Manufacturing Keynote: Driving industry innovation with AI and beyond
Please welcome ServiceNow's Senior Vice President Industry Products, Blake McConnell. (upbeat music) - Welcome to Knowledge24. My name is Blake McConnell. I'm SVP of Industry Products in ServiceNow, and I'm super excited to be here to talk about the innovations and the investments we're making in the manufacturing sector. Manufacturing is a key priority for ServiceNow. Last year we laid out a vision across the portfolio specific to industry solutions for manufacturing. And this year is a commitment to that vision, a commitment to execute what we said and to innovate. The type of innovation that only happens on the ServiceNow platform. So when I talk to customers, their concerns and the themes are crystal clear. Customers are concerned about supply chain. about employee experience. And there is increasingly an acknowledgement that a positive customer service experience leads to not only improved customer retention, but also improved revenue. And there's also a focus on the digital factory. And frankly, a lot of questions on what is the future of manufacturing. Customers are definitely interested in generative AI and how to leverage in AI. Be it driving self-service for employees, customers, or suppliers through a conversational interface that helps get answers to questions or accurate next steps. GenAI to create personalized and approved maintenance lists for production workers or GenAI to resolve customer complaints faster with case summarization for complex order queries or order changes. So the good news we are already delivering for our manufacturing customers, Tate Kraft Heinz as an example. They relied heavily on Excel and email for their order management process. We took that process consolidated on the ServiceNow platform and now they are receiving real-time order information. They're receiving a reduction in manual touches and a reduction in order exceptions. Let's take a look at Tyson Foods. Tyson needed to make it easier for their large distributed workforce to access HR services. They launched the ServiceNow powered ask HR portal and this portal enabled self-service to floor associates through 3,600 kiosks. And now Tyson is seeing a 450% increase in HR self-service. Finally, Owens Corning needed to better enable and engage the workforce at specific manufacturing sites. With knowledge management, which is part of OT service management, Owens was able to connect workers to knowledge which helps issues get resolved faster. Okay, I started talking about our vision and our solutions for manufacturing. We think about first and foremost how to make the value chain work for you. And we also think about how do we digitize the back office and the shared service. We have solutions which improve procurement and supply chain operations. deliver exceptional employee experience, especially for frontline employees. But to make it real, I wanna double click into two areas where we have had significant product investment over the past 12 months. First, I will invite Rohit Batra to the stage to talk about and demonstrate manufacturing commercial operations. This is a new product that will change the way manufacturing companies sell, service, and support customers. Then I'll have Lou Fiorello join us on stage to share our vision of the digital factory. Lou will talk about the acquisitions we've made. Lou will talk about partners we work with as well as customers we work with like Siemens. Okay, it is my pleasure to introduce to the stage Rohit Batra, ServiceNow's VP/GM of TMT and Manufacturing. (audience applauding) (bright upbeat music) - Hello and good morning. Thank you for being here. My name is Rohit Batra, general manager for TMT and Manufacturing Workload. I'm here to talk to you about one of the new products that we've just launched yesterday, As we look to our manufacturing customers, one of the key things that we hear from our customers is around how this joint, some of the sales and support operations are. And our objective really is to look at those challenges that our customers are facing and try to find ways of common patterns and productize it into So we'll talk about a few customers where we are seeing this challenge that's been observed. Blake talked about Kraft Heinz and the challenge that they had in terms of order exceptions and being able to provide visibility across them. The other couple of examples that I'll mention is around General Mills and Volvo. Let's talk about General Mills first. General Mills has a couple of challenges that they were facing. One was the ability to provide visibility to order exceptions. The ability to provide order status information, purchase order materials. Being able to provide visibility in terms of what are the goods that are being provided and changes that can be made into the goods. Quality issues that can be raised. And they created a platform that could deliver this to their customers using ServiceNow. They call it a customer visibility platform. The other example is of Volvo. Volvo had a had challenges in terms of how they're gonna be able to provide exceptional experience to their dealers and they used a ServiceNow platform to create a solution that they call chain. And chain is more to do with in terms of how do we provide dealer support, capabilities such as providing part replacement, providing product issues and product support, but also for internal users. Internal users who can use that for providing survey for service feedback and also to provide maintenance reports. So looking at those common patterns across Kraft Heinz, across Volvo construction and General Mills, we basically decided to codify what we saw in these areas and build together a brand new product. And that is basically manufacturing commercial operations. Manufacturing commercial operations vision is to combine sales support and service functions into a single product framework. It allows your customers to see the end-to-end customer lifecycle and deliver that in one cohesive product set. To look at what manufacturing commercial operations delivers, here's a quick visual representation. There are five key areas that we focus on when we look at manufacturing commercial operations. Number one is sales and order management. We recently launched the first CPQ version of a product. And within manufacturing commercial operations we provide CPQ capabilities for you to be able to price, sell, and service. Along with being able to do the sales and order management, the next key component that we've pulled in manufacturing is Service Bridge. Service Bridge is a capability that allows you to connect multiple ServiceNow instances. So imagine you're a manufacturing organization and you've got customers, large enterprises who may also have ServiceNow instances. Instead of going through emails and communicating through voice calls or any other channel, how great would it be if you could connect the two ServiceNow instances, take data from your instance of ServiceNow, and being able to publish it into their instance. Could be for incidents, could be for changes, could be for cases, could be also be for orders and requests and updates. That's what Service Switch does. It's a fully automated ability for you to onboard customers who already ServiceNow customers and provide seamless end-to-end journeys between the two instances. The third area is for dispute management. And for us, dispute is in two areas. Number one is order exceptions. It's great when you all have the first set of orders going in through your existing applications, but oftentimes when we hear from manufacturing customers is that about 90% of the orders often go through an update. There's changes happening in terms of order quantities, there could be location updates, any kind of updates that need to happen. And what we try and do with using MCO is the ability for you to take those exception requests, workflow them through approval cycles, and then being able to integrate into your backend systems. The other example of exceptions is invoice exceptions. You have invoices that you raise to your customers, but oftentimes your customers may actually decide to have disputes, have partial payments. MCO provides an end-to-end integration and enter again workflow to be able to orchestrate that entire use case. Third is around support issues, around product subscription and service, providing a full fledged case management capability specifically for manufacturing customers using those three examples. And the last bit is for channel support. Channel support is more to do with how you actually using MCO as a product to provide a data model for your dealers, your partners provide the entire hierarchy and being able to provide use cases that will be relevant for those channels that you're actually delivering through. Together with all of these capabilities, MCO focuses on four key pillars is the ability for you to be able to provide streamlined sales management so that you can provide subscription services as well as CPQ capabilities for you to provide service management and scale service management across the entire life cycle of the customer. Transform field operations. Integrating through our field service management product, MCO allows you to provide not just the use cases within your service, but also then being able to provide technicians that can go out to the locations and being able to serve your customers. And the last bit is to make sure that you can continuously differentiate with experience. Experience, not just for your internal employees, but for your customers and also for your channels. All of this built and integrated through a generative AI capability set that is built on MCO. So the great way to look at this is by looking at a quick video. Why don't we roll through a video and we show you a quick demonstration of the product. So we are gonna look at two customers, two entities, BOXEO.MART and Solana. BOXEO.MART is a retailer and Solana is the CPG manufacturer. Using Service Bridge and a couple of clicks, you can now integrate two different instances of ServiceNow. Once you have that integrated, BOXEO.MART will be able to look through the service catalog and be able to raise an order exceptions request, very quickly identify the initial quantity, make changes to the quantity, and submit it. When it goes to Solana, you now have the ability to see the incoming request, summarizing user generative AI, and then go through a series of workflow tasks that include approvals that can then go through the system, integrate through the backend processes, and then give you the update and close the case. On a meanwhile, BOXEO.MART as a customer gets fully integrated updates throughout the case progression. Using this entire use case, what we can do is we can do three key areas. First, we can connect the entire ecosystem. What we just showed you through BOXEO.MART and through Solana is a CPG company as well as a retailer. But think about the fact that you may have suppliers. You might have an ecosystem of different suppliers and partners and channels, which will all be integrated through the ServiceNow ecosystem using Service Switch. Very quickly onboarding them and provide end-to-end workflows and journeys through the platform. You can provide exception management using just one of the entries into your service catalog. You can create an exception entry for the customers. They can open up the service catalog, make requests through it, submit it through their instance. We should orchestrate a workflow in your instance of ServiceNow. Go through approvals, go through the those steps that are needed and then give the update back into the customer with integration to backend systems. You provide support and care in one integrated mechanism and then you also can provide a entire data model that can give you dealer management and dealer capabilities through the ServiceNow set. That's a quick view of MCO. I'm looking forward for working with you and your teams and getting further feedback on the product. And with that, I'm gonna introduce Lou to talk about OT. - Hi everybody, I'm Lou Fiorello, I'm the vice president and general manager of our operational technology and our security products at ServiceNow. And I could not be more excited to be here. We started this journey four years ago with operational technology products at ServiceNow. We've come a long way. I'm proud of the products we have today, the customers, the outcomes that are driving and the roadmap. And we're going to talk about each of those in a little bit more detail here. All right, so we're clearly gonna be focused on the accelerate digital factory transformation part, right? Of the entire value chain for manufacturing. And I also wanted to call out these operational technology solutions that we have. They're clearly relevant for manufacturing the manufacturing industry, but they're also relevant for oil and gas utility companies. Really any company with operational technology that supports a production process. These are the products that we have available today. But before I talk about them, I want to just give a flashback to a few years ago as we were thinking about what we were gonna do in this arena, right? We were talking to customers and it was pretty clear that operational technology was 10 years behind IT. It just didn't have the rigor, right? In terms of some of the basic processes around change management, device inventory, et cetera. And we had a lot of that expertise, right? We had been doing that for decades at this point on the IT side, on the tech side, but we also realized we couldn't just lift and shift what we had in IT over to OT. It had to be purpose-built. There was a lot of leverage there, right? But we had to understand the data model, OT and IT assets, right? We had to understand the data sources that customers had today for that information. We built a lot of service graph connectors to IDS/IPS devices, things of that nature, right? We had to have the right user experience. It's a different persona, right? We had to have purpose-built features, right? So that's the journey we've been on. And today we've had for a couple years in the market, these three products, OT visibility, OT vulnerability response, and OT service management. And OT visibility essentially through service graph connectors integrates with your environment. We have native discovery for IT devices on the process control network. We get it from service graph connectors for OT, pulls that in, we understand the devices, and then we map them to production processes, right? ISA-95 models, things of that nature. So we have the right context for all the workflows that we build on top. Then we drive workflows like vulnerability management, right? Understanding vulnerability risk on those devices, driving remediation workflows, compensating control workflows if these devices can't be patched. And last but certainly not least, we have service management workflows. Incident management, change, you need to swap out a PLC. What production is that gonna impact? Knowledge, right? These are all critical to the products that we have in the market today. So let's talk a little bit about our customers. So I wanna highlight Entergy, Owens Corning, and Siemens. But before that I wanna take a step back and say that all customers are interested in reducing downtime on their Downtime is lost, revenue, downtime is money. I was at Hanover Fair, big manufacturing event in Germany just a couple of weeks ago and I was talking to a customer that's about a year into their journey with us. And they were saying that they've been able to take critical incident meantime to resolve critical incidents. Critical incidents defined as those that impact production process uptime from an average of two hours down to 30 minutes. And they're early in their journey. And so we're already seeing incredible outcomes. Now let's talk about Entergy, Entergy is a an example of a non-manufacturing company. They're a utility in the US and they operate critical infrastructure, right? Utility is critical infrastructure. And as such, they're subject to a lot of regulations. NERC CIP, and that was the driver for better asset visibility and vulnerability and service management. Owens Corning, a manufacturer, and they have an interesting use case. They actually had a session yesterday I believe, right? The main use case for them is knowledge management, getting the right information to the right people at the right time on the shop floor. Really interesting use case and we're gonna talk about that also what we're doing from a roadmap standpoint a little later. And last but absolutely not least, Siemens, who we're gonna have on stage here in a couple of minutes. But we've been working with them very, very closely, right? To understand, have a more comprehensive view of IT and OT assets, single source of truth, single source of record that supports all the workflows that we can drive on top. So really excited about where we are with our customers and the outcomes they've been able to drive. And with that, I'm going to go to an OT demo. I will say that we're gonna do this through a Siemens lens. Please roll the demo. Introducing operational technology Otto. Accountable for Siemens OT control systems and industrial cybersecurity. Otto logs onto ServiceNow. He thinks to himself, wouldn't it be fantastic if the Now platform can manage our OT devices in the same way it manages it. Well, with a bit of technology magic from our friends at Siemens, it can. This works because ServiceNow has built upon its technology, workflow solutions, creating industrial technology workflows. This investment takes on the challenges of OT/IT convergence, including the ability to safely discover devices from OT data sources such as Siemens Industrial Asset Hub. Otto has all the information he needs at his fingertips. No more than a few clicks away. No more hunting in spreadsheets. No more querying legacy systems. All delaying time to action. Everything is here when he needs it the most. Leveraging the power of the Now platform CMDB, extended and enhanced for operational technology. Otto can easily drill into specific business units, specific sites. Let's take a look at Dusseldorf. Otto's main facility in West Germany. Otto can straightaway see the exact status of the site. Great, we can understand the risk to production, it's under control, and we have the evidence to demonstrate we're making a step change in our industrial cybersecurity. On top of this, we have the complete ability to drill into the facility. We can understand the hierarchy, the materials flow, the upstream and downstream process, all aiding impact analysis. We can also check the progress of work being managed through standard operating procedures such as OT instant management, enabling downtime to be resolved quickly, OT vulnerability management, prioritizing remediation, and OT change management being to maintain production effectively. Here, Otto can see one of his colleagues making a change. That includes adding the justification of the change and the backup and rollback plan, making sure that any risks are mitigated. Ultimately aligning the change to the production schedule. Meaning that with ServiceNow, Siemens is able to manage the complexity of operational technology as easily as IT. - Love that demo. And that's all available today, right? Everything you saw available today, right? Driving IT and OT, inventory together, and then change and vulnerability workflows on top. All right, with that, I want to welcome to the stage from Siemens, Michael Liepold. Can you please give a round of applause for Michael? Michael, thank you for joining us. - All good. Hi everyone. - So I'm good. How are you Michael? - Doing just fine. - Good. - So exciting to be here on Knowledge24 as always. - Well, thank you for joining us. So Michael, tell us a little bit about yourself and what you do at Siemens. - Okay, in my day job, I am a head of an internal internal startup that's called within Siemens Digital Industries. What do we do? My team has built a software service. The Industrial Asset Hub you've just heard. And we did that from the scratch and we did that in a co-creation working mode. And well now we are incubating it and we want to introduce it into the markets. In my other life, I am working with your awesome and fantastic team at ServiceNow. And before that, in my previous life I have built a strategy and a portfolio for digitalizing the industrial drivetrain. - So Siemens originally started as a customer. Can you talk about what you were using ServiceNow for initially? - Yeah, Lou, like most of the folks here in the audience, we started as customers. We turned to ServiceNow because you guys are great in IT service and asset management. And a being a user of that IT asset management on a daily basis as well, I can say you are great in that. The course of doing so, however, we learned that you folks already also know how to build and operate software services, and more importantly, you know how to scale them and create customer very quickly. And in fact, only a year ago, I was sitting here in this audience, in the keynotes, and I thought to myself, "Whoa, we should be doing something with these folks." And here we are today, not only as customers, but as partners. And together, we will drive digital transformation I guess. - Yeah, and we're super excited about how far we've come in that last year, right? And what the future will bring. But how would you explain the scope of the partnership today? - Well today, from our Siemens point of view, we are very much centered around industrial hardware and software. And with that, we are focusing on, typically focusing at a larger and broader scale at sheen builder system integrators, value at resellers and things like that. Now as you have just seen, Industrial Asset Hub is addressing the industrial producer, the actual operators on the shop floor. And we need to understand these guys better. ServiceNow, on the other hand, is very good at that. You know your way around there in that customer segment. And I believe we can preach together that significant gap that there is between IT and OT management. And I mean you said something of 10 years, I would even go further than that. It's at least 15 years, sorry. But we can do that together with ServiceNow at the speed of light. This partnership will pave the way towards a future of a more integrated IT and OT management. - Yep, IT and OT together. All right, and where do you see us going? So we've got a great foundation to build on, right? With where we are today, but where do you see us going in the future? - I would say, ServiceNow and Siemens, we're not reacting to the current state of OT management only. It wouldn't be enough. We are shaping the future. We are creating solutions now that will set the standards for the future for tomorrow. And to do so, there are basically three things I would say. So first it's bespoke IT and OT integration. Bringing those two domains together. It is about enhanced cybersecurity. It is about how can we raise incidents and trigger workflows from the shop floor, from a cybersecurity point of view, make everything lot smoother and faster there. And third, it is about predictive maintenance. We will make this thing together a reality. It's more than just a buzz word. When from a operations point of view, OT devices will raise incidents and say, listen, another week or so and then I'm done. Please help me. And raise that workflow automatically or auto-match-cly. This is what we are aiming for. Folks, this is so much more than a keynote. This is a promise. You can experience it in the center of the expo floor and the manufacturing area where we're together showcasing this use case of IT-like asset management and predictive maintenance. We are more than happy to see you there and answer all your questions. Because ServiceNow and Siemens, Siemens and ServiceNow, together we will show you how we drive the future of industrial operations. - Yeah, thank you, Michael. And again, to echo Michael's statement, right? This is available. See go to the center of the expo floor for manufacturing area. We can show you what we can do today and where we're going in the future. So Michael, I want to thank you very much. Could we go back a slide please? - No, one thing, one thing off the script, I'm sabotaging you a little. - Off the script. You know, German cliche. When we are playing soccer, you know, what you call soccer, what is basically football. We teams exchange jerseys and shirts. And here we go. This is yours. - Thank you. Thank you so much. Look at that. - Thank you for your partnership. - Michael, thank you for being a customer. Thank you for being a partner. Really appreciate it. Thank you. - Thank you folks. See you at expo floor. - I'm gonna keep that here. So, all right, so we just got a couple slides to wrap this up, but I wanna talk about where we're going. And Michael actually gave a preview of some of those areas already, right? We've got the three products in the market that I showed you today. The next one, it's actually in controlled availability now and we're looking to make it generally available by the end of the year, is around asset lifecycle management. So think you need to swap spares management and obsolescence management. For example, you know there's a PLC that's related to a critical production process. It's actually EOL, right? And that's creating risk, so you need to swap it out through a change management process. But if you swap it out and it doesn't work, you know, you need to know where the spares are. So that's how we're building, those are examples of how we're building asset life cycle management into the OT portfolio. After that, OT health and event management. This is what Michael called And you can see early versions of that, right? On the expo floor. But we're working with Siemens, right? To pull in event information on the OT side. We're also pulling in event information on the IT side to merge that and better understand what could cause downtime and be proactive about it. And that's coming next here. And last but not least, we're extending the digital factory transformation functionality that we have from the tech side of the factory into the shop floor worker, right? Think it operators. And we're doing that. We recently announced a couple of acquisitions, right? To better position us to serve that persona in that space. We worked with EY and brought in intellectual property, their SDM, Smart Daily Management intellectual property, and we acquired for Industry. And together, these companies and this IP are really gonna help us change the game, combine what we're doing with on the technology side of the factory with change in knowledge management and incident management, production process change over type use cases, standard operating procedure use cases for the shop floor operator. So that's coming next year. Really excited about that. Now of course, I'd be remiss if I didn't talk about generative AI, right? So we are obviously investing to a tremendous degree as a company. We had a product advisory council with our OT customers on Monday. One of the top generative AI use cases that came back was around how can we use the information in ServiceNow incident resolution, for example, to generate knowledge base articles that could be then shared across plants, right? So that's a great example of where we want to go with generative AI. Of course, we can also do things like incident summarization, knowledge summarization to get the right information at the right people at the right time. All of the security use cases that we're focused on, right? Across IT security, tech security as well as OT, things like security incident summarization using the CMDB, understand mapping of production processes and IT and OT and control gaps to generate insights on security posture, those are all coming too. So really excited about the roadmap here. And with that, I am gonna turn it back over to Blake McConnell to close us out. Thank you, I really enjoyed being here and I'm excited on, you know, about our digital factory transformation journey. - Okay, thank you, Lou. I didn't know there were props. I would've come out earlier if there are giveaways. Okay, so three things. Number one, hopefully everyone is convinced that we are committed to manufacturing. We're committed to innovating and deliver products that are specific to and your specific needs. Number two, think about experience. Not just that employee experience that we can drive to the frontline worker driving self-service to the frontline worker, but customer experience. How do you use customer service to not only improve the retention of your customers, but also to drive revenue. And then lastly, think about what Lou and Michael talked about around digital factory, and ultimately the industrial transformation. Lastly, there's a QR code that should come up shortly. And the next sessions for those who wanna learn more, especially about Siemens or Tyson Foods. And then there's a roadmap session. Have a great knowledge. Great to see everybody, thank you.
https://players.brightcove.net/5703385908001/zKNjJ2k2DM_default/index.html?videoId=ref:KEY2954-K24
Lou Fiorello
Blake McConnell
Michael Leipold
Rohit Batra