PegaWORLD Gets Big

My attendance at PegaWORLD has been spotty the past few years because of conflicts with other conferences during June, so it was a bit of a surprise to show up in DC this week to a crowd of more than 3,000 attendees — definitely now the biggest BPM conference around. The opening keynote started with Alan Trefler (Pega’s founder and CEO) talking about change, and how organizations need to become digital enterprises with the power to engage, the power to simplify and the power to change. Interestingly, SAP used the same “simplicity” message at SAPPHIRE last week: typically, this translates to a combination of hiding complexity from the business (which is not really simplification, just better window dressing) and platform rationalization (which is actually technological simplification).

As Trefler described it, Pega sees three major contributors to becoming digital enterprises: case lifecycle management as an alternative to a pure process view for the complexity of real-world business operations; next best action to predict what a customer might do based on their engagement history; and omni channel to provide a consistent customer experience on multiple channels simultaneously in an integrated fashion. These three capabilities provide a digital context based on a unified architecture, bridging (internal) work and (external) customer.

Pega has reached a size now — 3,000 employees and over a half billion in revenue — where they are fueling some of their growth through acquisitions; this is likely to challenge their ability to avoid a “Frankenstack” of technologies weirdly bolted together. They’re hitting all the buzzwords: social, mobile, analytics, cloud and internet of things, with a story of how they’re addressing each. Incidentally, I found it interesting that they still have less than 100 cloud-based production customers, although many times more are using it for development and test systems; that’s going to have to step up if they’re going to really engage with increasingly diverse organizations.

Anette Bronder from Vodaphone’s enterprise delivery group took the stage to talk about their ongoing business transformation program: working to achieve simplification, standardization, digitization and globalization. They are improving their enterprise operations and infrastructure, with the goal of a set of standard products that can be delivered across all segments. Enterprise customers, making up almost 30% of their business, include big names including Amazon and Bosch; these include the communications required for logistics, manufacturing, fulfillment, the internet of things and much more, with the ultimate goal of putting a SIM card in pretty much everything. Transformation of their enterprise delivery processes is based on several factors: sourcing the right people both internally and externally; standardized processes with a common methodology leveraging best practices; governance with a single operating and delivery model across all markets with a consistent set of metrics; and common technology for order management, project management and product catalog. They are moving from manual to automated operations, and from local siloed approaches to globally standardized products and processes. They want to improve customer engagement through a case management approach, where all customer information is available for decision-making and pro-active problem resolution, while improving operational efficiency and business agility. Pega is one of their technology partners, but obviously there’s a lot more involved here, including significant change management. They’re two years into their journey; it will be interesting to see this again in a year or two when they’re starting to see some real results.

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