The system property glide.sys.domain.delegated_administration is designed to empower customer administrators by allowing them to configure their own domains. This is crucial in a multi-tenant environment where multiple customers or departments are operating within the same ServiceNow instance but need to maintain separate configurations and data. By enabling this property, customer admins can make changes specific to their domain without the risk of affecting the configurations of other domains. This property essentially enables domain separation, which is a method of separating data into logically defined domains.