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

August 23, 2023

New York Stock Exchange US Information Technology Software special 55 min

Earnings Call Speaker Segments

Martin Barclay

executive
#1

Welcome, everybody, to the master hyperautomation landscape. We're super happy to have you on today. We're going to talk about some really cool hyperautomation technologies on the ServiceNow platform is going to allow you to unify and get a complete big picture of your multi-vendor hyperautomation landscape. Before we get into the agenda and the speakers, just a quick note to the presentation today is going to contain some forward-looking statements, and you shouldn't place undue reliance on those statements when you're considering purchasing. All right. Well, that's me on the left. I'm Martin Barclay. That was taken pre-pandemic. So a couple of years on the clock there for me now. But I've been in ServiceNow for just over 8 years. And I've been in multiple roles. I've been in the developer program. I've been in the ServiceNow store product marketing. But the last 5 or so years, I've been focused exclusively on the integration hub. And now automation engine with its broader semi capabilities. I focus on content creation, sales enablement and customer, just like this one. So Brian, over to you for interim.

Brian Dunbar

executive
#2

Hey, everybody. Brian Dunbar here, coming to you from Madison, Wisconsin. I lead our Solution Consultants in the hyperautomation space. I've also been here almost 10 years. So Martin, we got 16 years of ServiceNow underneath our belt. So I don't know if you're going to get much more expertise out of a webinar than this.

Martin Barclay

executive
#3

Awesome. All right. So let's get to it. I'm going to basically cover the first 3 bullets. So we're going to talk about why hyperautomation is so important, why it's such a C-suite imperative, if you will, or necessity and why it's just still so crucial for our organizations to compete in today's macro. We're going to talk about the problem of automation for all and siloed automation tools across departments. Then we're going to talk about how we uniquely solve that with the ServiceNow platform to unify those various tools into the single cohesive whole. Then I'm going to flip it to Brian. He's going to probably talk about the elephant on the couch or the hottest thing in tech or whatever you want to call it, Gen AI, what our strategy is, what we're doing, how it fits into our overall hyperautomation suite. Brian is going to deep dive into the new Automation Center of Excellence and Automation Successor is really the focus of today, including a demo and then we'll do a close and will take questions. So with that, companies today are facing kind of one choice, right? Do they focus on growth and experience in terms of customer and employee experience or are they cutting costs, right? To kind of keep that profitability and keep the efficiency going, and our answer to both is yes. There's a lot of pressure today, obviously, on companies. In today's macro, there's different pressures on headcount, on OpEx, on the bottom line in terms of profitability now more than ever. So automation and specifically hyperautomation, we'll talk about what that is exactly, it really enables that, right? It's the way and it's the journey that customers are on to enable them to do both of those things at the same time. So it's not an either/or. It's a yes. And so let's kind of get you in the hyperautomation a little bit. It's not just an efficiency plan, right? It's also about experience. And so we're really talking about cost takeout, right? First and foremost, so automating everything that can be automated literally at scale across the enterprise, those core, mission-critical, business-critical processes that span multiple departments, not just atomic tasks within particular team and departments, but really scaling it across the enterprise to those core business processes that have the most impact. But it's also about really elevated the employee and the customer experience, right? So from an employee perspective, all that drag work, that repetitive stuff, the copy pasting, the swivel sharing and kind of all of those things that you want to do on a desktop in terms of copying stuff from e-mail to spreadsheets to word documents, we can eliminate all that, right, with today's technology and with hyperautomation. And what that enables organizations to do is really to free up those folks, those employees to do more important things, things that move the needle for the company in a more impactful way. And then from a customer perspective, if you think about yourself as a customer and the experience that you have with the companies that you deal with, your cable company or whatever it is, right, amazon, Uber, it's really about driving that experience. So it's speed, right? It's speed and simplicity. It's like, I don't care how the sausage is made. I just want to -- I want the end product, and I want the experience. I want that car to show up. I wanted them to show up on my door in that block, so that I get it quickly, efficiently don't have to talk to anybody, and that's going to make you want to come back and be loyal to that company. So the experience is absolutely central to this. Now if we kind of look at what is hyperautomation, right? So I talked about it a little bit. It's a business strategy to really examine an X-ray, your company, your processes, to really understand which ones -- how to prioritize and triage to really focus on what matters most, to take the cost out of those critical processes, to elevate the experiences in those critical processes so that people come first. And then the third big thing, and we'll talk about this when we cover the platform is really having that complete toolbox, right? So it's not about having one thing and being that category leader anymore. Companies are looking for efficiencies. They're looking to consolidate, they're looking to take cost out, reduce complexity. And so it's really about having a complete set of capabilities, but that doesn't mean that you have to put everything on ServiceNow, while the -- it's very much a balanced approach of using the right tool for the need and being able to unify the tools that you already have into that single cohesive wholes, we'll talk about kind of that balance of consolidation, but still connecting to the things that you've already made that investment and they're delivering value to your business. So hyperautomation at its core is really about linking all of this stuff together, right? So every organization, obviously, some more than others, right, have an automation landscape today. They have CRM systems, they have ERP systems. They have BPM systems, they have IT systems, obviously, right? That's all about automation. So it's always been about automation to a certain set if you think about it. That's what software is. But what's happening now is it's become clear that without linking these together, right, and having that big picture, single view of both operations and business outcomes or ROI, it's just not possible to get the most out of that landscape, right? You can use certain amounts, right? You can use certain amounts of [indiscernible], you can get so far. You can get so far at cost, you get so far with experiences, but it's going to be siloed, it's going to be disconnected, and it's not going to be optimal at that cross enterprise level. So it's really important to be able to connect all of that together. And this really happens at 2 levels, right? And it's not easy, right? Obviously, it's not easy or we wouldn't be here today. We would have done it and we would have been onto the next. The first problem is siloed departments. So that's how companies are built. There's nothing wrong with it. There's a reason that companies are organized in the departments but if you really want to maximize the efficiency of those cross enterprise processes, things like employee onboarding or procure to pay, just as a couple of examples, you need all of these departments towards customer service is obviously huge, right? Everybody in a company needs to serve the customer. And so you need to be able to link all of this together and really understand what's going on end-to-end have that complete visibility, the analytics, all that integration really tie all these departments together so that things can be executed at maximum efficiency. In short, you can't hyperautomate a siloed company. And so the second problem, right, is that we have these islands of automation, right? So not only do you have the siloed departments, but you have the siloed automation tool. Now there's a reason for this, right? The departments were great to fulfill specific functions and the departments themselves chose specific tools to automate their function to the extent that maximum extent they could, right, to optimize their operations within their function. So they saw that their department made with whatever technology they make sense for them, right? RPA, chatbots, BPM, AI, you name it, they put in place certain solutions per department to optimize for their function. Then what happened next was companies realized they needed to centralize these tools where possible for efficiency, right? So they created these integration and automation COEs, right, for scale and for efficiency, right? So that for example, RPA or iPaaS could span across all of these departments and you get those economies of scale and efficiencies. The problem with that is that while they centralize the tools like RPA or iPaaS across those departments, which is the way that a typical automation COE is set up today, they don't connect those tools to each other, at the governance and analytics level to be able to get that optimal ROI, right? So you still have islands of automation even with automation COEs as they exist today. And so what does this let you, right? You can schedule a triage the flood of incoming automation opportunities from process mining tools from employees, crowd sourcing, just making suggestions into whatever mechanism you're using, [ keeping it ] as rudimentary as e-mail, there's a flood, right? I just, hey, we need to automate this, we need to automate that, we need to automate it now. You don't know which tools to use for which opportunity. I've got 8 tools, which one do I use for this one? If I have RPA, maybe all trying to use RPA to solve everything, and that's suboptimal, right? You can't centrally manage the production life cycle. So once you have prioritized and triage, how do you actually efficiently bring that into production? You can't, and once it's in production, you can't centrally monitor, track the operational health across all those different tools, measure ROI, compare ROI across vendors and make decisions accordingly, maybe want to swap out vendor X with vendor Y which is performing better in a particular type of use case. And you don't know how they all roll up into that top-level C-suite objectives, right, how are they driving the really important stuff at that top level. And then also automations break, like bots fail, right? When UIs change, when there's an authentication change, they rely on that to function correctly. And if you're not running your bots on the same platform that you're running your IT service ops, you're going to have a lot of incidents, right? And a lot of problems, and that really drives up OpEx. So these are kind of some of the issues that, that these items of automation have led to. So again, a suture problem, siloed departments, siloed automation tools, we need a new approach. And so again, what's happening is organizations are looking to connect both. They're looking at connect the departments via workflow, they're looking to connect the items of automation into a single cohesive whole. So the first step is to connect the departments, right? And so we do that, right, with the ServiceNow platform. That's what ServiceNow does. We are the leader in upscale across enterprise, complex process automation and workflows, right? We are a leader across multiple categories. And so you do that sort of workflows efficiently, right? It flows fast, quickly, it's a great experience for people. But that's running the first step, right? As I said, the second problem is how to connect those automation silos in each of those departments for governance and optimizing ROI at that top level. And this is where the single unifying platform for hyperautomation, the ServiceNow platform comes in. It connects both departments with workflow and islands of automation with a central analytics hub. That's what Automation Center is, and that's what we'll be diving into in some detail. Before we get to that, let's take a look at what our platform can do. So we actually have the only single platform that's an actual single platform with 1 data model for all workflows for all applications, that has all of those hyperautomation capabilities, right? And it starts with workflow. So you're talking about package workflows for IT, customer service, HR and so on, finance and supply chain. You're also talking about low-code workflows. You need to modify those things. You need to create new workflows. That's what happens in [ companies ]. Then you need to automate cash, right? So you've got kind of the basic kind of process digitized now. Now you need to look at how do I integrate that, right? With both modern and legacy systems via API and UI, how do I bring in all those off-line documents and get that data that's in those purchase orders or those ID forms or whatever, the document-type might be a receipt, for example, into those workflows efficiently? You do that with AI. You use chatbots and we've just announced Now Assist, right, which is our Gen AI for virtual agent and intelligent search. So you've got these chatbots and assistance that accelerate those paths and automate those tests. And you kind of get into analyzing and analytics, right? You've got performance analytics to look at how a process is behaving over time, project out into the future, you can then quint into that process with process mining to uncover bottlenecks and optimize that process. Obviously, we get generative AI, which we'll talk about. And then finally, you've got automation ROI in health at the top of that, which is like, okay, that's how you look across your landscape and see what all of this stuff is delivering in the context of your C-level objectives, right? And also your operational health to make sure that those automations are up and running to the maximum extent possible. So just to reiterate, right, it's all about experience and continual improvement of those processes, right? And so that's what the platform is focused on, that's what it enables organizations to do. But as I said, it's not necessarily about getting rid of all your existing tools, right? It's probably not about that. Consolidating certain tools or functionality for cost savings and operational efficiency where it makes sense. Absolutely, but wholesale working in place, no. You've made those investments, they're delivering value. You need to figure out how to bring that into this connected hyperautomation engine and continue to drive value, right? So that's what we do. We -- actually, with Automation Center, we've got the industry's first vendor-agnostic or cross-vendor automation, analytics hub and workspace. So we have the ability to create RPA jobs, RPA processes as CMDB CIs, right configuration items so that we understand what the dependencies are that those bots have on the other infrastructure, the business applications and the services and we can use our incident and change management to predict and prevent failures, right? We also bring in the metadata from those platforms, right, both the attributes in terms of business value and the execution metadata, so we can monitor the status and optimize the execution health. Not only for ServiceNow, but again, for those third parties that you [ scanned and left ]. So it's about connecting those islands of automation. That's what Automation Center does. Okay. So I just talked about automation of CMDB CI. So we wanted to ask the first poll question. If you're on a ServiceNow IT team or a platform owner, we want to know do you have any of your automation, for example, RPA integrations or flows set up today is CMDB CIs? That's a simple yes-no answer. Please remember to hit the submit button. We'll give you a little bit of time to answer. If you have any questions, please submit them via the Q&A panel. If we don't answer your questions live, we'll answer them after the webinar. Okay. I think that's kind of long enough for a yes-no answer. So we'll move on. Second poll question. We're very interested to know, to get your feedback and understand what's actually happening in your organization, right? So again, if you're a platform owner, if you're on an IT team, do you get a lot of incidents today as a result of third-party RPA failures? Are you dealing with high volumes? Is it costing your support change time and money? Again, simple yes or no answer. We'll give you a couple of seconds to answer. I guess, I just said that you can access and download the resources and the [ regionals ] panels of your screen. We also appreciate if you could submit the survey at the end of the webinar. Okay. That's the second poll question. We thank you so much for your valuable feedback and answers. Brian, I'm going to kick it over to you now to cover our Gen AI strategy.

Brian Dunbar

executive
#4

Yes. Hello, everyone, and I am excited to touch on Generative AI. So Martin did a really good job of talking about the hyperautomation movement, hyperautomation COE. Generative AI is -- has all the buzz right now. And from our perspective, Generative AI is just another tool in this hyperautomation toolkit. And we'd be remiss if we didn't talk about what we're bringing to market to help in that overall hyperautomation wheel that Martin alluded to. Now, ServiceNow has been in the AI game for a very long time. We've been taking and making investments through acquisition of talent and organizations to bring AI into our platform to help drive great business outcomes for our customers. And this has really been our approach, is bring in those core AI technologies, but help them drive customer outcomes. So we are not going to bring general purpose back bots. We are not going to bring general purpose Gen AI. We aren't going to bring general purpose machine learning. What we're going to do is we're going to invest in that technology, bring it to the platform, instrument it in a way that our customers can get real business outcomes in alignment with the workflows that they're driving on the Now platform. And that is same set for Gen AI. This is our strategy is we are going to partner with those general purpose providers like OpenAI or Azure OpenAI. And we're also going to be making investments ourselves to develop domain-specific models for ITSM use cases, customer service use cases, employee service use cases, right? The core of the workflows that you're driving in the ServiceNow platform. And we're doing this through a capability called Generative AI Controller. What this is going to enable you to do is connect into those various different large language models, whether be a ServiceNow-provided large language model or an external large language model, but to be able to help drive business outcomes. And a lot of this is done through prompt engineering that ServiceNow is developing inside of the Generative AI Controller to help drive those outcomes. And we're not only providing it here, but we're going to be embedding it within our workflows for our developers and creator workflows being able to do text to code or text to app for employee relations or in technology workflows, being able to summarize cases that handoff or being able to generate knowledge-based articles using trend of AI technologies. So these are the investments that we're making that you're going to be seeing over the coming months and generally available in Vancouver to help drive your Gen AI initiative within the ServiceNow platform ecosystem. So now that we got rid of the elephant in the room, we can start to talk about our main focus for today, which is Automation Center and how we're going to help drive the new automation COE of the future. We commissioned a study with Forrester, and we pulled over 450 automation executives as to some of the challenges that they're seeing in their organization. And one of them is their ability to see end-to-end value streams of the processes and workflows that they're driving within the enterprise. And so there's more demands being put on automating more, but if we don't have visibility into those processes, they become very difficult. And the next is we're being asked to do more. So there are technologies like we just got talking about like Generative AI. We're making more strides in process mining and getting insights into those processes. We have legacy -- more legacy technologies like RPA technologies, integration technologies, but we're also embedding conversational bots. And so we're being asked to bring in more technology, inject it into more workflows that we don't have visibility to. So what should we be doing, right? And this is where our current methods are failing us. We don't have good insight into all the requests that are coming in. We're still dealing with these islands of automation. I'll call them random x of automation that requests are coming in, they're not getting fulfilled or there's a really long line and business units are getting frustrated with their ability to get outcomes. We have too many tools. We need to stitch all those together, so we can't rapidly develop those outcomes for the business. And there are connections between the automation work that we're doing and how it's driving business value. So what's possible with Automation Center is us to streamline those development activities of those automations either in a centralized or federated approach. The ability to bring in those multiple COEs and have a management and governance life cycle that is unified and then also providing insights into how we can improve more holistically by tracking goals and tracking and careful value driven by those automations. So there is a massive opportunity for the automation COE of the future to wrangle in all of this technology, help drive the business forward and express that back into true business value to drive more business outcomes, more automation, allowing our organizations to focus on their core missions, allowing employees to focus on the meaningful work while the AI and automations do the boring and trivials stuff. So there are -- within the COE, there's typical roles that we have is sort of that, that is a ceder, somebody in a line of business that wants automation in their processes. We have automation devs and IT operations people. We have that COE lead, and then we have an executive leader that's looking for. And so within Automation Center, what we've done is we've created capabilities that cater to each of these personas. So if they can get the insights that they need to be able to do their job. And that citizen builder needs to -- wants to get their automation done fast. They need to track, they need to know when they're in line, if they are in line and how that automation is progressing in its ability to be able to be released into the live environment. So it's just transparency of that build life cycle. The automation dev managers, they want to be able to understand when the automation side builds that are out there producing value for the business, when they break, I want to fix as quickly as possible. I don't want them to lose trust in the automation work that I've done. They also want to understand if there's other impacts from other technology changes that are occurring that might impact our automations like change collision or those sorts of things that are going to cause issues, they want to be as proactive as possible. Nothing is going to reduce trust in automation more than them not working. People are just going to go back to doing the work the way that they had been doing it. And the automation COE lead is really focused on, are the automations that we're working on the highest value targets? Are these things that are going to really drive that bottom-line impact and make me the star of the show in this organization? And then lastly, that executive leader wants to make sure that in order to meet the goals of our business, especially in today's world, we need to be market-leading and our ability to remove the mundane, noncustomer-facing work, automate it away and focus on our core mission. And so this executive leader wants to ensure that we are focused on the right things of removing all the wasteful activities, may be highly necessary activities but ones that can be automated and focusing on driving that bottom line. And so Automation Center brings all this together through discovery of automation opportunities, the prioritization, the helping with the building, assembly and oversight, managing the operational health and giving you those insights. And then lastly, tracking value and the alignment of that value to the business goals of various different business departments, business leaders and overall enterprise goals. So this is Automation Center for the modern automation team, bringing everything together into 1 workspace for these various different personas so that they can get the insights that they need to drive us forward on this hyperautomation journey. And really, what this provides is complete insights on ROI tracking, being able to predict downtime and get insights from those automations. And it's also, as Martin mentioned, vendor-agnostic. So this isn't about just building ServiceNow workflows and getting insight and tracking them as there a lot of other automation providers that have a similar capability. But what we do is we bring this together, vendor-agnostic, I could have a Power Automate app that is automating part of my business, it's tracked in Automation Center. I could have a UiPath that's working in my finance team to do purchase order reconciliation, it is tracked in Automation Center. Complete visibility for all of those different providers in one place so that I can bring all of this together and really focus my investment and align to my goals. And this is really going to help with accelerating our enterprise value because it is tied into that CMDB that was in the poll question, if we have all of these automations logged in here, we have them tied to our business apps and our business processes. We have unprecedented insight into where those automations are running, what business processes they're helping, what business applications might be impacted by them, giving you unprecedented insights into your automation landscape because of its tight coupling to where you're doing your IT operations today. And so this really brings together 2 key constituents, which is your hyperautomation COE that just wants to automate as much of this work as we can and your ServiceNow platform owner. They can help bring together the workflows that we're doing, the automation that we're doing, providing that great tracking and traceability. But with the automation toolkit that is in the platform, we can leverage ServiceNow skills to help with that backlog in the Automation Center as well to be able to knock out more of those initiatives that you may have within the automation COE. All right. Now we're up to another poll, poll 3. For our automation COE teams, which automation tools do you have in your automation COEs? And again, we're asking this question because traditionally, what we've seen is automation COE teams either started with RPA or integrations or some singular technology, and they've been increasingly moving into others. So we wanted to kind of take a look at how you have been progressing. And so the answers here are, select all that apply. Again, the technologies that your automation COE is covering from a governance and oversight perspective. So BPM, Business Process Management solution; RPA, Robotic Process Automation solutions; iPaaS, all your integration platform; intelligent document processing so that OCR technology, bringing documents in chatbox, AI, machine learning or inclusive of Generative AI. Your analytics team, so getting insights into those business process through analytics and predictive analytics. The automation intake, 3 hours' workflow, so that work management component of the tasks actually that are bringing this together, maybe the project management of automation, if you will. Process mining, and then task mining are the various effort technologies. So select all that apply that would be covered under your current automation COE. And don't forget to submit once you've selected all the ones that you'd like. Moving on, we have one more poll question. And for this one, for our automation COE teams, how many automation vendors do you have in your COE? So the question here is really how many automation vendors technology are you leveraging with under that umbrella, right? So I have ServiceNow for my BPM and workflow management. I have UiPath for RPA. I have Microsoft for RPA with Power Automate. That's 3, give us a rough order of magnitude of the number of vendors that you're having to manage to bring together all of these automation capabilities. So either 1 to 2, 3 to 4, 5 to 6 or 7 plus, once you've come up with your answer for your COE, again, make sure to hit submit. And then we'll move on to maybe the exciting part of this webinar, which is a demonstration of automation COE. All right. So next, we'll be doing a demo of Automation Center. And before I do, I just want to tee up a couple of things. I know we have some probably technical folks on the webinar today that are going to see the demo and they're going to -- how does that work? What's this? How is this all put together? And so I wanted to provide for those technical people, just a little bit of insight into what's underneath the covers of the nice flows that you're going to see in this overall demo. So Automation Center is a workspace that brings together a lot of capabilities within the ServiceNow platform. So ITSM, the CMDB, reporting, analytics, using analytics for insights, automation discovery, the catalog, process mining, and then we also ingest automation's built-in ServiceNow in RPA Hub, Flow Designer, integration hub, document intelligence, flows, scripts, you name it, any automation that's built in the platform, we want to take credit for it. We want it align into Automation Center. Then when we talk about those external automation systems whether they be iPaaS solutions, RPA solutions, AI solutions, chat solutions, what we have developed is spokes and APIs to bring in that execution metadata and also to register all of these automations in the CMDB to bring all this together into Automation Center. So first, it's about getting everything in the CMDB, registering it as an automation. So we've extended the CI classes to be able to account for various different automation types. And then next, it's bringing in pretty high-level execution data so that we can understand when those automations run, we can take the credit for the value that they're provided. We can also understand if they're breaking to be able to engage incident and change management and all of those various processes. So why this is uniquely different is ServiceNow is a market leader in IT service operations. And automations are IT services that we provide to the business, right? Automation, I think Martin mentioned very early on, it's just software, doing stuff. And we want to manage this just like we would anything else in our technology estate. And so bringing all this together, having this connected in insight, also having it connected to your ITSM processes, for when things break, when you're making changes to be able to get those insights. And the other part of this is with this connection to the service management platform, we're going to be able to reduce outages of those automations, saving you money. Now these automations are going to help drive ROI. But if they're not working that ROI, funnel just got turned off. We want to make sure that, that ROI pipeline continues to run. And having it connected into IT operations is critical to ensuring that your automation estate is healthy, operational and driving value. So that's a little bit of behind the covers, how it connects into some of the other processes. We are now going to jump into our demo of Automation Center. But I first wanted to talk about the intake process. So as part of Automation Center, we ship with a catalog item that you can use to intake your automation. And there are a number of ways to get in automation intake. We can still take e-mails. We can still take phone calls but we wanted to kind of show a way of bringing all of that in. And a lot of automation COEs have something similar, it's probably in a SharePoint site, it might be an e-mail. But having it in the platform with 100% traceability is going to give that insight to those business leaders. So here's your automation request, and I'm just going to use a little automation to fill it out for a purchase processing person. So I live in finance and I have a manual work where I need to compare purchase orders and invoices and then log into the ERP. And it's just highly error-prone and lots of manual work. And so I want the automation team to take a look at this. I can align my department. I can talk about the systems that I interact with, how many steps are in the process, the basic things that we would need for automation intake. I could attach a file, right, if I had a process diagram or a visio diagram, bring that in, provided that's the automation COE. And then I hit submit. This gets long, I have traceability. So if I'm sitting in -- I'm a finance lead, I got my ticket in with the automation team, and I know that they're going to be working on it. So that's just a little bit about the intake. Before we get into the workplace that is Automation Center, so now we've moved into an automation COE persona and we'll kind of do a walk-through of Automation Center. So under Workspaces, I select Automation Center, and this brings us into our Overview tab, where we get insights into all of our automations deployed by business criticality, our execution stores, various different flows, our top applications where we have automations written against it. And again, this is all slice and diceable against departments. So if I were going to be -- if I'm in finance, and I want to come in to you all the automations for finance, I could do that or if I'm in the COE and I'm going to go have a meeting with the HR leader, I can slice this by the HR department. I can show them insights into what we're doing, what we're helping them drive. We can see future automation so we can get that insight into in the backlog, what are our high-value targets and requests to be deployed? And you'll see here, we have a widget for our most recent request, and that purchase processing request that I just submitted is at the top of the list. One of the things that we do through spotlight capability is we provide a score. And this is really just a rules engine or a heuristic that you can develop to help provide that prioritization of these requests. So in this case, we have a score of 135. This is a high-value automation target. And so I'm going to click into it and see what we got going on. And I can see all of the information that we got from the requesters interacting with Ariba and SAP. They do a lot of work here. So let's move this through the flow, and I can move this into plan. I like this idea, it's a high priority, but now I need to plan it out with my automation team. And so from here, I have a bunch more information. I could start to align this to a goal. I could assign a process manager, I could override any score calculations that I wanted to. And I can also begin to test this out. So I could set up requirements gathering and find that out, I could have a design section or I could have a task out to develop various different solutions within here, they're giving me full transparency into for this particular automation idea for this payroll processing optimization, all of the work that's going into it. And then I also have visibility into my resources that are aligned to this as well. So again, it's kind of bringing together those islands of automation. If you've got multiple tool vendor, mobile tool teams, bringing all them together for one common goal can be very difficult, at least here, we have the visibility to bring all that together for this particular group. Coming back to Automation Center, we've moved into our next tab on the Workspace, which is execution. So we've walked through really the intake of an automation idea, given some overviews, walk through how we can do the task management of building that automation. And now we're looking at execution phase. So that automation has now been built and we're tracking all of the executions by state, by summary. We're looking at incidents and changes against all of the automation, we're getting insights into automation that we can take action on. So maybe we've had a number of failures of a particular bot. We're -- this is all going to be surfaced to understanding that health and the execution health of this. This also -- you can slice and dice this data by a number of ways, but in this case, by automation. So I just wanted to look at my UiPath bot or my Power Automation bots or my ServiceNow RPA bot, I can do that right from here. But the really powerful part of this area is this tight coupling with ITSM processes. Now all of my automations have been walked into the CMDB. And so I can see my automation incidents. And I can see I have a critical incident open here, and I have a UiPath bot that's failing for invoice processing, it's up as a critical priority one, and the UiPath team is on the case. So I have high confidence that it's being addressed in the way that I would like for it to be addressed. But this gives me in a couple of clicks, I have insights into automations that are broken. Maybe somebody in the finance department is calling me and saying, "Hey, my invoice processing bot is down." You already know it, you can provide updates on where things are at. The next big area is changes. And specifically with RPA technology that, in a lot of cases, is interacting with systems through UI. UI changes can break bots, which can make them fragile. And you can see we have a change here for our SAP ERP system. And I can come into this change, and I can see in its emergency chain, so it's moving through the system really quickly. And I want to take a look at the impacted services and [ the odds ]. And I can see here I have 2 bots that I've written against the SAP environment that could be affected by this change. This is really unprecedented insights into how I can maintain uptime of my automation. I could also be proactive in understanding changes to systems that may impact my infrastructure. As I've talked with application owners, in a lot of cases, they don't know that there are automations written against them, whether it be bots or integrations that they should be aware of. Having all this linked together takes any of that sort of tribal knowledge or enterprise knowledge and puts it into a system that gives us transparency to have those insights. Now our last tab on Automation Center is all about value. So we've built our bots. We're operating and managing the health. But now how do we target and understand our -- the value we're bringing back to the business? And we expressed this through a couple of different ways, one being cost savings and time savings and we align this to goals. We see we have a number of goals that were pending, working or not achieved. We can look at our deployed automations. We can look at our automation by source. Again, Martin mentioned, maybe I want to start building with one certain capability because it's providing better ROI for me. I can look at intake and future automation goals, really a lot of insight to make good decisions, but also from here, I can see I have goals that I haven't achieved. And one of them being compliance automation. This is one thing that we've done at ServiceNow is a lot of our automations that are helping to get us through audits and do audits evidence gathering. And so we see here, I have a goal of compliance automation, but I only have one automation opportunity out here. And so in the beginning, I showed you the intake of bringing in an automation idea, well, the COE should be able to use process mining tools to discover new opportunities. And so right from here, I can initiate some insight into maybe my onboarding process and use our process mining in platform to get insights into future automation opportunities. And with a couple of clicks of the mouse, I can submit a new automation idea into the Automation Center right from my process mining interface to be able to get that back in full circle, bringing us back into Automation Center and kind of driving us that full circle loop around the wheel that Martin kind of showed you of getting insights, building those automations, managing and maintaining them and then discovering new ones and optimizing the automations that we have in the enterprise. So with that, that is our demo of Automation Center. I'm going to hand it back over to you, Martin, to close this out.

Martin Barclay

executive
#5

It was awesome, Brian, thanks so much. Great overview of the capabilities of Automation Center. I just wanted to kind of close out now. Really talk about so how -- what do you need to do this, right? Everything you just saw and we just talked about, it's in automation. So that's the product, right? That's the solution that we bring it to market, all the things that we talked about. It's our in-platform, integration and automation solution to bring in anything external into ServiceNow workflows, right? So external apps, external systems, external data, external LOMs, external documents, we bring it all in and orchestrate those end-to-end workflows. The Automation Center is as it should be in the center, as you see. You just saw in Brian's demo. RPA Hub is how we integrate and automate with systems that don't have APIs available. We use UIs and bots to do that. We've had an integration hub for a long time now. It's a massively successful and well-adopted product in our customer base. It's managing billions of transactions, really just hundreds of billions and has just been of a tremendous value. We've now got ScreenConnect for Apache, Apache path that enables you to do event-driven integrations at scale. And then document intelligence to get AI to read, extract and seamlessly integrate data from any type of document, PO invoice, receipts, et cetera, bring that in very efficiently and quickly into the workload to take advantage of the information. So again, it's the single way, the single product with multiple capabilities to be able to connect, automate and orchestrate anything external with ServiceNow workflows. So real quick, we give this all to you or we deliver all this to you on a single platform, so you can take advantage of your ServiceNow teams, existing skill sets and low counts that's built into all of our tools. We give you over 200 spokes or connectors out of the box with over 5,000 integration actions. We've got a new spoke generator coming in Vancouver. You've always been able to create custom spoke with action designer. We'll make that even easier for citizen developers, the spoke generator to create your own spokes if you don't have one. And then we got solutions and tablets that further accelerate and simplify things. And then lastly, it's about ECL, right? So if you look at the price points and the overall life cycle cost, the total cost of ownership of automation engine versus things like external iPaaS or RPA platforms, we've done internal, what is our IT team has done. And we're looking at 3x faster time to value and 20% lower licensing costs. And then, of course, Automation Center gives you that ROI visibility so that you can lower your TCO and maximize that operational efficiency and ROI. So on the financial side, that's what we do as well with automation engine. And so for a lot of you who may not even have realized the ServiceNow is a player in RPA, we've been shipping RPA Hub San Diego release continues to improve, broaden its capabilities. We debuted on the Forrester RPA as a strong performer in our first try inside a year of general availability. So kind of testament and testimony from a Tier 1 analysts that for ServiceNow customers, this is a more than viable solution for RPA. And then just real quick, just on customer successes that we've seen so far early but continue to grow the roster. All of these customers spoke on Knowledge 23. You can watch their presentations on the Knowledge 23 digital experience. More broadly with automations and across integration hub and document intelligence we're seeing, some really impactful results from integration hub, from RPA hub and all of the capabilities of the products. And then just some key takeaways, right? So again, a connected enterprise is absolutely necessary and fundamental to -- it's a hyperautomation. So you need a connected enterprise across both departments and new automation tools to actually realize the benefits of hyperautomation to deliver on that vision. Second, you can achieve maximum operational efficiency by minimizing automation failures with CMDB, with our ITSM and change management, incident change management, so it makes a lot of sense to put your bots on your IT ServiceX platform and your other automations, whether it be local workflows, whether it be integrations and so on. And then third, again, right, Automation Center is all about bringing all of those tools together into a single analytics hub for both operational monitoring and business value, analytics, and so you can do that across all of your vendors and tools with Automation Center. All right. So some next steps, we recommend that you check out Knowledge Digital. There's some great sessions on hyperautomation and our Generative AI strategy and product. We've got a hyperautomation master class that has been done by our hyperautomation SCs that really dig into each of those areas in the circle or the wheel that we showed you. And then Aster SC for free automation discovery engagement, this uses clustering and machine learning to look at your incidents, your cases and to really sort of started clearly what your highest impact automation opportunities are to really get you up and running. So don't forget to check out the Knowledge Digital experience, a lot of awesome content on hyperautomation and more. We've got a complete LIBOR of on-demand webinar, so check those out. And again, thank you for being with us today. Have a great day.

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