The Total Economic Impact Of ServiceNow Customer Service Management How Epicor Software Achieves 104% ROI by Transforming Global Customer Support
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1 The Total Economic Impact Of ServiceNow Customer Service Management How Epicor Software Achieves 104% ROI by Transforming Global Customer Support Anish Shah Principal Consultant Forrester Research Ian Ashby Senior Vice President, Global Support Epicor Software Corp.
2 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 Forrester Perspective 2017 F ORREST ER. REPRODUCTION PROHIBITED. 3
4 Companies have to invest in improving customer experience proof is in the pudding Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 4
5 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 selfservice Communities Virtual agents Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 5
6 Most business are a mess of silos 5% 3% Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 6
7 What is TEI? Background and methodology 2017 F ORREST ER. REPRODUCTION PROHIBITED. 7
8 Next-level business case justifications are increasingly important for technology investments Over 90% of IT decision-makers find value in a business case Somewhat unimportant, 4% Not at all important, 3% What is an effective business case? TCO ROI TEI IT costs IT impact IT cost savings Business impact User efficiency Business effectiveness Somewhat important, 33% Very important, 60% Risk/ uncertainty Risk mitigation Risk versus reward Strategic impact Scalability Flexibility Base: 825 IT decision-makers at North American enterprises Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 8
9 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 Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 9
10 Agenda Epicor s Global Support Transformation using ServiceNow Forrester Perspective: Drivers for Change Forrester Total Economic Impact (TEI) Analysis
11 Epicor At a Glance ~20,000 customers 3,800 employees 150 countries 70+ products ~$1 billion revenue Complete Value Chain Solutions B2B & B2C The 6 th Largest ERP Software Provider Globally 2016 Epicor Software Corporation 2015 Epicor Software Corporation 11
12 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 Supporting Customers and Partners 2016 Epicor Software Corporation 2015 Epicor Software Corporation 12
13 The Challenge! 15+ Support Systems and 50+ Customer Portals! 2016 Epicor Software Corporation 2015 Epicor Software Corporation 13
14 Epicor s Decisions Drivers to Undertake Transformation Critical Decision: CRM vs. CSM Improve Customer Satisfaction CSM: Customer Service Management Vendor Selection Implementer Selection 2016 Epicor Software Corporation 2015 Epicor Software Corporation 14
15 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 2016 Epicor Software Corporation 2015 Epicor Software Corporation 15
16 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 Epicor Software Corporation 2015 Epicor Software Corporation 16
17 EpicCare Major Changes Customer Management Business 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 Knowledge usage embedded in Case, breadcrumbs Process Integrated with Non-support Stakeholders Positive Call Closure Service Catalog for commonly requested services Hub Receiving, Sending, Notifications Appointment scheduling 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 2016 Epicor Software Corporation 2015 Epicor Software Corporation 17
18 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 2016 Epicor Software Corporation 2015 Epicor Software Corporation 18
19 EpicCare Customer Feedback The new portal is amazing Especially like the formatting in the Knowledge Base HUGE improvement over the old system What am I going to do with all of my free time? Distribution Customer You can actually drop screen shots right into the website [and] reply to a case notification with a screen shot Just those two things and the ability to simply reply by to the cases are HUGE EpicCare is working well and support has been great certainly a well-functioning support system Manufacturing Customer Congratulations. EpicCare helps us! Retail Customer Distribution Customer Channel Partner
20 And most importantly Early Indication of NPS Improvement. NPS in % Support Survey NPS Scores from EpicCare System June 2016 Jul Aug Sep Oct Nov Dec Jan 2017 R² = Feb Mar Apr May June MTD 2016 Epicor Software Corporation 2015 Epicor Software Corporation 20
21 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 Software Corporation 2015 Epicor Software Corporation 21
22 Epicor Business Case: ServiceNow Customer Service Management 2017 F ORREST ER. REPRODUCTION PROHIBITED. 22
23 Forrester concluded that Epicor expects the following three-year financial impact from investing in ServiceNow Epicor Software invested in ServiceNow Customer Service Management to transform their global support system. ROI Benefits PV PAYBACK 104% $11.4 million 15.5 months Source: The Total Economic Impact Of ServiceNow April F ORREST ER. REPRODUCTION PROHIBITED. 23
24 Epicor quantified key benefits from its investment in ServiceNow Customer Service Management $6.6M $3.5M $1.3M Three-year total PV benefit breakdown IMPROVED CUSTOMER RETENTION INCREMENTAL REVENUE GROW TH IMPROVED ORGANIZATIONAL EFFICIENCIES (INCREASED PRODUCTIVITY & FASTER DECISION MAKING) Source: The Total Economic Impact Of ServiceNow April F ORREST ER. REPRODUCTION PROHIBITED. 24
25 Epicor expects to improve customer retention by 1% in 3 years By delivering a better overall customer experience Epicor Software: Value Drivers Customer portal with extensive knowledge base Meeting SLAs and SLTs Improved Customer NPS scores by 10-plus percentage points within first 10 months $6.6M 3-Year Benefit Proactively solve issues before they occur Automatic routing to right team members Source: The Total Economic Impact Of ServiceNow April F ORREST ER. REPRODUCTION PROHIBITED. 25
26 Epicor expects 3% incremental license revenue in 3 years By uncovering new upsell and cross-sell opportunities Epicor Software: Value Drivers Increased visibility of customer data across teams More engaged and improved quality of customer interactions $3.5M 3-Year Benefit Automated workflows and improved agent productivity to focus on strategic issues Source: The Total Economic Impact Of ServiceNow April F ORREST ER. REPRODUCTION PROHIBITED. 26
27 Epicor has realized 3X efficiencies in reporting and tracking By improving productivity and faster business decision making Epicor Software: Value Drivers Improved agent productivity and satisfaction Automated reporting and increased analytics $1.3M 3-Year Benefit Management can gain faster insights and make better decisions Source: The Total Economic Impact Of ServiceNow April F ORREST ER. REPRODUCTION PROHIBITED. 27
28 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 2017 F ORREST ER. REPRODUCTION PROHIBITED. 28
29 Financial summary Three-year model 2017 F ORREST ER. REPRODUCTION PROHIBITED. 29
30 Cash flows Three-year model summary results $10,000,000 $8,000,000 Financial Analysis (risk-adjusted) 104% ROI $6,000,000 $4,000,000 $2,000,000 $0 ($2,000,000) ($4,000,000) Initial Year 1 Year 2 Year 3 Total costs Total benefits Cumulative net benefits Source: The Total Economic Impact Of ServiceNow Customer Service Management June F ORREST ER. REPRODUCTION PROHIBITED. 30
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 1:1s Assess the value of ServiceNow Customer Service Management for your organization Forrester Research, Inc. Reproduction Prohibited 31
32 Q & A Thank you for joining us. Anish Shah Principal Consultant Forrester Research Ian Ashby SVP, Global Support Epicor Software Corp.
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