ENTERPRISE TRENDS YOU CAN'T AFFORD TO IGNORE

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As we look forward to 2013, Pegasystems’ Setrag Khoshafian highlights key industry trends that will become increasingly prevalent over the course of the next 12 months. He shares10 business trends that you should be paying special attention to as your organization looks to Build for Change® to increase operational efficiencies and improve customer service, among other initiatives. By focusing on these trends and undertaking transformation projects, organizations stand to gain rapid returns on investment and achieve ongoing operational excellence.

Dr. Setrag KhoshafianChief Evangelist and VP of BPM TechnologyPegasystems

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TREND

This year will make business transformation even more compelling for organizations that

want to “do more with less.” Net Promoter Scores® and enterprise performance scorecards

are pervasively compelling organizations to be more driven by specific measures of their

performance: to identify constraints, adapt, and act. Continuous Process Improvement

is being realized through real-time lean and six sigma methodologies, aligned with BPM

solutions. Embarking upon a transformational journey will involve some pain and changes

in the organizational roles (please see Trend #2) and employees’ behavior. However,

BPM-enabled transformation will continue to be pragmatic. The new approach is to

transform incrementally, while trying to realize the vision of a robust adaptive enterprise.

Business Transformation as a Strategic Initiative for Adaptive Enterprises

Consistent customer service experience tailored to their needs

Empowered to focus on the task at hand withadaptive Next-Best-Action

High productivity environment enables IT to adapt and deliver on promises

Ability to respond to market demands and build and adapt for change at lower costs

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NPS

BSC

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Net Promoter Score, Net Promoter and NPS are registered trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

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TREND

In conjunction with business transformation for adaptive enterprise initiatives, we will

see increasingly emerging roles for transformation professionals in 2013. Depending

upon the culture or nomenclature of the organizations, some of roles that are emerging

include Chief Process Officer (CPO), Chief Digital Officer (CDO), and also of note,

Business Transformation Executives – at the VP and Director level. Equally important

and significant is the emergence of Chief Customer Officer (CCO). Modern organizations

are also witnessing the emergence of process owners vs. traditional functional leaders.

Thus BPM-enabled business transformation is permeating the very DNA of roles and

responsibilities in innovative organizations, with increasingly process-empowered

executives at the helm of the transformation initiatives.

Emerging Roles for Business Transformation#2

CDO CPOCCO

CUSTOMER DATA ENGINEER BUSINESS ANALYST PROCESS IMPROVEMENTEXPERT (BB, GMB)

PROCESS ARCHITECT

BPM

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TREND

Dynamic Case Management allows organizations to support all categories of work

(structured, semi-structured, or collaborative/unstructured) and all types of workers

(transactional, knowledge-assisted, knowledge workers). DCM helps organizations expand

beyond the traditional boundaries of their organizational silos as well as value/supply

chains. Cases provide holistic end-to-end aggregation of work automation in adaptive

enterprises. DCM adoption is fast becoming mainstream. Social collaboration, business

event handling, and aggregation of cross-team or departmental silos are just some of the

many key modernization enablers that are realized in the context of DCM solutions.

Dynamic Case Management Becoming Mainstream

Case Subjects Collaboration

Tasks Case Events

Case Business Objectives Rules and Policies

Processes & Dependencies

Case Data

Sub-Cases Case Content

Dynamic CaseManagement

#3

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TREND

Social BPM is bringing the incredible success of social networking to the enterprise, and

this is providing increased connectivity, transparency, communication, and collaboration

with customers, as well as within the organization. Social collaboration can be

synchronous (same time) or asynchronous (different times). Each category has a plethora

of social networking places, tools, and portals. Increasingly, BPM solutions are leveraging

these tools – such as Blogs, Wikis, Twitter, Facebook, etc. – in all the phases of BPM

solution lifecycles. Most importantly, BPM is providing the context for social networking

and collaboration – thus the meaning and value of social interaction is achieved through

BPM solutions.

#Social for Collaboration and Innovation

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TREND

In the next couple of years, mobile devices will surpass PCs as the most pervasive Internet

and Web access devices. Smartphones and tablets are permeating not only consumer

markets but also the enterprise as the means to conduct business. Mobile BPM will allow

organizations to seamlessly initiate and complete automated case work, end to end via

mobile devices. This work will pertain to dynamic cases involving various categories of

participants all interacting via mobile devices. More importantly, there are changes in

the mobility of the workforce itself. The instant accessibility of case status, case work,

and case collaboration via mobile means empowerment of a whole new category of

mobile workers. Not only are they looking to merely stay connected, but they are actually

completing transactions and work via smart devices.

Mobile Workforce#5

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TREND

One of the most important trends in the industry is the emergence of data engineering

and especially analytics of Big Data with tangible benefits to organizations that unlock

the insights hidden in vast amounts of digital information. BPM, through both predictive

and adaptive disciplines and capabilities, enables the insight that is discovered to become

actionable. The sources and types of data are heterogeneous and span social networks,

transactional data, as well as data warehouses. Strategies can leverage predictive and

adaptive models to provide the next best action in various dynamic case interactions

involving customers as well as enterprise participants. An Adaptive BPM solution unlocks

the hidden power of digital data and enables organizations to continuously monitor to:

Continuous Improvement with Actionable Analytics#6

` Act upon key performance indicators,

` Continuously innovate with new solutions,

` Continuously execute contextually,

` Continuously improve automated cases,

` Continuously gain insights from the data,

` Learn and adapt with actionable analytics.

Adaptive Decisioning

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Adaptive Decisioning

Simulation & Optimization

Continuous Discovery

Dynamic Cases

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TREND

Business Architectures focus on the business strategy, the organization of the enterprise,

the various services of the business and the core strategic and operational processes within

the businesses. Often modeled as a layer or in conjunction with Enterprise Architectures,

too often BA initiatives have yielded little or no tangible results. With the pervasiveness of

BPM as the key enabler for transformation, 2013 and beyond will witness the revamped

business architecture with BPM as the core of the enterprise’s ecosystem. The business

architecture also symbolizes the approaches for innovations and specializations that could

easily be achieved by the business. A robust enterprise repository of BPM assets that

supports enterprise scale re-use, specializations, and situational executives is core to the

business architecture. Most importantly, the business architecture needs to support agility,

through empowering the business to own the change.

The Modern Business Architecture#7

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Enterprise Applications and Content

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TREND

Software, platforms, and infrastructures on “the Cloud” (which means accessed via the

public Internet through a browser or mobile device) are fast becoming the preferred mode

of provisioning enterprise software. With the Cloud you can have enterprise applications

that are built securely with the BPM platform on the Cloud: BPM for PaaS. Once the BPM

solution is built and deployed, it can also execute or run on the Cloud: BPM SaaS. The year

2013 and beyond will see increasing pervasiveness of Cloud BPM PaaS and SaaS. However,

some private and public organizations have regulatory and security requirements to keep

mission critical data on-premise. So a key requirement for next generation BPM on the

Cloud is the flexibility in building either on the Cloud or on premise and easily moving

between the two options, with secure access of on-premise enterprise data.

Ubiquitous Cloud

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Cloud

On-Premise

BPM

BPM

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TREND

Customer Centricity means the needs, expectations, and overall experience of the customer

drives the processes and policies of the organization. One of the most robust measures

assessing the experience of the customer has been the Net Promoter Score® (NPS®). With

BPM-enabled CRM – especially customer service and support – organizations will be able

to keep their NPS® (or other) critical to customer experience measure in control in real-

time. There are three essential components of CRM: Marketing Automation, Sales Force

Automation, and Customer Service & Support Automation. With BPM-enabled CRM there is

complete visibility, transparency, and control of processes supporting automation in CRM.

Changes or customization to any aspect of CRM processes can easily be achieved, often by

the business. NPS® optimizations can be readily achieved in enterprises that are aggregated

and connected via dynamic cases that involve all the processes in an organization that can

affect the promoter scores.

Transforming the Customer Experience with BPM-Enabled CRM#9

Social CRM

Analytical CRM

Operationalized CRM

BPM Enabled CRM

BPM

Net Promoter Score, Net Promoter and NPS are registered trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

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TREND

The Internet of Everything will involve processes with people and “things” or devices all

connected on the Internet. In the next decade, these “things” – just about any digital-enabled

device – will generate more Internet traffic than people. Intelligent Agents are autonomous

software solutions that can carry out work –either scheduled periodically, within a process,

or on demand. Agents can execute business rules and decisions. Agents can learn and

adapt. Human participants in Intelligent Business Process Management Suite (IBPMS) are

already augmented with guided interactions, coaching hints, and next-best-action. When

associated with “things,” the process automation extends from the confines of humans and

includes intelligent devices participating in processes. The aggregation provided by Dynamic

Case Management will involve subcases as well as process steps with device (“thing”)

activation, control or participation. The process of everything.

Intelligent Agents – Process of Everything#10

BPM

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About Pegasystems

Pegasystems, the leader in business process management and software for customer centricity, helps organizations enhance customer loyalty, generate new business, and improve productivity. Our patented Build for Change® technology speeds the delivery of critical business solutions by directly capturing business objectives and eliminating manual programming. Pegasystems enables clients to quickly adapt to changing business conditions in order to outperform the competition.

For more information, please visit us at www.pega.com.