Is it better for ServiceNow to focus on expanding our integration ecosystem or deepening our core ITSM capabilities to drive customer adoption?

Introduction

The trade-off between expanding ServiceNow's integration ecosystem and deepening core ITSM capabilities presents a critical strategic decision for driving customer adoption. This scenario involves balancing the breadth of our platform's connectivity with the depth of our core offering. I'll analyze this trade-off by examining key business factors, user impact, technical considerations, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Based on our current market position, I'm thinking our integration ecosystem might be lagging behind competitors. Could you share how our integration capabilities compare to key competitors in the ITSM space?

Why it matters: Helps assess the urgency of expanding integrations Expected answer: We're slightly behind in some key integrations Impact on approach: Would prioritize ecosystem expansion if significantly behind

• Considering our revenue model, I assume deepening ITSM capabilities could lead to upselling opportunities. How does our pricing structure align with enhanced ITSM features?

Why it matters: Informs potential revenue impact of deepening core capabilities Expected answer: Tiered pricing based on feature set Impact on approach: Would favor ITSM enhancements if they directly tie to higher-tier offerings

• Looking at user behavior, I'm curious about adoption rates for existing integrations versus advanced ITSM features. Do we have data on which drives more user engagement?

Why it matters: Indicates which direction might have a more immediate impact on adoption Expected answer: Mixed results, varying by customer segment Impact on approach: Would suggest a segmented strategy based on customer profiles

• From a technical standpoint, I'm wondering about the scalability of our current integration architecture. How easily can we expand our ecosystem without major platform overhauls?

Why it matters: Assesses the feasibility and resource requirements for ecosystem expansion Expected answer: Moderately scalable, some refactoring needed for significant expansion Impact on approach: Would influence timeline and resource allocation for ecosystem growth

• Considering our development resources, I'm thinking about team capacity. How are our engineering teams currently split between integration work and core ITSM development?

Why it matters: Helps understand current resource allocation and potential for reallocation Expected answer: 60% core ITSM, 40% integrations Impact on approach: Would inform feasibility of shifting focus without hiring