live from Las Vegas it's the cube covering service now knowledge 2018 brought to you by service now welcome back to the cubes live coverage of service now knowledge 18 here and Las Vegas Nevada I'm your host - Rebecca night along with my co-host Dave Volante we are joined by dr. Mateus Egelhoff he is the program director at Siemens AG thanks so much for coming on the problem yes great to see you again my friend veteran these two go way back they have a bromance brewing so Mateus at Siemens the now platform is really a key pillar of your digital transformation why is service integration so so it's such an important element of your vision of your strategy because service integration is really the place to be in the former days we concentrated to manage one service one provider but if you really want to integrate and be responsible end-to-end you really have to own the whole chain from the demand side to the supply side so you really have to span the whole value chain from the customer to the provider and back from the provider to the customer that's why it is so important to play the integrator role because if you own that whole value chain end-to-end you can optimize the value chain and also do some dramatic changes in that value change to kick out some of the providers that do not really add high value or you can optimize costs by combining some of the steps and that's why service integration is so key because then you have the whole end-to-end view and you gain the whole inside of that value chain and also the net the next topic I want to add is the typical service management topic is also changing over time because what to do with for example Microsoft Exchange Online you don't have to do much management on that one because that is used by millions of users so what to do actually and that's why it comes more important to have the overall view of the whole venue changer what if I could ask you as a seasoned ServiceNow practitioner you've seen a lot we were talking just kind of joking about sometimes tech company marketing is ahead of you know what they I can actually do service now obviously tremendous platform that makes it sound easy but it takes a lot of work to get there but once you get there you get a flywheel effect and you can add more and more because of the platform so talk a little bit about kind of where you started and how long it really took you to get to a point where you could really start driving major value for your organization so we we started our ServiceNow journey in January 2014 so roughly four years ago yeah and we started with the typical incident problem change service request portion but my goal was from the beginning to really have a high degree of automation and integration in that platform that's why we we set up the platform already in the integrated way of having not single processes single databases but rather having single source of record in the system and when we started of course we thought hey it's a great technology and it is a great technology it's a excellent tool but the challenge is not setting up the tool it is as Sean Donahoe said it's the change in the organization because by implementing such a huge tool with one process having it completely across all organizations in 149 countries with three hundred seventy seven thousand employees this is a scale where you need to have a focus on the change topic that they are really applying the process is because otherwise it's not of usage and this had a big impact on how we are providing the services because ServiceNow is more or less the window where it gets obvious how your services are looking like so it's not only about setting up ServiceNow you have to change the processes you have to change the organization you might simplify also the services they are quite a little bit too complicated to be handled in the portal and all that work has to be done in parallel and I always use the phrase there the dark side is coming up of an organization and I'm pretty sure each organization has a dark side of legacy system gaps in the process steps the data is not correct the data is not validated it is not one scene DP and all that stuff has to be pulled away connected otherwise you don't have the end-to-end chain you don't have the degree of automation that you want to leverage and this roughly took us two and a half years and and you knew that going in with ServiceNow kind of transparent or helpful in that or was it just gonna drop off the software and give us a call if you need help exactly we didn't you because otherwise we would have not started all those challenges and therefore ServiceNow was really helpful because there is out-of-the-box functionality that you can kick-start however if you want to leverage ServiceNow in that environment the out of box functionality is nice and a good starting point but you have to add some of the functionality like the integration layer is not there like data analytics not there yet so you have to add some of the topics but therefore it is good that ServiceNow was there that that's why we also procured licenses but on the other hand we engaged also professional services because we also wanted to make ServiceNow responsible for the implementation that this is really a lighthouse project also for ServiceNow and of course for us so it was a win-win so Evans now learned a lot and it was good to have them onboard and you're able to show quick enough value to get credibility in the organization to really fulfill your vision exactly so what we basically did we set up a road map based on savings because it's always easy to introduce a new tool a new portal a new process whatever always nice but when it comes to shutting down existing ones this is the difficult and nasty personnel but that's why I made a road map of clearly showing hey now we can shut down this portal now we can shut down this legacy tool and based on that the savings kicked in and the people really saw hey it works hey we really can shut down and get rid of some of the legacy dark side topic and then typically to a platform then the platform momentum starts where everybody wants to get on hey I have an additional provider I have initiative process I have additional services hey this country also wants to set em then the platform starts to grow and gain some momentum so that everybody gets up and this is also challenging then regarding the release how to handle all those demands I want to talk about data and because we just heard CJ Desai up there on the main stage preaching one thing but I know before the cameras are rolling yours you were telling us that you're actually doing a lot with the data that you're collecting so so talk about stop what it is you're doing it's because the collecting the data is the easy part in a lot of ways it's then figuring out okay what is the data telling us and then what do we do about it exactly so CJ in this main keynote mentioned that is not a good idea to pull out all the data outside of ServiceNow I'm agreeing but unfortunately only in two years or three years time when the intelligence is in service now that's why Siemens has decided to pull out really on a daily basis all the data from ServiceNow into a separate SQL database and then a first important step starts the qualification of the data is the data quality correct because the high degree of automation only works if the data is correct and of course if you wanted and display the data and do the analytics it's also key that the data is correct that's why we have established a data health - want to visualize is the data correct first step second one is then then we are displaying the data in tableau so with visualization layer doing the typical reports where you can slice down by division by country by service by cost cent or whatever the typical reporting but we are also doing that data and feeding it into for example Watson so we used Watson to see how intelligent he is so we gave Watson 1.3 million tickets and said hey Watson tell us what is exciting about 1.3 million tickets and that the first reaction was I don't understand because we have 5 languages a mix of languages Portuguese using Portuguese and English German and English and then Watson had some issues with understanding the tickets then we said ok then let's use just English portion 700,000 tickets and said hey Watson tell us now and he said issue ticket problems complained and whatnot and then I thought hey Watson you are telling me that those are tickets that is not the expectation I had based on what the Watson team is telling but to be fair to Watson that's not my point that I'm saying Watson is stupid I'm just saying 2 messages are important you really have to learn how to leverage that new technology and it really takes time so prepare your organization to apply those technology because also your organization needs a learning curve to apply that technology and the second example was with Asia so we gave or that the thesis was hey Asia can you tell us how to increase customer satisfaction and again we gave Asia with some nice mathematical formulas a lot of tickets and based on that model we learned what are the key success factors of satisfying a customer so it's of course how many times a ticket was routed how fast the ticket was picked up but we got really timestamps so we can also now adopt our SLA is to the providers to more satisfy the users and more excitingly based on four criterias we can now predict the satisfaction of the user so we can really say with 86% will that be rating between one and three what is not that good and if so this is now the next step we will feed that back into service now giving that ticket Aflac so the service desk agent can act on it and I think that is the exciting one not only collecting data learning out of it and then acting on it and now based on if a ticket is open we already can predict the customer satisfaction that is great providing guidance to the ServiceNow user so if I understand it correctly you're extracting data out of ServiceNow I think you've mentioned off-camera you bring some of that data into si P Hana yeah you mentioned your Watson tableau is the viz and you said Microsoft Azure exactly as well so like many big data problems you're solving it with a variety of tools that's challenging but you really have no choice is not one out-of-the-box solution is there nope well that's why we are now applying different technology to really learn what is in for us and quickly do is on POC check is it feasible is it a quick win or takes it longer or is the technology not that mature and then really follow up what is most promising is your expectation and desire that ServiceNow does sell all this in the platform for you and is that what you're pushing him to do I think the ratio which will get higher and higher what ServiceNow will be capable to do like the prediction of tickets and the route the automated routing that should be negative in ServiceNow but in regards to artificial intelligence I think there are other companies out there who are more at the front runner and really the lead us so I think it will be always a mixture out of ServiceNow but also pulling out some of the data to leverage other technology it's gonna be interesting to see what kind of merger and acquisition activity ServiceNow does certainly Mike Scarpelli and John Donahoe in the financial analysts meeting were hinting of acquisitions you would imagine they've done some in AI you would expect they do others I wonder if we could ask you about the climate in Germany with regard to machines replacing humans and cognitive functions obviously it's a very employee friendly environment what's the narrative like there what are you seeing yeah I think also big discussions in Germany about that digitalization is that disruptive to the job market and as I said with the example of Asia that is a core only artificial intelligent can do yeah no sense to use humans with a pocket calculator to do that doesn't make sense but on the other side I have also set up a team of 20 people who are doing let's say manual work they are monitoring the tickets for example three people and based on their experience and human factor to speak with the different resolve our groups applications they already reduced the ticket number they reduced the cycle time the number of the closing time was decreased by 20% so these are examples where you need humans because on the other side there are also humans and this optimization of looking at the data speaking with different people that have domain expertise this is really necessary where I see that humans are much more advanced than the machine learning so that's why I see balances of yes we are using Azure Watson and all those nice technologies but we are also ramping up people that really act on the data that they have at hand so there is less anxiety to this idea would you say exactly exactly so and that's why I am saying yes it will reduce some of the chops but hopefully the Nestea more administrative work and on the other hand it will create new opportunities especially in the integration layer where you need human intelligent and people who can act on and keep the ecosystem alive that is nothing a machine can do it is thanks so much for coming on the program it's always fun to have you on thank you we will have more from ServiceNow knowledge 18 of the cubes live coverage coming up just after this

live from Las Vegas it's the cute covering knowledge 16 brought to you by service now here your host dave vellante and Jeff Frick we're back this is knowledge 16 this is the cube we go out to the events we extract the signal from the noise Matthias egg allah hafez here he's the program director at siemens AG worldwide conglomerate a US welcome to the cube thank you for inviting me star of the keynote this morning here we had that little snippet and but again you know welcome tell us what you do it siemens exactly so let me start i joined siemens in the crazy ebusiness world in two thousand but the journey i'm on currently is started in 2002 when we had the easy question of how many money is spending siemens on IT and this is an easy question but out in those days it was not to answer so we created a lot of transparency what is seaman spending in IT and we keep on driving that transparency based on the transparency we initiated different measure one was that we are focusing on service management in the infrastructure area for example in application we did a lot of consolidation and then we did several steps in the optimization based on the transparency we made we made some outsourcing deals we did a global IT organization and we managed our providers now since 12 years in service management but we thought what is the next step what is the big shot that is coming ahead of us and then we thought this is about service integration getting rid of the silos like network application data and the voice and having really an integration layer about the different topics as well as ensuring that we have end-to-end responsibility from the customer side and that was the challenge of answering that question was just so many stovepipes and so many systems and so many different systems of record and and is service now that integration layer is that exactly right so service now is our single service integration platform and it spans the word from the demand to the supply side demand of course our Siemens internal employees they were confronted in the old days with several portals my favorite example is always ordering an iPhone in Siemens was quite a difficult task you had to order in one part of the hardware in the other one the SIM card and in the third the messaging service now now we have the one-stop shop portal called my IT in Siemens and there we have a bundle where the customer has not to know which portal which provider we have our portal and the user can just concentrate what he needs and in that portal he can order and manage his IT and products as well as place incident so that's the demand side and then for the IT organization as you said we had a su of products and tools and processes and now with service management we have implemented a typical incident problem change service request config demand contract management's all the nice IT service management processes and rolled that out on a global scale so we have now one process one organization able to get the full transparency and the knowledge where is the status of IT and what is the head state is this so leading up to 2000 y2k we spend spend spend spend spend and then after y2k was a cut cut cut cut then how fast forward you've got visibility on the spend transparency what's the climate like Frank showed a chart today cost you know coming down but people are investing in IT because it's such an important part of the business are you able now to have much better line of sight on how those investments are producing for the business and has that affected your strategy totally and of course to a certain degree we have to go that path but we were able to cut the costs dramatically because we could shut down existing tool sets we could be faster in deploying new services so before we had the service now we had basically 15 tool sets that we had to an able to roll out the global service to Europe North America Latin and Asia 15 tools that now we have one that is of course dramatically faster in the deployment time in the time to customer in just enabling one tools that instead of 50 and you retired those other two sets or absolutely and people were screaming and kicking or was it absolutely they were all complaining about the tools but as soon as you tell them hey we are going shut down those tools they said hey that's the best we ever had and don't take my tool exactly but convincing them is quite easy with the ServiceNow product because it is from a usability standpoint modern integrated so you you catch that can catch them easily that they really can shut down the tools we even helped helped our providers also to shut down tools because they have basically the same environment they have not won cmdb one tool that they also have a fragmented environment and that's why we told all our providers in saying you can either work directly in our two or you have two connected to our tool but it's no longer that you have your own ecosystem so we have really generated an ecosystem from the employee that can order something in the mighty porter then it's going through our IT service management processes directly to our providers fully automated and that's where the providers also had to buy in in saying yeah we also see the benefits of consolidating our to landscape of getting better quality in our cmdb that that is the win-win situation what they don't like currently is that we have a much more transparency on how they perform now we don't have to wait until months end until we get a nice paper of green amber something we have now in our system real-time data anytime now we can really much more efficiently manage our provider can really dig into all the details that are available in our tools that and that's of course a big advantage but unfortunately provider has to get used to that that the customer is telling them how they provide it's a little bit a game changer it was that digit ID back to else la's or just new knowledge new information that you just didn't have before to help you manage that relationship now I mean of course SLA is an important topic but the SLA on a monthly basis speak one language but the experience on a daily basis tells another story so when we got the SAS on a month's end you always get an average ok level but if you then dig down into this as a in that country for this customer you saw some issues but that is now available in our ServiceNow instance and this is of course a great opportunity for us to manage the results of the providers and of course also as we have now our own tool set our own service integration architecture we can black in and out more easily the provider they don't like that as well but that is the advantage because I don't see and that is also a market trend that we get away from the 10 years 15 year outsourcing contracts this will be duration times of one year to year more cloud-based and to be really that or to support that velocity and speed that we can integrate much more easily the providers we have to have our own framework we have to have our own interfaces to the providers to really ensure we can plug in and out very easily one of the new acronyms that we are hearing at knowledge this year's asylum service integration and management it's been described as sort of son of ITIL i tilted Otto what is from your perspective matthias service i am so for me the big difference is i mean we we when we start with I to I think I too was a great achievement in defining the processes get a better maturity on incident problem and change and how this is done and also to generate the same verdict and so that you get a better understanding between the providers and the customers but what we missed in I tell is the integration so that we really if there is an incident and the we we allocate this incident to a provider and he doesn't feel responsible for it then we can transfer this incident to the next provider and hopefully he's then responsible and in charge so really the integration layer is for us very important because the market rent the competition in the different silos like end-user computing data and the application is pretty high so the value add for the customer is for me really in the integration layer getting the transparency across all your providers and of course the customers can you talk more about sort of how that is helped your your business and your providers business for example for the business I mean everybody talks about cloud services and all is fancy about cloud but to really manage cloud services is not that easy because what happened in in the in the old days the Siemens employs many they are cloud services with the credit card meaning if they wanted to have a server they look to Amazon or any other provider gave in the credit card and then this server was out of the IT well but now with the platform we have ensured that we can manage all the cloud services not only the ordering is done by our my IT porter we are getting also the reports not on a monthly basis but really on daily basis what is the usage of the cloud services and then we can either apps care downscale or even decommission those servers that are no longer needed because if they are managed by a credit card just we could to manage and that's why it was a key criteria for this platform to also managed cloud services and do you have a module for people to spin up just little dev instances of Amazon so you've actually brought shadow I tee underneath the ServiceNow platform absolutely and we have to expand that so we are at the beginning of that journey but as cloud is picking up and Siemens is also more addicted to cloud services we made sure that we have two examples of providers that are really working with that platform and that we can manage the whole life cycle of a cloud service so how would you describe sort of your strategy with respect to service now we're hearing a lot about obviously you know started in IT Service Management we're hearing a lot about other parts of the organization where are you guys in that whole journey I mean I could also start with talking about defenses staff outside of IT yeah but I think two topics are really important one is there are still a lot of IT service management processes within Siemens we have to shut down that means migration of existing tool sets is still a key activity for us because then we can fully leverage our investment we made into our ServiceNow platform in bringing in additional tools so this is one key component that we have to follow the second one is as we have a high degree of automation we really have to make sure that the system is mature for example we are exchanging data with our own application provider application for incident problem and change 13 million data sets per month that's quite a big number and if that data is not right if we have mixed up data the whole chain breaks the whole automation doesn't work so we spend also a lot of effort in hardening the system spending a lot of time in cleaning up the data that we are really sure we can also achieve the high degree of automation because it's always nice saying high degree of automation digitalization but getting there is an awful work because this is painful getting the right data cleaning the data and having the right data and as you do one then you just find your next point of failure right as you optimize the one then you move it it's a classic production line kind of band and that's why i say migration maturing the the system is one key then the third topic is of course we will bring in more providers more services more processes we we just downloaded from the ServiceNow App Store an application called Moby cod to manage our telecom expense management that we have also they are more transparency over the world and then of course we are in discussions to expand that platform also to facility management or HR but this will take some time because we still have in the HR facility area let's say Best of Breed applications and then it's hard to compete against the integration layer and saying okay but if it's integrated we have all the incidents in and all the data so that balance is not there but I heavenly believe that this will come as service now is more maturing in the HR facility area what not and then I think the the racial looks different and it's more promising also for Siemens to go beyond i TS so as you build out this integration architecture i have to ask you about security and my question is not one of a technical nature it's one of sort of a philosophical nature how is the conversation shifting right it's free decades we've spent money on the perimeter and protecting and and will keep the bad guys out now we all realize they can't keep the bad guys out it's how you respond to the bad guys and it seems as though ServiceNow could potentially is in some cases solving that problem how has the security conversation changed within your organization yeah i mean the security is high on the agenda with all the burn a little bit wilner abilities you here in the in the news and also did the day-to-day cases so security is a top agenda point and we had also some hard discussions within the siemens because the first reaction of demons was we have to have service now on premise we have to have our own nice server below the table and then we had some good discussions with herb is now we had discussions with other customers where they said no no we trust in this a solution then we did some penetration tests we did some assessment on side and that's where we said okay we will go with the SAS solution also for for semen and I'm pretty happy that we made the decision because now we don't have to focus on the operational topics we can really focus on the content bringing in new services bringing in you providers in rather discussing upgrading servers that you need to have the performance etc so that is also a next step we have on the agenda to bring in the vulnerability infosec topping also to our platform and but and is that the responsibility of sort of one group a group of gurus or is it a shared responsibility across the business or what should it be it is a shared responsibility because we are carefully watching how the ServiceNow cmdb is growing because we are collecting a lot of data we see exactly what is going on Adam and size of what are the customers ordering what in kind of incidents are they opening up we see exactly how our IT s doing and of course the provider data we have all the sea ice in our database and as we grow we grow the data that is in our system and that is of course a huge value but also security wise also a balance you have to make my last question I'll give you the last word we gotta wrap just knowledge you know your your experience here you know things you've learned anything that surprised you haha delighted you hear your you know I think the knowledge is really a great opportunity to meet at our customers to see what they have on the agenda were they working against and also it's a good opportunity to see what are the the hot topics for service now how does that match with our agenda that we have with our pipeline so we have a lot of discussions in the knowledge and that is a great value great Matthias egg will have thanks very much for coming in the cube preciate your time thank you good to have you all right keep right to everybody is the Cuba right back we're live at knowledge 16