicians, our internal crews as well as those contractors? So there's a myriad of different individuals that may be involved in the support. So we need to be able to effectively schedule them to support those different types of service processes, whether it's an installation of break fix of preventive maintenance and inspection, et cetera. So this is an eye chart, and this is by design. So don't focus on those colored dots really or colored posts. We want to be able to understand and reduce downtime, improve equipment uptime, improve productivity, improve the assets lifespan, it's longevity. We want to reduce the costs involved in keeping that equipment live, productive and lengthy in service. And then we want to reduce any type of risk involved with that asset and the maintenance of that asset. So really, what these -- what this eye chart is about is understanding -- and we're going to go to the next slide where I've got this blown up a little bit, but understanding the estate ecosystem and the resources and processes that are involved. So here we are. If we look at this in full screen, we are looking at the assets and the equipment and the different types of concerns, right? How are we better -- having better control over our equipment and assets, right? How do we effectively schedule work to the appropriate resources? How do we onboard and manage those contractors? How do we identify any risks within our facilities? So we've got both human resources. Those would be contractors, technicians and then think of employees and constituents. If you're a government agency, you may support the public, right? So who are those constituents? If you are just -- if you're thinking about how do we manage the -- our own infrastructure, how are we supporting our employees and the infrastructure, that's what this is all about. So my point is there are a lot of different questions and concerns about each of these processes or each of these roles and managing them effectively. Brad, am I talking too fast? Am I clear? Am I -- Rob, no one has any idea what you're talking about.

No, Rob, I think you're talking about a lot of relevant things. And I think just to resummarize what we're talking about here is that when we're looking at the various ways to optimize enterprise assets to reduce service costs, what we're making clear here is that there's multiple considerations and that as we get -- which creates those challenges and that as we start getting into the solutioning, we're going to showcase how Now -- the Now Platform with our 2 products can help address those challenges regardless of industry, geography or vertical.

Perfect. Thank you. All right. So we talked about some of the different roles and the role the asset plays, the different types of human resources that can be involved in the processes are involved, but there's tension, right, because for some organizations, they are focused on reducing their service costs. And others, they want to optimize those enterprise assets. I actually submit that when you're optimizing your enterprise assets, you actually are reducing those service costs. And if you think of the -- from the perspective of a technician, look, I want to be able to get more work done. I want less admin, less travel time and I want to be self-sufficient. If I don't have the information at my hands, I'm calling Brad and saying, Brad might be my service operations guy. Kahled might be my dispatcher, right? I might have Siobhan working as maybe product quality. Those are people I might need to reach out to. But I'd rather not, I'd rather have the information I need so that I don't have to bother them and that I can get work done quickly, more quickly because I'm not engaging resources. I also recognize that there are times that I'm going to have to reach out to them. However, if I can minimize that, Brad is more likely to take my call and work with me because I'm not constantly bothering him for information that I should have, right? And in doing all that, I'm a customer hero. I'm a hero to my customer. I'm a hero to my coworkers as well. Now over here, from an enterprise asset management perspective, enterprise asset manager, they want more control. They want to make sure -- they want to rule the world, right? They want more control. They want control over those assets. They don't want any of those rogue employees onboarding things and not documenting them somewhere in the system, right? Suddenly, we've got these rogue assets around that we don't know about that may be impacting other things within our organizations. So they want control over the asset estate, and they want that data reliable, meaning they -- first of all, they want all of that. They want to capture all of the assets, but they recognize that they need information not just about the asset, but the relevant dates when was it installed? What warranty -- what's the warranty expiration? What's the expected lifespan of this equipment? What other assets or systems does it touch? So if this asset goes down, what impact is it going to have on upstream or downstream assets, right? And then -- right, part of the goal is to be a financial steward, right? And that goes back to reducing those service costs as well, recognizing that, hey, we need to onboard other equipment, but -- by the way, if we can wait a little bit longer and order 5 dozen of these rather than piecemeal, I'm going to be able to get this hopefully at a much cheaper rate or I want to have better control and understanding of those warranties so that if they are serviceable or we need to return them, we are recouping the warranty coverages on us. All right. So with that in mind, we've put together, I was going to say I, but this is the team here. We've put together a simple poll question, what is your top concern for field service and enterprise asset management is it, and you can select these options, is it; a, poor visibility to keep data; b, varying parts availability; c, operational risk exposure. Now you might ask, boy, why don't you have a d there all of the above because I submit that a lot of you would be putting all of the above, and we want to see if there are some areas that rank higher than others. So please go ahead and answer that for us. We can see poor visibility to keep data is the one that's surfacing up right now the most. So we'll give it a minute or so and see if we get any refresh on that. So operational risk exposure is coming in second. Brad, why don't you give us -- just talk for a minute about what varying parts availability is? What do we mean by that?

Yes. We'll speak to that here a little bit more. What we're speaking to here is scenarios where that field service -- or at least my understanding is when field service technicians out there, they're looking to service an enterprise asset, and there's a component consumable or model for that asset. So they have to replace a filter on an HVAC system. And for whatever reason, the priority filter is not available. So there's this variance in terms of I have HVAC system A, ideally, I'd have filter A for it, but we live in the real world. That may not be the case. What are other varying parts that I can use to get my work done, getting back to Rob was talking about earlier. That's what we talk about there with that, and we're going to get into very shortly here a way to show how the Now Platform can help with that.

And Brad, from a field service perspective, there's also the situation where, hey, a hard drive has failed. I need to replace the hard drive in this larger unit, and it's a 1 gig hard drive, right? Well, I happen to have 1 gig hard drive way in the back of my van, but these 2 gig hard drives are right up front. So path of least resistance to put into that 2-gig hard drive, right? There aren't any conventions in there that are guiding me to say, "Hey, do a like-for-like? Or are you sure that document your rationale for putting in this 2-gig hard drive, right?" We're potentially losing money there, right? So. All right. I think we'll move on from the poll results, but it looks like poor visibility to key data is really the big driver or a big concern for your field service and enterprise asset management. So that leads us to some of the challenges that both technicians and asset managers face as you might accept -- expect -- there we go, expect poor visibility to data. From a technician's perspective, I need to know about the work order, what is the asset? What are its subcomponents? What warranties, what contractual entitlements are involved? What is the service history? Was someone out here just 3 days ago and maybe they did something that is the reason why I'm out here trying to work on this again, that's from a field service perspective. But from an asset management perspective, that asset manager needs to have visibility into all that data we talked about before as well. Some of it is similar, right? The asset, its subcomponents, it's end-of-life date, it's warranty expiration date, all that key data. And then that varying parts availability. As a technician, I need access to those parts so that I can complete that work on that first visit, not go, Oh man, this hard drive failed, I have to drive back to get a hard drive because I don't carry that in my trunk stock, right? Or from an asset management perspective, that asset manager needs visibility into the parts, the inventory, the replenishment rules, the stocking rules, et cetera, so that they can make sure that the technician is going to have access to that. And then operational risk exposure. How do we make sure that the assets are documented? Again, not just when they were onboarded, but from whom and what was that procurement past? What is the warranty -- what are the procedures that we need to make sure that it's installed and secured properly and safe to operate. All right. So I guess some of you who know ServiceNow have seen this slide before, but there are different processes and technologies that reduce the efficiency, that can create either positive or negative experiences. And think of a call center interaction, right? So there's some type of interaction that we can resolve over different panels, right? But sometimes we can't resolve it. So we toss it over the fence into the cubicle farms. And these are different people, technologies, different processes. And if you look at these arrows, these aren't just integration arrows, right? These are actually fingers pointing at each other going it's this person's job. There are potentials for arguments. And what that does is it creates lag time in getting those answers. And what happens if that customer calls back and says, "Oh, I want to know what the status is, right? Well, I don't -- I no longer know. I no longer have control over where it is in this [indiscernible], right, in this maelstrom. I'm mixing my metaphors a little bit, I guess, but I'm not above that. So with that in mind, how do I effectively answer that? And that is not just from the perspective of call center or field service, it's internally from an asset management perspective, right? I need to know what the status is of the repair of my asset or when I'm getting a new asset, right? And so there may be different pads that it could take based on the type of product or based on the geography involved, et cetera. So there's a lot of confusion that goes along and a lot of finger pointing. So here, we can see that 64% of employees believe that unnecessary effort in their everyday jobs prevent them from creating a higher quality customer experience. And I think Brad, was this your slide? Was I supposed to stop talking and let you talk? Or are we...

No. Not at all. I think this is the last slide of the challenges. And I think now we're going to start getting into the leadership discussion here. So I'll go ahead and...

Well, why don't we do that? Excellent.

Yes. And Kahled has been waiting very patiently for this showcase show down here for those that watch the prices, right, thank you for watching us instead of that because it is on right now. But we'll go ahead and -- I'm going to go ahead and ask Kahled this first question here. Summarizing what we just discussed, the challenges here, Kahled, curious to get your thoughts on any other key challenges organizations face to optimize assets and reduce those service costs. It could be people, it could be process, technology, but what comes to mind from what you're seeing out there?

Yes. So to answer that question, Brad, and unpack it is really we need to understand as Rob was telling that these assets are business assets. In many cases, they are -- the business is running on, meaning the revenue-generating assets and the failure of any of these assets, whether it was unscheduled or perhaps even in the case of a scheduled maintenance shutdown of an asset. There's a great impact on how that business is running. So there's a lot of people that are involved in and impacted in that process is not only the asset managers and the technicians who are servicing these assets, but there's other stakeholders. It's the employees in the case of facility assets. It could be the clinicians in the case of hospitals, in the case of industrial environments, it could be the plant managers, the line managers, even with law enforcement, it could be the first responders who might be impacted by any asset that's not operating as it should. And at ServiceNow, we empower them to use our technology, our tools, which are workflow driven to solve these problems. So think of perhaps that I have a recall on an asset, and that's going to impact perhaps a clinician or is going to impact a law enforcement officer that's using the vehicle. We need to communicate and notify them of that, too. And then enable the asset manager to plan for that and to enable the technician to properly come in and service that asset. We provide deep visibility into what these assets are, into their constructs and to what parts and components that make up these assets, and that's tremendously important as the technician arrives to service that asset instead of that technician is just simply going to that asset and trying to figure out what's going on, he can plan ahead by looking at the system and the tools that he has that ServiceNow provides them to understand the construct of that asset to understand what parts are suggested for him to have on his truck, so to speak, in his bag before he arrives, right? We enable them to understand whether these parts are needed for the operation of the assets. So perhaps if that part is hot-swappable, he does not have to schedule a shutdown of that asset. He does not have to disrupt that clinician who is dependent on that asset. He can go in and plan his work and do that swap, do that repair, without disrupting the stakeholder that's depending on that asset. So all that comes in from really connecting all the stakeholders, the end users, the asset managers, the technicians and using our tools and processes to do that work.

Absolutely, Kahled. We've got a lot more great content here. So I'm going to go ahead and pull a moderator executive decision here and advances for. We got another leadership discussion coming in another slide where we're going to have Rob and Kahled really walk through the solutioning to these challenges we just discussed. So let's go ahead and get into that. And I think Kahled, we're going to keep rolling with you here. Tell us a little bit about enterprise asset management. What is it?

Yes. So as I was alluding to, our tool is really there to enable the processes and connect the dots among all the stakeholders. So it begins with the planned process. How do we enable asset managers to plan for the adoption of new models for the purchasing and deployment of these new assets, but also in that process is how do we provide consumer-like experience to the end users to communicate with the asset managers around what assets they need, so that capital planning process, that procurement process doesn't happen in a vacuum, right? We provide those tools to the end users to make these requests to submit -- to trigger these workflows that the asset managers can then review and approve and make sourcing decisions on how to acquire these assets. And as these assets get deployed, right? How do we make sure that the technicians are available. So -- and scheduled. And in many cases, we can do that all automatically because we have knowledge of the skill set. We have knowledge of their availability, including their personal time off schedules. We know where they're located because we've got that geo data that tells us who is the best technician, who's the best available based on their skill set, geography and so on. But as those assets then get deployed and become operational, especially in the case of non-IT assets, they have longer useful life, 10, 15, 20 years. So these assets are going to live in that operating stage 90% of their life cycle. So we have more emphasis on how you manage that asset and how you operate it and how do you manage recalls? How do you do repairs? And how do you manage these RMAs and how do perhaps you enable end users to request temporary used assets because their asset is scheduled for a planned shutdown or perhaps the asset is being recalled. How do we enable them to get these temporary parts and reserve them? So all that is done through out-of-the-box workflows that will simplify the work that needs to be done and abstract all the complexity from all the stakeholders, the managers, the technicians and the end users alike. And how do we enable them to do maintenance -- schedule these maintenance programs, whether they're going to be done based on a duration or based on conditions or even more complex scripting of how these maintenance plans need to be triggered, all the way through the end of life of that asset as we enable the asset managers to reclaim them, offboard them and then make decisions after we evaluate these assets that we offboarded. Should we simply dispose these assets? Or can we resell and can we recover some of that salvage value to reduce the total cost of ownership for these assets, right? But ultimately, all of that is designed to optimize the asset life cycle to optimize the cost of that asset to optimize its useful life, the better planning we can do around maintaining and servicing these assets, the longer the life of that asset. And as we have more of a handle around all the assets that we have and who's got what and where are those assets located, we minimize the risk that's associated with lack of visibility and the impact that may have on that business when assets are not accounted for, right? And enable them to do audits, so they can comply with regulatory requirements in the case of health care providers, they need to comply with the FDA, with the Joint Commission with a snap of a finger, they will have access to all these reports that will allow them to comply with these audits because all their asset estate has been updated automatically through all that workflow driven activity that has been formed throughout the life cycle.

Wow, that's a lot for enterprise asset management. There's a lot of fascinating use cases that you peel back from that. And it's really exciting to hear that we're offering that in our product. Rob, same question to you. Give us a high-level overview of what field service management is. I know what the words are, what does it mean?

Yes. It's really about better communicating better collaboration and driving to the most appropriate actions, right? So it's being able to communicate with your customers, whether they're internal customers, right, your employees or external customers, traditional customers or constituents, being able to communicate with them effectively, being able to plan for your work so that you are -- you've got the territories defined, you've got your scheduling rules defined so that you can schedule the best-fit technician that is available, that's geographically attractive to whatever that location is, who has the right parts, the right skills. And so that we can reduce the amount of travel that's involved in this process. We can eliminate any of the risks that might be involved and we can increase the productive time and the technician utilization. We can improve the workforce by doing just-in-time training and assessments to continually up-skill, up-level our resources, whether there are internal technicians or our external contractors, we can manage our crews. And then we can reduce the administrative burden on those resources, be they technicians or contractors, right? How do we reduce the administrative burden? Well, on the mobile device, we make it easy by not only giving them the information that they need, but the tools that they need to easily swipe to consume a part or use a barcode to scan in a serial number on asset or other details to document the appropriate safety inspection details or regulatory compliant checklists so that we are reducing the amount of work to help them get that work done quickly and effectively, and then being able to track all that with our data insights, our performance analytics, predictive intelligence and process optimization. So you can do process mining and say, where are the gaps, where are the bottlenecks, where do we need to improve the process, maybe we need to upscale more resources, maybe we need more crews, maybe we need more contractors in a particular geography. How is that?

Absolutely. I mean there's a lot...

I mean you gave Kahled a wow on it, so...

So it's double wow.

Okay. I'll take that -- see that who's [indiscernible].

Gentlemen, thank you for that overview. I want to get to the next slide because that's the heart of this presentation. So I'll just quickly summarize here what we're showing how -- a summation of what was just discussed with enterprise asset management and field service management and where those products are really going to kick in for your asset life cycle processes and then also your service processes. Well, let's go ahead and continue that conversation. But, first, a poll question. And we are going to ensure that we don't click the forward button this time. I wish I could read minds, I can't. I highly encourage you all to take a look at this and answer as you see fit. How would you describe the current state of EAM and FSM digital transformation at your organization? And you can see here, we've got 5 selections. Neither system is modernized. We've updated EAM, but no FSM. We've updated FSM, but no EAM. We are in the process of modernizing both. We have digitally transformed EAM and FSM. Please let us know what your current state is. This is -- there's no right or wrong answer here. Everyone is always looking for an opportunity to learn and grow and expand their processes. Please continue to have answers coming in. There's -- [ I'm wondering ] what I'm seeing here. We could get some more, though, I won't keep it open forever. Anyone else that would like to specify where they are in their digital transformation? There may be some people out there that are truly in e, but I've never met one. So I -- don't be shy to answer a through d. That does not mean that you aren't doing things to drive your organization forward.

Yes, these responses will be very interesting. So I'm excited to see those...

Yes. Let's give it another 10 seconds here. Anyone else -- go ahead, Rob.

By the way, I just wanted to remind people that they can also add questions in the Q&A section. And then at the end of this session, we will go through them and respond. So please put those in as well. But not before you answer this poll.

Absolutely. All right. We [indiscernible] open long enough. Let's go ahead and get rolling here. And so yes, Kahled. Maybe why don't you give us your thoughts on what you're seeing here with these results?

That is really consistent with almost every customer conversation that we have that the good portion that has not modernized, has not digitally transformed either systems, either they're using legacy tools or even -- I still speak to people who are still using spreadsheets to track their work, whether it's tracking their assets or the work that they're doing on these assets. And it's really also refreshing to see that a good majority of you over here are beginning to think beyond that and trying to modernize and digitally transform both of your systems. So this is very consistent with where we see the industry with all the research that we have done and all the anecdotal data that we have from every customer conversation that we see every day. So...

Kahled, this is similar to what I've seen in the past before. Neither system is modernized is generally about 1/3 of the response. And so a lot of organizations have either legacy or homegrown solutions, particularly when it comes to field service management. But when you look at something like preventive maintenance schedules, Microsoft Access or Microsoft Excel databases containing that information, which are not very actionable, but there's a lot of that out there.

Surprisingly, right?

Yes.

Indeed. Well, we also have to see if people are thinking beyond that now.

Absolutely. Absolutely. Let's dive into how we can modernize regardless of where people are in their journey. And this is -- I'm going to have a conversation here with Kahled and Rob to discuss this view. Let me give you a high-level summation over this and then depending on what's of interest to you and where you are in your modernization journey, you can take a look, but what we're showing here is how EAM and FSM work together to solve the challenges of optimizing enterprise assets and reducing service costs. Throughout the workflow, they're both offering up solutioning and then interacting with each other on that Now Platform, same data model to ensure that everyone is working with accurate asset, which I believe -- accurate data, which I believe was something that was a key challenge we discussed earlier. So Kahled, I'm going to go ahead and bring you in here, and this might be a little bit relevant to the last poll question we discussed. Why would someone need EAM if they already have field service management or vice versa? What are the considerations they have to keep in mind for where both come into play with this journey that we're showing here?

Yes. Thank you, Brad. And this journey is really -- it's a very good example of that, but it's not the only journey, but we've chosen that because it captures many of the use cases that show how you can improve, how you manage and service your assets. So I mentioned earlier that we don't want to send technicians to service an asset without knowledge about that asset construct, what makes up that asset, who is dependent on it? Who is using it? When was the last time it was serviced? What is warranty information? We want to have visibility to that asset ahead of their visit. But even we're going to rewind even further before that asset was put into service, it's the job of the asset manager to plan for the models that would be used in that asset and to plan how deep do they want to have visibility into that asset construct. So we enable to create these, what we call, multi-component, multi-tier models for the asset to represent, let's say, it's an HVAC furnace, right? And the furnace has the fans, the ignitors, the flame sensors, the blowers, right? We allow them to specify which components they want to see in that model. So when assets are being created from that model, they'll have immediate visibility into that. So that's the role of the asset manager. And that beginning the planning process early on is what's going to enable the technician when he arrived at that asset to service it, to have that full knowledge of visibility and do his job better, right? The asset managers also have the ability to create these maintenance plans, the work templates. And based on those work templates, if an employee, another stakeholder that we talked about and he's experiencing a problem with one of these assets in this example, it's the CCTV security camera. Now we can easily create that corrective maintenance work activity based on what the employee told us. And that then is given to the dispatcher and the technician to validate and verify and to make sure they are ready to do their work. But when they receive that work order, they have now complete visibility into that asset and the model construct of that asset. They know whether that part that's failing in that CCTV camera is required for the operation of the asset. If it's not required, then maybe they can take it out and repair. If it's perhaps hot-swappable, they know they can -- they don't have to disrupt any of the operations in that business and go -- and do that repair. But I'm going to turn it over to Rob to continue that journey as to how that technician is going to receive that work order activity and continue his work.

Sure. So where the asset manager is more about having control, right? The field technician responds more to the chaos, right? And so sure, with preventive maintenance, they may try to have some control over it, but really, they are in reactive mode in a lot of the break fix scenarios. And the technician doesn't know day-to-day what they're going to be working on, what they're going to be facing. So when they get their work, right? They get their work assignments, they confirm whether or not they already have the parts in the stock, if not, they need to request and source those parts and then pick up those parts with their -- they've got pickup and drop-off lists. Hey, I need to stop this warehouse to pick up these parts for today's work or this week's work. And I have some defective or unused inventory in my stock that I need to return to a warehouse as well. Then I start going out and doing that work, browsing the knowledge base, documenting checklist. You may have these lockout tag-out procedures, if you're working on something mechanical, you might need to tag it -- lock it and tag it to prevent any type of safety risks and then document those inspections, those checklists, not just because it's smart to do, but from an internal and sometimes even regulatory compliance perspective, that you're driving a normalized process throughout because then you're able to more cleanly analyze that data and then swapping out that faulty part. Sometimes you're just removing a part, right? But sometimes you're swapping something out. I'm removing this one and I'm putting this one in its place. And then ideally, you're going to test that out, confirm that it's fixed, get a signature capture from the customer where appropriate, et cetera, and complete that work for that customer or that constituent or employee. And then we want to return those faulty parts to that stockroom and that goes back to Kahled.

Yes. So as these parts come back into the stockroom, into the repair depot and the asset managers and the inventory managers have a chance now to evaluate these parts. There could be many things that could happen depending on that evaluation. And there are workflows available out of the box that can be triggered based on what that evaluation result is, potentially, there could be that the part repairable and we find out that it is covered by the warranty contract. So we can initiate an RMA flow to send that part back to the manufacturer who may replace it or repair it. Either way, we're going to receive it back, and we're going to put it back in stock as an available part that we can use in the future repair. But we can also decide either one, the asset is damaged beyond repair or we don't have warranty contracts that cover that RMA. So we may initiate a disposal. So all of these things can happen literally out of box, all these action tasks are automated. And better yet, as we deplete these parts from our inventory through all these activities that have taken place, we can even automate the replenishment of that stock based on rules that the asset manager and the inventory managers can define. And if those rules are breached, then new stock orders can be placed, so we can replenish that stock. So this is really how an integrated story of asset management, inventory management, along with asset servicing come together to solve what our customers are looking to do.

What I love about this slide and the journey that we just went through, and as Kahled and Rob pointed out, this is just 1 example. In a perfect world, the prices drive would be on all day every day. It's not. We only have an hour here, what's an example of how we can reduce that tension that we were talking about earlier. The technicians are going to be able to proactively work and solve things and not have too much overhead work to do. The asset managers are going to know that those field service technicians are following a process because that is important. You need to have accountability when the time comes for that and that they're going to be working with accurate data. We're going to be working with assets that we know are what they're claiming to be in our databases and on the Now Platform. I'm going to go ahead and advance here because I want to maximize the 10 minutes we have left here. We're going to get into a summary here. We have another leadership discussion here. I'm seeing some really cool questions in the Q&A here. So I'm essentially going to start the Q&A here for this leadership discussion. And I'm going to answer this first question here, and then I'm going to offer up the second question I'm going to ask Kahled and Rob.

So this first question we got is, the summation is if you all are currently managing your assets in a spreadsheet or a different system of record and the personnel that are doing that are perhaps hesitant or unsure of the benefits of taking that information and then putting it into a workflow-driven solution like the one we're discussing. What are some considerations we can offer up on that? The main thing I would offer is they can -- we're going to have a recording of this presentation. I would highly recommend showing not to them. This is obviously for enterprise assets, but there's other content out there for other assets, whether the software or hardware. And then the other thing I would point out is what you're getting here when you're taking that data and putting it on to the Now Platform as you're getting that work flow, you're getting that reduction of tension. If you have data that's sitting on a spreadsheet, and it's monitored by, in this case, most likely an asset manager that field service technicians not going to have immediate access to it. So we're breaking down those areas of potential tension or siloed information, and we're bringing everyone to work together. The second question I got here, I'm really excited to see this. This is something that everyone is talking about. Kahled, I'll go ahead and start with you and then Rob can follow up. Where do we see predictive intelligence and Gen AI solutions playing a role in what we've just discussed here? There's obviously a lot to be found out by all of us. But Kahled, what's your take on that?

Oh, there's a lot when it comes to asset, asset health and how that asset has been performing over time. So one of the things that we're looking at is to predict when an asset should no longer be in use based on the number of repair activities that have taken place and compare that to other assets based on that same model or based on similar models and say, this has gone beyond the norm, right? And there's no longer a good idea for us to spend more effort resources into servicing and maintaining that asset, and it's time to think about refreshing it. Similarly, if we believe that certain component that's being repaired or swapped often, that should be flagged that there's perhaps either something wrong with that particular asset or if it's happening across all the assets of that model, then that could be flagged, there is something wrong with that model, and then we can -- the asset managers can have that data to make better informed decisions and what to do next. So there's a lot of that that's coming on our road map and how we can use AI to predict what to do with these assets.

Right. And I will -- I'll add a few thoughts there as well using AI and machine learning to map on the associated knowledge articles immediately to say, "Hey, I know you might want to recommend Kahled to this job, but Siobhan can actually do it. They're both available and they're both highly skilled, but Siobhan can actually do it 10 minutes faster on average than Kahled can do, right? From a ChatGPT, we talked about reducing the administrative burden on the technician. ChatGPT could be groundbreaking. We want our technicians to document where they can have, consume these parts, right, that those are simple swipes or barcode scans or whatever. We want them to check some boxes, might want to put some meter readings in, but we also want a document summary. We want some narrative from them. Well, they don't necessarily want to comply with that or they want to do the minimal amount of work. What if instead we use ChatGPT to automatically build a summary and put it in draft mode, where they have to now review it and go, "Oh, that's good. I need to change these 2 or 3 things and 1 other component to it and click submit. Now we have reduced a lot of that administrative burden not only coming up with -- not just documenting, but coming up with the narrative. Think of -- boy, the most painful time in my life is when I have to change a password. I debate for 5 minutes over what my new password should be, right, rather than just changing a password isn't just "Hey, take 10 seconds and type something else in, right? There's a thought process behind it. So same with documenting this narrative. So we can document the narrative with ChatGPT and just have them take a look at it, review it and submit it. Boom, that's a game changer for them.

Yes. It's really exciting, all the possibilities that we're literally just scratching the surface on here and how we can take this technology to further that journey that we were looking at earlier. I'm going to go ahead. I want to make sure we're getting close to time here. We want to be mindful very once time. This is just a summation of what we discussed here. And so how when you're leveraging enterprise asset management and field service management for both the scenarios of optimizing enterprise assets, reducing service costs, you're going to get to that organizational value. There's certainly going to be scenarios where perhaps you start with EAM or you start with FSM, one is a little bit more mature than the other. That's all perfectly well and good. And as we've shown here, based on the poll questions here and the feedback that we've gotten from Kahled and Rob, everyone else is going through that journey as well. There's no one size fits all in terms of where they are on that journey. What is one size fits all is very much this proactive approach to having the people out in the field and then the asset managers, whether they're in the field or at headquarters whatever, ensuring that they're working from the same workflows and the same data sets to accomplish these very important goals of optimizing enterprise assets and reducing service costs. I'll go ahead and we've got about 3 minutes here. So as we reflect here, I'll allow for 2 parting thoughts here from Rob and Kahled. So Kahled, anything you want to summarize that we haven't spoke to already.

I do. And this slide really says it all, but I'd like to speak to it. And I could be a little bit biased, but I am relatively new to ServiceNow. And I've got -- my frame of reference is really outside of ServiceNow. And this doesn't really happen with other platforms because they're not a single data model. They acquire a lot of companies, they acquire their products. And these products are really sold independently. If you need to integrate them, you have -- it's on you to do that, much like you're integrating any third-party product. At ServiceNow, every module that we build on a platform works literally out of the box with other modules because they're based on that same architecture based on that same data model. So that applies to all the modules that we've built. But specifically here, the 2 modules that we're talking about EAM and FSM, it's really like a marriage made in heaven. These are 2 complementary modules that complete the end-to-end journey that we showed you 1 example of that. So they really solve 1 holistic set of problems using 1 solution. So it's really -- it's a very powerful thing. And customers are already doing it. This is not something new, we've got customers who have been deploying it. They actually came to our Knowledge Conference last month and spoke about their success, how about using those 2 modules together. And that's really the more powerful part that customers were talking about it better than Rob and I can ever talk about it.

Absolutely. Rob, a little time here for a final thought from your perspective as we round out this high-level discussion.

Okay, I'll take it. We talk about communicate, collaborate and act, whether it's -- think of your universe of the audience and that audience maybe your internal or maybe your asset manager, your field service resources, your employees, your partners, your contractors, your customers, your constituents, whoever they are, you're improving that communication. But as Kahled said, this better together story really delivers that those exponential results because now you're removing the barriers to the data and the barriers to the process. So you're streamlining those processes that took days or weeks now can be done in hours or minutes, right? And so now you're meeting SLAs, you're meeting contractual obligations, you're meeting uptime guarantees with your customers or your workforce, right, and your constituents, right? So that better together really delivers those exponential results.

That's a great summation gentlemen. Thank you so much for your time. I'm going to go ahead here and advance through some of the last stuff here. We just went through the Q&A here. We do have the digital experience for knowledge. So for those of you that couldn't join, we have a lot of content online that you can access with this QR code. If you're not able to grab it here, reach out to your account team, they'll be able to hook you up with that. We also have some on-demand webinars. This one included both for FSM and EAM. So we've got a link here for that. We'll be sure to get that to you afterwards...

I'm delivering one next week on the technician experience. So please join.

Very cool, Rob. Very cool. Yes. No. And Kahled and I did one, I guess, about 2 months ago for EAM. So that's still pretty fresh, and you can check that out as well. You'll get a brand new one from Rob on FSM and then you can check out what me and Kahled will be talking about a couple of months ago, setting up for success with EAM. And then we've also got the Utah release. So for those of you that are still getting up to speed on Utah, [indiscernible]. So obviously, these 2 products, but then some of the other products on the platform. This would be a great place to do that. Again, we've got a QR code here. We've obviously had a very high-level discussion here. For those of you that want to get a bit more into the details, check out this content, reach out to your account or your partner or whoever it may be, and we can coordinate that getting you a bit more of a demo like we can feel to dive into this stuff a little bit more. And one last plug and then we'll let you all go here. I appreciate you all staying 2 minutes over. There will be a survey after this. Please, if you don't mind taking your time to do that. It's really going to help us ensure that the future events run accordingly. With that, I really want to thank everyone for joining us here today. I hope we've answered some questions, and we've inspired some ways that you guys can go ahead and optimize the enterprise assets and reduce service costs of ServiceNow. Thank you very much.