>> Man's Voice: Live from Orlando, Florida, it's theCUBE covering ServiceNow Knowledge17, brought to you by ServiceNow. >> Welcome back to Orlando, everybody. This is theCUBE, the leader in live tech coverage. We go out to the events, we extract a signal from the noise. My name is Dave Vellante, and I'm here with my co-host, Jeff Frick. This is theCUBE's fifth year covering Knowledge. We started in Las Vegas, a little small event, Jeff, at Aria Hotel, and it's exploded from 3,500 all the way up to 15,000 people here in Orlando at the Convention Center. This is day two of our three day coverage. And, we heard this morning, you know, day one was the introduction of the new CEO, John Donahoe, taking over the reins for Frank Slootman. And, actually it was interesting, Jeff. Last night, we went around to some of the parties and talked to some of the folks and some of the practitioners. It was interesting to hear how many people were saying how much they missed Fred. >> Right, right. >> And the culture of fun and kind of zaniness and quirkiness that they sort of have, and there's some of that that's maintained here. We saw that in the keynotes this morning, and we'll talk about that a little bit, but what are your impressions of sort of that transition from, you know, really the third phase now we're into of ServiceNow leadership? >> Right, well as was commented again last night at some of the events, you know, a relatively peaceful transition, right. So, the difference between an evolution and a revolution is people die in revolutions. This was more of an evolution. It was an organized handoff, and a lot of the product leaders are relatively new. We just saw CJ Desai. He said he's only 100 days ahead of where John is at 45 days. So, it is kind of a, I don't know if refresh is the right word, but all new leadership in a lot of the top positions to basically go from, as been discussed many times, from kind of the one billion dollar mark to the four billion dollar mark, and then, of course, onward to the 10. So, it sounds like everyone is very reverent to the past, and Fred has a huge following. He's one of our favorite guest. The guy's just a super individual. People love him. That said, you know, it's a very clear and focused move to the next stage in evolution of growth. >> Well, I think that, you know, Fred probably, I mean, he may have said something similar to this either in theCUBE or sort of in back channel conversations with us, is, you know, ServiceNow, when they brought in Frank Slootman, it needed adult supervision. And, Fred doesn't strike me as the kind of person that's going to be doing a lot of the, you know, HR functions and performance reviews and stuff. He wants to code, right. I mean, that was his thing. And, now, we're seeing sort of this next level of ascension for ServiceNow, and you seen the advancement of their product, their platform. So this morning, CJ Desai kicked off the keynotes. Now, CJ Desai was an executive in the security business. He was an executive at EMC, hardcore product guy. He's a hacker. You heard him this morning saying when he was at a previous company, he didn't mention EMC, but that's what he was talking about, I'm pretty sure. They use ServiceNow, and when ServiceNow started recruiting him, he said I opened up an instance and started playing around with it, and see if I could develop an app, and I was amazed at how easy it was. And, they started talking to some of the customers and seeing how passionate they were about this platform, and it became an easy decision for him to, you know, come and run. He's got a big job here. He run, he's basically, you know, manages all products, essentially taking over for Fred Luddy and, you know, Dan McGee as a chief operating officer even though he hasn't used that title 'cause he's a product guy. But, all the GMs report up into him, so he is the man, you know, on top of the platform. So, he talked this morning about Jakarta, the announcement, and the key thing about, you know, that I'm learning really in talking to ServiceNow over the years, is they put everything in the platform, and then the business units have to figure out how to leverage that new capability, you know, whether it's machine learning or AI or some kind of new service catalog or portal. The business units, whether it's, you know, the managers, whether it's Farrell Hough and her team, she does IT service management, Abhijit Mitra who does customer service management, the IT operations management people, the HR folks, they have to figure out how they can take the capabilities of this platform, and then apply it to their specific use cases and industry examples. And, that's what we saw a lot of today. >> But, it's still paper-based workflow, right? 'Cause back to Fred's original vision, which I love repeating about, the copy room with all the pigeonholes of colored paper that you would grab for I need a new laptop, I need a vacation request, I need whatever, which nobody remembers anymore. But, you know, at the end of the day, it's put in a request, get it approved, does it need to be worked, and then executed. So, whether that's asking for a new laptop for a new employee, whether that's getting a customer service ticket handled, whether it's we're swinging by doing name changes, it's relatively simple process under the covers, and then now, they're just wrapping it with this specific vocabulary and integration points to the different systems to support that execution. So, it's a pretty straightforward solution. What I really like about ServiceNow is they're applying, you know, technology to relatively straightforward problems that have huge impact and efficiency, and just getting away from email, getting away from so many notification systems that we have, getting away from phone calls, getting away from tech-- Trying to aggregate that into one spot, like we see it a lot of successful applications, sass applications. So, now you've got a single system of record for the execution of these relatively straightforward processes. >> Yeah, it really is all about a new way to work, and with the millennial work force becoming younger, obviously, they're going to work in a different way. I saw, when I tweeted out, was the best IT demo that I'd ever seen. Didn't involve a laptop, didn't involve a screen. What Chris Pope did, who's kind of an evangelist, he's in the CSO office, he was on... the chief strategy office, he was on yesterday. He came up with a soccer ball. Right, you saw it. And, he said >> Football. Make sure you say it right. He would correct you. (Jeff laughs) >> And, he said for those of you who are not from the colonies, this is a football. And then, he had somebody in a new employee's t-shirt, he had the HR t-shirt, the IT t-shirt, the facilities t-shirt, and they were passing the ball around, and he did a narrative on what it was like to onboard a new employee, and the back and forth and the touch points and, you know, underscoring the point of how complex it is, how many mistakes can be made, how frustrating it is, how inefficient it is, and then, obviously, setting up conveniently the morning of how the workflow would serve us now. But, it was a very powerful demo, I thought. >> Well, the thing that I want to get into, Dave, is how do you get people to change behavior? And, we talk about it all the time in theCUBE. People process in tech. The tech's the easy part. How do you change people's behavior? When I have to make that request to you, what gets me to take the step to do it inside of service now versus sending you that email? It seems to me that that's the biggest challenge, and you talk about it all the time, is we get kind of tool-creep in all these notification systems and, you know, there's Slack and there's Atlassian JIRA and there's Salesforce and there's Dropbox and there's Google Docs and, you know, the good news is we're getting all these kind of sass applications that, ultimately, we're seeing this growth of IPA's in between them and integration between them, but, on the bad side, we get so many notifications from so many different places. You know, how do you force really a compliance around a particular department to use a solution, as we say that, that's what's on your desk all the time, and not email? And, I think that's, I look forward to hearing kind of what are best practices to dictate that? I know that Atlassian, internally, they don't use email. Everything is on JIRA. I would presume in ServiceNow, it's probably very similar where, internally, everything is in the ServiceNow platform, but, unfortunately, there's those pesky people outside the organization who are still communicating with email. So, then you get, >> Exactly. >> Then, now, you're running kind of a parallel track as you're getting new information from a customer that's coming in maybe via email that you need to, then, populate into those tickets. That's the part I see as kind of a challenge. >> Well, I think it is a big challenge. And, of course, when you talk to ServiceNow people privately and you say to them, "Have you guys eliminated email?" Then, they roll their eyes and "I wish." (Jeff chuckles) But, I would presume their internal communications, as you say, are a lot more efficient and effective. But, you know, it's a Cloud app, and Cloud apps suffer from latency issues. And, it's like when you go into a Cloud app, you know, you log in. A lot of times, it logs you out just for security reasons, so you got to log back in and you get the spinning logo for awhile. You finally get in and then, you got to find what you want to do, and then you do it. And, it's a lot slower just from an elapse time standpoint than, actually not from an elapse time. So, from an initiation standpoint, getting something off your desk, it's slower. The elapse time is much more efficient. >> Jeff: Right, right. >> And so, what I think ends up happening is people default to the simple email system. It's a quick fix. And then, it starts the cycle of hell. But, I think you're making a great point about adoption. How do you improve that adoption? One of the things that ServiceNow announced this morning, is that roughly 30% improvement in performance, right. So, people complain about performance like any Cloud-based application, and it's hard. You know, when you even when you use, you know, look at LinkedIn. A lot of times, you get a LinkedIn request, and you go, "I'll check it later." You don't want to go through the process of logging in. Everybody's experienced that. It's one of those >> Right, right. >> Sort of heavy apps, and so, you just say, "Alright, I'll figure it out later." And, Facebook is the same thing. And, no doubt, that ServiceNow, certainly Salesforce, similar sort of dynamics 'cause it's a Cloud-based app. And so, hitting performance hard, as you say, the culture of leaving it on your desk. The folks at Nutanix, Dheeraj is telling me they essentially run their communications in Slack. (chuckles) and so, >> Right. >> You know, they'll hit limits there, I'm sure, as well, but everybody's trying to find a new way to work, and this is something that I know is a passion of yours, because the outcome is so much better if you can eliminate email trails and threads and lost work. >> Right. And, we're stuck now in this, in the middle phase which is just brutal 'cause you just get so many notifications from so many different applications. How do you prioritize? How do you keep track? Oh my God, did you ping me on Slack? Did you ping me on a text? Did you ping me on a email? I don't even know. The notification went away, went off my phone. I don't even know which one it came through its difficulty. The good news is that we see in sass applications and, again, it's interesting. Maybe just 'cause I was at AWS summit recently. I just keep thinking AWS, and in terms of the efficiency that they can bring to bear, that resources they can bring to bear around CP utilization, storage utilization, security execution, all those things that they can do as a multi-vendor, Cloud-based application, and apply to their Cloud in support of their customers on their application, will grow and grow and grow, and quickly surpass what most people would do on their own 'cause they just don't have the resources. So, that is a huge benefit of these Cloud-based applications and again, as the integration points get better, 'cause we keep hearin' it 'cause you got some stuff in Dropbox, you got some stuff in Google Docs, you got some stuff in Salesforce. That's going to be interesting, how that plays out, and will it boil back down to, again, how many actual windows do you have open that you work with on your computer. Is it two? Is it three? Is it four? Not many more than that, and it can't be. >> Yeah, so today here at Knowledge, it's a big announcement day. You're hearing from all the sort of heads of the businesses. Jakarta is the big announcement. That's the new release of the platform. Kingston's coming, you know, later on this year. ServiceNow generally does two a year, one in the spring summer, one in the fall, kind of early winter. And, Jakarta really comprises performance improvement, a new security capability where, I thought this was very interesting, where you have all these vendors that you're trying to interact with, and you tryin' to figure out, okay, "What do I integrate with "in terms of my third party vendors, and who's safe?" You know, and "Do they comply "to my corpoetics?" >> Right, right. >> And, ServiceNow introducing a module in Jakarta which going to automate that whole thing, and simplify it. And then, the one, the big one was software asset management. Every time you come to a conference like Knowledge, and you get this at Splunk too, the announcements that they make, they're not golf claps. You'd get hoots and woos and "Yes" and people standing up. >> Jeff: That was that and that was the one, right? >> Software SM Management was the one. >> Jeff: (chuckles) put a big star on that one. >> Now, let's talk about this a little bit because they mentioned in, they didn't mention Oracle, but this is a bit pain point of a lot of Oracle customers, is audits, software audits. >> Jeff: Right, right. >> And, certainly Oracle uses software audits as negotiating leverage, and clients customers don't really know what they have, what the utilization is, do they buy more licenses even though they could repurpose licenses. They just can't keep track of all that stuff, and so, ServiceNow is going to do it for ya. So, that's a pretty big deal and, obviously, people love that. As I said, 30% improvement in performance. And, yeah, this software asset management thing, we're going to talk to some people about that and see what their-- >> But, they got the big cheer. >> What their expectation is. >> The other thing that was interesting on the product announcement, is using AI. Again, I just love password reset as an example 'cause it's so simple and discrete, but still impactful about using AI on relatively, it sounds like, simple processes that are super high ROI, like auto-categorization. You know, let the machine do auto-categorization and a lot of these little things that make a huge difference in productivity to be able to find and discover and work with this data that you're now removing the people from it, and making the machine, the better for machine processes handled by the machine. And, we see that going all through the application, a lot of the announcements that were made. So, it's not just AI for AI, but it's actually, they call it Intelligent Automation, and applying it to very specific things that are very fungible and tangible and easy to see, and provide direct ROI, right out of the gate. >> Well, this auto-categorization is something that, I mean, it's been a vexing problem in the industry for years. I mentioned yesterday that in 2006 with the federal rules of civil procedure change that made electronic documents admissible, it meant that you had to be able to find and submit to a court of law all the electronic documents on a legal hold. And, there were tons of cases in the sort of mid to late part of the 2000's where companies were fined hundreds and millions of dollars. Morgan Stanley was the sort of poster child of that because they couldn't produce emails. And, as part of that, there was a categorization effort that went on to try to say, okay, let's put these emails in buckets, something as simple as email >> Right, right. >> So that when we have to go find something in a legal hold, we can find it or, more importantly, we can defensively delete it. But, the problem was, as I said yesterday, the math has been around forever. Things like support vector machines and probabilistic latent semantic index and all these crazy algorithms. But, the application of them was flawed, and the data quality >> Jeff: Right, right. >> Was poor. So, we'll see if now, you know, AI which is the big buzz word now, but it appears that it's got legs and is real with machine learning and it's kind of the new big data meme. We'll see if, in fact, it can really solve this problem. We certainly have the computing horse power. We know the math is there. And, I think the industry has learned enough that the application of those algorithms, is now going to allow us to have quality categorization, and really take the humans out of the equation. >> Yeah, I made some notes. It was Farrell, her part of the keynote this morning where she really talked about some of these things. And, again, categorization, prioritization, and assignment. Let the machine take the first swag at that, and let it learn and, based on what happens going forward, let it adjust its algorithms. But, again, really simple concepts, really painful to execute as a person, especially at scale. So, I think that's a really interesting application that ServiceNow is bringing AI to these relatively straightforward processes that are just painful for people. >> Yes, squinting through lists and trying to figure out, okay, which one's more important, and weighting them, and I'm sure, they have some kind of scoring system or weighting system that you can tell the machine, "Hey, prioritize, you know, these things," you know, security incidence >> Right, right. >> Or high value assets first. Give me a list. I can then eyeball them and say, okay, hm, now I'm going to do this third one first, and the first one second, whatever. And, you can make that decision, but it's like a first pass filter, like a vetting system. >> Like what Google mail does for you, right? >> Right. >> It takes a first pass. So, you know, these are the really specific applications of machine learning in AI that will start to have an impact in the very short-term, on the way that things happen. >> So, the other thing that we're really paying attention here, is the growth of the ecosystem. It's something that Jeff and I have been tracking since the early days of ServiceNow Knowledge, in terms of our early days of theCUBE. And, the ecosystem is really exploding. You know, you're seeing the big SIs. Last night, we were at the Exen Sure party. It was, you know, typical Exen Sure, very senior level, a bunch of CIOs there. It reminded me of when you go to the parties at Oracle, and the big SIs have these parties. I mean, they're just loaded with senior executives. And, that's what this was last night. You know, the VIP room and all the suits were in there, and they were schmoozing. These are things that are really going to expand the value of ServiceNow. It's a new channel for them. And, these big SIs, they have the relationships at the board room level. They have the deep industry expertise. I was talking to Josh Kahn, who's running the Industry Solutions now, another former EMCer, and he, obviously, is very excited to have these relationships with the SI. So, that to me, is a big windfall for ServiceNow. It's something that we're going to be tracking. >> And, especially, this whole concept of the SIs building dedicated industry solutions built on SI. I overheard some of the conversation at the party last night between an SI executive, it was an Exen Sure executive, and one of the ServiceNow people, and, they talked about the power of having the combination of the deep expertise in an industry, I can't remember which one they were going after, it was one big company, their first kind of pilot project, combined with the stability and roadmap of ServiceNow side to have this stable software platform. And, the combination of those two, so complementary to take to market to this particular customer that they were proposing this solution around. And then, to take that solution as they always do and then, you know, harden it and then, take it to the next customer, the next customer, the next customer. So, as you said, getting these big integrators that own the relationships with a lot of big companies, actively involved in now building industry solutions, is a huge step forward beyond just, you know, consultative services and best practices. >> Well, and they have such deep industry expertise. I mean, we talked yesterday about GDPR and some of the new compliance regulations that are coming to the banking industry, particularly in Europe, the fines are getting much more onerous. These SIs have deep expertise and understanding of how to apply something like ServiceNow. ServiceNow, I think of it as a generic platform, but it needs, you know, brain power to say, okay, we can solve this particular problem by doing A, B, C, and D or developing this application or creating this solution. That's really where the SIs are. It's no surprise that a lot of the senior ServiceNow sales reps were at that event last night, you know, hanging with the customers, hanging with their partners. And, that is just a positive sign of momentum in my opinion. Alright, Jeff, so big day today. CJ Desai is coming on. We're going to run through a lot of the business units. You know, tomorrow is sort of Pronic demo day. It's the day usually that Fred Luddy hosts, and Pat Casey, I think, is going to be the main host tomorrow. And, we'll be covering all of this from theCUBE. This is day two ServiceNow Knowledge #Know17. Check out siliconangle.com for all the news. You can watch us live, of course, at thecube.net. I'm Dave Vellante, he's Jeff Frick. We'll be right back after this short break. (easygoing music)

live from Las Vegas it's the cute covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick I very welcome to service now knowledge this is knowledge 16 know hashtag no 16 we're here in Las Vegas the Mandalay Bay Hotel Jeff feels like our second home with his cube season and conference season this is day one actually of our coverage really day two of the conference it kicked off yesterday with a lot of the technical sessions but the keynotes started today in the General Sessions we heard Frank's luqman laying out the vision of service now yesterday I happen to sit in the financial analyst meeting this is a billion dollar company baster passed a billion dollars last year grew in excess of sixty percent they're on track in my view to do a billion and a half this year service now is laid out of vision by 2020 of it being a four billion dollar company so Jeff we've been covering service now since the early days when they're a relatively small company with large ambitions and they've been executing nearly flawlessly on the vision that they set out and they continue to expand that vision expand the total available market bring out new products bring on acquisitions but the real story of service now is around the customers the core customers would sleep and calls our peeps the the IT folks within the you know the heart of IT bringing service management discipline not only 2i t but throughout the organization the other big vector of of stories at any knowledge conference of course is the founder Fred ludie and his core team the team of innovators we're in Iquitos today I swear Fred ludie was coding on his laptop he loves to code the guy's a programmer by heart but you're seeing things like elegant design we saw the announcement of a of a service now SmartWatch today a wearable device basically an enterprise you know system to predict to be informed to take your favorite KPIs and bring them right to your wrist so Jeff it's kind of more the same just bigger and badder this year they just keep clipping along right just like he said it's an execution game I talked to Chris Pope a little bit in the hallways this morning during breakfast and he said kind of what's the magic and it did it just get stuff done right people can just get their job done using service now and and as you said Frank loves to talk about the IT pros as their peeps but he made an interesting comment in the keynote that there's a lot more IT functioned discipline execution outside of the core I team structure so that obviously both really well for for service now but again we've like I said they've this our fourth year here run into the same customers every year the passion keeps growing and then you know the other thing I think it's interesting looking at the little service providers that are no longer little service providers Cloud Sherpas and fruition partners both now part of accenture and CSC so when you see the big Ian wise here service integrators they don't make a play unless they see a really big opportunity yeah they like to eat from the trough as it was as it were and so the trough is getting larger but I remember Jeff the first service now knowledge we went to knowledge 13 which was here in Vegas the smaller hotels any rate the area and we walked the floor that time and we were sort of asking ourselves well where is Accenture you know where are the big sis and we saw a cloud Sherpa syrup risen from companies like fruition who had a big presence there both of those companies were required Accenture acquired cloud sherpas of CSC acquired fruition the other thing I want to point out for those unit may not be is familiar with service now the company started with this sort of help desk you know mentality really try to automate and improve on help desk Frank's lubin said years ago he said at one of these conferences desk is a four-letter word and he got some booze because people hanging on to their help desk but it started with a relatively sort of legacy attacking a legacy business you know back then Gartner group was talking about how this is you know the the end of that business it's kind of going to go away and you know sloop Minh came in and really was the right guy for the job helped energize you know the vision that was set forth in the early days by Fred ludie but what you've seen consistently is the company has expanded its total available market going from you no problem man management change management help desk etc expanding that out into IT Service Management IT operations management now bringing service management across other parts of the enterprise what service now laid out today in the general session was essentially you had the the first software estate was ERP and that was brought to fore by the likes of Oracle and and of course s AP and then the next greatest state were skipping over some estates were sort of fast forwarding to you know the open systems world but the second greatest date was really that brought on by CRM and and one by Salesforce and what you're seeing service now is positioning is service management across the enterprise for everything in between back office operations and the sales and customer engagement like facilities HR but touching upon sales and marketing and some of the back office stuff so they are laying out a vision of the third greatest state which is service now everything is a service enterprise services service management where I t is the backbone of all of those operations in Jeff we're seeing that I mean I T we've talked for years IT touches every part of the organization but increasingly companies are becoming cloud ified and sassa fide across the enterprise and that's really a tailwind for service now it's the theme we talked about over and over every company has to be an IT company just what services or products to they wrap their IT around so important for a competitive advantage if i go back to abe to the our day at the Aria a couple days with Aria and I rewatched our interview with with Fred our day to interview we did a couple with them and he talks about the story of this platform vision that he had from day one and talking about the to the initial investors they said well was it do well does everything what do you want to do and really you know kind of a classic platform application play were then he you know built the application around a very specific use case and go to market and now you're seeing that vision that he had back then as the platform capabilities expand to do so much more and the other thing I remember from that that interview with him was talking about the copy room all the papers the different color papers in the copy room I need a vacation I need a new laptop I need to do this thing and really enabling everyone to build those little processes that were all encumbered by over and over again using this platform yeah so I remember again going back to the early days we had walked the floor in the early knowledge 13 days and said wow look at all these companies in the ecosystem watch that's the key to this is watching the ecosystem grow and specifically trying to understand which those companies in the ecosystem service now is going to require remember we had asked Fred about acquisitions and do they have to fit in do they have to be already running on the ServiceNow platform and he said well that's kind of interesting and what we've seen now is Andy related answer the question back then but what we seen because you didn't want to show his cards what we've seen is when service now makes an acquisition like they did with with with I tap and some others they brought in service watch with another company they purchased the GRC capability they completely replat form the company the software into service now same UX using the CMDB the the the CMDB using the same user interface everything is the same experience that's it that's huge now I want to dig into that a little bit and see how much how the service now do that so quickly I mean because basically it's taken out a year to replat form these maybe nine months 12 months 14 months but it's not the the nine years that we see with for instance oracle fusion which is sort of everything rewritten in java so it's gonna be really interesting to see that what else Jeff should we be looking for the other piece of that I picked up from Frank in the keynote was really kind of the different engagement models he specifically contrasted CRM versus the service management approach and you know you take care of the problem he keeps going back to the I fallen and I can't get up use case over and over so I'm not that it's kind of funny but but he takes it to the next level within a service management which is to do the analysis and to do the root cause analysis so that you don't have this thing's repeating over and over so it's a very different way to kind of approach customer engagement i look forward to kind of digging a little bit deeper with Frank on that great all right keep right there everybody we got wall-to-wall coverage three days of coverage from knowledge 16 check out well the hashtag is no 16 check out crowd chat / no 16 we've got burnt Lattimore documenting the cube interviews in there keep right the everybody will be right back after this brief word it's always fun to come back to the cube because

okay we're back this is Dave vellante I'm with Wikibon organ this is silicon angles the cube the cube is a live mobile studio we come into events we're here at knowledge service now's big customer event we're here at the aria hotel in Las Vegas and we've got wall-to-wall coverage today tomorrow and part of thursday as many of you know we were at sapphire now the big SI p customer show were simulcasting that on SiliconANGLE too but we're here in Las Vegas the ServiceNow conference is all about transformation transforming from no to now we've kind of got a double whammy segment here virtually every industry is transforming and certainly Big Pharma is transforming quite dramatically as well as the IT components of many industries Ross rexer is here he's the managing director at kpmg the global consultancy and T Juan Lumpkin who's an IT practitioner for Eli Lilly gentlemen welcome to the cube okay thanks for you so Ross let's start with you at a high level what's happening in the pharmaceutical industry in general Big Pharma how is the industry itself transforming and then we'll get into the I TPS sure so many of the Big Pharma's find themselves today in a situation that is unique to their their business industry and market where a lot of blocked blockbuster drugs which have been significant sources of revenue over the years are starting to come on with that it brings competition and a loss of revenue so the big farmers are all in a very coordinated methodical process right now to resize their business and at the same time enable the R&D function to bring new drugs to market focusing on patient outcomes that will happen in different ways in them they probably ever done before so the business model itself has changed and along with it all the support functions like ITA of course too so in that so it's all about the pipeline right and and the challenge if I understand it is that historically you got the big pharma companies they would you know go do about go about their thing and develop these drugs and they get a blockbuster and it was a relative today a relatively slow paced environment that's that's changing if I understand it correctly what's driving that change so the the innovation around medicines today is much different than it has been over the last 10 20 years in that composition around in the use of different biotech components to create a to create medicines is now being sourced in different ways historically Pharma built itself and really invested and was really a research and development company almost entirely in-house right so all the support systems and everything the way that the business was run was around that nowadays these the farmers are collaborating with smaller providers many of them in ways that again they just historically have never done everything was done in house to build to bring drugs to market and now it's it's shifted absolute to the opposite side where big farmers are relying on these providers these third-party providers for all stages of R&D and ultimately FDA and the release of these so t1 I introduced you as an IT practitioner and Lily so talk about more specifically about your role there you focused on infrastructure I teach em a list or more about them yeah so my rules are about service integration think about those services that we deliver to our internal customers within lily and how do we do that across our complex ecosystem where you have multiple different IT departments you have multiple suppliers who have different rigs and complexities in that space and so our job is how do we minimize that complexity for our internal business partners and making sure that the way we build variety is seamless for our internal customers okay so we heard Ross talking about the the pressures in the in the industry from a from an IT practitioner standpoint what how does that change change your life what are the drivers and what's the business asking you to do but just like anyone we need more volume but we also have to do that under under constraint and so for us how do we get more fishing so you think about this basically gone under you can only do so much outsourcing you only do so much change and so you have to see how do I start running my business more efficiently and I think that's the big shift and I tias you're moving from a from an internal infrastructure towers are truly looking at how do we deliver IT services and part of living IT services and making sure that we're a value-added partner and also being assured that we're competitive with other sources of our businesses have to get services from an IT perspective yeah so 10 years ago we used to talk a lot about demand management and to me it's that's why i love this from now from know to now because demand management is actually ended up just being no we just can't handle the the volume so you mentioned constraints you've got constraints you've got to be more efficient so so talk a little bit about what you did to get more efficient for us it was all about standardization so how do we how do we build standardization across our IT infrastructure nikka system within our IT partners empower external partners what that does it gives us flexibility so that we can deliver our systems and be more agile they think about our internal space we had a lot of complexity we had multiple procedures multiple processes different business units operating or delivering IT services in a consistent manner what we've been able to do it being able to streamline that we've been able to be more consistent internally in a line on the comments that are processes and how we deliver those ikea services to our customers so Ross you're talking about the sort of changing dynamic of what I would call sort of the pharmaceutical ecosystem right so so that's that sounds like it's relatively new in pharma it used to be sort of a go-it-alone the big guys hey we're multi-billion dollar companies we don't need these little guys you see all these startups coming out there really innovative there faster so take us through sort of how that's evolving how companies are dealing with the ecosystem and what kind of pressures that puts on IT what are you seeing out there so as t1 was was mentioning as well this was pushing to IT service integration as a kind of one of the next frontiers of now right being able to have the single pane of glass single system of record of IT and our ability to bring standardized services up and down in a coordinating consistent way has allowed for the bigger more monolithic type companies in be able to interact with with these smaller more agile more tech-savvy appeal partners and be able to not overburden them so the little provider who has maybe less less overhead of IT infrastructure and their processes would find it hard to be able to collaborate electronically with a big pharma if we had to adopt the big pharma's old-style processes so service integration is all about allowing for the the easy plug-and-play of these providers and establishing the reference set of processes and the supporting data that's needed to govern those transactions or the length of the of the outsourcing arrangement with with that provider in a way that doesn't get overburden them but provides the company Big Pharma the ability to have transparency ability to see risks before they're happening and to enter manage the cause so talk about your practice a little bit how do you what's role do you play it's obviously you've got this increasingly complex ecosystem evolving they've definitely got different infrastructures um how do you sort of mediate all this so Kim G what are our go-to-market offering and our solution set is based around a set of leading practices that that we have established over the past 17 years for example that we've been in the IT service management consulting and advisory business so we have these accelerators that we can we bring to a project and engagement like like the one we're at Eli Lilly where we can quickly faster than ever establish a common ground for those processes the operational processes first and foremost that would don't require years and years of consultancy process engineering 20 years ago type of thing so our role in that is to provide the basis for the are the operating model that's going to go forward and allow the core customer as well as these other providers to get there fast to get operating faster so t1 we've been hearing a similar pattern from the customers that we've talked to a lot of stovepipes a lot of legacy you know tools a lot of uncoordinated sort of activities going going on is that what what Lily with you would you describe that as an accurate depiction of the pasture i think i think that i think you're being kind yeah I'm sure we kind on the cheer we don't like to feed our guests up what I think it not to over use the ERP for IT term but this is something I t we've done for our business partners over the years we haven't done for our so if you think about the essay peas of the world where you get your CI CFO a one-click look at the the financial assets of the company you think about from a CRM perspectively doing that for our sales force we've done that from an HR perspective but we haven't taken the time to look at from an IT perspective and how do i give the cio that same visibility across our portfolio services so that he can ask those same questions you can have that same visibility so i want to add a little color to this whole erp for IT though of course on the one hand you know the sort of single system of record that's a positive but when you think of erp i say we were at SI p sapphire there's a lot of complexity in erp and with that type of complexity you'd never succeed but so what's your experience been thus far with regard to you know the complexity in my senses it's not this big monolithic system it's a cloud-based SAS based system talk about that a little bit well for us it's getting to a set of standards it actually helped reduce the complexity where you have complexity when you have multiple business procedures across the organization delivering services and so to get to that single source that single record it is actually help to reduce a lot of complexity on our part help it make it easier for us to deliver customer service for customers the other piece of that to which is the the singularity of vision of how we deliver I team so right now within our business we're depending on what area in you may get IT servers that delivers slightly differently from each area we've been able to streamline that and say this is how you're going to receive IT services and make it a more predictable experience for our internal users I saw Rus I want to talk about this notion of a single system of record before I ask you why it's so important what are we talking about here because today you've got a single system of record for your transactions you might have a single system of record for your your data warehouse all these single systems are at a record so what do you mean by a single system of record so when we're talking with service now and specifically in the IT Service Management domain what we're talking about is having integrated the capability to see data across the different data domains if you like so operational data performance data service level data with that coupled with the IT finance data as well as a zesty one put 360-degree vision of your assets as well so linking all those sources of data together in a way that can be used for analytics maybe for the first time ever so we we we use the analogy of IT intelligence right so what we've given our business partners and business intelligence over the years mmm it's-- never had that so the ability to provide IT intelligence that allows for the leadership due to to have data have information that they can take decisions and then ultimately become predicted with that right so be able have the knowledge to know what we're doing to make the right choices and in the future be able to do some predictive analysis again back to the point about the demands really never got one hundred percent right over the years we've talked about a lot but having the ability to understand the consumption and have the levers to influence demand and see it grow I want to go back to this business process discussion you were sort of reference the 20 years ago the whole VPO of movement and you know business process reorganization it seems to me that what what occurred was you had let's say a database or some kind of system and maybe there was a module and then you build a business process around that and so you had relatively inflexible business process they were hard to change is are you seeing that change it we at the cusp of the dawn of a new era where I can actually create whatever business process I want to around that single system of record is that truly a vision that's coming to fruition we believe it is and our experience it is it is starting to happen and I think service now with their platform is one of the emerging leaders in this space that's allowing for that to happen percent of the day so you have you have a concise platform that allows you enough flexibility to build new processes but has the common data structure has the common user interface as the common workflow set in a and all wrapped in and easy to maintain type of platform is what I think 20 years ago we wished we had and we tried to build in many different ways and ended up mostly cobbling things together but we really believe that and again our starting to see success out there David the platform question is solved and that we're now able to get to the prosecutor historically we you know delivered value plenty of value the problem is so much of that value was sucked by the infrastructure and and and not enough went into the innovation around it do you want my question to you is so people don't like change naturally now maybe it's different and nit maybe they want change in IT but did you see initial resistance I'll know we have this way of doing it we don't want to change or are people enthusiastic about change talk about that a little quite you hit it spot-on and absolutely the technology is the easy part of it it's really the change part that that's the most difficult piece of it and I would say we've done to a lot of work just a line organization and we've had a lot of support for from not only our internal IT people but also our senior leadership team so we've gotten support we've seen a lot of buy-in not saying still them not going to be easy not gonna be easy but I feel that we've got the right momentum now to make this type of change to get the business volume part of its been able to articulate the value that we're going to receive from from from this initiative so it's early days for for Lily and you guys should just get started on this journey not yesterday but you know you you're in an inference perience to give some advice to your fellow practitioners so my ask you guys both start with t1 what advice would you give to fellow practitioners that are looking to move in this direction great I would say first of all you have to have the business alignment so I need to make sure that you can clearly articulate the value of the change of the company so I can I can talk not in terms of process but in terms of outcomes that we're going to drive for our business partners once you're able to describe those outcomes then you can have the conversation on what's the work it's going to take to get there it's not an easy journey to be able to paint that picture accurately for for our teams and also talk about how we're going to support them through the process and so we're going to talk about the value we're going to we're going to paint the picture the journey we're not going to tell you how I want to support you throughout that process okay Ross you're talking to CIOs what's your what's your main point of advice for CIOs in this regard is look at the transformation as transformational right so it's it's it can be a set of tactical projects and tactical wins based on outcomes that you're looking for however to in order to truly change the way your IT functions runs as a business do all these these great things that we're talking we're talking about today is you have to have the vision and understand that it is there are series of building blocks that we will get you incremental value along the way but this is not a quick you know product slam then again maybe 20 years ago was about let's swap this software for that software and we're going to be good it's not about that and that's not going to get you the transformation so it's about transformation it's about the metrics to be able to prove that you are transforming and continuous improvement Ross do you want thanks very much for coming on the cube and sharing your story we could go on forever we're getting the hook but really appreciate you guys coming up thanks thanks for having right thanks for watching everybody we right back with our next guest Chris Pope is here who's the director of product management for service now so we're going to double-click on the platform and share with you some greater information about that this is the cube I'm Dave vellante we're right back

okay we're back this is Dave vellante we're here at knowledge the conference for service now users and we're at the aria hotel we're in Las Vegas earlier today we're broadcasting SI p sapphire SI p sapphires on SiliconANGLE too so you can check that coverage up but we're here with the whole team the cube team Jeff Frick is here my co-host for this week we'll be broadcasting live today tomorrow and part of thursday we got service now executives but more importantly we got tons of service now customers coming on but we've been talking about all week Jeff about the single system of record the sort of secret sauce behind a service now yes it's cloud platform yes it's ass but this notion of a single record database cmdb a configuration management database it sounds trivial it's not Chris Pope is here he's the director of product management for service now we're going to double-click on this notion of single record Chris welcome to the cube thank you very much having it's great to have you here guys so to be exciting yeah and we're thrilled to be here where Jeff and I were walking around last night talking to customers talking to prospective customers a lot of excitement I heard that figure that thirty percent of the audience is is perspective that's correct yes tomers that's a that's a nice number so hopefully your sales guys are here with you know how to go to wet yes I'm going to work right so let's talk about this notion of a cmdb we hear a lot about it it sounds pretty straightforward how come everybody doesn't have one well I think you know a lot of people try and have one and there's so many disparate data sources in IT now and you know with big data and data exploding and data centers growing worldwide it's kind of how do you wrap your arms around this stuff and you know having that single source of truth nut it's great you can collect the data and bring it together but can you truly trust it and you know if you're going to use it to drive decisions and impact analysis risk analysis and you know make changes in your business in an agile way well it can't all be in Bob's head who's been here 30 years you know Bob's going to go away at some point and you know if you're driving workflow and you're making decisions on a daily even a minute by minute basis in some occasions you know you need good trusted data in a single source of truth and then people don't worry about the data now they focus on delivering the tasks the services or whatever it is they're implementing knowing that you know they've got an accurate record they can trust and move forward with yeah so again it's it sounds so straightforward but it's not trivial to build a platform that is flexible that you can you can design pretty much any business process around it how is it that you guys have been able to successfully do what nobody else seems to have been able to do you know I think one of the big things is you know it's it's organic we have one platform one single system of record one database one data model and I think you know a lot of the legacy vendors and I'm sure others have talked about this a little bit I've blown up through M&A and there's a lot of glue I mean we have no glue right it's cool and when you know Fred who's I found that you know design the system and put it together it was with a focus not necessarily on the technology but what's the easiest way to complete the task I need to complete that's kind of core of what we do and why we do and if you can do it in three steps do it in three you don't need ten you know need 20 and I'm really focus on what you need to accomplish the task versus the nice to haves and I think you know a lot of seemly be projects fail because they're seen as a technology issue versus well you know we're running a workshop tomorrow on this what do you need to drive process or make decisions have that data available the rest of it could be useful at a point in time to make an additional decision or you know maybe you need a tiebreaker but for this task right here right now I can make a decision I can move on and we make it very easy for you to have that single system a record and you don't need to integrate with many other things it's all there it's really if you can draw it on the board you can implement it in service now but what you find with a lot of customers who are kind of less agile in nature and a little bit monolithic is they struggle to even draw it on the board right and therefore putting in a tool will only help you fail faster rights if you go back to figuring out what it is you actually want to do then use the tool to accelerate and automate you've got a much higher chance of success so that's interesting because I've been saying all week may I came in here with the premise that the real interesting business impact servicenow is that it allows me to change my business process is the way I want to run my business processes I don't have to design them around some module or so we'll lose this feature if we can't do that so so that's critical but you're saying start with the whiteboard start there and figure out your business and then we'll we'll be able to accommodate virtually anything is it really that flexible it is and you know I've been a customer three times so I've kind of got the war stories and I've worked with the dinosaurs out there and you know made the dinosaurs extinct in a lot of accounts I've worked in and I work with a lot of customers and you know it's easy to focus on the technology right it's here it's very available consumer-led and driven but it's you know if you step back and say what problem do you actually want to solve and let's draw the picture and even in the workshop I'm running tomorrow we have 30 whiteboards in the session and we're going to make the audience get up and work and design and draw and solve the problem and then we'll build it in the solution during the session live on stage and because we've taken away a lot of those things of you know the infrastructure the data center managing the tin it's just not cool anymore right nobody really wants to do it you know they can focus on solving the problem not wow it's going to take me six weeks to install servers and databases and storage all that's gone away and it's like okay if I can draw this and I can draw it in the tool and I can make it work and I can give it to my end users in a very consumer like way and off they go they can consume on an iPad a mobile device whatever it's going to be that's the natural behavior they have now of interacting with software so why should it be any different in the enterprise and clearly you know that's a big mantra for Fred and what he does and how he drives us to do things and you know and that's why we've got these phenomenal success so well so when you go into a customer for a new customer implementation they obviously been doing things away before you got there so is it greenfield let's start with the whiteboard and leave those in places how do you just place the way they've done it now you go doing so if they had integration from what they are you sitting over the top yeah so we you know we come out of the box you know align to ITIL and I TSM best practices but it's a framework it's kind of you know this is great but now where do you go with it what do you want to do and every custom is slightly different but maybe the course seventy eighty percent is pretty consistent and then it's about you know I talk a lot about being disruptive challenge the way of thinking just because you've done it that way for 20 years doesn't mean it's the right way to do it going forward and I was just meaning what a customer downstairs on exactly this and let's sit down and try and solve the problem let's figure out the what what is it you want to do and why and then the how is the technology to deliver that solution and then if the technology enables you to do those things easier even better because you can solve the next problem and you know we we make it as interactive as we can and try and learn from them what they actually want to achieve I t's very good at proposing solutions but they're not always sure what questions being asked so you know certainly what I do and you know traveling the planet as i do i always try and find out what it is you actually want to do kind of normalize of Technology if you could have anything what would you actually like to do and then here's where service now fits in and there are be pieces of the pie that we don't do it's not a core capability or our DNA and that's where we've got some amazing vendors and partners we work with who do fit in in certain places that augment what we do so on the transform it the transformative nature of what you enable I would imagine most customers are not picking up the phone to call you guys because they're all vested in IT transformation or are they usually it's a burning issue problem and the phone's ringing off the hook and I mean to get a lot of the time you know out of adversity comes try it right and they've usually had some very large outage any you know the banks and health care over there from a security breach to ATM networks being down or people not paying bills online it's typically a compelling event CIOs tend to have a fairly short life span yes what they need to do in that short lifespan is do something different or disruptive or you know they're going to be out on their ear anything right so this officer see compelling events but then when you you know technology events around upgrades and moving to new systems a lot of our competitors takes 18 to 24 months I mean even the customer I just spoke to downstairs took them a year just to upgrade the software that was our even looking a process change and doing something different so I think a lot of what we do enables that very simply and easily and they focus on the wat necessarily the hell a lot of times talk about CIO the half life of the cios you know yes tote 18-month yeah all right so but a lot of times CIOs know they want to make a mark but their risk averse because if there's a disaster under their watch the other they're cooked it seems like service now is a is a great initiative for them to transform relatively low risk but what are the risks involved you practitioner you know on one side what are the risks that need to be managed when you're when you're bringing in something like a service now plan yeah i think you know we were the first disruptive technology that started to a challenge this and and its cloud-based right you know so there mediate ones around trust security where is my data if it's not in my four walls of my data center i feel uncomfortable right and with data breaches and everything that goes on in the world people get very nervous about that stuff and I think what service knows brought to the table is look you know we do this well this is all we do and we are very very good at it and therefore you can trust is and often times you know we'll put our security up against another customer and say okay let's go toe-to-toe and let's prove how good we are and what we've done and here's our you know all our certifications and and certificates to operate and things like that and I think then it's just that little bit of mindset and I think what a lot of people forget is switching out a tool is a tool right and it could be any toy it doesn't matter there's an organizational change that comes with this and a lot of our keynotes this morning and I've worked very closely with Allison at the coca-cola company it's a mindset and if you can win the hearts and minds and then make the solution complimentary to their day-to-day tasks people are going to use it right and you know like sending an email okay that's fairly simple but now setting up a meeting or tweeting or whatever it's natural behavior it's in you're out and you're moving on to the next task whereas before you know if you were to submit a change request it was a tedious task because you have technical people doing things that's alien to them and they don't want to so the more you enable it or how they work on a daily basis the more chance of success you've got it making it you know making it successful so you miss your browser security obviously the one of the areas that everybody talks about when you go to a club do you feel like your security is better than most of your customers and prospective customers absolutely and you know I haven't been told to say that but yeah I mean I was at the new york stock exchange when we did that implementation you be asked another great customer in switzerland you know all of those things it's you know let's take the emotion out of the decision-making process yes it feels uncomfortable and it's different but that's okay so here's you know the facts the figures take the politics and the decision-making out of the process and if you look at just a features comparison and what we do yeah we absolutely stack up against everybody else and we beat them in so many cases and you know the phenomenal success you see here with the customers you know they've done the kool-aid they see what we do and you know we have everything from federal the government to the financials farmer fda-regulated they're all here you know it's clearly working and we've got more work to do as we know but you know it's a great success story and we're good at what we do let's talk a little bit about i.t governance it's just thrown around its buzzword people always trying to sort of grasp get their arms around it what do you mean by IT governance and how are people using service now is platform to affect IT government it physically you know if you mentioned word governance or order in 18 they run for the hills right there big scary words and typically you'd think people are going to get upset or fired as a result someone's getting someone's going to cap caught lift in the carpet but I think it's more around the controls and the processes and in service now we have that governance process we use our own technology to certify our own data centers and our own people for what we need to do to operate and I think it's more around looking at those operational controls and how do they roll up and there's a couple of customers here who of past HIPAA sucks audience using service now out of the box for those controls as policies and what they need to do and with a you know a single platform it's all tightly integrated the audit team the governance team whoever they may be you want always in the IT operations space who are the practitioners that can really influence this it's a single system record join together I can now know why they're asking this question or why you're my operational processes this way because it rolls up to a bigger thing that basically says if I do X I may expose customer data for the wrong reason my operational process is this way for a clear reason and I can tie the two together whereas if you put an IT guy and a government's person in the room I mean it's chalk and cheese okay they're never going to really get on so the technology really enables that it brings down the silo and the barriers and they kind of move on to solving problems the technology's not in the way I love the love the English idiom idioms bless your cotton socks no all right we have we're almost out of time Chris but I want to give you the last word you you're a practitioner of turned you know technology evangelist you've been through it now a few times on a by side what advice would you give to fellow practitioners that are trying to get their arms around IT service management they're trying to automate they've got this you know we're seeing a pattern developed that this this sort of stovepipe mess what's your main area of advice I think you know think differently and be disruptive right challenge the well the real world operational way of thinking ITIL itsm as many frameworks out there take what works for you and implement what works best for you and then find a platform that allows you to focus on solving the problem not managing the technology we do that for you we do it very well focus on solving the real problems you've got in your environment and the technology is a huge enabler for that and as I said if you can draw it you can make it work flow and then you can automate it and you only manage the failures and the exceptions if your process works ninety-eight percent of the time you have a very small amount of work to do to solve that last two percent and you're focusing on the real issues rather than you know understand the bigger picture Chris Pope you got some serious street cred so I really appreciate you come on the cube and sharing your perspectives and knowledge with our audience keep it right there everybody so first of all thank you for coming out thank you guys I really appreciate it so Fred Lunney is up next I'm gonna have a break and then Fred Lahti who developed the ServiceNow platform back in 2003 I believe started this we're going to go deep with him actually on some new announcements that service now made this week around mobile so keep it right there this is the cube I'm Dave vellante i'm here with jeff rick keep watching everybody we'll be right back after this short break