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

All right. It looks like everyone has settled in, so we'll go ahead and get started. So welcome, everyone, to the Demo Center. My name is Dominic Liu, and I'm a solution consultant here at ServiceNow at the San Diego office. And today, we're going to be covering HR Service Delivery, specifically how we can create those connected and engaging experiences for your employees with the ServiceNow platform. And before we get started, I do have a few housekeeping items to review. All lines on today's call have been muted to prevent any background noise. So if you do have any questions, I definitely encourage you to use the Zoom chat feature and I'll be checking that throughout today's session. And today's presentation is scheduled for 60 minutes, but we're not expected to take the full hour. So you'll definitely get some time back in your day as well as leave some time for any lingering questions. And if I don't get to your question during the demo, I'll definitely follow-up with you, whether that's at the end of the demo or via e-mail depending on the volume and complexity of questions. So with that, let's get started with today's presentation. So quickly going over the agenda for today. We'll begin with a platform overview, giving you a general idea of ServiceNow's platform. And then I'm going to talk about how HR Service Delivery boosts employee experience and productivity across the entire enterprise. And then we'll go through a detailed demonstration into the ServiceNow instance where you'll see how this all works. And finally, we'll wrap it up with a recap and cover any remaining questions. So I want you guys to first focus your attention to the bottom. Here, you can see all the different third-party applications that our customers are using on a daily basis basically to keep the businesses running and these applications are great individually. They address the company's needs and fulfill specific business requirements. But a common issue that we're seeing with these applications is that they don't have efficient workflows. They don't communicate with each other as they're all different system of records, almost like they're speaking different languages. So that's why we have the Now Platform, which sits on top and extends across all the different applications in your business where it takes the record data and transforms and integrates the data together as a system of action, leading to better efficiency and performances through a single platform, one data model and one architecture. And as you can see on the top of the screen, there are prebuilt solutions ready to use. So there's Customer Workflows, Industry Workflows, Employee Workflows which we will be diving deeper into today, Finance and Supply Chain workflows, Technology Workflows. And last but not least, if none of the other prebuilt solutions is what you're looking for, we have Creator Workflows. So ServiceNow's platform is a great solution for all businesses, allowing companies to bring better efficiency and organizational agility. So now let's talk about the goal of the unified employee service experience. So we want to provide a single portal an easy navigation to Workday and all the other HR systems as well as any other enterprise system. So we want to provide a single layer of engagement that guides those employees to the right people, information and systems on demand without having to navigate across other systems. And at ServiceNow, we always like to say that others don't have to lose for us to win. And that's because as a platform, we aim to sit on top of those system of records that you already know and love. So we want to integrate with those legacy systems that you already have. And we're breaking down those silos between each system through our workflow, so that we can bring together information to the employee on their end. This way, we're creating that single pane of glass, reducing the swivel chair between applications in order to equip employees with the ability to make data-driven decisions. So what we know is that there is a direct correlation between employee happiness and business success. We can see here on the screen that when employees are happy, sales increased by 37%, productivity is boosted by 31% and employees are more accurate on their tasks. So this means that employees are more likely to stay at the organization, which is the goal for every company. And then looking at the challenges we see in the HR space, we find a lot of potential customers really want to deliver a consistent experience across the enterprise. So transactions in HR work is usually on the supervisor or managers. So let's say, for example, passing e-mails back and forth or creating their own logs or spreadsheets on Excel. All of this information is shared through things like e-mail or outlook and different Internets and it tends to be very scattered. And then at this point, the question really becomes how can we enable our customers to reduce that scatter as well as do more with less? And now I want to hit on a customer of ServiceNow called Zurich. There were facing some challenges of having multiple systems and employees were having a hard time finding information they needed. So for example, maybe they had to jump to a specific system and do a certain tasks, such as finding benefits, things of that nature. So once they implemented HR Service Delivery, they had that unified single unified system where all employees go to find the information they need, and they were offered a self-serve to help them solve their cases before they were even submitted. So we can see here from the stats above, 94% of employees use the HR portal every month. There's a 2-click average rank from employee searches, and then there was a 35% increase in knowledge-based article views compared to pre portal launch. So this is just one example of how ServiceNow's HR Service Delivery can benefit a company, but we'll dive into the instance in a bit to get a better view of how this all works. And then before hopping into the demo, I want to introduce a few personas that I'll be using to highlight the HR Service Delivery end-to-end experience. So the first persona is Nick and he is that new hire that is looking to ramp up by completing his onboarding tasks as well as gather any information that he needs. Second is Maria who is Nick's busy manager who aims to increase their employees, experiences pertaining to moments that matter through her employee center. And then we'll follow with Harry the HR Agent through his HR Agent Workspace in order for employees to get relevant information fast. And then lastly, we have Anna, who is our HR admin and she's going to be using dashboards to understand the company trends and has a very intuitive way to change processes such as the onboarding process, we will be following Nick throughout. So like I just mentioned, Nick is onboarding. He's that new hire, and he's had an exciting time in his career as he just accepted his dream offer with his dream company. So it's moments like these when we talk about moments that matter. And what Nick is expecting here is a great onboarding experience. So having the ability to interact on all his needs in one place from one experience. So not only does this matter to him, but also to us as an organization. In order to make sure that he can get all the information that he needs and take actions assigned to him quickly in the name of productivity and engagement. And for Nick, he likes to work how he wants and for him, that's going to be through his mobile device. So he likes to stay on the go in the Now and the Now Mobile app allows him to do that. So all those information here on the top have been carried uniquely for him. So such as this -- so the right information for the right user provides that best experience. So for example, here, it knows that Nick needs to order a laptop before his first day of work. So what he can do is click into the banner. And you can start ordering that laptop that fits it needs and get that done before his very first day of work. So as you can see, within a few clicks of a button, a request for a new laptop has already been submitted. And then Nick can also go into his journeys, and he's able to proactively see information and tasks that will help him through his onboarding process. So within Nick's journey, he gets a high-level overview of what's overdue, the tasks that are due soon and all of his tasks that he needs to complete. Essentially, this is going to give Nick that single pane of glass view through his mobile device. So clicking into all the tasks that are due soon. Here, you can see the different tasks such as the equipments that he might need, but for example, here, this is an NDA task. So items such as documents like this can be signed using our native e-signature capabilities or with your preferred e-signature tools such as Adobe Sign or DocuSign. So just like that, we were able to complete the NDA task within the mobile device. And you can really see here that task span across the enterprise. So it's no longer just HR onboarding. You have the benefit of altering all the teams involved, ensuring a timely onboarding experience. So there's one consolidated list of tasks surfaces up information from all systems, even allowing you to tap into your core HCM to bubble up any tasks needing to be done in a variety of places. That way, Nick is never alone. No matter what phase he is in during his onboarding or employee journey. So with Nick, we just saw his new hire satisfaction increase because all the tasks were laid out for him from his -- all from his phone. So which is where he prefers to work. He also had a faster time to productivity because he didn't have to wait for a new laptop to be shipped to him. Instead, he can get started right from his mobile application. And then lastly, he becomes more efficient at fulfilling his work. Next, we're going to be looking at Maria, the manager and Maria is very task-driven and wants to provide the best possible experience for her employees through her very own one-stop shop. So Maria as an individual, also has her own unique experience through several engagement driving pieces of content like the banners here, videos as well as upcoming events. So essentially, what we have here is the employee portal, which we like to call the one start shop for everything in all things that Maria needs to serve her people well. Again, we will see that with Maria just like Nick has a single source of interaction here for all her actions. Just as Nick's content was tailored to him as a new hire, Maria's content is specific to her as a manager. Like what we just saw with Nick, Maria has a task list of her own where she can quickly work through action items assigned to her. So basically, the system even proactively answers the questions before she even has them. So this arms her with the information she needs and proactively so that she can answer any and all of her team members questions. So here, Maria is able to tackle all her to-dos, stay in the Now and pass that productivity engagement onto her team like the servant leader that she is. So now going back to our home page. For example, Maria has had a big life change like her recent marriage. So she can quickly search through our knowledge base to find any information regarding the information that she wants to find. So for example, here, she can find information regarding her benefits because she's interested in finding out whether or not she can add her spouse. So here, she can find all the benefits overview and any information pertaining to that about enrollment. And anything that relates to her benefits all from her own knowledge base. So Maria is going to go into this benefits overview article. And she's going to read through this article, and after reading this article Maria understands that the next step to adding her spouse to her benefits. So earlier through the search, she saw a general benefits inquiry in which she knows she can submit her question asking, can I add my spouse to my benefits. And then she can go ahead and submit it and then we can see here that with ServiceNow, Maria is going to be provided with that full visibility into the details and the full end-to-end life cycle of this inquiry. So this is where she'll be able to see any communication or updates that come back from the agents and she'll be able to provide new details and information right back to them through the activity stream here. She can check on the status 24/7. So there's really no more need of any phone calls, e-mails or repetitive recounting of case details for any people that she ends up talking to. And last but not least, she still needs to add her spouse to her emergency contacts. And this is where she can perform that interaction through our Virtual Agent, which will result in a new workflow action in her HCM system. So starting a new conversation with a Virtual Agent, she can ask whether or not she can add her spouse as a new contact in her emergency contact list. So from here, the Virtual Agent will prompt her with a couple of different questions. And it will even provide a list of the current emergency contacts to avoid duplicates. So it looks like the Virtual Agent doesn't want to cooperate with us today, but it's okay. But what I can do is kind of just walk through over what would happen normally through the Virtual Agent. Essentially, it's going to ask a couple of different questions such as the basic information about such as the relationship, the name, the phone number. Essentially what the Virtual Agent is going to do is kind of hold her hand throughout the process. So she never has to really guess what she used to include. And then outside of Maria's own employee journey. Her employee center is still that single source of truth for anyone within her team. So let's say that if Maria was coming back from her honeymoon, for example, following her wedding or simply wants to get a pulse of what's going on with the team. She has the information at the click of a button within the Team Insights tab. So from here, Maria can keep track of the team's PTO, what they're requesting, which seems to be a very hot topic as a recent and then track her employees journeys as well as stay on top of all the learnings that will strengthen the team. So once Maria is caught up to speed, she can go a layer deeper by tracking the journeys of those on her team through her overview tab as -- of her Manager's Hub. So this Manager Hub essentially allows Maria to keep track of personal and professional transitions and milestones and the resources to enable her as a manager to help her team. So now Maria has that high level overview of the team. But let's just say that we want to keep up with our new hire Nick's progress specifically or anyone else on our team. She has all the information within her overview space within her team members' tab. So as you can see, Maria has many different employees add different journeys in their careers. So some onboarding, some offboarding, some being promoted. So we can highlight the journeys at risk where she could easily step in for those moments that really matter for her team. So for instance, here, we can see Nick is currently on his onboarding journey, so we can go ahead and click into it to get more details. So within this journey designer, Nick -- Maria knows exactly where Nick is on progress, can see all the different upcoming activities, what might be past due, what to do soon and then some if potentially they're past due, she can kind of reach out for support. So essentially, this just gives Maria the confidence in knowing, Nick will have a seamless onboarding experience and it's really relieved to know that she doesn't need to reach out to multiple teams to see updates or even know if others are aware of any new coming on to the organization. And then at any point, she can edit this journey to add additional learning courses, notes, mentors and even reorganized the tasks created for her, manager one-on-ones and team lunches. So for example, here, we can add a new mentor for Nick, she can edit this. And for example, she thinks that Stephen may will be a valuable mentor for Nick to learn from. And in this case, she can go ahead and add him as a mentor. So basically, for Maria here, all the complexity is pretty much hidden to her. And basically, she's able to handle both her teams and her own interactions and actions all for one single place. So going back into the Manager Hub, we can go ahead and focus on her team and her Manager Library. So essentially, what this is? it's basically going to act as a central place for leaders to receive news, begin enablement and even see any upcoming events. So this visibility really allows Maria to stay up to date and once again step in for her team with any support required. So just to recap with what we saw with Maria, we saw that she was able to increase her productivity by being able to take action all from her employee center. She's able to get proactive answers into what her team is requesting or asking for. And then she's also able to dive deeper into having those deeper engagement through the one-stop shop of Team insights. So now let's talk about Harry. Harry is the HR partner and has mission control of all the items that have been intelligently routed to him and his team for a swift and accurate action. And the service level agreements and swim lanes really allow him to keep his focus where it needs to be something that he struggled with in the past while having to manage multiple systems. So basically, here is the HR Agent Workspace, and this is what Harry would kind of begin his day and start logging in. So he gets an overview of all the different tasks that he needs to begin working on. So Harry's access and security really allows him to see questions like the general benefits increase. So staying on top of this queue, this newly created task really catches his eye, and he wants to take swift action as he knows that he can resolve this really quickly. So going into the case, he can begin work and get this inquiry resolved for Maria. So as a layer of [indiscernible] here, Harry is pretty much provided with all the information he needs to work through this case. So you can see clearly where -- who this requester came from, where this request came from. And then there's an activity stream in the middle in order to communicate with the requester. And then there's basic information about the request on the right-hand side. So essentially, Harry has everything he needs at his fingertips rather than needing to navigate to other solutions such as his core HCM. And for Harry, it's important for him that he doesn't push Maria down a patch. She's already been with the Virtual Agent or knowledge articles. So he always likes to see where the employee has been in order to see kind of keep it a frustration-free process by not offering the same information they already found. So here within the knowledge-based articles read by the user, here you can see the knowledge article is reviewed by Maria in order to ensure that he's not going to be providing that same repeating information. And then last, but certainly not least, Harry wants to make sure that he's providing a consistent yet accurate information to all the employees that he interacts with. So the response templates do exactly that. Not to mention quick work for him to allow him to move on to his next focused work. So here, he can go ahead and copy the response to the clipboard and then paste it into the activity stream and post it so that Maria gets that information and that this information he's sharing is not different between all the different employees. So Harry was able to remain focused and provide appropriate and swift action to Maria and had the tools right at his fingertips to do exactly that ensuring Maria's satisfaction while enjoying his own visibility across the organization and his work, which is something he's never had before. Now I do see a question in the chat. So someone asked can cases be auto-assigned and how does that work? So that's a great question, and thank you for asking. The answer is yes. So cases can be auto-signed via skill set selection, Round Robin, machine learning or a variety of different ways. Basically, the customer can kind of decide what options they want to use and different groups can do different assignments in different ways. So for example, HR can do all the manual assignments while the general inquiries can go to a Round Robin to kind of allocate them evenly to a certain group. So I hope I was able to answer your question. So just to recap with what we talked about for Harry, we were able to see the improved operational efficiency through that agent HR Agent Workspace and then we were also able to see exceeding delivery expectations so to Maria and all the other employees as well as clear insights into the case and the current status of it. And then finally, our last persona for today is going to be Anna, our HR admin. And we're going to be able to view the different life cycle events which make up those crucial employee moments. So with Anna, we've seen onboarding today in this demonstration, but think again how this can be leveraged for workflow automation around other moments like off-boarding promotions or transfers. So within life cycle events, it's composed of different activity sets where we can see different items needed to be completed in those respective buckets. So here, we can see the different phases, the tasks that go out immediately and those that follow each of these stages are pretty higher preboarding day 1 and so on. So if at any point in time you want to change this process, the system is intuitive enough for Anna here to simply just drag and drop in later to the same activity set or if you wanted to, a different activity set. So even if Anna had no coding or heavy technical experience, you can pretty much just adjust her organization's process flow without needing to leverage another team. And then if you have those different processes when it comes to onboarding in a different country, we can also use this to adapt and define those different processes, which means that specific employee audience groups can receive different tasks relevant to their location and role. And then not to mention that this is also a fully scoped application. So you can define privacy rules based on user roles, which will restrict sensitive information to only those with specific access to see and manage. So basically, within our life cycle events, we will give you the blueprints to allow for jumping in and defining your requirements with ease. And then lastly, let's look at analytics to help you how processes are working. So analytics play an important role in kind of gauging the effectiveness of the process and continuously improving it. And Performance Analytics brings together data from across ServiceNow into actionable dashboards like this. So what we're looking at here is the HR manager dashboard. And Anna can really gain insight into the HR case volume, satisfaction scores, basically allowing her to answer any big picture questions in a matter of minutes. So she's going to be provided with insights on how HR teams are meeting expectations, and the HR manager can measure and improve the influence on their team on meeting and exceeding these workforce expectations. So this is just one of the delivered dashboards among many others, including one dedicated to onboarding and the ability to build out a dashboard with your unique KPIs. So for Anna, we were able to see a personalized onboarding experience. She was able to utilize dashboards to get a current understanding of the employee experience and how she could exceed those expectations. And then lastly, for the personalized onboarding experience, she was able to use an intuitive life cycle event builder. So to recap, this really sums up the demonstration for today. And then I just want to recap some of the things that we talked about with what ServiceNow can do. So with ServiceNow's HR Service Delivery, we can boost employee productivity and engagement across the enterprise. We can transform employee services to make new hires like Nick have the best possible experience when it comes to moments that matter. And lastly, we can reinvent your organization to create new ways to work. So that concludes my presentation for today. Thank you, everyone, so much for joining me. I'll be sticking around for a few minutes. So I do see a question in the chat and I'll get to that in just a bit. But if you do have any questions, maybe after the demo, you can please e-mail the democenter@ servicenow.com e-mail or even scan the QR code for more additional information relating to HR Service Delivery. So yes, thank you, everyone, so much for joining, and have a wonderful rest of your day. Thanks, everyone.