The Total Economic Impact™ Of ServiceNow IT Business Management
We see company after company migrate to ServiceNow with significant results. And a recent Forrester® report, that included many Rego customers, found a 397% ROI over three-years for organizations who adopted ServiceNow IT Business Management (ITBM).
ITBM is the umbrella housing PPM, Application Portfolio Management (APM), IT Financial Management (ITFM) and Agile Transformation.
According to Forrester, “Prior to adopting ServiceNow ITBM, customers reported that scope creep and other inefficiencies in project management led to project delays and the inability to complete projects on time, leaving valuable capital allocated dollars on the table every year. The ITBM solution helped them remediate these issues, ensuring they could more efficiently utilize the capital appropriations and increasing the overall annual project returns by $400,000 per year.”
When these IT decision makers at multi-billion organizations were asked what their company’s top business objectives were for introducing a PPM solution, three clear reasons emerged.
ServiceNow IT Business Management Improves Operational Efficiency
Forrester found that the number one reason that multi-billion dollar companies adopted a PPM solution was to improve operational efficiency in managing projects.
And, these companies got significant results with ServiceNow ITBM. As stated in the report, “ServiceNow ITBM enables organizations to do more with their money, increasing capital efficiency by 30%.”
Direct Pull From Report:
“Interviewed and surveyed organizations experienced benefits of $16.7M over three years versus costs of $3.4M, adding up to a net present value (NPV) of $13.3M and an ROI of 397%.
—The Total Economic Impact™ Of ServiceNow IT Business Management Forrester®
ServiceNow IT Business Management Increases Demand Visibility and Improves Prioritization
ServiceNow increased demand visibility and improved prioritization, accelerating project time-to-market by 23%.
“In fact, 12 of the 30 surveyed organizations and both interviewed organizations identified this as one of the top three reasons for adoption.
Prior to investing in the ITBM solution, these companies had poor processes around demand management and were reactionary to the needs of the business. As demands arose throughout the year, existing processes were not set up to accommodate the addition of new projects and shifting of budget or resources.”
Furthermore, finding resources for ad hoc processes was difficult as no visibility into resource availability existed.”
But that all changed with ServiceNow ITBM.
“Assuming an organization spends $10.5 million per year on project costs and averages a 15% three-year return on investment (ROI) for those projects, this equates to over $786,000 per year in accelerated value. “
There’s one more main reason companies choose to adopt ServiceNow ITBM. And, the companies who addressed it found reduced project delays and increased alignment that led to $1.2 million in savings per year.
#3 Improve Resource Management with ServiceNow
Improved resource management as the third leading reason for implementing ServiceNow ITBM. According to the report, “increased resource utilization and the ability to allocate resources effectively to projects accounts for a 12% improvement in project productivity.”
And, that improvement alone can lead to $1.2 million in savings per year.
“One of the most prolific benefits from utilizing the ServiceNow ITBM solution is the ability to track the utilization of resources with key skill sets. Project managers (PMs) can collaborate across multiple projects, ensuring skilled resources align to project needs at the right time. This alignment reduces project delays and results in $1.2 million in savings per year. “
That’s just one piece of the 397% ROI. To see the rest, check out the full report: The Total Economic Impact™ Of ServiceNow IT Business Management Forrester®