The Total Economic Impact of ServiceNow Customer Service Management

Anish Shah Ian AshbyPrincipal Consultant Senior Vice President, Global Support Forrester Research Epicor Software Corp.

The Total Economic Impact Of ServiceNow Customer Service Management

How Epicor Software Achieves 104% ROI by Transforming Global Customer Support

Agenda• Forrester Perspective: Drivers for Change

• What is TEI?

• Epicor’s Global Support Transformation using ServiceNow

• Forrester Total Economic Impact (TEI) Analysis

• Q & A

3© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Forrester Perspective


Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017

Companies have to invest in improving customer experience – proof is in the pudding



Customers want to self-serve for routine tasks; and when customers seek out low-friction channels

Help or FAQs

on a company

website or

mobile website

Voice self-

service

Virtual agents

Communities



Most business are a mess of silos

5%

3%


What is TEI?Background and methodology



“Next-level” business case justifications are increasingly important for technology investments

Very important,

60%

Somewhat important,

33%

Somewhat unimportant, 4%

Not at all important, 3%

Over 90% of IT decision-makers find value in a business case

TCO ROI TEI

IT impact

IT costs

IT cost savings

Business

impact

User efficiency

Business effectiveness

Risk/

uncertainty

Risk mitigation

Risk versus reward

Strategic

impact

Scalability

Flexibility

What is an effective business case?

Base: 825 IT decision-makers at North American enterprises



The objective of the TEI framework is to identify all of the factors that affect an investment decision

Benefits

Costs

Flexibility

Risks

Total

Economic

Impact

Agenda• Epicor’s Global Support Transformation using

ServiceNow

• Forrester Perspective: Drivers for Change

• Forrester Total Economic Impact (TEI) Analysis

© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation

11© 2016 Epicor Software Corporation

Epicor At a Glance

~20,000customers

3,800employees

150countries

~$1 billionrevenue

70+products

Complete Value Chain Solutions – B2B & B2CThe 6th Largest ERP Software Provider Globally



Epicor Support Overview

Support for Epicor SW, technology, and third-party SW products

• Support & maintenance fees are approximately 50% of company revenues

16 main support centers

• From New Zealand to Europe to the Americas….

• Newest support center in Bangalore, India (the ITC)

Providing support in 21 languages

Handling c. 500,000 support contacts p.a.

Phone, portal and e-mail

Supporting Customers and Partners



The Challenge !

… and 50+ Customer Portals!

15+ Support Systems …



Epicor’s Decisions

Drivers to Undertake Transformation

Critical Decision: CRM vs. CSM

Vendor Selection

Implementer Selection

CSM: Customer Service Management

Improve Customer Satisfaction



The EpicCare Project Transformational project focused on improving the overall customer

experience

Major investment, driven from customer feedback

Combination of systems and processes

• A single support system across all products, for all customers & partners, all geographies, based upon the ServiceNOW CSM platform

• Consistent support processes, leveraging best-in-class ITIL/ITSM practices, driven by Command Center team

Move to Knowledge-Centric Support (KCS)

Continuous improvement focus

A ‘proper’ Change Management program – internal and external



EpicCare Rollout – What We Achieved

EpicCare Rollout

now complete:

Seven Waves replacing

15+ existing support

systems

All products,

all customers & partners,

globally,

now live

Wave Primary Products Go-Live Date

Wave 1 Eclipse April 2016

Wave 2 Distribution June 2016

Wave 3 Prophet 21, Eagle August 2016

Wave 4 Auto, iSolutions, Enterprise November 2016

Wave 5 Epicor ERP December 2016

Wave 6 iScala, BisTrack US January 2017

Wave 7 Tropos, BisTrack UK, CMS March 2017



EpicCare Major ChangesCustomer

ManagementBusiness Data Case Handling Workflows Other Capabilities

► Entitlement: Faster, Embedded Customer Attributes (Icons), Caller ID

► Dashboards: Account Summary, Queues, Metrics

► Designed to Measure: SLAs, SLTs, KPIs

► Survey Mgmt

► Enhanced Portal, Self-Help

► Customer Data Integrated with Epicor Business Systems

► Support Managed Data maintained in EpicCare: Contacts, Entitlements, Asset Details, …

► Customer Configuration Management

► Customer Need: Case, Problem (Defect), Service Request

► Knowledgeusage embedded in Case, breadcrumbs

► Process Integrated with Non-support Stakeholders

► Positive Call Closure

► Service Catalog for commonly requested services

► Email Hub Receiving, Sending, Notifications

► Appointmentscheduling

► Time Management: Tracking, Billing, Normalization

► Common Reporting and Metrics to drive CSIP

► Single, Global System driving Service consistency

► Single Sign-on for Agents

► Collaboration capabilities including chat, concurrent updates



EpicCare – The Results

51,000 users from Customers

and Partners registered for

EpicCare

Run-rate of 500,000+ support

cases annually going through

the single EpicCare platform

33% of all support cases being

logged through the new

EpicCare customer portal

• Increasing 1-2pp per month

EpicCare Customer Feedback“…HUGE improvement over the old system …

What am I going to do with all of my free time?”

— Retail Customer“The new portal is amazing…Especially like the

formatting in the Knowledge Base”

— Distribution Customer

“You can actually drop screen shots right into the website [and] reply

to a case notification email with a screen shot…Just those two things

and the ability to simply reply by email to the cases are HUGE…”

— Distribution Customer“EpicCare is working well and support has been

great…certainly a well-functioning support system”

— Manufacturing Customer

“Congratulations…. EpicCare helps us !”

— Channel Partner



And most importantly…Early Indication of NPS Improvement….

R² = 0.7917

-20

-10

0

10

20

30

40

June2016

Jul Aug Sep Oct Nov Dec Jan2017

Feb Mar Apr May JuneMTD

NP

S in

%Support Survey NPS Scores from EpicCare System



An Award for EpicCare

May 2017: The EpicCare project announced

as the winner of a ‘Stevie’ for Customer

Service Department of the Year in the 2017

American Business Awards

Comments from the judges:

“A transformative year for Epicor. Not many can replace

all their systems and still show improving metrics”

“The new electronic case management system is impressive”

“You have been able to navigate the complexity of mergers and

acquisitions nicely. Congratulations”

“All I can say is ‘well done’.”


Epicor Business Case: ServiceNow Customer

Service Management


Source: The Total Economic Impact Of ServiceNow April 2017

Forrester concludedthat Epicor expects the following three-year financial impact from investing in ServiceNow

ROI Benefits PV PAYBACK

104% $11.4 million 15.5 months

Epicor Software invested in ServiceNow Customer Service

Management to transform their global support system.



$6.6M

$3.5M

$1.3M

IMPROVED CUSTOMER RETENTION

INCREMENTAL REVENUE GROW TH

IMPROVED ORGANIZATIONAL

EFFICIENCIES ( INCREASED

PRODUCTIVITY & FASTER DECISION

MAKING)

Epicor quantified key benefits from its investment in ServiceNow Customer Service Management

Three-year total PV benefit breakdown



Epicor expects to improve customer retention by 1% in 3 yearsBy delivering a better overall customer experience

3-Year Benefit

$6.6MImproved Customer NPS

scores by 10-plus

percentage points within

first 10 months

Automatic routing to

right team members

Meeting SLAs and SLTs Proactively solve issues

before they occur

Customer portal with extensive knowledge base

Epicor Software: Value Drivers



Epicor expects 3% incremental license revenue in 3 years

3-Year Benefit

$3.5MMore engaged and improved

quality of customer

interactions

By uncovering new upsell and cross-sell opportunities

Automated workflows and

improved agent productivity to

focus on strategic issues

Increased visibility of customer data across teams




Epicor has realized 3X efficiencies in reporting and tracking

3-Year Benefit

$1.3MAutomated reporting and

increased analytics

By improving productivity and faster business decision making

Management can gain faster

insights and make better

decisions

Improved agent productivity and satisfaction



Epicor expects to realize the following additional benefits that were not quantified in the study

Improved self-service usage through creating 24/7 customer

portal with an extensive knowledge base

Faster resolution time increasing agent productivity

Improved service levels with the ability to deliver consistent

service

Capex and opex savings by consolidating over 15 disparate

support systems and 50-plus customer portals into a single

global support platform


Financial summaryThree-year model



104%

ROI

Three-year model summary results

($4,000,000)

($2,000,000)

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

Initial Year 1 Year 2 Year 3

Cas

h f

low

sFinancial Analysis (risk-adjusted)

Total costs Total benefits Cumulative net benefits

© 2017 Forrester Research, Inc. Reproduction Prohibited 31

Prospective Customer ServiceNow Customer Service Management Calculator

The calculator provides an interactive

version of the results presented in the

case study and other customer data

points, enabling prospects to interact

with the data as they explore what an

investment in ServiceNow CSM would

mean for their organization.

Forrester 1:1sAssess the value of ServiceNow Customer

Service Management for your organization.

http://www.totaleconomicimpact.com/dev/demos/example2/

http://www.totaleconomicimpact.com/dev/demos/example2/

Q & AThank you for joining us.

Anish Shah

Principal Consultant

Forrester Research

Ian Ashby

SVP, Global Support

Epicor Software Corp.

Technology

The Total Economic Impact of ServiceNow Customer Service Management