ServiceNow has announced the acquisition of Quality 360, an AI-powered quality management solution from Advania, strengthening its Manufacturing Commercial Operations (MCO) platform. This move underscores ServiceNow’s commitment to enhancing manufacturers’ ability to manage quality control proactively, reduce costs, and mitigate operational risks in an increasingly complex global supply chain.
According to the American Society for Quality, quality-related issues account for 15-20% of sales revenue in manufacturing. By integrating AI-driven solutions like Quality 360, manufacturers can improve defect detection, conduct root cause analysis, and implement structured corrective actions, significantly reducing waste and enhancing operational efficiency.
“Manufacturers are under growing pressure to meet high-quality standards while navigating global supply chain complexities. With Quality 360, we’re equipping manufacturers with AI-powered insights to identify quality issues early, optimize operations, and strengthen customer trust,” said Rohit Batra, VP & GM of Manufacturing, Telecom, Media & Tech Industries at ServiceNow.
Originally developed by Advania on the ServiceNow platform, Quality 360 offers a centralized Quality Workspace, automated issue detection, standardized playbooks, and real-time collaboration tools. These features enable manufacturers to maintain compliance, streamline operations, and enhance visibility across partner ecosystems, including OEMs, resellers, and dealers.
The acquisition aligns with ServiceNow’s broader AI strategy, complementing previous investments such as industrial cybersecurity collaborations with Siemens and the acquisition of 4Industry from Plat4Mation. The company continues to expand its AI-driven workflow automation across multiple industries, with recent partnerships with Visa and Genesys further cementing its role as a leader in digital transformation.
Growth Through Strategic Acquisitions and Innovation
ServiceNow has maintained a balanced growth strategy, combining organic development with acquisitions. Since 2016, the company has completed 33 acquisitions, contributing to its impressive revenue growth from $1.39 billion to $10.98 billion. CEO Bill McDermott has emphasized sustainable expansion, focusing on AI and automation to drive industry-specific innovation.
Despite its strengths, ServiceNow’s MCO platform faces challenges, particularly regarding cost and integration complexity. Small and mid-sized manufacturers may find the subscription model expensive, and full implementation often requires significant customization. Additionally, while MCO enhances quality management and supply chain visibility, it lacks direct manufacturing execution system (MES) capabilities, necessitating third-party solutions for real-time production monitoring.
The Future of AI in Quality Management
AI adoption in manufacturing continues to rise, with approximately 35% of firms now leveraging AI for predictive maintenance and quality control. AI-driven defect detection has achieved 90% accuracy, improving overall product quality by 35%. As quality remains a critical factor for financial performance and brand reputation, solutions like Quality 360 will play an increasingly vital role in ensuring manufacturers maintain a competitive edge.
With this latest acquisition, ServiceNow is reinforcing its position as a key technology partner for manufacturers, providing AI-powered insights to optimize quality management and operational efficiency in the digital era.
