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

Well, hello, everyone. We're so, so grateful you can join us. We know this is a busy time of year, and I am delighted to be joined by my colleagues, Mark and Harshad in a conversation about GBS transformation and specifically looking at this really important use case around source-to-pay. So we're excited to dig in with you today. Please flood the chat with questions. We know this is a topic that's top of mind for many, particularly in this macroeconomic environment. So send us your questions and your curiosities. We'll save time at the end to address as many as we can. So to start, maybe, gents, let's do a round of intros. Mark, do you want to lead us off?

I sure will. Hi, everyone. My name is Mark Labedz. I lead product marketing for our Finance and Supply Chain Workflows here at ServiceNow.

Great. And Harshad?

Yes. My name is Harshad Khatri, and I am part of the Inspire Value team, and I'm a senior strategist, having been done this kind of work for the last 25 years.

Yes. And Cara Herrick again. So good to be with all of you. I lead GBS Product and Solutions Marketing here at ServiceNow, which I'd like to say means I'm a student of how the platform enables GBS organizations to thrive. And maybe another asterisk, I'm a practitioner by way of background and a former customer. So this idea of leveraging the whole platform as we think about global business services and shared services is really my lived experience and something I'm so, so passionate about and excited to dig into today. So again, we're going to lead off with a bit of context setting pulling back from a specific use case. How do we think about ServiceNow in the context of global business services. We're going to hit on that first. We're going to use source-to-pay as an illustrative example to hopefully bring that to life. And Harshad is really going to deep dive in value, right, which we know has to be front and center, particularly in GBS context and of course, leave time for Q&A. So where do we start, I mean I think really coming to the table with the belief that shared services and global business services organizations have this tremendous potential to impact the broader organization. So that is what we bring to the table. I think, for so long, these structures in particular have been sidelined as transactional or administrative-- or it's the work, other business units don't want to do and while this sort of execution of transactional administrative work at scale is still a really important identity of these organizations. We're seeing a pretty massive shift in terms of what shared services and global business services can be. So transformational engines for the business I think pushing really new and different ways of working, of course, taking out cost without massive restructuring events, which were all in search for stewarding enterprise experience, I think, about the impact that these organizations have on the experience of employees and customers and suppliers. And this idea, I think, of generating insights and consuming insights that then can be fed back to the business in the service of improvement. So the potential is immense and I think I speak for both Mark and Harshad when I say it's just an incredible privilege to enable and partner with many of the largest, most beloved companies in the world on their journeys in this space. So what's standing the way, I think, regardless of maturity, we see very similar challenges when we speak to our customers. And I think it boils down to the fact that there's really no connective tissue between departments and systems and teams, right, so I think from a service delivery perspective, of course, we want to deflect basic inquiries. We want to direct the flow of work to the resources best suited to it, right, read lowest cost resources. And then we really need the insights about the work and the flow of work in order to drive continuous improvement, which is our kind of life blood and shared services. But again, I think in so many environments, information is very dispersed. So in your own organization, you probably have multiple portals numerous SharePoint sites. It's really difficult to navigate, it's difficult and confusing to find the information that you need when you need it. information is so really governed. So it may be out of date. I think there's limited ability certainly to push or proactively serve up relevant content via channels of choice to users. And then related to that, the intake process is often highly fragmented. And so it's not uncommon for large-scale shared services or GBS organizations to manage hundreds of shared inboxes, which we know, right, limits visibility for the requester. It limits the efficiency of those responding to the request. And then from there, once the work is sort of in the hands of shared services, I think we certainly know I've certainly experienced this when I led a service center without enabling technology. We really don't have a great way to route the work to where it needs to go. So many of these types of requests require input or approval or information from other teams, and so how do we do that in a more efficient way. And then I think it's not necessarily depicted on the slide, but underlying all of this, right, is a very complex and fragmented technology ecosystem. So systems like ERPs, often multiple of them, HCM systems, right, payroll and time tracking systems. This is innate in a GBS and shared services context but it certainly isn't helping resolve, I think, some of the pain that we just described. When I think about what ServiceNow ultimately does kind of agnostic of function, we want to set the pattern of transformation. And of course, it's all infused with AI and machine learning. So we give users, again, be they employees or suppliers, customers, vendors a single place to go with information that's relevant to them based on their persona and their unique context. We want to do that so that we can deflect the sort of most basic inquiries or questions, right, and drive self-service. I think about AI search and summarize results is really augmenting this component of the platform. We provide the workflow engine needed to direct work and connect teams in multiple departments, right? So I think about capabilities like automated routing when -- and again, in so any context that's happening manually. And then when you do that, you have visibility to the flow of work and the insights you really need to manage your business, right? So what your employees care about what they're confused by, I should say, users care about and confused by where is we're getting stuck, who's holding on to it for too long, capabilities like process mining can be really, really instructive. And I think we do that with capabilities around, again, kind of workflow and intelligence and core system integrations that aren't separate offerings or bolt-ons. They don't require additional APIs, but our core reusable components of the single platform at ServiceNow, it's really our differentiator. So again, this pattern, which has really shown kind of up top. And as we think about those platform components that, again, we mentioned just a minute ago, this pattern then gets applied kind of across end-to-end use cases, whether it's hire to retire or source-to-pay, which Mark will dive into a minute or lead-to-cash, both from an out-of-box kind of packaged workflow perspective, but also in terms of low-code capability, right? Because we know that in some organizations, there's unique need where we don't yet have kind of product coverage for these particular areas. So again, I think while we're going to shine a spotlight today on source-to-pay transformation on ServiceNow, we ultimately want you to be thinking about the broader patterns of what this platform delivers as it applies to other use cases. And so we love showing this slide because I think it reminds us not in ServiceNow language but in your language, as a customer often from a global business services perspective, the sort of breadth of the portfolio that you're managing. And it's potentially a place to start as you think about where to begin, right. And again, for some of these services, ServiceNow offers something that's purpose-built, that's out of box. For many of these, we see customers using our low-code tools to develop something that makes the most sense for their unique context. If this all feels a bit theoretical, we understand. And so that is why I'm so excited to hand it over to Mark. And he'll talk through how the platform and again, these sort of patterns of transformation get applied to source-to-pay specifically and hopefully bring it to life. So Mark, over to you.

Great. Thanks so much, Cara. I want to spend the next few minutes talking specifically about source-to-pay and source-to-pay, of course, within the context of GBS or shared services or because we're seeing more and more companies bringing procurement into GBS. This is just 1 such study. You can find plenty of others, I'm sure, but 48% of companies responding to Deloitte said that they're including procurement, source-to-pay functions within a GBS organization. That's up 6 points from 2019. Those of you who are GBS practitioners and Cara and you probably recall this, there are 4 big reasons that GBS models help, right, standardizing and centralizing those processes that can be spread across a variety of systems and teams sometimes to the point of making you question, are they really processes, or are they just collections of activities, right? Achieving effectiveness in meeting those targeted outcomes, whatever the targeted outcome might be for your team or your company, right. Organizations have a variety of different reasons for doing this but bringing it together in that GBS environment, bringing procurement, for example, under that GBS umbrella means that you can drive increased spend under management. You can make sure that your vendors are hitting the required -- various required things that you, as a company, have decided are important to you in your vendor relationships. And of course, applying technology to eliminate the manual processes, moving things to self-service where it makes sense and navigating the usability gaps in sort of the ERP and those related systems. I want to focus on those last 2 because I've spent a long time in the ERP-centric process space. And these are issues that pop up over and over. And there are issues that are endemic regardless of what your ERP system is or which version you're on. So bringing technology into the mix along with GBS, really pays dividends. And I want to show you how bringing that all together on the ServiceNow platform really multiplies that dividend. So let me come back to a slide that Cara showed earlier, and I'm going to drill in a little bit closer. And maybe put a finer point on it by saying that these systems, this disconnection across the source-to-pay environment creates frustration everywhere. It creates frustration for the employees who just want to order a new phone. It creates frustration for the vendors who are trying to get insight into whether or not their invoice has been paid or will be paid. And of course, it creates a lot of frustration for the procurement professionals, for the vendor management professionals, the people who are tasked with managing this overall process because they're going back and forth between a variety of different systems back and forth between a variety of different teams usually with different user interfaces usually with different ways to work, and they're having to be the human integration point, right, bringing those different systems together to get the outcome that you want. It's a challenge and it's a frustration across processes. That brings us then, of course, to ServiceNow, one place to initiate and support those procurement services. If you're familiar with us in the GBS context already, it's probably from an employee experience perspective. You're going to see a lot of, I'll say, common themes, common ideas here because we're building that on the same platform in the same way that you want to bring your processes into that GBS umbrella for standardization. I'd suggest that bringing them onto the same technology platform provides a lot of those same benefits at that technical level. So whether you're connecting with Coupa or SAP, Oracle, Ariba, variety of other source systems. And no matter who those users are, whether they're employees, procurement professionals or business partners. And any way that they want to interact with you from a desktop to mobile, e-mail, chat, voice, we can bring it together into a single experience layer that makes it easier for everybody to get work done to make better decisions faster. So let me click through here. I mentioned that we're building from the same set of components. It's a single platform. And I want to go a little bit deeper here to talk specifically about how we bring that together. And then I'll highlight some value props for you based on some demos and actually show you the product. ServiceNow is a platform that spans your entire business. It was built as a platform from the very beginning. Most people know us for IT ticketing but of course, it goes far beyond that because those same disconnected systems, the same processes, the same process challenges, team and orchestration challenges that have applied to the IT space, to the employee space, to the customer space and of course, into procurement, source-to-pay, finance and supply chain. So we take the same common components we apply them to different -- the same basic idea, the same basic problems, but in different lines of business. And for example, you got things like source-to-pay procurement workspace or supplier management workspace. In the context of GBS, let me point out Employee Center at the bottom, right, one place for an employee to go to get their work done, to answer a question, to raise a request. That single point of entry brings it all together. And that's really where the power of the platform gets exposed to that individual user. So let's talk and let's show a little bit of the product here. We said that you can double the number of requests handled by your team. That's a figure based on early customer discussions as well as our own analysis. I don't want to get too far into that. Harshad is going to talk about value in a few minutes here. But we're deflecting the how do I, the where should I, where is, what's the status of all of these requests that take time. They fill up shared inboxes, they leave the requester, the employee frustrated. They leave the fulfiller that procurement professional frustrated. Maybe you're sensing a little bit of a theme here. There's a lot of manual tasks that can be automated. And of course, we bring it together into a single workspace to get work done, again, regardless of what that underlying source system is. So let me show you a quick example, managing a supplier issue. This is a pretty common exception that happens within source-to-pay, right? Something isn't working like it should. There is an issue. That means that there are a variety of different people usually from different teams that have to roll up their sleeves and solve the problem. In this case, we're missing some bank or we need updated bank account information. So we started the Employee Center. In this case, right now, I'm a finance professional. I'm actually trying to pay a vendor but I realize that the bank account information I have is out of date. So I'm going to create a new case. If you're familiar with ServiceNow, the idea of a case should be pretty self-explanatory. If you're not familiar with ServiceNow, just think of a case as a way to encapsulate all of what you need to do for a given issue or incident or activity. It can be the people, it could be the process steps, it's the metadata involved in resolving it. For the case of this demo, it's pretty straightforward, right. We need to onboard or re-onboard this supplier get the updated bank account information and give it into a finance system. So when I, as a supplier manager now log into my supplier management workspace, I see that this case has been assigned to me, basically figure out what the bank account is, what that information is. and get it into the finance system so that we can pay. I can bring a vendor, a business partner into this process so that we can collaboratively resolve it. Typically, this could happen via e-mail, a phone call, a variety of unstructured work activities. Ideally, though, we bring it together into a case. We use Supplier portal. We use the ServiceNow platform to get everybody working together because that means that we have speed and efficiency gains that we can realize. I create the task and assign it to my contact at the supplier. He then receives the notification and realizes that he has a task. He can provide that information back to us via the supplier portal, where it's secure, it's tracked, it's managed. It's brought into a structured environment or, of course, we can ingest information from a variety of other communication sources as well, phone, e-mail, chat, text, et cetera. But in this case, we're showing it coming back through the portal. I can provide it as the vendor, as the supplier, I can provide the updated information, and then this case gets closed. And the finance professional, the person who opened the case who recognized that there was a problem, that there was an exception to be managed, gets notified, then we can pay the vendor. Everybody is happier, the frustration levels go down. All right. The second key value prop here is really driving an increase in spend under management. If you're not familiar with spend under management, it's just the idea of bringing together of focusing the money that your company spends generally through an employee to vetted trusted vendors, right? And there are a variety of reasons that you want to do it, everything from just understanding the overall spend environment of your company as well as ensuring that you get the right discounts, taking risk out of the system because you're working with vendors that have been vetted, you know you're going to get what you ordered. For example, or they meet ESG goals. We mentioned that earlier. So consolidating spend, centralizing it within a procurement organization so that they can have the insight to negotiate better deals at the next renewal or to seek out new vendors if there's a performance issue. Gaining that consolidated visibility is really important. There are a few ways that you can do it. We tend to take the approach that focuses on making it easy for the employee to do the right thing because I think most employees just want to do what's easiest. And if we make the easiest thing, the one that keeps them within the process within the guidance, within the defined parameters of your purchasing organization then everybody wins. So let's take a quick look at that every day buying experience, because if you're going to pick up source to pay, this will certainly be something that you're interested in, right? Once again, hopefully sensing a theme here, start with Employee Center, 1 way into the platform. That is the power of the ServiceNow platform. I go in and I can request in this case, I'm going to use chat. I find that that's just a quick, easy way to get where I need to go. So I mentioned that I want to get a Yeti microphone. In this case, I'm going to be a marketer. It's easy for me, easy role for me to play. I get to buy things and hand them out to folks. So I want to make sure that I get that the name brand, the Yeti microphone, the expensive one, of course. And I've given my boss a heads up. This is an approved spend. I've complete the information needed here, provide that reason. It brings the catalog through. So I already have -- from a vendor perspective, if I'm a purchasing professional, I already have the vendor identified. This is a trusted vendor. All of that paperwork is out of the way, so to speak. My boss gets the approval. He's probably out to lunch, so it pops up on mobile. It's easy for him to review, click, approve. And then that purchase request makes it through to the procurement professional for review. You can configure the review cycle here in a variety of different ways, whether that's by purchasing or my cost center, whether it's by product type, by vendor, purchase price, there are a variety of different easy-to-configure thresholds that dictate how much individual interaction you have for any given purchase request all the way to straight through processing. In this case, because it ends up being a pretty large order, we can create -- we have all the information needed as a procurement professional, I can create a purchase order directly from ServiceNow. I don't need to go into the ERP system. I don't need to open a separate window and go into a purchasing system. ServiceNow is connected to those systems automatically. So it's 1 place for that procurement professional to go, to create the PO to issue it to that supplier. And for me, as the requesting employee, 1 place that I can go to track the progress of this because so many requests end up being -- this feeling of a black hole, right, I submit the request, and I don't hear anything. I don't know anything until somebody comes and informs me or I go and ask those status update questions. So this is another way that we're helping to deflect some of that high volume, low-value requests into shared services organizations. All right. Let me summarize here with the idea that this is ultimately creating a better experience for everyone, right. The requesting employee, the professional, the supplier. It's 1 user experience across the entire source-to-pay suite -- I'm sorry, across the entire source-to-pay process. It's not a separate procurement product. It's not a separate ERP system. It's not a separate finance or payment system. We bring it all together into 1 single UX across that entire workflow. That means source-to-pay cycle times are drastically shortened. It means supplier onboarding times are drastically shortened as well, right. All of the hassle, all of the paperwork between contracts, legal, finance, et cetera, as onboard a supplier, we can orchestrate that and automate it and eliminate the manual tasks. For example, hand keying line items from an invoice into an accounts payable system. Ultimately, it really is the power of the platform. So to finalize this section to tie it back to what Cara was talking about and to springboard Harshad here, we're unifying people, processes, systems and data, and we're doing that to accelerate end-to-end transformation. So as you transform business processes, as you look to bring more process into a GBS or a shared services environment, to gain all of the benefits that come along with that, look at the way that you bring together the technical, the system that supports all of that. One platform across customer, industry, employee, finance and supply chain, technology workflows embellished with creator workflows, our low-code and automation solution, and of course, all taking advantage of the capabilities from the NOW platform, right, that single platform, 1 data model, 1 architecture, with automation engagement, AI of course and security connected to a variety of different source systems. Harshad, let me go ahead and turn it over to you to talk and take us a little bit deeper on the value and how we bring that together for our customer.

Certainly, Thank you. Thank you, Mark. So I mean, by now, it's pretty obvious based on having listened to both Cara and Mark, that this -- our platform drives improved experiences across the entire well source-to-pay processes across functions, across lines of business and across the extended enterprise. So then the question we have to ask ourselves is, why is focusing on source-to-pay is so important? And quite simply, one is, of course, better experiences and make things easier, streamlined, resilient but finally, the real big rub is simply about the money. So if you were to look at any corporation, right, from a value standpoint, a significant portion of a company's external spend goes through the source-to-pay process, especially for indirect at end as well as a direct spend. So if we were to look at estimates, of course, how much you spend on indirect is what it is. But for the direct, it depends on the company size, type of business complexity, how integrated the process and mature are. However, based on our experience, what we found that conservatively, at least 50% to 60% of the external spend goes through the source-to-pay process. And there are benefits of making that simplified. Like Mark said, people will do what's simple, but making sure that what that simple is, is the right thing to do, increases the spend under management, reduces rogue spend, and that's where the real benefits are. So apart from just the cost, a very well-managed source-to-pay process streamlines the entire value chain coordinates across internal and external and external stakeholders drives efficiency, effectiveness and resilience. The whole value chain for source-to-pay. This is a pretty simplified version of what you do, but it's pretty comprehensive. You can see there are multiple stakeholders here. And if you were to look at Level 2, it's the whole thing from identifying sourcing to the very end on finance paying the stuff, paying for it as well as the IT, which maintains all of the purchasing master data. So the question having worked with so many customers over the past is the first question is they ask us because how do I begin or where do I begin? And the answer to that is pretty simple, right, one, don't boil the ocean, start with the path of least resistance, pick up the low-hanging fruit, especially where there are high levels of automation, which you can capture and streamline even further. So that -- in this case, it's all the white squares you do. And also, what's easy and how you want to do this is to make sure you start easy you capture victories and build momentum. So in 1 of the examples I'll give you is when we work with 1 of our customers is what they thought how they would do source-to-pay -- was, "Oh, this is very obvious what we're going to do." But what we -- when we went and worked with them doing discovery and understanding their processes and their maturity, what they realize is where they wanted to begin was not what they had originally thought about. So finally, what they did is they focus initially on the finance areas because that's where it was very highly automated and much more benefits from doing that, as well as building on the adjacencies of the finance, so that's all the IT, which drives finance as well as material receives and supply chain in area. And that's how we kind of built this whole discovery process, built quick road map for how to get through to the source-to-pay process. Now the next question, which we typically get asked is, all this is great, but how do I justify this whole process. And then once we -- what we did do for this is, you need to identify the value drivers as well as the calculations to put this together. So if you can see on the top and the bottom, the upper road essentially shows what the value enablers are and the lower row shows what the value drivers are. And so these -- once you calculate this based aligned with your corporate strategy and enhancing the source-to-pay processes. So you match that up with relevant metrics and improvement goals and then you can easily put together a quick value estimate. And over the years, what we have done is we have created a comprehensive repository of value enablers, metrics, benefits. And all of these are aligned by industry as well as process focus. So we depending on what kind of business you run, there are very standard value drivers as well as how much you can move the needles on this. And it's pretty simple. I mean working with folks like ourselves or some of your partners to identify what the value will be creating and capturing and then developing a business case. And in this case, typically, if you can even develop a phased business case and a phased road map. So question then becomes in is like where do you find the major areas of value. There are 3 or 4 major areas. One is in the finance, procurement, supply management as well as employee experience. And Cara and Mark through the presentation earlier, we talked about where the benefits are and examples of what they do. So from a finance standpoint, if you can do all the processes quickly better without delays and in a streamlined fashion. What you are really getting is lower days payable outstanding, which again is better cash management getting earlier payment from supplier again discounts. And more importantly, you're getting finance function cost reduction because you can do more with fewer resources. And from a procurement standpoint, the more you increase the procurement spend under control. Typically, we've seen companies going well above 80%. But for starters, if you're not there yet, you should be at least targeting 80% as your goal and then build as you go along, better rebates captured. That is a huge one. And we've found rebates, estimates to be pretty missed money on rebates, close to about 0.5% to 1% of the external spend. And if you were to map that to your corporation or your business, that's real money, which is being left on the table. And again, reduce increasing spend under management means reduce rogue spend reduction, which, again, rogue spend reduction is out of control, typically, so it's going to cost you much, much more. Also, supply management costs, procurement lead times and cash-to-cash cycle times. These are all built drop. So -- and then from an employee experience standpoint, increasing invoicing accuracies, shrinking processing times, doing touch-free invoices and reducing cycle times. All of that translates into doing more with less and doing it much better. And if you were to look at this, and this is 1 thing which I'd like to emphasize is all the drivers of value and which are on this page are actually hard dollar savings. That's something which reduces the cost base for your corporation. And this is significant benefits, and this is what is going to be the basis for your business case. We are going to reduce finance costs. We're going to reduce procurement cost, reduce supply chain and supply management costs and by improving employee experience, they're going to reduce being more productive and our employee experience is going to be better. So at the end of the day, I'd just like to emphasize, it's a whole lot about hard cost savings and through a good implementation of a source-to-pay process. Again, you're doing it today, but through a more integrated process through our solutions, there is real money to be had and there's hard money -- hard dollar savings. These are some of the areas which you can look at. These are the glossary of information where you can actually go to see where customers have actually used our solutions and how GBS solutions can drive efficiencies across your organization. And finally, let's -- I know it's been a busy close to an hour. There have been a whole bunch of questions coming in. So Cara, if you can lead us with the Q&A and...

Yes. Thanks, Harshad. I've been keeping an eye on Q&A. Maybe 1 to start, and I wonder, Mark, if you take this one. I think so many of our customers are on a multiyear sort of multimillion dollar ERP upgrade journey. The question is specifically around what ERP systems can you integrate with, but talk to us a little bit about how does ServiceNow fit into that type of ecosystem where a lot of investment both in resource and dollars have been made? How do you think about that?

Yes. So first of all, we integrate with all of the major ERP players. So anything from SAP, anything from Oracle, we have a variety of different ways. Those are out-of-the-box integrations, of course, with those major ERP players out-of-the-box integrations with, I'll say, adjacent systems. So things like DocuSign and other systems, Aptis, Icertis, things that are, I'll say, commonly in that source-to-pay environment plugged in somewhere there, data sources like Kraft or Tealbook. But we also provide integration frameworks so that our customers and our partners can produce integrate durable, dependable integrations across an entire source-to-pay landscape because we realize customers, Cara, to your point, they're transforming right now. They have a variety of systems. They will have a variety of systems. I think one of the key things to drive home here is that ServiceNow was designed for that integration challenge. Integration wasn't an afterthought at ServiceNow. It really is part and parcel of that platform approach to composing business systems.

That's great. Another question, and I wonder if this is shared among others on the call, can we pursue this type of approach even if we're not adopting a GBS model for service delivery. So I can lead off that, and then gents, if you have other comments, please chime in. I think we see right -- when we talk about global business services, we know we're talking about sort of an advanced form of shared services as it relates to maturity, right? So while there is absolutely in some organizations, this very specific organization construct, right, where you have the single GBS leader that has oversight across multiple sort of functional shared services domains. That is true. We -- McKinsey estimates about 80% of the Fortune 500 operate in some form of a GBS, though there's no kind of industry standard. So I think that's true. Again, when we talk about kind of connecting departments across the enterprise when we think about holistic insights, that's really important to a GBS leader. But I think we also absolutely see organizations kind of regardless of their level of maturity from a shared services perspective sharing an operational aspiration around GBS. And by that, I mean, again, the sort of end-to-end sensibility, this idea of governance, this idea of driving automation, at scale and execution at scale, how do we get faster, stronger, better, especially at working through less manual and time intensive way, some of these high-volume types of transactions, right? So I would say certainly resonates. I hope, if you find yourself in a formal construct. And again, regardless of the or what's on your organization chart, I hope the themes that we're talking about in this idea of driving out waste and minimizing the constraints. If any of you are -- look at theory of constraints person, right, minimizing the constraints and bottlenecks in your process to be able to move faster, again, particularly in this type of environment. Anything either of you would add? Otherwise, I can pop to the next question.

I think you covered it pretty well from my perspective, at least.

Okay. So this is another one. And I think, look, like you maybe bought in to this. Some of what we were sharing today, this all sounds really exciting but partly in recognition of, I think, the very real challenges in many organizations and let's acknowledge friends, right, not just technology. So people process challenges certainly exist and need to be part of this conversation. But when we think about just getting started, that could be a bit intimidating. So this question in Harshad, I might ask you to lead us off on this one, how do most customers get started using the ServiceNow platform? And maybe we could put a rub on that, which is as you think about expanding out outside of IT, which is often a footprint that exists in many organizations, how do -- how should -- what advice do you have to share? So we're not boiling the ocean, to use Mark's terminology?

Right. So yes, I would second the thought, don't boil the ocean. And here's a good thing is, our GBS systems source-to-pay and the other GBS systems as well in order-to-cash, hire to retire stuff they connect out of the box to most of the major systems you have in your organization. So that's not the thing. So it's not worrying about going out of ID becomes -- so what you really want to do is to do a value-focused planning for your rollout. Understand your process, map your processes and based on how they are doing, what the maturity is on the slide we saw with the source-to-pay flow diagram, measure the heat map, create a heat map for them and say, where -- what are the low-hanging fruits there, identify the value, identify the low-hanging fruits. And then you start small, create victories, build momentum and build on that. So that's how I would go about doing it . It's -- value is good not just for putting together a business case to justify something like this, but this also becomes a compass or a road map of how you can actually capture identify, capture value and keep building on the momentum that creates.

I think that's great advice. And I always say, where do you have shared inboxes, right? For your churn in a lot of work, that's just always awesome place to start. Thanks, Harshad. So we're going to -- I want to be respectful of everyone's time, we're going to wind ourselves down. It would be a miss if we didn't mention kind of our marquee customer conference that's right around the corner here. So we hope that you'll all take a look and consider joining us at our annual Knowledge Conference happening in Las Vegas in May. We will have, of course, a ton of content. Again, this is a customer showcase. So if you're curious to learn more, if you are curious to hear in particular from other customers, the way that they're using the platform for yes, GBS and source-to-pay, and hire to retire and lead-to-cash and other processes, please, please take a look, register, talk with your account teams. We would love to see you there. It's a really incredible time of collaboration and energy and excitement about, I think, the transformation, certainly that we're seeing on the platform. And then, of course, please access, you can access both this and other webinars via the link as seen on this slide. Again, we have great content, whether you're interested in going deeper around source-to-pay and some of what we talked about today or any of the other kind of key end-to-end processes that we've referenced. So with that, thank you all for your time. Harshad and Mark. Thank you so much for joining, and we hope to see you all on a future webinar again, please check out Knowledge and appreciate the time and attention today. Take care.

Thank you.