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

Hello, everybody. Welcome to today's webinar CIO agenda, Unify IT Digital Operations and generative AI low-code workflow delivery. CIOs and IT leaders like yourselves have more responsibility than ever and a lot on your plate. Today, we're going to dive into one of the most important parts of that agenda, how you can turbocharge business transformation on the same platform that you're running your IT digital operations on today. Please do not make any purchase decisions based on any forward-looking statements in this presentation. With that, I'd like to introduce myself. My name is Martin Barclay. I'm a Product Marketing Director on the creator workflows Product and Solutions Marketing team at ServiceNow. And I've been at ServiceNow since 2015. I'd like to introduce my esteemed colleagues who are couple of our subject matter experts in intelligent automation and low-code. Brian, if you'd like to introduce yourself?

Hello everyone, Brian Dunbar here. I lead our Intelligent Automation Specialist here at ServiceNow. And I've been with ServiceNow in my 9th year and looking forward to sharing with you all some insights into how you can automate and orchestrate with the [indiscernible].

Scot?

My name is Scot Northern. I'm a Senior Advisory Solution Consultant with Creative Workflows. Been with ServiceNow for about 3 years. And before that, I sat where you sit. I was a customer, as a sys admin and sole developer of ServiceNow platform for about 5 years.

All right, Cool. All right. Let's jump into it. So we're here today, right, to discuss how ServiceNow can help CIOs and IT leaders deliver on your overall agenda, your strategic goals. So let's dig into what those are, what we are hearing and seeing in the market. So nearly 2 out of 3 CEOs are saying that business transformation, driving business outcomes, driving business agility and creating new revenue streams is what they see as the CIO's primary goal. In addition to that, it's not just business transformation, but it's AI first business transformation. So every CIO is now expected by their CEO and their board to have an AI strategy to transform their business. And generative AI has just upped the stakes, upped the urgency to figure this out, right, and to deploy and integrate it everywhere in the enterprise. In addition to the previous statistic that we showed, 72% of U.S. CEOs said the generative AI is a top investment priority. And that's according to a survey last year done by KPMG with 400 CEOs in the U.S. So AI and generative AI being the latest manifestation is a strategic imperative. There's a sense of urgency to be a first mover to capitalize on it before the competition, integrated into every part of your organization so that every person, team, department and function work smarter and more effectively. So top of mind for CIOs, we see 4 things. We see transformed digital operations. This is sort of your classic CIO role, an IT role, right, which is now table stakes, really. But it's still critical. It's delivering that always-on infrastructure with AIOps and ITOM. It's delivering those great employee experiences with ITSM, optimizing tech asset management and spend with IT asset management and making the right decisions about investments and projects that IT teams work on with strategic portfolio management. So that is -- that continues to be top of mind for CIOs. But as we just saw with the ushering in of generative AI, transforming the business has also bubbled up to the top. And that means driving business transformation, accelerating the adoption of AI-powered automation to augment and automate every task and process that your company or organization does to drive business outcomes. Now there's the 2 at the bottom that are also part of the agenda that we see in the market, accelerate cloud transformation, moving workloads to the cloud, running resilient cloud services, strengthening cybersecurity and then tech risk. That's a conversation for another day. Today, we're going to focus very specifically on Digital Operations and Business Transformation. So every organization has -- still has thousands of manual things and processes, tasks and processes that employees do every day. Even with off-the-shelf systems, ERP, CRM, HCM, et cetera, that are in place to automate work at the department level, they only address some of the processes that your organization runs on. Every company still has unique company-specific tasks and even entire manual processes and workflows that are not addressed by those off-the-shelf departmental systems. So somewhere right now in your organization, somebody is moving data from one system to another manually, they're sharing it with another person in e-mail and asking for approval. They're switching between systems. They're looking at emails, tracking things in spreadsheets. It's very inefficient. And manually moving all of this information between people and across departments, means your employees are making up for shortcomings in technology. This is where Creative Workflows comes in. With Creative Workflows low-code and intelligent automation, you can dramatically reduce this manual work in every part of your organization. You can replace those manual tasks and processes with low-code intelligent workflows, so that work moves faster, and people have modern experiences that are productive. At the same time, with Creator and Scot will get into this in some detail, IT has the peace of mind with total visibility and control over who has access to what and who can build one with end-to-end governance. And so this is what business transformation is. It's changing how work gets done with low-code intelligent workflow automation. And it's not a question of either/or. With ServiceNow, we enable CIOs and IT leaders to most effectively accomplish both of these strategic goals. But before we get into how we do it, let's look at why we're doing in the first place those business outcomes, I talked about at the top. And it's quite straightforward. It's probably something that you've seen before, but let's recap, right? First of all, it's about the year of efficiency, right, operational efficiency, doing more with less with fewer errors, right? Take out cost. That's number one, operational efficiency. Number two, it's about that modern experience that people expect now, employees expected, customers expected that multiplies productivity and increases customer loyalty. And third, it's about agility, the ability to turn on a dime to react to market and macro trends and changes and capitalize on new opportunities faster than your competition. So that's why we're doing business transformation is to deliver on these types of outcomes. So let's look at an example, right? What does this look like? What are we seeing customers doing today with greater workflows? You all probably know Accenture, they're one of the largest GSIs in the world, if not the largest. They issue more than 0.5 million client-facing invoices every year just in their professional services business unit. They wanted to radically reduce the cycle time of that whole process, right? To improve cash flow, not to take out cost first and foremost, but first and foremost, to improve cash flow. And so they built a low-code intelligent workflow that automates that end-to-end process into a single cohesive flow across the Accenture IT, the state, including systems like ERP. The result of that has been implemented for 15 months. They've already automated 150,000 invoices worth $20 billion in revenue and the business impact or the business outcomes, that this workflow has driven, they've gone from an average of 3 days to invoicing customers to less than 10 minutes. So that's massively improving cash flow. They've gone from 30% error rate and spreadsheets to 0% error in ServiceNow, increasing speed and quality. Again, that customer experience. They're taking out costs. They have 90% less people working on invoicing now than they did before. Those employees are now working on more strategic projects. And lastly, they have efficiency through standardization, simplified align processes globally. So everybody understands how to do it, and there's no guesswork involved. So how can your team keep up with this pace of change and effectively meet and exceed CEO expectations for business transformation? Well, thousands of CIOs have already transformed their digital operations with ServiceNow and ServiceNow technology workflow specifically. ITSM, ITOM, DevOps change, IT Asset Management, Strategic Portfolio Management. And they're doing it all with complete visibility and governance on the trusted IT system of record. But many are still trying to deliver on that business transformation that we're talking about. One of the most pressing parts of their agenda with AI and low-code in a completely different way with the situation that you see on the bottom of this slide, a tangle of disconnected point tools that's complicated, costly and slow. And it's siloed from digital operations, which means that there is siloed governance and visibility for the CIO and other key IT stakeholders, one be for digital operations, another for intelligent automation and low-code. This means they can't see or understand the big picture in one place to make those optimal timely decisions. And so in summary, it's inefficient, costly and slows down transformation. So why take that siloed approach? Instead, the way that I think of it, you can step up to a turbo hybrid model like a Formula 1 engine to dial in optimal performance by replacing those third-party point tools with Creator Workflows on the ServiceNow platform to unify their digital operations. And because we are the leading workflow orchestration platform, you can preserve the strategic investments that you may have in some of those point tools like RPA. And in addition to the ServiceNow domain-specific LLMs that Scot will talk about with Now Assist for Creator, you can also integrate general-purpose LLMs like Open API. So what does this mean in terms of business outcomes, consolidating your low-code and your automation architecture onto ServiceNow. Quite simple. It means end-to-end governance and visibility. So everybody is working off the same view of enterprise-wide data in real time. It means turbocharging, that app development and delivery productivity and efficiency, and it means delivering a consistently exceptional user experience to employees across shared services, line of business operations and for customers. And with low-code, and that's kind of the whole key to this, right, is this hybrid model, you can augment your IT developers with business developers from across the organization to keep up with that pace of change. So think about your IT developers as your internal combustion engine and your business developers as your electric motor and having them all working together on a single platform is the turbocharger. So I want to end my section with just another customer example, of how impactful low-code intelligent automation compete on the top line to organizations. Southern Glazer's is the largest liquor distributor in the U.S. They are best known in the industry for putting Tito's on the map, Tito's Vodka for those of you that may like that beverage. They had a very clumsy manual process for introducing new brands like Tito's to the market. It involves 6 manual-driven steps. It took 45 days to comply with all the regulatory constraints. So 45 days to get a new brand to market. They built a low-code, intelligent workflow with App Engine. They integrated it with automation engine with their SAP AS400 and Blue Yonder Systems. They are now delivering new products to market in 1 to 3 days. So sales can sell more faster, positively impacting the top line. You can see the VP, his quote is just an amazing thing for their sales team to be able to do. So some examples of kind of how this can actually drive real business outcomes of your customers. So before we transition to Scot and who's going to dive into App Engine and Now Assist for Creator. I want to take a quick poll. I want to remind you to please submit -- make sure to press the submit button after you've made your choice. So please go ahead, take a look at the 4 options and pick one. So we would like to understand what you are seeing in your organization today around how your IT developers are collaborating with your business developers to roll out this low-code innovation to all parts of the business. So it starts with manually collaborating and e-mail and spreadsheets. Maybe there's some common development environments and tools that you're using. Maybe you do have unified processes across those teams. Or they're completely solid with absolutely no collaboration between the 2. So please take a few seconds to make your selection. Remember to click that submit button. And in the meantime, if you have any questions, just a reminder, please submit them in the Q&A panel. If we don't answer your questions live, we will answer them after the webinar. We will follow up with you. You can also access and download resources in the related content panel at the bottom of your screen. So we also appreciate if you could please submit the survey at the end of the webinar. So thank you for your responses. And with that, I'm going to throw over to Scot, who's going to do a deep dive into App Engine, low-code, App Engine Management Center Governance and Now Assist for Creator, which is our generative AI solution for developers. So Scot, it's all yours.

Let's talk about how ServiceNow can help you create those intelligent workflows, which will automate your business. 80, 97 and 30. Now these numbers don't mean anything to you now. But by the end of the presentation, you'll understand the impact they will have on your business. Stop me if you've heard this before. You have to innovate faster. The market is changing, how quickly can we shift our focus? It's costing us way too much money and way too much time to keep doing it this way. We have to reduce spend. Those technical job postings, they've been up for months, and we just can't find the right people to fill those spots. Today, you will see how automating manual processes with ServiceNow and Creator Workflows can address each of these priorities. We all know ServiceNow is the platform for end-to-end digital transformation. One of the foundational capabilities of the platform is Creator Workflows. Creator Workflows contains App Engine, which empowers you to build net new applications and extend out-of-the-box workflow safely and automation engine, which enables seamless connectivity to all your various data sources. The charter for IT is and has always been to lead this digital transformation. And currently, many processes are addressed by ServiceNow's prepackaged Workflows. Every company has unique company-specific tasks that are not addressed by these prepackaged workflows. These gaps are the ones that create the biggest headaches. When I was an admin of a company of 2,000 employees, I was the only admin and the only developer. It all landed on my shoulders and I didn't have a more efficient or safer way of filling those gaps. With low-code prepackaged Workflows can be extended and tailored to your unique business needs for complete end-to-end automation. Low-code allows you to build the unique workflows your business needs in days, instead of months. How? By automating repetitive coding tasks that slow your core developing team down and allowing you to safely tap into the domain experience of your business users. Back when I was in admin, I wish I had the power to get through my 6-month backlog of service catalog items faster. I wish I had a tool, which allowed me to democratize this development safely with guardrails and governance. Today, you will see how using low-code development and democratizing that development with ServiceNow will help. You already have an IT team working hard to address these imperatives. But they just can't keep up with the pace of change alone. Personally, I hated being the Department of [ note ]. I hated telling my users I couldn't get to their request for months, if ever. This leaves us with a gap between apps that need to be made and those who are skilled enough to make them. Enter low-code. In fact, Gartner predicts that by 2026, developers outside formal IT will make up at least 80% of low-code users. 80% of the user base for low-code tools will come from outside of IT. So where do you turn to close that gap? Your people in their daily efforts to serve customers and solve problems, your people gather rich insights to improve work processes. The problem is they don't always have that technical knowledge to translate great ideas into great solutions. When you extend low-code app development to those outside your IT organization, you capture the ability to safely create new business apps on a sanctioned platform without the conventional overhead. Andy you will free up your highly skilled developers to focus on your most complex development challenges. My mom worked in food prep for 2 different restaurants for more than 20 years. We used the recipes provided to her in the kitchens designed for her to create all that great food. However, she would often say to me that whoever made that recipe or designed that kitchen had obviously never worked in a kitchen environment during a busy dinner rush. The recipes are often not correct. Or call for ingredients she may not have had using equipment, which just wasn't positioned efficiently. Now that's an example of a real-world expert using a process created by somebody else, with no way for her to use her expertise to make it better. Let's put the power of the process back into the hands of those who know the process best from HR to Operations to Supply Chain, your employees in every department can eliminate the manual processes that slow down their work. App Engine goes beyond personal productivity. With App Engine, any employee can safely build enterprise-grade workflows. And with ServiceNow, everything is built on the same platform with native governance. So you don't have to worry about creating sprawl or shadow IT. ServiceNow's App Engine allows admins, developers and business users to work together to build complex solutions quickly with less complexity, less cost and less risk, automate any kind of manual task, refresh outdated processes or tailor prepackaged ServiceNow solutions with simple drag-and-drop components and prebuilt templates, expand development capabilities to the business while giving IT admins peace of mind with nonintrusive guardrails and oversight to manage custom app development end-to-end in a single view so you aren't creating Apps PROM. A lack of guardrails means limited visibility with little accountability and cost controls. You don't know who's developing what, and you have little reassurance, your data and intellectual property is protected. With the governance only available in App Engine, compliance to company standards is maintained with out-of-the-box tools and templates, while your App pipeline usage and stakeholders are easily monitored by the App Engine Management Center, so the right level of control can be established without inhibiting growth. Now let's share how generative AI accelerates the low-code development and automation of your applications. Over the past 7 years, ServiceNow has grown its portfolio with a singular purpose of providing one of the only intelligent platforms for end-to-end digital transformation. We have made investments in AI organically and via acquisitions to accelerate our road map to bring AI outcomes to our customers across a broad set of products. The technology from each of these AI acquisitions is then replatformed into the ServiceNow platform. So they're all built on top of the same architecture with the same data model. Today and the path we're heading on with low-code and text-to-code, you can all auto generate code from comments in a script field. And because you're using the ServiceNow LLM, the code generated will follow ServiceNow best practice and have complete knowledge of all the great capabilities of the platform. Text-to-flow enables you to use natural language to generate your workflows. Once that workflow is created, next best action is there to guide you with best practice recommendations tailored to your flow. And the generative AI controller empowers your developers to create powerful use cases which connect to the LLM of your choice and utilize such capabilities as generating content to create bodies of text quickly, summarizing large bodies of text or complicated exchanges, analyzing user sentiment based on text that has been input to interactions and forms and using generative AI to generate ideas and brain storm on any topic. Text-to-process, text-to-schema, text-to-permission, texted catalog and text-to-app are just a few of the capabilities currently in development. How about we take a sneak peek at text-to-app. Now Assist will enable anyone to go from text-to-app using natural language. Text-to-app is shown here, integrating with our upcoming creator studio. An employee would use Now Assist to start their development journey. As they define what they're looking for, Now Assist powered by the, Now LLM Prompts them with additional questions to help create their application from defining the fields they need to suggesting data elements, data elements the Creator may not have thought of, Now Assist walks the Creator through every step of their journey. When the application is presented to the Creator, the Creator can make additional changes by simply prompting Now Assist to do so, from adding workflows to modifying design elements on the floor. Now Assist has it covered. And when complete, the creator can preview what that application looks like on the browser, a mobile device and the workspace, the workspace where all those requests from this app are presented to review and take action on. And when the creator is satisfied with their application, they can submit it to the low-code admin team for review before it proceeds to production. Text-to-app will empower citizen developers and supercharge innovation at all skill levels. Now Assist will transform the work of every person interacting with the NOW platform. For example, developers will leverage Gen AI the right code and business rules, logic validation scripts, build schemas and create flows. Platform owners and advents will write platform automation scripts. There's some change in update scripts and permissions. And process analysts are empowered to be more efficiently create flows and those business processes. With Gen AI, everyone who creates on our platform is more productive. App Engine helps you get to that value faster, deliver at scale workflows 4x faster than those created from scratch. And with Creator Plus, we see 30% productivity gains across all your Creators using Gen AI. 80% of the user base for low-code tools will come from outside of IT, 30% productivity gains through GenAI-powered low-code. Now I'm an avid Yelp and Google review user. My wife jokes that I couldn't order a sandwich, without going through Yelp and Google reviews to find out which one is the best, which restaurant has the highest reviews. So these numbers here on the screen really mean a lot to me. Gartner found that 97% of App Engine users would recommend App Engine. And on G2, the Yelp for technology reviews, App Engine has a 4.5-star rating. 80% of users for low-code tools will come from outside of IT, 30% productivity gains through Gen AI-powered low-code and 97% of App Engine users would recommend App Engine. All of that leads us back to App Engine, giving you back time, time so that you can do more of what you love, whether or not that's more challenging task within the office or getting you home faster to your family. Or maybe to see your nephew play a soccer game on a Saturday. When you create those processes, when you find those efficiencies on the ServiceNow platform, the final question you'll ask is, where will those efficiencies take you? Over to Brian.

Thanks for that overview, Scot, App Engine. And now we're going to talk about Automation Engine. And in order to really empower this digital transformation or business transformation. We've traditionally had a last mile problem. Because there are multiple systems within the enterprise, we need to be able to connect to, automate and orchestrate. And so I'll be going through how the Automation Engine capabilities provide you a single platform to be able to connect to anything. Bringing IT and the business together on a single platform allows for you to safely, as Scot mentioned, deliver new capabilities, but also to adapt those workflows very quickly, automate and connect into those other systems, and with generative AI being AI-powered we allow for additional process improvement. Our Intelligent Automation Platform allows for you to digitize those processes, then connect and automate various different tasks, enrich it with intelligence and also do discovery and optimization as those processes and applications evolve on the platform. With the addition of generative AI, it superpowers not only the experiences for the end users using these business applications but the developers and other stakeholders that are helping to create them. So let's dive into the capabilities that help enable the orchestration, automation of your applications to connect to other systems. Introducing RPA HUB. ServiceNow has made investment in RPA technology to allow for you to build applications that may need to interact with legacy systems where we need to interact via a UI. RPA bots are great at interacting with those legacy mainframe systems to be able to grab data so that your new digital processes on the ServiceNow platform can move at the speed of light. In addition to RPA Hub, we provide a complete API-based approach to be able to connect to those systems called integration. Think of it as your iPads or ServiceNow. It comes with over 200 prebuilt connectors to common enterprise systems, whether that'd be source to pay applications, ERP systems or even other sorts of systems of action. All of these integrations can be built in a no-code way along with those applications to really empower the business to connect to their specific systems to drive your business processes forward. Next capability is document intelligence. And unfortunately, a lot of business processes are still stuck in a paper-based process or digital paper, PDFs, images, and Document Intelligence allows for you to be able to ingest those digital documents, do entity abstraction through AI to be able to move your workflows forward and automate and digitize more processes that may be stuck in PDF. A lot of organizations are looking to move forward with an event-driven architecture. Stream Connect allows for you to book in your ServiceNow platform via Kafka on the back end to be able to transact with those other enterprise systems that are chatty and have a lot of interactions to be able to go back and forth. So Stream Connect really allows for you to have those high transactional systems and to be able to drive workflows with ServiceNow with Kafka as your back-end event infrastructure. And the final capability that I'll be going over is a process mining. So as Scot mentioned, when we're building those digital applications on the Now platform, we can leverage process mining of those external systems. We may have a business process that is stuck in a legacy system. We can leverage process mining to extract information about that application to really help us speed up our delivery process of that new application within the ServiceNow platform. We bring all of this together all of these automation capabilities, whether it'd be RPA or Intelligent Document Processing with DocIntel, or flows and integrations with integration hub through a capability called Automation Center. What this allows for you to do is to govern, prioritize and manage all of your automation initiatives across the enterprise while tracking how you're going against goals and ROI. It allows for you to run a modern automation COE that is inclusive of low-code, no-code, generative AI, RPA technologies, integration technologies as well. So that's an overview of all of the capabilities delivered with in automation engine that can help you connect those applications that you're building in the ServiceNow platform, solving that last mile problem without having to use a bunch of different solutions to be able to achieve the outcomes that you want. So Scot and I have talked you through building applications in low-code and how you can connect those and solve that last mile problem with automation engine. But we think it's a good time for you to see what an application on the ServiceNow platform looks like in action. So I'll hand it over, and we'll see an overview of a shift turnover application.

Hi. I'm [ Greg Dana ]. And I will take you through how customers are leveraging the, Now platform to create intelligent workflows to rapidly transform everyday manual business processes that occur within organizations, such as employee turnover shifts in manufacturing plants. In this scenario, we will show you how employees that a manufacturing plant took a mission-critical shift turnover process that was still managed with paper and clipboards and dozens of manual processes and use ServiceNow to transform this into an intelligent workflow via a low-code custom app that digitally captures and shares information with all employees. The current shift turnover processes at this plant are very inefficient. There is a complete lack of digitization and the numerous paper forms means that productive time is lost to status updates and in-person handovers. To uncover critical shift activity information, workers have to pour through stacks of paper forms, resulting in poor experiences and very low turnovers that average an hour more each shift. So let's explore how we can bring this shift turnover process into the digital era by creating an intelligent workflow with ServiceNow. So I want you to imagine a world, where Mary, the Plant Operations Command Director can outline a digital workflow without coding, so she can coordinate multiple plants with diverse shift schedules and thousands of workers. Now imagine, Jake, one of the plant managers collaborating with Elizabeth, a pro developer in IT to tailor this digital workflow that Mary created with low-code in generative AI. Now envision how they'd be able to handle deviations from the normal process with this intelligent automation and then deploy and monitor analytics about the employees using these new apps. Now imagine from there, they can start to analyze the data for common trends and possible operational improvements. As you can see, this intelligent workflow can lead to improved productivity, better employment experiences and provide the business operations with the agility needed to remain competitive. First, Mary contacts IT and requests creating a unique brand new workflow. Next, Mary assembles a small cross-functional team with Jake, a tech-savvy plant manager, who always has ideas for improvement as well as Elizabeth, a ProDev from IT, who might be able to help us address some of those more sophisticated challenges. From there, Mary uses Now Assist for Creator with its generative AI-powered flow generation capabilities and using natural language prompts instead of complex coding, she's able to rapidly outline a powerful custom intelligent workflow process by simply describing what she wanted to do. Next, to address all of the manual steps involved in reading and examining equipment during shift turnovers, Elizabeth, our ProDev from IT is able to quickly use RPA to program an unattended bot to monitor real-time data from sensors and equipment status indicators throughout the factory. From there, leveraging ServiceNow's low-code app engine and generative AI, she can quickly address business-centered ideas to this workflow without getting tangled in a whole lot of technical complexity. Look how easy it is to connect this workflow with the team that built it in other systems in the company. With prebuilt spokes and codeless integration to key systems, the team is able to rapidly connect their intelligent workflow to their existing shift scheduling software, transforming into a centralized solution for the complete management of the end-to-end shift turnover process. Leveraging the automated deployment and governance capabilities built into the, Now platform, Elizabeth can ensure a speedy rollout and monitor employee adoption of this new intelligent workflow solution. The new turnover experience proves to be a game changer for Mary and her entire organization. Plants are now experiencing a true boost to employee productivity. And with intelligent workflows, Jake, our plant manager now has on time, anywhere access to shift info all from his mobile phone. Mary now has access to intelligent dashboard that highlight trends and generate reports and help her optimize the overall operations of the plant proactively. And finally, Elizabeth, our ProDev in IT can leverage these intelligent workflows to monitor the health of factory equipment and reduce worker downtime proactively. By creating intelligent workflows with ServiceNow, we were able to completely digitally transform this outdated and manual business process rapidly. They now have full digital handovers as opposed to manual ones, and now reduce the reporting errors by more than 98%. Workers gain timely access to relevant information wherever they are reducing the turnover time by over half. By intelligently capturing all the activity proactively, there is now a 265% increase in events captured, and now true business agility is unleashed as trend identification and continuous improvement become much simpler. All of this is possible by leveraging Creator Workflows to create truly intelligent workflows on the NAPP platform in a way that no other technology can.

So thanks, [ Greg ]. It's a great illustration really bringing to life how business process owners pro-code IT developers, low-code, business developers, operational staff can really collaborate effectively powered by generative AI, to just completely transform a manual paper-based process that is core to operational efficiency and the business outcomes and really just put it into a whole new realm of low-code workflow automation. I wanted to finish this webinar today just with a couple of additional slides. So some of you may know that ServiceNow is a leader in digital operations, right, ITSM, ITOM, AIOps. But we're also a leader in the low-code innovation side of the puzzle here. So we lead the market in the Gartner MQ. We also are a leader in the Forrester Digital Process Automation Wave, which brings together multiple development technologies, low-code RPA and others and also enterprise service management, which is basically delivering ITSM into ITSM-like experiences into every department in the enterprise. All of that is a way to say that we are a leader in both of those strategic goals that we talked about at the top, right, digital operations, low-code innovation that drives business transformation. So there's no trade-off. You can get the best of both worlds on the ServiceNow platform. So in summary, consolidate, right? Think about consolidating what you're doing with low-code and automation on to the digital ops platform that you're already using for that optimal performance that we talked about, that turbocharge performance to get ahead to deliver that transformation, the types of which you just saw faster than you're doing today, more efficiently at lower cost with complete visibility and governance, you can extend the same benefits that you're already delivering to your employees and customers with digital ops with unique intelligent workflows for every part of your business. And third, to get started, we have a pretty comprehensive series of low-code App Engine workshops where you can get hands on with the solutions that you saw today from Scot and Brian, App Engine and Automation Engine. ServiceNow experts will help to identify your top priority processes, and you can build your first low-code automation at this event to really start helping your business move forward. So thank you for attending, and we will take questions now.

All right. Hello, everybody. Let's go ahead and jump into some of these great questions that we have being asked. First one is going to be coming from Kurt Kyle. The question is, hey, can you give me an example of process mining? Brian, what do you got?

Yes, absolutely. So ServiceNow has both in platform process mining and process mining for external systems, as I had mentioned. And so a use case would be, we see a lot is doing process mining of those external systems, maybe like a Workday or an ERP where you may have a business process that is inefficient and could be optimized leveraging the ServiceNow platform. So what we do is we ingest audit logs from that external system to reconstruct that process within ServiceNow, identify areas for improvement and also can help make suggestions about how you could rebuild that business process using low-code and the App Engine capabilities.

I think that's really cool. And the fact that you can also utilize it on applications and custom apps built within ServiceNow, I think really provide some incredible visibility to see, where a process should have been going and where it's actually going. I think that's very critical. We've got a couple more questions for you, Brian. So we've got one here from Kenneth Janssen. Can you give me some examples of how ServiceNow customers are using that Kafka Stream Connect capability? That's a pretty cool capability there.

Yes, absolutely. So I believe about 80% of the Fortune 500 uses Kafka within their environment. And the Kafka open source capability really allows for enterprise systems to communicate very rapidly with high throughput for very chatty applications. And so if we apply that same logic to how -- what are use cases we see within the ServiceNow ecosystem? So working in financial services, we have organizations that are taking fraud alerts and sending them over via Kafka messages into ServiceNow to be worked by agents in their fraud detection team. In insurance, it could be leveraging claims data and bringing that into ServiceNow so that claims agent can work. And again, the resiliency and scalability of Apache Kafka really helps drive those workflows at the speed of business. Additionally, IT use cases, populating your CMDB with mountains and mountains of data. Kafka is really good at streaming that data into the platform. And then also organizations are looking to get some of their data out of ServiceNow and into other enterprise applications for maybe insights or collaboration. And so we also see the ability to use Kafka to get data into a data lake for other data processing use cases that they may have in their enterprise.

Awesome. That being able to utilize all that data would certainly be powerful to kickoff events and to look for trends. We have another question here from, Asma. The question is Document Intelligence, can you elaborate? Can you elaborate to us about Document Intelligence. The question is what software is it used for? I imagine the meeting there is like what types of use cases would we see for Document Intelligence?

Yes, absolutely. So DocIntel is a really cool capability, which allows for you to have images or PDFs within the ServiceNow platform. And we have our own AI infrastructure in which we would take those documents. So let's use a use case example. You're doing a finance workflow within the ServiceNow platform. And maybe you are getting a purchase order attached to a record within ServiceNow. That purchase order is a PDF. We then have used Flow Designer to send that PDF over to our AI training infrastructure. It is going to do the entity extraction, so we might be grabbing off the purchase order line item, the purchase order total, the receivable address and we bring that back, that model back into your instance. We do the entity extraction and alignment to those fields that can then be used to drive a particular workflow within your finance department. So the software being used for it is kind of proprietary ServiceNow capabilities that we're using for that AI-driven entity extraction.

That's really cool. And I think that limits the number of keyboard errors, which an employee might have -- I know I have a hard time control c-ing, control v-ing over from an e-mail let alone something from an invoice or trying to fast finger it into the system.

Absolutely. That is the vision for all of the automation engine capabilities. We are let's eliminate the human error where possible using all of those different capabilities, whether it'd be DocIntel, RPA or API-based integration. So Scot, we have a question in your area of expertise. And I know that you've been flying around the country doing workshops with our customers on building the low-code applications. And typically, teams are given about 2 hours to build those applications. And I'd be curious to learn some of those applications that our customers are able to build in a shorter amount of time?

Absolutely. The workshops are some of my absolute favorite activities that I have the privilege of doing to be able to see our customers get hands on with these tools and go from little to no exposure to building out an application by the end of the day, I think, really demonstrates how quickly you can get to that time to value, especially considering that one of the big advantages of a capability like Kafka is that iterative nature that build quick nature of agile development. Because as I stated earlier, we just can't take 6 to 8 months anymore to build out these huge systems. So these types of workshops we spend the first half of the day going through a, here's why you should care about low-code, because it's here and it's not going anywhere, and it can help you. Here's how you can utilize our system in terms of a hands-on lab. That's about 2 hours where customers get their own instance. We take them through our labs, so they get hands on. And then in the afternoon, it's ideating around, let's break up in a team. So what are some use cases that impact you or your team on a daily basis. I've done dozens of these and probably seen hundreds of use cases built out. I think some of my favorite ones are a pay time off use case, which was done by a very large manufacturer in which 32,000 of their plant operators have utilized paper-based forms to submit any kind of pay time off request. They would literally fill out a PDF and deliver it to their manager. That manager would look over it give their approval, and then they would either hand deliver it to payroll or send it via interoffice mail. Payroll will then swivel chair to another system to look some stuff up. And eventually, it gets back to the person making that request. You can imagine the length of time that, that process took. I mean, if you got a Groupon next week, for a cruise you were trying to get on, you're not making that cruise. Well, in about 2 hours, this team built out an MLP, a minimum lovable product for that pay time off request. It was a form that someone on the platform could access via ServiceNow. They fill out their information. It routed several layers of approval right in the workflows they created that day. And by the end of the day, they were able to have an offering that they could have put into production as that first step. Some other ones I've seen are, I've seen gamification of the knowledge base where they've created a process to allow people to upvote knowledge-based articles and then the record points to kind of gamify that. It's been pretty awesome.

Yes.

What's the other question? Go ahead.

No, that sounds like a really impactful use case. I would almost imagine like the time it took for somebody to fill out one of their PTO forms is about the time it took to build the application.

Yes, you're about right. It's especially considering that many of those [ playful ] operators, they don't have active directory accounts. So utilizing a tool like ServiceNow provides a lot of benefits for them. So let's see, I've got another one here for you. I was asking about Document content extraction. And if it takes care of the PII cleansing requirements? What can you tell us about that?

Always the security topic when you talk about documents and data handling and all that kind of stuff. So yes, absolutely. So we leverage the existing sensitive data handling plug-in within ServiceNow. Should you send over a document and you wanted to, for example, extract a social security number, right, you may have that as part of your use case. We would send that data over and it would adhere to all of the platform sensitive data handling, which could be masked, encrypted or obfuscated or deleted whichever method you would do or need to be in alignment with your secure data handling. So the platform provides that, DocIntel, just leverages that existing platform capability that's available throughout all of the applications that you may use. So with that, Scot, I know we only have a couple of more minutes, and we want to make sure people are able to get on with their day and hopefully learn something from us today. We wanted to just part with a couple of notes and one of them being about our big knowledge event, coming to Vegas, May 7 through 9. This is an opportunity for our customers and prospective customers to learn more about the platform through 500 breakout sessions, meet with experts like myself and Scot, again, and also get to network with other like-minded customers and get the insights into what they're doing on the NOW platform and learn more about App Engine, Automation Engine, as you've heard from us today.

And then if you want to view this webinar going forward for anyone that wasn't able to make the call today, this and tons of our other great webinars are available to you on-demand at the link on the screen. So with that, thank you, Brian, for joining me. This was a lot of fun. And thanks to all of our great customers out there that have joined us. We really appreciate you taking the hour out of your day to be with us. And if you have any questions, feel free to reach out to your ServiceNow team or hit us up, and we will be happy to help.

Thanks, all.

Thanks, everybody.