Build your business case Build your business case
Build your business case
Build your business case The business case provides the economic rationale for your Service. Now® investment. It contains the information necessary for key business stakeholders to make a decision framed as a cohesive story: your business objectives for transformation, how they'll be measured, and how your Service. Now investment will deliver on these objectives. A good business case is always required in order to compete for funding against other projects. You need the business case to provide the scope and recommendations for your Service. Now investment. In addition, the business case needs to provide financial evidence and define how you’ll measure value realization. Finally, ongoing monitoring will help ensure your business case translates into a successful deployment and, ultimately, into value for the business. Insight: Building your Service. Now business case Use a structured process to get to know the key challenges and to quantify the potential value of improvement. Your business case should answer: 1. Why – Conduct focused interviews. 2. What – Document challenges and develop recommendations for solution capabilities. 3. How – Select key improvement metrics and validate them with key stakeholders. 4. So what – Combine the benefits with the cost assumptions to produce an estimate of the total cost of ownership (TCO) and return on investment (ROI). Before presenting your business case, spend the necessary time to validate that it's solving the right problems for your key stakeholders. Key implementation steps Start 1. Identify key issues and business improvement areas Improve 2. Develop recommendations Optimize 3. Construct the business case 2 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 1 a: Conduct background research Before getting into the thick of building the business case, perform some homework on the current state and also build up the network of people you’ll need to interview to dive deep into opportunities. The goal of this step is to obtain a baseline of improvement opportunities and identify the key stakeholders who can provide further insights. Conduct background research to gain a baseline of information and identify the problems that the business case needs to propose solutions for q Find representatives from the potential Service. Now users—your IT service management, IT operations, and security operations teams, etc. —who can recommend resources to review and nominate people to be interviewed. Process owners are good candidates for this role. q Collect relevant documents—such as strategic plans, reports, etc. —from members of each interest group to learn what you can before conducting interviews. q List what you think are improvement opportunities that address people, process, and technology. q Identify the key stakeholders you’ll need to interview who have the subject matter expertise and a broad understanding of how business problems are being solved today. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 3 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 1 b: Identify the key issues and business improvement areas Before developing recommendations for your Service. Now business case, capture the key challenges and opportunities for business improvement within your organization. Focus on gathering compelling feedback you can present as evidence. The goal of this step is to document the needs of the business unit(s). Create an interview guide to prepare for stakeholder interviews Conduct focus interviews to identify key issues and business improvement opportunities q Meet with executive sponsors and conduct an executive discovery to define the strategic goals and outcomes they need. q Select five to 10 (or more) individuals you need to learn from, then schedule and execute all those interviews within a limited time period (30– 60 days). q Based on your background research, identify the areas of research you need to perform, such as opportunities for automation. q Create an interview guide that you can follow to consistently learn what you need to learn across multiple interviews: q Compose one to three interview questions for each of the areas of research you need to perform (identified above), such as "Can you describe your process for XYZ? " q Sequence your questions logically, asking those you most need the answers to upfront. For example: (1) Describe the process. (2) What challenges exist within the process? (3) What are the biggest opportunities to improve the process? (4) What roadblocks prevent you from making changes? (5) Who are the critical stakeholders and decision-makers? (6) If you can improve the process, what is the potential benefit? q Alternatively, you can use the 5 Whys methodology for getting to the root cause. q Include spaces where you can record your interviewees’ responses within the interview guide document. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 4 Practitioner insight: Consider conducting workshops that will allow you to reach multiple voices at the same time. List key business challenges to determine new use cases or improvement opportunities based on interviews q Create a list of challenges that your interviewees experienced and rank them based on your sense of the business’s priorities. q Translate the challenges into use cases that will address the business’s needs. One use case might be the challenge of getting a newly hired employee ready to work and how it equates to a use case for employee onboarding. 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 2: Develop recommendations Once you have identified a draft statement of business challenges and opportunities, develop Service. Now implementation recommendations that will support your business outcomes. The goal of this step is to propose Service. Now solutions that solve for current business challenges. Research solutions that you think could solve for uncovered business challenges Identify the implications of solution adoption to prepare your organization for potential implementation challenges q Research and identify solutions from the Service. Now product catalog. q Identify any systems that may need to be replaced or integrated if your proposed solution is adopted. q Use sites such as servicenow. com and Community, and attend events such as SNUGs and Knowledge as research tools. q Partner with the Service. Now account team to provide you with information and to see product demos. q If required, research other alternative solutions (existing or new) that you’ll need to compare to Service. Now in later steps to complete the business case. q Map the Service. Now product capabilities to your prioritized list of use cases (identified in Step 1). q Create a strategy map that details how the Service. Now solution will solve your business challenges. 1. Identify key issues and business improvement areas q Consider what organizational change management (OCM) may be required to adopt the solution. q Estimate the strategic and technical governance needed to support the solution. q Estimate other related risks or requirements (technical or not). Recommend solutions that solve for business challenges Steps q Identify the risks, risks migrations, or other requirements that you may need to address as part of the implementation program. 2. Develop recommendations 5 Practitioner insight: When identifying challenges and opportunities for your business case, think in terms of the business outcomes defined in a transformation strategy, like business automation or digital transformation. Also, look for the low-hanging fruit with regard to business processes that are ripe for automation. 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 3 a: Estimate the implementation time and cost Estimating the time and cost required for implementation is a critical factor. Unrealistic expectations about implementation planning is one of the key root causes for system failures. The goal of this step is to estimate the time and cost for the implementation project. q Consider investment drivers such as: Develop an early estimate for the implementation timing and costs for the Service. Now solutions identified q The amount of revenue the implementation could earn for your organization q The amount of money you save by implementing the solutions (e. g. , through efficiencies, spend increases, or automation) q Obtain an estimate for the implementation project from your Service. Now account executive team and ask for annual costs such as: q The potential cost savings you could achieve from regulatory, compliance, and safety requirements (e. g. , through audits or GDPR) q Implementation of the Now Platform® q Training users on the Now Platform q The annual license for the Now Platform Phase the capabilities properly to account for dependencies, OCM, and required benefit timing q Estimate internal costs for the implementation project: q Include the internal resource costs needed to support the implementation of the Now Platform. q Provide a proposed roadmap for the rollout. q If you’re implementing a simple, single solution, you only need a single launch plan. q Include the internal administration costs for the Now Platform. q Include other internal fees, such as those for: q If a solution has multiple components with more complexity, plan a prioritized and phased rollout in sequences based on the importance of achieving quick wins and attaining business outcomes. q Legal q Sourcing team q Internal IT and infrastructure q Help desk q Include projected costs for the headcount change. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 6 3. Construct the business case 4. Socialize, communicate, finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 3 b: Estimate the benefits relative to cost Estimating the costs and benefits of your recommendations will be key to getting buy-in from key stakeholders and, ultimately, approval for investment. Don’t get too specific at this point in the process, just estimate using rough numbers. The goal of this step is to estimate the costs and benefits of the solutions implemented. Estimate the business case benefits to demonstrate the value received Support benefits with third-party data when possible q Set aspiration improvement metrics for each use case—in other words, define what success looks like. q Support your metrics with industry metrics from third-party sources such analyst reports like Gartner or Forrester, trusted industry blogs and metrics, or actual results from Service. Now customers that your account executive team can provide. q To ensure against double-counting benefits, identity non-overlapping and distinct benefit improvement measures. q Include the targeted outcome, data points that make up the improvement metrics, the calculation, benefits, and assumptions. Estimate TCO, ROI, and value achievement q Select metrics that will show if you’re making progress toward business outcomes over a course of time. q Calculate the total economic cost over the lifetime of the investment. q TCO = Solution costs plus implementation costs plus internal costs q Cite your sources and assumptions. q Calculate the return on investment (i. e. , the value). Use the Forrestercertified Service. Now Value Calculators when possible. q Define targets for adoption and use of Service. Now among target populations—employees and process users, like service desk agents. q The financial return is calculated for three or five years. Partner with finance to determine the years of analysis. q Consider how long it takes you to achieve business value, for example, a faster incident response within three to six months after go-live. Practitioner insight: You may not have all the data, and the data you have might not be precise. The goal is to align with the professional judgement of key operators. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 7 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 3 c: Construct the business case It’s time to package your research and estimates into a formalized business case document. The goal of this step is to formally construct a draft business case. Formalize the business case into consumable content 1 Follow your organization’s internal process q Draft the business case using Microsoft Word, Power. Point, or another company-required format. q Determine if existing forms or processes exist within your organization. Check with areas such as vendor management, legal, or finance. q Create an executive summary including the: q Business issue(s) q Problem statement(s) q Business implications Practitioner insight: Numbers alone do not make the business case. How you design, develop, and present the business case is as important as the ROI and other figures you project. q The body components of the business case should include: q A list of key business challenges uncovered from stakeholder interviews q Recommended solutions that solve for business challenges q Estimated solution implementation costs q Forward-looking metrics q TCO and ROI q Create a final statement summarizing the business case, total investment required, and business outcomes to achieve. q Provide a specific call to action to ensure there is a series of defined next steps for moving the initiative forward. 1 A sample business case is available in the appendix. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 8 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 4: Socialize, communicate, finalize To accelerate the adoption of your business case, you’ll need to gain business partner support and executive sponsorship throughout the organization. Validate with your business partners that the business case is solving the right problems. Then finalize the business case by following the formal project proposal process. The deliverables for this step are stakeholder support from the business and formal submission of the business case. Build consensus on the right problem with key stakeholders Submit your business case q Meet with your executive sponsor to build initial internal support for your proposal. q Follow your organization’s formal process to submit the business case for project approval and funding. q Meet with business partners to validate that your assumptions are accurate, and your metrics are relevant and applicable. q Proactively work with your legal and vendor management teams to ensure a smooth and efficient process. q Ask if the business case is solving the right problems. Present your business case q Ask for open and honest feedback. q Present the business case to the applicable parties when you’re ready. q Ask for guidance on anything missing or additional points needed. q Ask if the business case is on the right track to solve their business challenges. q Incorporate any additional feedback or information found from your additional research. q Continue to market your business case proposal to build the support you need formal project approval. Steps 1. Identify key issues and business improvement areas 2. Develop recommendations 9 3. Construct the business case 4. Socialize, communicate, finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
Step 5: Monitor and manage your value realization The business case should be a living document and not something that is shelved once you implement. Use your business case as a guide to manage your value realization and to understand where you can increase value as business needs change. Value realization and management Value awareness q Make the business case part of regular Service. Now steering committee (or strategic governance) reviews. q Define value/KPI owners to ensure appropriate process and people changes occur to deliver on financial benefits. q Explicitly confirm that assumptions and benefits are still accurate and relevant. q Measure your benefits attainment against the targets (financial and operational). If the financial benefits haven’t been explicitly defined, establish baseline measures and interim targets or goals aligned with your Service. Now roadmap. q Educate the project/implementation team on the expected financial outcomes (plus something about realized benefits). q Promote value achievement successes. q Create a library of success stories. q Create awareness by performing ongoing storytelling and education to business partners across the enterprise. q Identify the root opportunities of benefit shortfalls for continued improvement and/or corrective action. q Set milestones at every six months with what you expect to deliver to the business by that time. New value creation q Govern the implementation project to deliver on value. Make sure the budget and timing trade-off decisions are made with an understanding of their impact to achieving value. q Assess “unseen” areas of improvement and quantify value where it’s appropriate. You can solicit ideas from the implementation team. Practitioner insight: Changing the culture to get everyone to focus on value does not only happen at the executive level but with everyone on the team. Use explicit storytelling along with data analytics as a means to help train staff to spot value opportunities. Steps 1. Identify key issues and business improvement areas q Raise and prioritize new value creation opportunities with explicit financial benefits to the strategic governance committee for inclusion in the roadmap. 2. Develop recommendations 10 3. Construct the business case 4. Socialize, communicate, and finalize 5. Monitor and manage value realization © 2020 Service. Now, Inc. All Rights Reserved.
KPIs and stakeholders Key performance indicators Essential KPIs Nice-to-have KPIs • • • Stakeholder map # of business leaders who have reviewed and provided input (relative to target) % of business case investment approved # of stakeholders from other business units interested in business case expansion into their business unit Responsible/accountable Consulted/informed • • Now Platform owner Executive sponsor CIO CFO Senior leadership 11 Business leaders Service owners Business partners © 2020 Service. Now, Inc. All Rights Reserved.
Appendix 12 © 2020 Service. Now, Inc. All Rights Reserved.
Sample strategy map Strategic drivers Business issues Desired business outcomes NO STANDARD OR DATA STRUCTURE TO AUTOMATED END-TO-END VENDOR DRIVE SUPPLY CHAIN VENDOR RENEWALS PROCESS SUPPLY CHAIN EXCELLENCE 13 Value SAVE 20% ON MAINTENANCE COSTS BY BETTER TRACKING PRODUCTION ASSETS— APPROX $1. 5 M/YEAR © 2020 Service. Now, Inc. All Rights Reserved.
Sample business case – IT ANNUAL VALUE Executive summary SAVE $10, 575, 460 ANNUALLY Key value drivers Value drivers IT productivity increase Automate requests and reduce or deflect incidents through self-service, automated assignment, and routing. Faster support resolution Track KPIs and link them to compensation to create incentives for faster service performance. Fully automated services Automate IT services to save an hour each time an automated service runs. Fewer major outages 20% increase 10% faster 20% savings 25% Reduce high-importance/critical incidents and recovery time through notifications and automatic remediation. reduction Value: $6, 016 Value: $2, 939, 648 Value: $39, 347 Value: $1, 580, 450 Estimated savings are based on a financial model constructed by Forrester Consulting, applying the TEI methodology to data from interviews with actual Service. Now customers. The calculations are based on a set of default value. All values are based on estimates and should not be considered promises of realized values. For more information, go to the Service. Now Value Calculator. 14 © 2020 Service. Now, Inc. All Rights Reserved.
Sample business case – Customer service ANNUAL VALUE Executive summary SAVE $5, 148, 540 ANNUALLY Key value drivers Value drivers Support call NPS increase 10 point Experience a 10 -plus percentage point increase in your support call Net Promoter Score (NPS). increase Faster issue resolution 10% When customers use self-service to resolve common issues, customer service agents can then focus their time on more complex cases, resolving issues faster Value: $3, 281, 040 Value: $1, 867, 500 Estimated savings are based on a financial model constructed by Forrester Consulting, applying the TEI methodology to data from interviews with actual Service. Now customers. The calculations are based on a set of default value. All values are based on estimates and should not be considered promises of realized values. For more information, go to the Service. Now Value Calculator. 15 © 2020 Service. Now, Inc. All Rights Reserved.
Sample business case – HR ANNUAL VALUE Executive summary Value drivers SAVE $5, 028, 722 ANNUALLY Key value drivers Employee inquiries resolved instantly 50% Deliver a better employee experience by providing self-service portals for employees. automated Increase in HR productivity 37% Self-service, automation, and improved services increase HR productivity. increase Value: $3, 076 Value: $1, 953, 646 Estimated savings are based on a financial model constructed by Forrester Consulting, applying the TEI methodology to data from interviews with actual Service. Now customers. The calculations are based on a set of default value. All values are based on estimates and should not be considered promises of realized values. For more information, go to the Service. Now Value Calculator. 16 © 2020 Service. Now, Inc. All Rights Reserved.
Sample business case – Security operations ANNUAL VALUE Executive summary Value drivers SAVE $3, 821, 145 ANNUALLY Key value drivers Faster security incident response 45% Improve defensive response by providing one place to consolidate, prioritize, route, and remediate security incidents. faster Faster vulnerability response 25% Automatically import vulnerability scan data, prioritize critical vulnerabilities, then automate workflows and remediation. faster Value: $3, 444, 405 Value: $376, 740 Estimated savings are based on a financial model constructed by Forrester Consulting, applying the TEI methodology to data from interviews with actual Service. Now customers. The calculations are based on a set of default value. All values are based on estimates and should not be considered promises of realized values. For more information, go to the Service. Now Value Calculator. 17 © 2020 Service. Now, Inc. All Rights Reserved.
Sample business case – Intelligent apps ANNUAL VALUE Executive summary Value drivers SAVE $9, 928, 660 ANNUALLY Key value drivers Build apps in one-third the time 1/3 time Faster development and delivery of projects through use of no-code and low-code models and faster delivery of innovative services. saved Value: $8, 156, 160 Lower development cost Reduced need to write native code, added abundance of reusable code, and APIs mean that junior developers can deliver projects. 50% savings Value: $1, 772, 500 Estimated savings are based on a financial model constructed by Forrester Consulting, applying the TEI methodology to data from interviews with actual Service. Now customers. The calculations are based on a set of default value. All values are based on estimates and should not be considered promises of realized values. For more information, go to the Service. Now Value Calculator. 18 © 2020 Service. Now, Inc. All Rights Reserved.
Customer Success Best Practices Service. Now’s Best Practice Center of Excellence provides prescriptive, actionable advice to help you maximize the value of your Service. Now investment. Definitive guidance on a breadth of topics Created and vetted by experts Strategic Best practice insights from customers, partners, and Service. Now teams Critical processes Management Expert insights Distilled through a rigorous process to enhance your success Tactical Designed for: Platform owners and teams Practical Actionable Valueadded Expertvalidated Based on thousands of successful implementations across the globe Technical Common pitfalls and challenges Executive sponsors Proven to help you transform with confidence Service and process owners Get started today. Visit Customer Success Center. 19 Contact your Service. Now team for personalized assistance. © 2020 Service. Now, Inc. All Rights Reserved.
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