Define and map out your business services Success Pillar: Actively lead the transformation

Success Pillars – Structure State and measure your business goals Actively lead the transformation Get your ServiceNow foundations right Create excitement, drive adoption 1 State your transformation vision and outcomes 1 Engage executive sponsor to drive change and remove roadblocks 1 Manage to “Out-of-the Box” 1 Design an engaging self-service employee & customer experience 2 Build your business case 2 Find, manage, and coordinate capable, certified partners 2 Discover and map your service assets 2 Design an optimal agent and rep experience 3 Build a phased program plan, identify quick win 3 Build dedicated, dynamic governance process, policies & team 3 Plan your architecture, instances, integrations and data flows 3 Create change management plan 4 Baseline and track performance, usage KPIs and metrics 4 Reimagine how you want work processes to flow 4 Plan for upgrades at least once a year 4 Build an internal team of ServiceNow experts & train users 5 Define and map out your business services 5 Build a community of champions 6 Manage platform demand

Define and map out your business services The best approaches to digital transformation start with the concept of a service - a means of delivering value to consumers. A clear set of defined business services marries a system of engagement – how a customer interacts with the service – to a system of action – how the service is delivered. Each service typically has three aspects: The interaction describes the occurrence of the act, performance or transaction (the service) The offering is a stratification of the service into capability, availability and pricing options (customer-facing choices) The service system is a collection of business and technical services that are used to deliver a business capability. The Service System can be a combination of business services, technical services, products, applications, processes, workflows and tasks. (e.g. Now Platform + Applications). This provides a framework for enterprise IT to manage its own performance in a way that reflects the value IT provides. When IT creates services that correspond to business function capabilities, it can better communicate the value that investments in IT provide to the business. Insight: Define and map out your business services There are three things you must get right upfront to define and map out your business services in ServiceNow: Don’t rush to create a full-blown Enterprise Service Management practice right off the bat. Start with a handful of pilot business services to help refine your processes and approach. Frequently check in with your service customers for input. They will give you most effective feedback on the effectiveness of the new service. Assign a Service Owner for each business service you create. Key Implementation Steps Start Improve Optimize 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

Step 1: Offer digital business services in a system of engagement To be effective, digital business services need a common “home”— in other words, a system of engagement that consolidates and simplifies how customers access services and information. Organizations distinguish between a customer-facing system of engagement (a service catalog accessed through a service portal) and Service Portfolio Management, which oversees the creation, maintenance and retirement of services grouped by objective, capability, organization, or geography. The Service Catalog is the consumable view of available services, service commitment options and offerings. Define pilot use cases for business services Identify a small set of typical transactions that customers and/or employees engage in frequently (e.g., employee office moves; customer order modification). For a list of typical transactions, consult our Success Playbook “How to launch digital business services” Don’t take on too many pilot use cases; start with 1-3 use cases as the basis for your business services You’ll be able to define and create services more quickly to demonstrate success Write a statement of business goals and expected benefits that includes how benefits are measured and where accountability is assigned for benefits realization Identify key stakeholders, including sourcing partners involved in the fulfillment or management of the use case Map out the digital means for engaging with a service—how the customer learns about and transacts a use case—before you map the workflows for fulfillment For identified use cases, define the service in terms the customer would use “What will the customer order?” (I.e. general description of the service) “What type of service is it?” (e.g. business, technical, application) “What information would be most useful to the customer?” ”Where can they get more information?” (Who is the service owner?) “How does this service help them?” (What value does it provide?) “What are my choices for this service?” (What are the offerings?) Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

1. Offer digital business services in a system of engagement Step 1: Offer digital business services in a system of engagement (continued 1) Create the business service Create business-level services (i.e. “onboarding”, “office move”) using Service Portfolio Management Create technical or application services in the CMDB using one of the following methods: ServiceNow Service Mapping Import the CI from another source using Import sets Integrate with an existing CMDB using a MID server Manually create a business service CI using the CI Class Manager or directly into the table using CMDB Configuration Create service offerings Different levels of performance and features for a given service can be made available, but only one offering is required per service Service offerings include detailed information about the service interaction, including: Vendors Contracts Service Level Agreements (SLAs) / Operational Level Agreements (OLAs) Availability Commitments Consumption (Optional) Service price or internal cross-charge cost Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

1. Offer digital business services in a system of engagement Step 1: Offer digital business services in a system of engagement (continued 2) Create the system of engagement and publish the service Utilize an employee portal, customer service portal, or supplier portal, depending on the consumer of the services being created Refer to the following Playbooks on the Customer Success Center for more information: Design a world-class service catalog Improve self-service with ServiceNow Create a mechanism to order the service At its simplest, customers must be able to transact with the business service in a simple and automated way. Provide useful information and news about the services Make policies, guides, and other information available to guide the transaction decision. Create communications channels to let the customer connect with the enterprise around products and services Make communications channels available to help answer questions about the transaction decision. Practitioner Insight: Test engagement with your intended audience. Don’t rely on business capability or process owners to identify use cases. The service consumer will give you the best input into strong use case candidates. Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

Step 2: Create a system of action to deliver business services Your system of action for the delivery of your digital business services needs a common framework of processes and roles to ensure consistency and efficiency in delivery. Service organizations can extend existing process frameworks such as ITIL, IT4IT, ISO, COBIT, or TOGAF. The framework you choose matters less than your need to institute a baseline of processes for effective service delivery. Define and implement baseline processes for effective service delivery Service Catalog Management - Define and document the organization’s process for how it will catalog digital business services and communicate about them with customers, typically about provisioning policies, service level options, cost, and ordering steps. Service Level Management – Ensure that service delivery meets customers’ functional and technical requirements. This means that a digital business service must be mapped to its underlying dependencies (both technical and organizational) so the organization can validate if customers’ required service levels are technically and economically feasible. Data, services, and taxonomy management - Create a process for managing a portfolio of digital business services, including: Prioritizing investments in data and service development to meet customer use case needs Modifying and/or retiring existing services and data assets as required Incident and request management - Create case- and task-based processes for both managing incidents associated with the performance of the service as well as with fulfilling service transactions. Knowledge management - Create a defined and documented process for how it reliably collects, maintains, and dispenses information about the digital business service throughout its lifecycle. This includes how to identify relevant knowledge for target audiences and ensuring methods are in place to publish, store, and refresh this knowledge. Continuous service improvement management - Create a process for measuring service effectiveness and efficiency and for defining and implementing service improvement plans in response to the trends you’ve identified through measurement. Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

2. Build a system of action for delivering digital business services Step 2: Create a system of action to deliver business services (continued 1) Define process management and service-related roles Assign a Service Owner for each service Initially, create a part-time Service Owner role. As the number of services grows, the Service Owner role will become full-time (see Stage 4). During the pilot phase, assign a single Service Owner to all the use cases. Accountable for the full lifecycle of their assigned service(s) to ensure they are providing value to the organization Assign a Process Owner for each of the processes outlined above Initially the Process Owner is a part-time role. As the number of services grows, the role may become full-time. Responsibilities include defining and evolving over time the services, taxonomy, policies, procedures, governance, roles, responsibilities, etc. for the organization Depending on the size and complexity of the organization, process owners may be supported by regional or business unit process managers. Process Owners may support multiple services. Embrace the opportunity for improvement when designing service delivery Identify unnecessary handoffs, approvals with a near 100% approval rate, and process steps in place only due to a lack of automation Employ review processes, like value stream mapping, to identify where the process should be amended to support service delivery. Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

2. Build a system of action for delivering digital business services Step 2: Create a system of action to deliver business services (continued 2) Map applications and assets to the business service Use ServiceNow Discovery or another integrated discovery tool (see the Success Playbook “Populate and maintain your CMDB with ServiceNow Discovery”) to create CIs that will support the business service Map application services to underlying dependencies Use ServiceNow Service Mapping to automate the process of linking CIs to business services. You can also create manual mappings using the ServiceNow CI Class Editor or the CMDB Configurator. Practitioner Insight: Involve Enterprise Architecture teams from the beginning to define the architecture connecting the system of engagement with a digital business service to the system of action for fulfillment. Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

Step 3: Build insight and integration Digitizing a service transaction delivers only part of the potential value of a digital business service. For most organizations, the real potential of digital business services is in the ability to connect a system of engagement and action to a system of insight. This involves following two key steps. Step 1: Build metrics to assess service performance and guide continuous service improvement Service owners are accountable for the most critical KPIs for each business service Define service efficiency/effectiveness metrics- How has the customer’s experience improved? Service owners should start with these metrics Examples include number of business transactions supported, quality of service/reduction of errors, cost of service Keep these limited and focused, changing them only when the target customer’s objectives change Define performance of service delivery – How well is the service delivered? E.g. lead time from request to deliver, number of requests fulfilled Process owners should then look to diagnostic metrics to help them test hypotheses around trends in performance, cost, or satisfaction, and to spot opportunities for improvement. Step 2: Build an integration plan aligned with the service use case Define integration requirements Identify data elements that the business service either relies on or builds insight from Partner with enterprise architecture resources to define the appropriate integration architecture for each use case Consult our Success Checklist “Plan your architecture, instances, integrations and data flows ” for additional information Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

Step 4: Create foundations for enterprise service management After achieving success creating and delivering your initial business services, you’ll next need to scale up to support additional demand for business services. This may include creating a formal Shared Services organization or may be supported from within IT, but you’ll need to develop the roles, service taxonomy, and underpinning service components to support growth toward a full Enterprise Service Management function. Formalize existing and assign expanded service roles Service Owner Accountable for the full lifecycle of services to ensure they are providing value to the organization Define and socialize a mandate for a formal Service Owner’s role within IT Use the mandate to start building the Service Owner job description and identifying a suitable candidate pool Depending on the size of the organization, Service Owners may be assisted by Service Managers, who are responsible for the day-to-day delivery and operation of a service; otherwise, these roles may be played by the same person Service Architect - responsible for creating and updating Service Records in the service portfolio management tool Service Manager - responsible for the day-to-day delivery and operation of a service Portfolio Owner - accountable for managing a hierarchical collection of services (i.e. portfolio of services) for the maximum benefit of the business Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

4. Create foundations for enterprise service management Step 4: Create foundations for enterprise service management (continued 1) Create a standard service lifecycle Define business services Work with partners in the business to define additional use cases for digitization Gather business goals and objectives for the use case Replicate activities found in Stage 1 of this Success Checklist Review and provide approval of a service concept Deliver business services Create the system of action for the business service as described in Stage 2 Develop the fulfillment and approval processes Test the services with the service customer Deploy the business service Capture operational metrics Review business services Conduct regular service review meetings at least quarterly Include performance and operational metrics of your services (captured weekly/monthly, reviewed quarterly) Oversee updates and improvements to services Execute updates and improvements to your service (e.g. new offerings, improved commitments) Retire or replace business services Decide when to retire a service and/or offering that is no longer adding value Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

4. Create foundations for enterprise service management Step 4: Create foundations for enterprise service management (continued 2) Create a services taxonomy/hierarchy Define services and dependencies to understand optimization opportunities Start with grouping by IT technology for IT-related services For business services, group by business unit, end user type, or geography These services should be above the application and process layer and focus on what the organization does rather than how it does. Create metrics will be around regretted attrition within first 180 days, satisfaction and intent to stay – not technical or incident management metrics. Identify metrics to demonstrate engagement/business relationship management (BRM) and business impact Step 1: Engagement/BRM KPIs Number of customer inquiries Number of new customers Number of planned new services Step 2: Business impact KPIs Work with business liaisons to determine appropriate KPIs tied to their business goals Obtain historical data to compare post-service impact Practitioner Insight: ServiceNow’s Common Service Data Model (CSDM) provides a single, shared set of service and related definitions. These definitions are divided into three domains, with components listed from most general to most granular: Service Domain – Service Portfolio, Service Category, Service Line, Service, Service Offering, Catalog Offering Application Domain – Application, Infrastructure CIs Business Domain – Business Capability, Business Process, Business Application The Service System can be a combination of business services, technical services, products, applications, processes, workflows and tasks. (e.g. Now Platform + Applications) Steps 1. Offer digital business services in a system of engagement 2. Build a system of action for delivering digital business services 3. Build insight and integration 4. Create foundations for enterprise service management

KPIs and Stakeholders Key Performance Indicators Essential KPIs # of business transactions supported # of services offered Quality of service Cost of service % of errors reduced Service delivery time (request to fulfillment) # of requests fulfilled ‘Nice to Have’ # of new customers # of customer inquiries # of planned new services Stakeholder Map Responsible/Accountable Service owners Process owners Service managers Portfolio owners Portfolio managers Consulted/Informed CIO Business leadership ServiceNow governance committees Business stakeholders (informed only) Vendor representatives (informed only) Business engagement teams Partners

Glossary of terms For an updated list of common service-related definitions across ServiceNow solutions, consult the Common Service Data Model forum on Community.