Breaking the digital bottleneck: Service management for innovation and more

The 2024 ServiceNow Insight and Vision Report, a joint research study by NTT DATA and Omdia, reveals that businesses are embracing new frontiers of service management, such as generative AI (GenAI) and cybersecurity, for innovation, security and environmental, social and governance (ESG) initiatives while overcoming digital transformation challenges.

This first part of a two-part overview of the report delves into how organizations can break the digital bottleneck. In an era of rapid technological advancement, businesses are grappling with the complexities of digital transformation. We’ll discuss these challenges and the growing importance of platforms like ServiceNow in helping organizations achieve their digital goals as revealed by the 2024 ServiceNow Insight and Vision Report.

The survey reveals that while 73% of businesses have encountered obstacles in their digital transformation efforts, many are turning to innovative strategies and technologies to overcome these hurdles and fast-track success.

Key obstacles include enhancing IT governance (29.1% of respondents), optimizing operations through data-driven insights (24.7%) and reducing digital expenditure due to economic constraints (21.2%).

Amid digital transformation challenges, businesses are adapting

Businesses are not letting these obstacles impede their progress. In fact, a substantial 61.5% of respondents anticipate a digital budget increase of 10% or more, demonstrating a commitment to overcoming hurdles and resilience in moving toward digital success.

The comprehensive survey gathered responses from eight countries and 10 distinct business functions, including IT, HR, finance, marketing, facilities management and customer service. Participants ranged from directors and managers to C-level executives and represent organizations across various industries, such as manufacturing (17%), healthcare (10%), public sector (5%) and financial services (14%).

ServiceNow adoption matures as businesses break through digital barriers

Businesses are turning to ServiceNow to achieve their digital transformation goals and overcome obstacles. The survey shows that 59% of respondent organizations have used ServiceNow for three years or more, indicating a maturing adoption stage.

Organizations widely adopt IT service management (ITSM) and IT operations management (ITOM) as the most common ServiceNow capabilities, establishing the foundation for most implementations. Businesses are increasingly expanding their use of other platform capabilities across the organization. This trend validates ServiceNow's position as an enterprise-wide platform that supports strategic initiatives beyond IT.

Survey responses highlight ServiceNow's key strategic benefits in enhancing business operations, digital experiences, security and ESG initiatives. As businesses mature in their ServiceNow adoption, they continue to tap the platform's fuller potential to help them increase digital transformation success across their organizations.

Generative AI and cybersecurity emerge as crucial service management capabilities

The 2024 survey results reveal the exciting trend that most businesses plan to adopt GenAI to boost workplace efficiency and customer satisfaction. The current state of GenAI implementation varies, with 42.2% implementing it in specific use cases, 30.9% in an exploratory phase, 15.4% adopting some elements and considering more, and 11.5% interested but without concrete plans.

When asked about the most important value derivations from GenAI investments, respondents rank increased efficiency (27.9%) at the top, with nearly 7 in 10 including it among their top three responses. Other key benefits include customer satisfaction, faster product/service development and quicker project delivery.

The potential for GenAI within ServiceNow is substantial, given the countless workflows spanning the entire enterprise that can significantly benefit from AI augmentation. While this broad scope presents challenges related to acceptance, governance and security, the opportunities are vast.

Discover how GenAI is transforming businesses.

Watch our video discussion, Insight & Vision: Unlocking the future of GenAI with real data from real people — Fast Chats (informaengage.com)

Investing in ServiceNow powers enterprise-wide digital transformation, optimizing employee and customer experiences

When choosing a service management partner, security remains the top priority for organizations. A substantial 45.2% of respondents cite a proven focus on cybersecurity and deep expertise in this area as the most critical capability they seek.

This emphasis on cybersecurity (45.2%) outweighs other important factors, such as:

• 42.1% Best-of-breed technologies
• 33.7% Global presence and global delivery capabilities
• 33.0% Strength of professional services
• 30.6% Dedicated industry and vertical solutions

The research underscores the paramount importance of robust cybersecurity in today's digital landscape, as organizations look to protect their assets and data while navigating an increasingly complex threat environment.

As businesses confront the challenges of digital transformation, platforms like ServiceNow are playing an increasingly crucial role. By using these tools and embracing emerging technologies like generative AI, companies can overcome obstacles, streamline operations and boost innovation across their organizations.

In Part 2 of this series, we'll explore adoption trends, future priorities, and the impact on employee and customer experiences.

About the survey

Omdia conducted the 2024 ServiceNow Insight and Vision survey, the largest yet, with more than 1,000 respondents across eight countries. The highest percentage of respondents were from the United States (20%), followed by the United Kingdom, Germany and Japan (15%). The survey explored ServiceNow adoption trends, current state, aspirations, partner dynamics and usage among real-world business decision-makers. Most respondents work for companies with 5,000 to 19,999 employees and reported revenue between $1 and $9.99 billion. All had influence over ServiceNow adoption and utilization within their organization.

Uncover the top strategic initiatives across industries and learn how ServiceNow enables digital transformation to tackle these challenges head-on. Get the 2024 ServiceNow Insight and Vision Report.