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

[Audio Gap] Of service being requested, each of these individuals know what is the face of the GBS organization, and they know how to actually interact, request service and kick off access. Then there's an expectation that not only is there a unified experience layer. But once you request service, there's actually workflows running behind the scenes, tightening the complexity of the organization, allowing work to transfer end-to-end across departments, across silos, across systems to deliver on a seamless experience for the stakeholder that's interacting with it. This leads to much more delight in how an individual is going to be interacting with the process because they know and they have insight as to what the end-to-end process is going to look like, what the expectations are in terms of service levels and where a process is on an overall continuum. And at the same time, it is helping the organization run much more efficiently and actually identifying opportunities and bottlenecks for continuous improvement for cost takeout, and otherwise making it so that work and transfer across the organization, breaking down the silos of the various systems and departments that are required to support the process flow and then ultimately delivering a great experience. And so I think what we're seeing here is that, in answer to the first profound question that we asked, you almost can't deliver great service and ultimately pull out cost, drive efficiencies across the enterprise without also addressing the experience side of the coin. And that is really what we're hoping to explore quite a bit further today. And so while I took a very much a platform view as to how a GBS organization should be evaluating experience, I think it's probably important before we bring our customers and our speakers on to present this, we want to actually look at what a digital transformation model could look like. And with that, I'm super happy to bring Maria on to this call to actually go through the EY approach to transformation.

Thank you, Jeff. GBS organizations are on the leading edge of business disruption. The cure greatly illustrates the transition from the old to the new model of GBS. What has happened in the past is that shared service organizations have been a powerful construct for enterprises to improve their productivity and address the cost pressure. The first S curve of growth represents the evolution from single function shared service organizations to more integrated cross-functional global business service organizations, aiming at driving process harmonization, standardization, labor arbitrage and also automation using new technologies. However, what has happened is that these GBS organizations have reached the limit of productivity potential and often have also developed the brands more around your [indiscernible] for less rather than a positive one. And in most organizations, GBS have been left without a seat at the main table of the enterprise. So now leaders are embracing a new S curve of growth with a 90-degree shift to focus on customer needs and expectations to maximize the adoption and actually even increase appetite for more services to be delivered by GBS. So what's the plan for the future? GBS organizations are becoming more and more relevant in fostering and enabling enterprise-wide change, and are also being positioned as enterprise digital transformation engines. Now, why that? Because they need to drive digitization across functions, across geographies, scale up services and solution innovation and free up business capacity to enable the business to focus on business transformation and on business growth. They will also unlock [ new ] productivity and deliver a greater customer experience. So the next wave of GBS will not only accelerate digital capabilities, but also work with a constantly evolving environment and provide resiliency as well as push the boundaries of innovation. This is not a flip-the-switch change. To help us frame the conversation, my colleague, Scott will share how we advise the leaders making the move to the new S curve of GBS. Over to you, Scott.

Thank you, Maria. As you've said, changing S curves, it's not a won and done. It's a risky and time-consuming process there. And what we've observed amongst the few leaders that are really making this transition in the GBS space is that it really takes sort of a flywheel effect, and you see that illustrated here, starting with experience that gets the motion turning, if you like, and building momentum, and we'll dive into a lot of that in the coming conversation. That is, as you described it, Maria, and Jeff illustrated, that's the difference. That's the shift from what we produce to really taking in our customers' needs and [indiscernible] towards those. And when we design for that human-centered experience, providing access to getting ones work done in an omnichannel way, thinking about how we provide proactive service, we really start stimulating a new appetite for GBS services. That in itself leads to greater scale in the GBS environment. And with scale, we can start to do things like design end-to-end services. And these end-to-end services are the things that then truly matter around what employees or other stakeholders of GBS customers, what they really want to get done as a total. And it hides those silos, if you like, that Jeff was describing at the beginning of this conversation. That scale drives greater performance and impact by the GBS organization. And that's important because more impact, in turn, drives greater interest and credibility for the GBS organization. And you see that on the bottom right that we're able to, then with those end-to-end services, start with 1 orchestration platform, which we'll come back to. The level of performance inside the transparency we give to the service experience and ultimately impact that we're having, the notion of continuous quality improvement, the measurability of everything that we do really cements that credibility for the GBS organization, which, in turn, in the final step that terms the flywheel here, is branding. The old brand of GBS is under threat. Maria, you called that out. the S in the GBS, and we'll talk more about this shortly, the word service is starting to become something that's a little compromised. And we need to start thinking about GBS in a different way, having more impact, becoming also an engine for enterprise transformation, not just the back office productivity. It becomes a talent attractor, a talent and career generator. And so we see these factors, experience, scale, performance, branding, start to work together to increase momentum to make that S-curve shift. Final point is you see at the center of this graphic ServiceNow. It's a really important piece, if you like, the axle around which the flywheel drives is essential in terms of providing a platform underpinning with the right workflow, service management, artificial intelligence, other capabilities here that allow us to get these levers moving. We'll explore that now. I'm really happy to introduce back to the table here this morning our great colleagues from [indiscernible] and also from PepsiCo to pressure test the flywheel, understand what they're doing on their journeys and hear their insights about this S-curve shift that's happening for GBS to become transformation engines. Monica, maybe we can ask you to share your thoughts first. Perhaps it would be lovely if you would introduce yourself, talk a little bit about the Mars GBS story. And then if you could share with us what's been the real trigger point to say enough is enough, the traditional, the old model is not working, we need to go to the new S curve? Great to hear your thoughts on that.

Well, thank you, Scott. It's my pleasure to be here. I have been at Mars for 20-plus years, currently leading Mars Global Services strategy and Corporate Technology as well as leading the unified program. Mars, for those of you that don't know, is a privately owned company, with 130,000 associates in over 80 countries, 450 different sites, 4 different segments [indiscernible] edge. So you can imagine the complexity. Now our GBS journey started with ServiceNow about 10 years ago with ITSM, and about 2 years ago, we added HRSD and Workday. We have very established service line. Over the last few years, our priority was 3 Es: efficiency, effectiveness and experience. We have made significant progress on efficiency and effectiveness, but not as much as on experience. So now our current OGSM has experience at the forefront of 1 of the 4 strategies. The feedback from our customers and our users has been consistent. We have too many individual systems, we have too many portals, too many processes, chat bots and so on, and that provides a very complex and confusing user experience. So we needed to do something about it. We did a deep assessment and build a business case. That is how the Program Unify started. And now individual -- now we're transforming from individual service lines to end-to-end mega processes, source to pay, order to cash, hire to retire, you guys are all familiar with that. And right now, we're starting that journey with a new ServiceNow instance.

Fantastic. Thank you, Monica. Let me turn to [indiscernible] faster perhaps the same if you could introduce yourself again a little bit about PepsiCo journey around GBS and then the trigger point that brings you to also to this S-curve shift in your your framing of your North Star and where you're taking GBS within the very large PepsiCo organization.

Yes. Thank you, Scott, and thank you all for inviting me your pleasure to be here. Yes, I lead in PepsiCo, the enterprise service management organization as part of the GBS and they joined Petsecurecently towards May 2022. The journey in PepsiCo Stadler compared to the 1 that Monica center for Mars, we started about 4 years ago. And the need of starting GBS in in PepsiCo was due to the fact that we have a very strong regional presence, but also stronger, I'd say, brands. In Pepsico, we have brands like a [indiscernible], but also Gatorade and [indiscernible] and so strong presence of brands. So there was a lot of fragmentation of work. The need of GBS came from the fact that there are opportunities for productivity, look at the common things, which are happening across geographies and cross brands, and how we can converge to a common way of doing these things. So that was the focus. The focus really was around opportunities for cost reduction, right? But then, as the second point, so we started, therefore, with the shift in the [indiscernible]. But as important, we start realizing that shifting the work, and therefore, focusing on labor arbitrage, if you will, is not enough. It's not enough because it's something that you can realize once. So we start looking, therefore, how we can extract the value from what we do, not only moving the world, but actually generating value. GBS, looking at value, outcomes, and therefore, not only productivity, but actually looking more into the higher hand. And then the experience came into picture because experience is, in fact, also an element of productivity, if you will, because it's not just completing our customers, but it's also making sure that if our customers are finding what they need in an easy way, in a nice way, we give back time, and so it's an element of productivity. And that's why it was the trigger, and that's why experience is at the center of the next wave of transformation that we are undertaking at PepsiCo.

And when you say give back time, maybe you just want to share how many -- how large the PepsiCo population is because small amount of time over a large number of people as a big impact?

Absolutely. Yes. Basically, it's a small company of more than 200,000 people, and therefore, it able to give back just a few minutes in a day, it's a huge advantage for the company. And therefore, that's why it's so important for us. We're also a very large and different type of population. We have people working in the office side, but where people explore work is working in the factories. We have people in defense, in stores in our commercial organization. So it's a very different type of users with very different needs, and that's why we need to look at the experience from a different perspective and different angles.

Maria, maybe I can join the conversation. When you look at organized -- other GBS organizations across the globe, large, small or variations. Is it for those that are leaders and are making this S-curve shift, is it a similar pattern you're seeing across the [indiscernible] client base?

Yes. Sure, Scott. I think the big difference has been always the pace of the transformation. But certainly, all the large organizations have gone through a similar journey. And many of them are still on the journey to evolve towards a multi-function integrated transformative GBS organization that delivers value to the enterprise far beyond efficiency?

Great. No, Thanks, Maria. Maybe back to you, Monica, if I may. When -- and I think I'm sure I put this audience today are participants in this webinar would love to hear the North Star that you're aiming for. When this -- when you've done this journey, what's that look like in terms of impact to Mars and Mars ecosystem?

For sure. So when you look at where we started with the Unified Program, as part of that program, we are creating this digital experience COE. That COE will have clear roles for value realization, experience design, architecture, governance and so on and continuous improvement. So obviously, you can imagine on the size and scale of our business this is an important shift. And experience is a shared accountability across all service lines, and it needs clear decision makers in order for us to come together and make it happen, right? So let me tell you a little bit of how we started, right? Because if you look at our assessment, when we looked at the size and scale, we started with an 8-week assessment across all service lines, and we mapped out the end-to-end mega processes, marking the personas, the user journey, just like [indiscernible] was saying, we have so many complex different personas, right? So we mapped it out on this end-to-end journey. And then we looked at, from the user perspective, what does it take to get the job done? What are the hassles? What are the delights? So when you can clearly identify those opportunities, and we were able to then map them to each 1 of the opportunities and calculate the business case, calculate how many users we have, like you were saying before, and really see the impact. I can't share the real numbers because we're a private company so our numbers are not really shareable on a public forum, but I can tell you it's a significant impact, right? But it was very eye-opening for all of our leaders to actually see that and see the amount of hassles that we're putting our users through right? So we're looking at that end-to-end map and looking at the maturity of all of our processes and comparing it to the industry and say, where we are mature, where we're not, where we need to shift the needle, clearly became the call for change. And make sure that we are -- like you guys are all saying, we are connecting and integrating these into 1 unified experience.

Thanks for sharing that. And by your smile, we could tell it's a significant impact, and that's great to see. And I love what you're saying about -- I'd like to explore that with [indiscernible]. How IT -- Monica share is super important to look across those mega processes to really make a difference. Do you agree there? And do you see the same in your context around that, if you like, scale factor makes the difference to unlock -- and I don't want to put words in your mouth, but does it unlock new horizon sort of sources of value in the same way that Monica described?

Absolutely. When it comes to PepsiCo, I'd say we have anyway a huge emphasis around the employee experience overall, which is also a customer experience, but it's left for other forms. The employee experience is the strong focus that we have. And on that, we have a specific focus on traditional employee experience a bit like in Mars, right? We want to make sure that when it comes to the interaction that the employees have with digital tools and with our, say, applications, it's a great experience with our [indiscernible] on the Internet, everything, right? And therefore, here the need of looking at the overall estate of applications that we have. And so looking at duplication, [indiscernible] application, but think about how many [ Internet ] we have locally, how many sites we have team working for a project and so on. So we're looking at holistically how we can standardize and maybe concentrate in 1 place all the key -- all the key information, all the key requests that in the key [indiscernible] and needed that is on the customers that are on our employee side in 1 place. And that's where the digital employee started, started with the North Star architecture, looking at, okay, we have a plethora of many Internet sites and requests, why we don't start them bringing them together in a meaningful way. Meaningful way means, looking at covering the content, making sure that the content which is displayed is easy to be consumed by people who need to understand fully charged to just raise a request for changing their address or do not need to understand supply [indiscernible] to just to make a simple question [indiscernible]. So you start looking at all the different sites that we have and putting them together. So we start converging IT, the HR, and the marketing side. And we are proceeding with that journey, but also the [indiscernible] would come into 1 place, a first-stop shop, a single pane of glass where I can find the information I need. I can get the help I'm looking for, I can request a service I'm looking for.

I think faster, that is a really important nugget. Some of us used to saying one-stop shop, but you say first stop. So just say a little bit more about that, please.

Yes, exactly. It's not 1 because it will never be one, right? For what we said before, a huge company like ours will never be 1 place, 1 thing fits all. What we want to do anyway is that we convert the people on 1 place and then being able to be redirected when needed to the application or the place where they have to be to execute their work. So it's the first point that is important for us. And from there, they can be reconnected, redirected to the application or the place they need to execute their work, which is different from the different type of personas and employees that we have.

Is it similar for you, Monica, in Mars? Is that first stop shop more of the right concept there? And what does that mean in Mars' for the journey?

For sure. And as I'm listening to [indiscernible] like thinking he's describing my program because we call it the front door, right? So it's a one-stop shop or the front door to the unified portal. So part of our Phase I was exactly creating that, the unified portal with the front door, starting with a new instance. Because remember, we have been on ServiceNow for 10 years. We have a lot of customizations. We have over 800 custom tables. We didn't want to go build more into it. So we stood up a new instance from ServiceNow. And now we're building a new experience. And then, obviously, we need to merge and convert the old instance into the new one. But if you imagine all of our 5 different portals, 6 different chatbots, all of that needs to come into more streamlined experience. And that's what this is the opportunity to be more out of the box and create that front door with that portal that's going to bring this all together.

Thank you for sharing that, Monica. When you think about -- if I come back to something you said before, which you said in flow, but it was around some of the capabilities that you've invested in. And when we think about scale and when we think about also performance, could you share just a little bit more around what are the some of those capabilities that are needed to be invested in to make sure this journey sticks? You mentioned UX, you mentioned some of the service management thing. You mentioned probably -- you didn't say it, but think you implied knowledge management and such essentials, if you like, is foundational for this journey. But your thoughts on that, and what advice would you give the other peer companies on the journey?

For sure. So there's many different areas, right? For us, the number 1 is value realization. How can it be outcome based? How can we be more agile, right? Waterfall is the thing of the past. So you need to be able to know where your customers, what your customers want and build that in an agile, quick way and give them those updates on a regular basis. So for a big company like ours, it's very hard to have that agile mindset across the whole company. So organizational change is very important. And change management is very important and getting all of our stakeholders on the same page. So all of those things are the soft things that we think about a program versus the hard things that our users touch. But when you combine the outcome-based approach with experience design, user centricity, design thinking and bring that voice of the customer first and allow the user or our associates to be the boss, to be the user being the boss of what they need and us delivering to that, that is a completely different shift to how we worked to this time.

Also great -- I mean just to pick out the change management aspects, Monica. When this curve change is fundamentally a massive change. And so hearing you've sort of underline that, I think, a very, very powerful message to everybody. Maria, do you want to talk about just briefly the EY research with Oxford University around transformational change and the importance of putting humans at the center?

Yes, sure. I think in the past, 1 of the reasons why GBS has not delivered on the promise was that any service was designed without involving the customer or the consumer of the services without taking into account or exploring customer needs and expectations. As a result, customers have never found easy to access and consume GBS services and the level of adoption has been always low. We, as I have done research and the result of the research is that there is a 2.6x increased results when putting humans at the center. And so designing the full solution around user needs, people's needs and expectations.

Monica, as we think about the performance lever on the flywheel, that turn flywheel, interesting, Maria and I were just with another client on the GBS journey. They talked about a KPI here when our performance of being managing the [indiscernible] right of the people in a very high, fast-paced business growth area. For you, what is -- what are you setting out as being the important performance metrics? And in particular, how important is architecting the journey around a platform like ServiceNow to you to have the data you need to drive performance? What's the nature of the [indiscernible] there that we need to get right to really make this next S curve of GBS run well?

For sure. So for us, there are multiple metrics, right? One of the most eye-opening one was retention, right? If you look at how hard is to get your job done, when we looked at our retention metrics like how many people are leaving Mars within 1 year of starting at Mars? That is the key metric of saying. And 1 of the feedbacks from them is it's too hard to get my job done at Mars, right? So without sharing the exact numbers are significant numbers. Because if we look at the amount of people that we're hiring on the scale that we are, this has a significant impact, and it's a significant wake-up call for everybody to say, why is it so hard to get your job done? So actually, our pepline is, easier, is better because we're trying to really go and make the job easier. So 1 of our measures is how do we make -- how do we truly measure easier? What are the KPIs? What are the KPIs to make sure that we are measuring the number of clicks that it takes to get something done, how long it takes to get something done, what's the SLA to get something done? So we truly are breaking the end-to-end mega processes into specific use cases and measuring that use case and say, from here to here, if I'm trying to get something done, what is the realistic expectation and where we can automate, where we can remove steps and move it forward?

[indiscernible] then maybe as so we can pick up on that as well because I know you -- similar to Monica, you've said the data is essential to be able to drive the performance. And maybe you can share how is PepsiCo going on that journey? And maybe to what extent is the use of the platform? ServiceNow, it's now there essential to get what we didn't have before in GBS?

Yes, absolutely. I think data is essentially in all the life cycle of the service that we have at GMS and even more for the experience. So similar to what has happened in Mars like Monica was mentioning, we also started the journey in the ServiceNow 5 years ago. with IT. That was an implementation done by IT for IT. Then when GBS came into the picture, we realized that actually ServiceNow to be leveraged at the enterprise level, enterprise platform, the ERP of service managing, we had to significantly redesign the platform, and that's what we did to make sure that we could extend the platform at enterprise level. This happened last year in 2022. And therefore, what we are doing now is making sure that all the services that every function inside GBS, but actually beyond GBS. Because, for instance, in the case of PepsiCo, IT is not part of GBS, but they are service provider organization exactly like GBS function. And therefore, they have all of their services in ServiceNow requestable or not. And we can then start measuring the transaction against these services because then we can measure the consumption, the availability, but also capture the feedback on the knowledge [indiscernible] associated to the services. And that is essential for us to have a data-driven conversation with our customers rather than impression based, right? And when it comes to experience, it's even more important because when you look at the experience, then we have the chance to look at the data and correlate the data with the behaviors, something that we also -- we would like to see even more in the future.

Is that similar -- is that how easy is easy if I take -- if I use Monica's expression before? Does that get you into a zone where you can measure that an easy factor?

The easy factory is something we are trying to measure, and therefore, easy, sometimes what is important for us also to make sure is that easy may not have the same meaning or the same dimension if we looked at it from the service provider perspective or from the consumer perspective. So what we are also doing in parallel is making sure that in our service design, we embed experience design in [indiscernible] human center design. Because even when it comes to measuring the feedback or what we are looking for in terms of understanding the adoption, that has to be planned for. So therefore, yes, we are focusing on that. Our [indiscernible], which actually is becoming a human centric design methodology, we look into and embedding our customers in terms of accounts. We have accounted of customers as our adviser. We can leverage them and their experience and asking them and listening to them understanding what are the expectations, and therefore, how we can better manage and measure their experience.

Monica, we've talked a lot about employees and other customers of GBS. For you, in Mars, how big a lens do you put on and how important from that experience factor standpoint are let's say, the managerial side of managing the GBS environment and also what we sometimes call agents or the fulfillers, the GBS professionals. Is that something you'd say is an essential part of this journey? And to what -- what does that mean for your Unified Program?

For sure. And we're in early stages of figuring out all the different layers and all the different personas on how we need to interact between them, right? Because at the end of the day, it's about the fulfillers that are fulfilling the experience, and how quickly can they get their job done, right? So we need to look at each 1 of the layers and make sure that we're designing those processes with that in mind and actually measure each 1 of them. management is great. We need to make sure that we have the right level of, as we call it, digitizing the business. How quickly can we know where there is a problem, how we're performing, where we can digitize and quickly see the performance level so we can do something about it versus waiting till scorecards that are going to happen once a quarter or once a year, right? So getting those 2 layers right and making sure that we're improving the underlying processes, but also have the right level of visibility to make sure that we have [indiscernible] influence across all service lines.

With that it sort of touches on the final lever of the 4 levers on the flywheel that drive the flywheel and that is brand. To you, how big a deal is this S-curve shift in challenging the traditional brand around GBS? And what is -- what are your -- what is your Mars approach to to thinking about the next S curve, and how you brand your organization?

So for us, GBS brand and improving the GBS brand is very important. But we're very early in that feedback. And right now, we're getting feedback from our leaders, from our associates and the focus of that experience program, and how can we optimize it? The feedback is very strong. But we want to make sure that we reach out to all the functions. Many people are reaching out to us and want to be part of this easier is better and combining and being part of our Unified Program. But we want to make sure that we combine that, and we actually leverage the brand. Because if we don't do something about it, the brand is not going to survive. And I don't want to be dramatic here, but this is truly the call.

Yes, S curve change is -- 1 model is dying, right? So this is becoming extinct, Well, here, you're saying you're drawing people in. It's not having to force them, but they're actually coming to you now with the pivot that they've seen happen and the change that's happened. Is that correct?

It is. SP-5 And right now, we are in the place of how can we provide these quick updates, this meaningful releases in 3 to 6 month cycles, and at the same time, bring people in because everybody sees the need for change. And we need to make sure, as we're providing the unified front door, everybody wants to be part of the front door and make sure that they are part of that experience. So that's why you get to a certain pivot where you can, instead of selling the program, you now have people that want to be part of your change, and that's an exciting time to be in.

Just like you've crossed the tipping point now, which it sounds like Also, have you -- how is it for PepsiCo? One, do you agree? Do you think there's a brand question there that needs to be addressed? And two, what's your experience with it?

Yes, definitely, Monica's [indiscernible], there is a question around the plant because actually, if we start GBS as we start, as an organization doing most lift-and-shift, then the competition of service is a connotation of low-level work, which, by the way, can even be outsourced. So in a moment, you want to position GBS, and we are posing GBS, added value organization, which focus on outcomes, then this association of which services sometimes can be a bit hindering our ability to really deliver the value we are looking for. So there are the discussions, as you can imagine, also in Mars regarding should we keep this name? Should we change the name? Should we call what we do service? You should call them a cabinet different [indiscernible]? It remains the fact that services is -- and service is our currency. So it's what we do, it's the work that we do. Now it is important also to mention focus on the fact that these services are essential for the business transformation. So we don't do things with [indiscernible]. So the conversation is there. We will see, if in future, we change any more land. But for us, rather than the name, we are focusing really on the value, similarly to what Monica set. So how can we show the value really in our releases of ServiceNow, in our making sure that we have proper design of the services, even the ones that are already there? Are we really making sure that we have a continued improvement on the way we deliver the service, in the way we measure the feedback and the way we act against the feedbacks. So this is our approach to make sure that, in fact, more than told our transformation is perceived.

Maria, is this a constant theme across GBS? Do you think -- I'm just -- maybe your thoughts on the macro scale there, just to wrap up this fourth lever, is that -- how is that playing out across the whole GBS sector?

Well, it's a hot topic these days. I mean many GBS organizations, throughout the years, have invested a lot in expanding their remit, adding new capabilities, investing a lot in technology, and there has been always very little focus on how to brand GBS? They cannot postpone this any longer. They need to define now really what is the brand that GBS needs to have. Because especially in the context of adding capabilities, there is a need also for bringing the right talent, hiring the right talents in GBS. And talents could be internal talent, can be also external ones. So branding becomes fundamental to attract the right talents and in line with the new capabilities required, but also in line with the ambition that GBS has.

Thank you, Maria. Last question to you, Monica. And this is an opportunity also to put in a request to the axle, if you like, in the flywheel concept back to ServiceNow. I just say if everything spins around a great platform, what do you need to make good on your journey? What would be your ask to Jeff and the ServiceNow team to say, "Hey, we need more of that to go faster on our journey and be more successful?"

It's great to have Jeff here because like he said in the beginning, he wants to unify everything. And we have a unified program. So we're already working together, right? But since -- so now you give me the permission to have my wish list. So I have a whole list, but I'll give you 1 thing, right? We all call ServiceNow system of action or system of engagement. I wish ServiceNow was also a system of reaction, right? Meaning, can we get easy feedback from our users for every single thing that they're doing? How easy is it to get your job done? Can we get that feedback in real time? Can we look at those insights? Can we be able to analyze them so that way, we don't have surveys? There's such a survey fatigue out there of surveying people at so many times during the year. We want to have real-time insights and real-time data so we can react real time.

That's a big us, Jeff. We can come back to you in a second. But also last word, same question. What's your ask of...

That's a great we can ask directly to you, Jeff here so if we can make public our needs. No, that's why I say in our conversation already [indiscernible] very similar to what Monica said. The need for us to capture data and [indiscernible], we would like to have more, I'd say, insight in correlating data with behavior. As Monica said, right, we cannot go for service. People are just not answering to service. But even if you think about people are reacting to [indiscernible], I like what I don't like it is money [indiscernible], right? The number of people participating to this simple click is not that high. So we don't get great insights. It also would be anyway limited. We are looking at how we can capture the digital footprint of the behavior of the people in form. How we can capture [indiscernible] abandon, and what does it mean? And why it's about then why people are getting to page and they get to the previous page? How we can get this data, and therefore, derive from this data the behaviors correlating [indiscernible]. Because then, ultimately, what we want to get to is to -- yes, reactive is definitely a point, Marica, but why cannot become more proactive anticipating the issues that are there before we are just acting on the negative feedback.

Yes.

Absolutely fantastic feedback. And I guess it is always interesting taking feedback in such a public forum, but what I'm hearing loud and clear is the importance of experience, definitely the need to have more data, more insight as to what's working, what's not working in terms of the overall experience and shifting the model into a model where we're actually focused on delighting our stakeholders, proactive experience, personalized experience that's going to directly meet the various populations in the flow of work versus, afterwards, survey, the reactive mode that we used to be operating in, very good feedback. So in monitoring the Q&A, we actually have a couple of questions that are coming in. And while we have Bosco and Monica here, let's take a moment to actually maybe pose a couple of questions. The first one that is coming in, and I'm really not going to direct this to 1 of you versus the other. I think maybe just both of you respond. Talk about how you deliver service to frontline employees? So think about truck drivers, line workers, that type of employee.

I can go first, if you want, Monica, and just to tell you because it's really a very relevant use case for us because supply chain is part of the GBS organization, and therefore, talking about associates to the front line 1 of them being the truck drivers exactly. We have PepsiCo trucks, and we are delivering, let's say, the goods to the stores. And therefore, we want to monitor the drivers, and therefore, we have a system for which we detect, say, any aromas in the truck, and we raise events or even a lane depending on what has been detected there. So this is 1 of them. But actually, we're also looking at delivering services to the people in our factories. We are rethinking our infrastructure in terms of network infrastructure in the factories to look at possibilities to give them access to more of the company tools. Even if they don't have a company phone, they can still access with the Wi-Fi company tools. So we are taking into consideration the needs of the front line because it's a significant portion, actually is the majority of the workers in PepsiCo are frontline users not, per se, office users. So that's why we have plenty of services for them. Sorry, Monica.

Sure. And it's very similar at Mars, right? We have very similar structures from knowledge workers to plant equipment operators to lead retail clerks. As part of our unified program, we are defining personas for the various associated roles. And we are working on really truly understanding the specific needs that they have within the different services and experiences. In some cases, that will mean more reliance on mobile technologies. In other cases, it will mean more high-touch service delivery models with local support. So the key in this is to recognize that we must meet them in how they work daily, and how we can leverage these services to actually bring that experience to life.

Yes. Very good. Thank you. So 1 other topic and this is actually going to be a changing gears quite a bit. One topic we brought up several times over the course of this conversation was the role of artificial intelligence in terms of driving the next level GBS organization. But we didn't directly talk about your specific strategy to the adoption of AI, how you're leveraging AI, machine learning within your organization? So maybe we'll go in the same order. [indiscernible], over to you.

Yes. Yes. Thank you. Definitely, a great question. We are leveraging the eye in multiple ones. First of all, when you look at our converged portal, we are looking at AI-based search that we can return, I'd say, action rather than just documents to the people which are searching something in our platform. But actually, we want to go even beyond that, and we started already the journey of using conversation [indiscernible]. So rather than us putting something in a search actually when I have a conversation so that we can understand the context and address better rather than just giving [indiscernible] of results to the end users. So we're going to really understand the context so that we can give it the right answer. So conversation is definitely 1 of the things we are looking at. Last, but not least, we have a significant amount of content, which is unstructured, and which we are looking at to bring into generative AI as the possibility to create even new content from the 1 that we have that really is not existing to give, again, better answer, more [indiscernible] answer to the credits that we have from [indiscernible]. Monica?

It's amazing because it's almost like exactly what I wanted to say. In our program as well, we have initially started to focus on building these intelligent virtual agents to support associates requests and to build out the data and the technical capabilities to truly expand that AI search, knowledge and the knowledge base, clean up a lot of those knowledge articles. So I can almost -- I got to start to drink Pepsi now because we are so aligned when it comes to how we're approaching it and how we're bringing this to life. But it's truly the capabilities there. We just need to figure out how to bring it closer and faster to our users.

Very good, very good. So I guess the last question for right now for you 2, so we talked about continuous improvement. We talked about what it means to collect data from the stakeholders, data across the -- any of the GBS functions and end-to-end processes that are getting delivered. And a lot of that is going to feed into some form of continuous improvement program. So this question is really around on staffing. How are you resourced to define a critical GBS capability like continuous improvement, like change management within your organization?

Yes. Actually, what I've been starting, I would like to give the floor to Monica to start first because there is a lot of alignment between us and when we drink pets, I eat [indiscernible]. So definitely, we have commented in time, please.

Perfect. So thank you, [indiscernible]. So for us, like I said earlier, we're starting with the digital experience COE, which is being launched in the spring. And part of that is building the value realization, the experience as well as governance, change management, stakeholder management. And we want to make sure that these roles are incorporated into that COE because, for us, experience is not a project. It's not a onetime effort to achieve a single goal. It's a change in the operating model of GBS, and requires a fundamental shift in how we think, prioritize and execute and change management is the way to do it.

Absolutely. Again, very similar to what we are doing, Monica, in PepsiCo. So change is essential. It's not a onetime effort. It is ongoing also because the transformation is [indiscernible]. We don't do the mason. We are a transformational organization. So we have embedded change into GBS, but also we have embedded change into each of the functions that we have in GBS. Because while the function are transforming in the services they provide, they need support from the change perspective in terms of adoption of the new work [indiscernible], new services with our business and with our pipe. So change is essential and is not let, let's say, a loan or a hasten exercise. And also in terms of continued improvement, you also look at that in a broad way because we have a team which is especially focused on consumer improvement [indiscernible] people which are Sigma Black Belt to have, on 1 side, designing properly the processes and also the services and also making sure that [indiscernible] continued improvement we drive the right actions to assume the best possible experience.

Good. Thank you very much.

I want to say big thanks Monica to you and [indiscernible] to yourselves, both sharing both the Mars journey and wishing you great success going forward clearly will be with all that thought process and also with PepsiCo, [indiscernible], great to get your thoughts today. And thanks to Maria for sharing her macro perspectives as well and giving us that context of the S-curve change that's happening in GBS. And you said it Monica, if we don't, we go extinct, and it's not to be melodramatic. We need to make that shift and the starting point is experience. So thank you for those insights. Back to you, Jeff.

Yes. Very good. So I think to close this out, really, the 3 things that I took -- first of all, there were so many insights that were just shared. So thank you so much for all of just the fantastic analysis and insight provided by our panelists. But I think the 3 things that I took, first and foremost, it's not just that the mission of GBS has shifted, the whole brand identity of GBS has shifted as well. And it's no longer enough to be seen as the cost center responsible for driving efficiencies. It is really about driving GBS forward to be a transformational partner to actually deliver business results. And I think we heard direct feedback from both PepsiCo and Mars that said, "Hey, this is actually addressing top line revenue concerns within organization and bottom line efficiencies. So I think that, that is super insightful. Second one, I think the question we posted at the very beginning of this session around, can you do this without focusing on experience? The answer to that is a resounding no. Experience is top of mind. I heard a lot of terms over the course of the interview like Unified Portal, system of action, front door, one-stop shop, consolidation of experience, consolidation of channels, 5-plus portals, multiple conversational tools, get all these consolidated into 1 single unified face of the GBS organization where you could actually communicate the brand of GBS out to all your external populations. I think that was my second insight. And I think the third 1 is really the outcome-based approach to programs where we're looking at the transformation of experience, not in terms of, "Hey, we think this is the right thing to do." It's actually -- there's clear outcomes we're driving. GBS is a leader in driving these business transformation and actually taking a point of view of what are the outcomes we're driving and actually measuring our results accordingly, lets us have the seat at the table to be the strategic business partner. So I think that's what I took as my insights. Maria, is there any additional insights that you wanted to share from this interview?

Thanks, Jeff. No, I can only echo anything you said. I think ServiceNow can act as a strategic platform to enable efficiency effectiveness, experience and also to make GBS the enterprise digital transformation engine for -- to deliver on all the 4 levers of value.

So that concludes our webinar today. Thank you all very much, and a special thanks to our awesome panelists today for sharing all of these tremendous insights. Thank you once again. I hope everyone has a good day.