The Proposal
ServiceNow
Mohit Khera
Navjot Singh Punni
Trinity Western University
MBA 684 C Business Strategy
Dr. Mark A. Lee
January 21, 2023
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Introduction
ServiceNow is a California based cloud-based technology company which specializes in
digitizing workflows for enterprises, universities, and governments across the world.
ServiceNow works on SaaS (Software as a Service) business model and earns its revenues
through subscriptions. The company generated $5.9 billion of revenues in the year, 20211.
About 80% of Fortune 500 companies are ServiceNow’s customers and the company serves over
7,400 enterprise customers globally 2. The company has over 20,000 employees as reported in
Q3, 2022 3. ServiceNow was recognized as world’s most innovative companies in 2018 by
Forbes 4
ServiceNow connects different systems, silos and departments with digital workflows
that are simple and easy to use. In a typical setup, firms use various enterprise technologies to
automate their business process. For instance, there may be one system for operations workflows
and another system for finance workflows. However, ServiceNow’s solution, also known as
Now platform offers a unified integrated enterprise solution that digitizes all the workflows and
provides enriching experience to its customers. The Now Platform enables customers to
transform from manual and disconnected enterprise technology solutions to integrated enterprise
technology solutions with automation and connected processes 5. The company solutions are
categorized under four heads: - Information Technology (IT), Employee, Customer and Creator.
The IT solutions enable workflows such as ITSM (IT Service management), IT business
management, IT operations management, IT asset management, Security Operations,
Governance and other products. The company is a leader in ITSM space. Employee workflows
deliver unified employee experience for collaboration in a hybrid workplace. Customer
workflows on the other hand, deliver modern customer experiences through digital workflows
that drives customer loyalty. Lastly, Creator workflows provides low code platform that helps
customers build scalable and safe cross enterprise digital workflow applications 6. Following
graph lists down the products company offers under each category.
Reason for company selection
As a team, we both were interested to study the SaaS industry and we had heard about
ServiceNow products and its popularity in the industry. ServiceNow has been chosen as a
company for this report for various reasons. Firstly, it is one of the largest SaaS companies in the
world 7. The company has a market cap of $ 84.48 bn as reported on 17th Jan 2023 8.
(“Form 10-K securities and exchange commission United States – ServiceNow”, n.d.)
(“ServiceNow Q3 2022 investor presentation”, n.d.)
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(“ServiceNow Fact Sheet”, n.d.)
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(“Forbes Magazine”, n.d.)
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(“Form 10-K securities and exchange commission United States – ServiceNow”, n.d.)
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(“Form 10-K securities and exchange commission United States – ServiceNow”, n.d.)
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(Blowers, 2022)
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(Jones, 2023)
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Furthermore, the company has been growing rapidly over the last three years and its revenues
grew by 70% from $3.5 bn in 2019 to $5.9 bn in 2021 which is a fantastic growth at the scale
they are operating. Next, ServiceNow's clientele includes about 400 clients from the Fortune 500
list which is a testament to the quality of the solutions it offers 9. Moreover, ServiceNow has a
high renewal rate of 98% as on Q3, 2022 which is an excellent achievement and shows that
customers like the company products and stick to it. The company has 1,530 customers with
more than a million dollars as annual contract value and it recorded 60% growth year on year on
the number of contracts with more than $10 million ACV 10
Overall, the financial health of the company is strong, and it has demonstrated a strong
growth and has built a reputation for quality solutions in the industry.
Personal and Long-term Goals
Mohit and Navjot both have personal reasons for choosing ServiceNow as a company.
Mohit has nine years of experience in an Indian SaaS start-up and helped them in scaling their
operations from under a million-dollar revenue in 2014-to-fifty-million-dollar ARR in 2022 and
has worked on multiple business roles. He set up the entire customer success unit in the company
from the scratch and developed markets in Australia and North America. He plans to continue
working in the SaaS industry in the future and ServiceNow as a leader in the SaaS industry is
chosen to develop deeper insights and understanding of the industry. This would help him gain
knowledge and skills to apply for a leadership position in a SaaS company in Canada after
completing his MBA.
Navjot has over 12 years of experience working with Auto and IT OEMs and has a keen
interest in the technology space and how organizations are able to utilize the available
technology solutions to improve the productivity of their sales teams and experience of
customers. ServiceNow is one of the leading companies providing self-service portals and
integrated platforms which allows organizations to bring their IT service management under on
platform. With customer focus at the realm of things, companies are investing in technology to
provide superior customer experience and gain competitive advantage. Navjot intends to pursue
his career in this domain and working on ServiceNow shall help him to gain insights on the
company, its products, competitors, and market dynamics in the sector.
Sources and Resources
Major sources for the project would be company website, annual reports of previous three
years, fact book and investor reports. Company’s consolidated financial statements including
income statement, balance sheet and cash flow statements would be taken from websites such as
Morningstar and Yahoo finance.
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(“Form 10-K securities and exchange commission United States – ServiceNow”, n.d.)
(“ServiceNow Fact Sheet”, n.d.)
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Some of the sources that we would refer are mentioned below.
1. Morningstar
2. Yahoo finance
3. ServiceNow website
4. Annual reports and investor presentations
5. Gartner report on ‘Creating a High-Impact Customer Experience Strategy.’
6. Garner report on ‘Magic Quadrant for IT Service Management Platforms.’
7. Garner report on ‘Magic Quadrant for Contact Center as a Service.’
8. Forrester Wave Report on ‘Digital Process Automation Software.’
9. ERP Today: A Complete Guide to ServiceNow
10. From specialization to Platformization: business model evolution in the case of
ServiceNow (Published article from AIS Electronic Library)
11. HBR case study titled as ‘ServiceNow: Workflow Platform driving Rapid Organic
Growth’
12. Forrester research report on digital process automation software
13. Gartner magic quadrant for IT Service management platforms
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References
Blowers, D. (2022). The 10 largest SAAS companies in the world, and what they do. History.
Retrieved January 19, 2023, from https://history-computer.com/largest-saas-companies-inthe-world-and-what-they-do/
Forbes Magazine. (n.d.). The world's most Innovative Companies 2018. Forbes. Retrieved
January 19, 2023, from https://www.forbes.com/innovative-companies/#22aa75cc1d65
Jones, P. D. (2023). ServiceNow INC now stock quote. Morningstar, Inc. Retrieved January 19,
2023, from https://www.morningstar.com/stocks/xnys/now/quote
Form 10-K securities and exchange commission United States - ServiceNow. (n.d.). Retrieved
January 19, 2023, from https://servicenow.gcs-web.com/static-files/bd04f011-2c01-44adb137-31ea4c3d8f05
ServiceNow Q3 2022 investor presentation. (n.d.). Retrieved January 19, 2023, from
https://www.servicenow.com/content/dam/servicenow/other-documents/investorrelations/investor-presentations/servicenow-q3-2022-investor-presentation.pdf
ServiceNow Fact Sheet. (n.d.). Retrieved January 19, 2023, from
https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doctype/other-document/servicenow-fact-sheet.pdf