Using ServiceNow to Modernize the Traditional ERP

Traditional ERPs like SAP, Oracle NetSuite, and Microsoft Dynamics 365 are built to manage core transactional operations, like ledger accounting, resource planning, and supply chain logistics. ServiceNow enters the conversation not as a replacement, but as a modernization layer: it extends, integrates with, and enhances traditional ERP capabilities while centralizing workflows and experiences across the enterprise.

Everything begins with the user experience, said Ross Rexer, Head of Global Delivery at CoreX.

“ServiceNow modernization is about streamlining or having one single common workflow. It allows for work to get across departments faster. It puts information into the hands of the individuals who need to progress tasks. And it streamlines the approval process.”

ServiceNow and the Traditional ERP

Rexer refers to ServiceNow’s ability to integrate horizontally across departments, what he calls the “east/west concept.” This means breaking down silos between functions like IT, HR, finance, and procurement, enabling a unified operational flow. ServiceNow enriches ERP systems by delivering real-time insights, centralized reporting, and integrated workflows.

Beyond serving as that centralized “single pane of glass,” ServiceNow’s capabilities in areas like IT Service Management (ITSM), Customer Service Management (CSM), and HR Service Delivery (HRSD) enhance the full tech stack supporting the traditional ERP.

While ServiceNow isn’t a one-to-one replacement for a traditional ERP, it does have modules and capabilities that handle many ERP functions.

• Strategic Portfolio Management (SPM): Aligns initiatives with business goals through integrated planning and budgeting.
• IT Asset Management (ITAM): Manages the lifecycle of IT assets and can integrate with ERP for asset accounting and management.
• HR Service Delivery (HRSD): Manages HR processes, employee onboarding/offboarding, and HR requests.
• Customer Service Management (CSM) and Field Service Management (FSM): Handles customer interactions, service requests, and field operations and links to sales, order management, and inventory data in an ERP.
• Sales and Order Management: Accelerates the lead-to-cash cycle, a core function of ERP sales and distribution modules.
• Accounts Payable Operations / Sourcing and Procurement Operations: Automates invoice processing and streamlines procurement processes.

ServiceNow also contrasts with traditional ERPs in performance areas such as rapid deployment, ease of customization, flexibility based on business needs, and scalability.

Bringing the ERP to the Modern Workflow

Visibility, transparency, and notifications are all attributes that set ServiceNow apart from traditional ERPs, according to Rexer. With an ERP, turning information into action can be complicated; compiling research, adding it to a spreadsheet, then to a slide deck, and then having all that work sit in a queue for six months while the ERP team goes through a multi-step approval process to enact the change.

Rexer continues, “What ServiceNow brings as a platform is to visibly see the work going through the system – who’s working on what and what has been done – and be able to grab work, take it, escalate it, and move it so you can take action. It’s information plus the ability to take action. None of that exists in the ERP world.”

Visibility and actionability are at the core of how ServiceNow modernizes traditional ERPs. Take the user experience, for example. ERPs are known for poor, complex UXs. In contrast, ServiceNow offers a user interface that’s not only intuitive but also role-specific and mobile-ready. This flexibility reduces training time, increases adoption, and empowers employees to work from any device.

More importantly, by serving as the central access point across the tech stack, ServiceNow brings legacy ERP systems into the modern era, unlocking speed, intelligence, and agility. Beyond UX, ServiceNow connects the tech stack to automate and streamline workflow across multiple systems (including the ERP), improves data visibility, and allows for custom solutions to address specific business needs that bring in siloed data sources.

Deploying ServiceNow as the single point of access in a tech stack unlocks enterprise systems and positions the traditional ERP into today’s workspace.