This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why ServiceNow's Business Model is so successful?

Get all the answers

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.

ServiceNow’s Company Overview


ServiceNow is a premier provider of enterprise cloud computing solutions, committed to transforming the way businesses operate through digital workflows that create great experiences and unlock productivity. Serving enterprises worldwide, ServiceNow offers an extensive range of service management solutions tailored for various enterprise departments, including IT, human resources, customer service, and security operations. At the core of ServiceNow's offerings is the NOW Platform, a robust, cloud-based platform designed for intricate workflow automation, electronic service catalogs, and comprehensive portals. Features such as configuration management, data benchmarking, performance analytics, encryption, and collaboration tools allow businesses to streamline operations, enhance efficiency, and drive innovation.

ServiceNow's unique business model revolves around leveraging the power of the NOW Platform to serve diverse enterprise needs through highly customizable and scalable solutions. Unlike traditional service providers, ServiceNow integrates all functionalities into a single, unified platform that supports multiple departments. This cross-departmental integration enables streamlined operations and fosters collaboration across IT, HR, customer service, and other functions. ServiceNow’s cloud-first approach ensures that its solutions are accessible, flexible, and can seamlessly adapt to evolving business requirements, making it a preferred choice for companies seeking long-term, sustainable digital transformation.

The revenue model of ServiceNow is predominantly subscription-based, allowing clients to access their cloud services and solutions through annual or multi-year subscriptions. This model ensures a consistent and predictable revenue stream while providing customers with regular updates, maintenance, and support services. Additionally, ServiceNow generates revenue through professional services, including consulting, training, and implementation support, which assist businesses in effectively deploying and optimizing ServiceNow’s solutions. By combining subscription-based access with comprehensive support services, ServiceNow builds enduring client relationships and ensures continuous value delivery.

https://www.servicenow.com/

Headquater: Santa Clara, California, US

Foundations date: 2004

Company Type: Public

Sector: Technology

Category: Software

Digital Maturity: Digirati


ServiceNow’s Related Competitors



ServiceNow’s Business Model Canvas


ServiceNow’s Key Partners
  • Technology alliances
  • System integrators
  • Channel partners
  • Managed service providers
  • Application developers
  • Data centers
  • Cloud infrastructure providers
  • Resellers
  • Industry-specific partners
  • Consulting firms
ServiceNow’s Key Activities
  • IT Service Management
  • Cloud Computing Solutions
  • Platform Development
  • Customer Support
  • Training and Certification
  • Professional Services
  • Product Development
  • Marketing and Outreach
  • Sales and Business Development
  • Innovation and R&D
  • Partner Ecosystem Management
  • Data Privacy and Security Management
  • Workflow Automation Solutions
ServiceNow’s Key Resources
  • Customer Support Team
  • Cloud Infrastructure
  • Research and Development Team
  • Intellectual Property and Patents
  • Partner Network
  • API Integrations
  • Data Centers
  • SaaS Platform
  • Talent Acquisition
  • Training Programs
ServiceNow’s Value Propositions
  • Improved workflow automation
  • Streamlined IT service management
  • Enhanced employee productivity
  • Seamless integration with existing systems
  • Real-time performance analytics
  • Customizable solutions
  • Scalable cloud-based platform
  • Efficient problem resolution
  • Proactive incident management
  • Centralized service platform
  • Intuitive user interface
  • Enhanced customer support
  • Reduced operational costs
  • Comprehensive security solutions
  • Continuous innovation
ServiceNow’s Customer Relationships
  • Personalized customer support
  • Online community forums
  • Dedicated account managers
  • Regular follow-up meetings
  • Webinars and workshops
  • User training and certification programs
  • Proactive issue resolution
  • Customer success teams
  • Feedback loops
  • Customer satisfaction surveys
  • 24/7 technical assistance
ServiceNow’s Customer Segments
  • Large enterprises
  • Medium-sized businesses
  • IT departments
  • Financial services companies
  • Healthcare organizations
  • Government agencies
  • Educational institutions
  • Telecom providers
  • Manufacturing companies
  • Retail businesses
ServiceNow’s Channels
  • Website
  • Mobile App
  • Direct Sales Team
  • Value Added Resellers (VARs)
  • Managed Service Providers (MSPs)
  • Customer Support
  • Webinars
  • Social Media
  • Online Community
  • Partner Network
ServiceNow’s Cost Structure
  • Salaries and Benefits
  • Research and Development
  • Sales and Marketing
  • Software and Infrastructure Maintenance
  • Customer Support
  • Cloud Hosting Costs
  • Office and Administrative Expenses
  • Licensing Fees
  • Partner Commissions
  • Training and Development Programs
  • Compliance and Regulatory Costs
  • Integration and Customization Services
  • Amortization and Depreciation
  • Travel and Entertainment
ServiceNow’s Revenue Streams
  • Subscription-based pricing model
  • Professional services
  • Training and certification services
  • Implementation services
  • Consulting services
  • Customer support services

Vizologi

A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Try it free

ServiceNow’s Revenue Model


ServiceNow makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Archetypes of business model design
  • Subscription
  • Software as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Add-on
  • Benchmarking services
  • Massive Open Online Course (MOOC)
  • Knowledge and time
  • Solution provider
  • Certification and endorsement
  • Digital transformation
  • Decomposition
  • Bundling
  • Community-funded
  • Corporate innovation
  • Product innovation
  • Referral
  • Two-sided market
  • Brokerage
  • Ecosystem
  • Cross-selling
  • Reseller
  • Affiliation
  • Mobile first behavior
  • Online marketplace
  • On-demand economy
  • Open business
  • Credits
  • Take the wheel
  • Aikido
  • Technology trends
  • Self-service
  • Customer relationship
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

ServiceNow’s Case Study


ServiceNow's Case Study


At first glance, ServiceNow might seem like just another player in the sprawling domain of enterprise cloud computing. However, dig a little deeper, and you'll discover a company that has revolutionized how businesses operate, transcending simple IT service management into a holistic platform that drives digital transformations across numerous organizational domains. Through our journey into ServiceNow's case study, we’ll unveil how its unique approach to digital workflows and cloud solutions provides unparalleled value to its clientele.

Origins and Evolution


Founded in 2004, ServiceNow set out with a vision to change the enterprise landscape with their bold approach to workflow automation. By 2018, the company entered the ranks of Fortune 500, reflecting its exponential growth and significance in the market. This rapid rise can be attributed to its integrated approach through the NOW Platform, an all-encompassing platform for IT service management (ITSM), human resources, customer service, and more.
ServiceNow's innovation didn’t just stop at building powerful software; it aimed at creating transformative experiences. The foray into multiple enterprise departments emphasized one critical objective: breaking down silos and fostering a culture of collaboration and efficiency.

The NOW Platform: An Engine of Transformation


At ServiceNow's core lies the NOW Platform, a versatile, cloud-based platform designed to automate intricate workflows. According to analysts at Gartner, the global cloud computing market is projected to reach $623.3 billion by 2023, with a significant chunk driven by enterprise adoption (Gartner, 2022). ServiceNow, clearly ahead of the curve, leverages this growing trend, offering a solution that evolves with the needs of modern businesses.
But what sets the NOW Platform apart? Its ability to provide a unified environment is remarkable. Traditionally, businesses have had to patch together various solutions, often resulting in inefficiencies and fragmented data. In contrast, ServiceNow integrates functions for IT, HR, customer service, and security operations into one seamless interface. This unification not only simplifies operations but also reduces costs and enhances productivity—a quintessential need for businesses today.

Customization and Scalability


Enterprise needs are diverse, and one-size-fits-all solutions often fall short. Recognizing this, ServiceNow offers highly customizable and scalable solutions. Companies can tailor functionalities to their specific requirements, ensuring seamless integration with existing systems. This flexibility is a crucial factor; as businesses grow or shift, ServiceNow’s adaptive platform grows with them, ensuring continuity and relevance (ServiceNow, 2023).
Customization also reduces the risk of operational bottlenecks and future incompatibility issues. According to a Forrester study, organizations using the NOW Platform saw customization of IT processes improve by 40 percent, highlighting the platform's adaptability and user-centric design (Forrester, 2021).

The Subscription-Based Revenue Model


ServiceNow's revenue model revolves around a robust subscription-based system. This approach provides clients with continuous access to cloud services through annual or multi-year subscriptions. It's a win-win scenario: clients receive regular updates and maintenance, ensuring they always have the latest tools and capabilities, while ServiceNow benefits from a predictable revenue stream.
In addition to subscriptions, ServiceNow generates significant income through professional services—consulting, training, and implementation support. This dual revenue stream not only underpins financial stability but also cements long-term client relationships, ensuring continuous value delivery and customer satisfaction.

Customer-Centric Approach and Relationship Building


Beyond technology and revenue generation, what truly makes ServiceNow stand out is its customer-focused approach. Personalized support, dedicated account managers, user training, and regular follow-up meetings help build strong, enduring relationships. The company also fosters an engaging community with webinars, workshops, and forums, promoting knowledge-sharing and collective problem-solving (ServiceNow, 2023).
As Steve Anderson, a renowned business strategist, notes, "The companies that will win in the future are those that deeply understand their customers and can provide extraordinary value and support." ServiceNow exemplifies this philosophy, making the NOW Platform not just a tool but a partner for its clients.

Social and Emotional Impact


In today's world, where corporate social responsibility plays a significant role, ServiceNow has positioned itself as more than just a software provider. By facilitating digital transformations, it empowers organizations to make more enlightened, swift decisions, driving social good indirectly. According to McKinsey & Company, companies leveraging digital capabilities effectively could see up to a 25 percent increase in overall profitability (McKinsey, 2022).
Emotionally, the significance is far-reaching. ServiceNow provides tools that enhance organizational affiliation and belonging, granting employees a seamless, efficient work environment. The end result is more than operational efficiency; it’s a better, more satisfying work experience, fulfilling employees' need for self-actualization and job satisfaction.

Broader Market Impact: Leading Digital Transformation


ServiceNow's influence extends well beyond individual enterprises. As a leader in digital transformation, it sets industry standards for what enterprise software can and should be. According to IDC insights, the adoption of digital transformation initiatives is projected to boost worldwide spending to $2.3 trillion in 2023 (IDC, 2022). ServiceNow leads this trend by not only providing the tools but crafting a vision of how technology can redefine industries.

The Future: Continuous Innovation and Expansion


Looking ahead, ServiceNow's commitment to innovation and customer success suggests a promising horizon. Continuous investments in R&D, strategic partnerships, and an expanding portfolio ensure that they remain at the forefront of technological evolution. As businesses increasingly recognize the value of digital workflows, the demand for integrated, customizable, and scalable solutions like those ServiceNow offers will only grow.
In essence, ServiceNow’s approach, embodied in the NOW Platform, provides more than just operational efficiency. It delivers a transformational experience for both the individual users and the broader organization, fostering innovation, collaboration, and sustained growth.
ServiceNow exemplifies how integrated, cloud-based platforms can lead the charge in the dynamic landscape of digital transformation. By fostering seamless, real-time collaborations across various departments and providing customized, scalable solutions, they continue to elevate the standards for enterprise solutions. As we move further into the era of digital transformation, ServiceNow's story remains a compelling testament to the power of innovation, customer-centricity, and future-facing technology.


If you enjoyed this content, you’re in for a treat! Dive into our extensive repository of business model examples, where we’ve dissected and analyzed thousands of business strategies from top tech companies and innovative startups. Don’t miss out!

+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.