Pegasystems

Pegasystems Inc.
Public
Traded as NASDAQ: PEGA[1]
Industry Software
Founded 1983
Headquarters Cambridge, Massachusetts, United States
Number of locations
 38 (2018)[2][3]
Area served
 Worldwide
Key people
Products Customer Relationship Management (CRM), Business Process Management (BPM), customer service, marketing, sales, and robot process automation
Revenue IncreaseUS$ 841 million (2017)[4][5]
IncreaseUS$ 33 million (2017)[4][5]
Number of employees
 4200
Website www.pega.com

Pegasystems Inc. is an American software company based in Cambridge, Massachusetts.[6] Founded in 1983, Pegasystems develops software for customer relationship management (CRM),[7] digital process automation,[8] and business process management (BPM).[7] Pegasystems specializes in the following industries: financial services, life sciences, healthcare, manufacturing,[9] insurance,[10] government,[11] high tech,[6] communications and media,[12] energy, and utilities.[13] The company announced in 1996 that it would be publicly traded on the NASDAQ stock exchange (PEGA).[1] Since 2010, the company has acquired a number of companies including Antenna Software, Firefly, OpenSpan, MeshLabs, and Chordiant.[14] The company's core product is the Pega Platform.[9][15]

History

Early history

Alan Trefler founded Pegasystems in 1983 at the age of 28, in Cambridge, Massachusetts.[6] Prior to founding the company, in the early 1980s Trefler had developed computer systems that could play chess.[1] During the company's early years it focused on providing case management, namely for companies such as American Express.[1][16] Trefler recollects that when he started Pegasystems, he wanted to create software that eased the heavy lifting that business people deal with, as well as software that understood how business-people wanted things to work, commenting "it turns out to be a fairly hard problem to solve."[1] An article in Computerworld traces business rules engine to the early 1990s and to products from the likes of Pegasystems, Fair Isaac Corp and ILOG.[17] As a private company, Pegasystems was "bootstrapped" initially, but did not take on outside investors.[1] The company went public in 1996 with initial and secondary public offerings,[18] and began trading on NASDAQ under the symbol PEGA. Raising several millions in funding in the process, going public freed the company from needing to pursue venture capital investments.[1] Pegasystems entered a period of financial trouble in the late 1990s, following a dispute with its accountants, Ernst & Young.[19] After restating their earnings, Pegasystems faced an investigation by the SEC, which was dropped in 2002.[18]

Acquisitions

In March 2010, Pegasystems acquired the enterprise software company Chordiant for around $161.5 million. Although it had clients such as Citibank, Capital One, MetLife, Cigna, Wellpoint, T-Mobile, and Vodafone and was described as an "innovator" in "applying predictive analytics to customer interactions," Chordiant had struggled in the 2008 recession.[14] The acquisition gave Pegasystems access to new markets such as telecommunications and healthcare, with Pegasystems integrating Chordiant and its customer relationship management (CRM) technology into its existing operations.[7] Pega Cloud was introduced using Amazon Web Services in 2012,[3] and in October 2013, Pegasystems acquired the mobile application developer Antenna Software[20][7] for $27.7 million. Located in New Jersey, Antenna also had bases in Kraków and Bangalore.[20]

In October 2013, Pegasystems was described as a "provider of business process management (BPM) and [CRM] solutions," and had its global development center in Hyderabad.[20] Revenues for the company grew strongly when compared to the rest of the business process management market from 2005 until 2013, with license revenues rising 34% in 2013.[7] The company reported that profit increases in 2013 were "fueled by demand for an upgrade to its main software product," Pega Platform, which was designed so companies could integrate data and software systems.[21] After it released its recent financial results in November 2013, Pegasystems' stock rose 20%,[22] resulting in a 122 percent value increase over the prior year and a record high for the company.[21]

Recent history

Pegasystems hired a cloud technology proponent to develop its cloud technology strategy in 2014. Over the following year, Pegasystems invested in network operations in North America and India to support its cloud services.[23] In May 2014, Pegasystems acquired the Bangalore-based MeshLabs, a text mining and analytics software startup. The Times of India reported that Pegasystems would integrate MeshLabs's text analytics software to "gather unstructured social media data and decode it into actionable business insights for its clients." The financial details of the transaction were not disclosed.[24] Pegasystems acquired Firefly in June 2014, a co-browsing tool funded by First Round Capital.[25] The startup from Philadelphia, Pennsylvania was the company's first move into the cobrowsing market.[25] By the summer of 2014, Pegasystems remained headquartered in Cambridge, Massachusetts with 2,700 employees.[24][25] By July 2014 the company was worth around US$1 billion.[6]

By early 2015, Pegasystems remained a publicly traded company[1] on the Nasdaq,[24] with 3,000 employees, 30 offices, and "more than half a billion dollars in revenue."[1] As of February 2015, the company had active partnerships with IT outsourcing companies such as Tata Consultancy Services, InfosysBSE, WiproBSE, HCL Technologies, Accenture and Cognizant.[26] By September of that year, companies who had built teams of Pegasystems specialists included Virtusa (engineering and solution delivery partner since 2001), Accenture, Ernst & Young and Cognizant.[23] Between 2005 and 2015, Pegasystems had average sales growth of 21% per year.[27] There was a steady rise in the company's share price in 2015,[28] with higher than expected revenues from the year prior.[29] In January 2016, it was reported that Pegasystems planned on raising its number of employees significantly,[9] and the company announced the acquisition of OpenSpan Inc. in April 2016.[30] Based in Atlanta, Georgia, OpenSpan specialized in robotic process automation and workforce analytics software.[31]

Educational programs and conferences

Pega Academy was founded to "provide online resources, classroom training and certification for systems integrators to help them train up new Pega specialists."[23] In 2016, Pegasystems announced the launch of the Pega University Academic Program (UAP), offering training and certification on the Pega 7 platform for educators and students.[32] In November 2016, Pegasystems Inc signed an agreement with TalentSprint to train 10,000 Pega-certified professionals at Indian engineering colleges. At the time, there were 27,000 professionals trained in Pegasystems technology, with 60 percent in India.[33] In January 2018, Pegasystems took part in a World Economic Forum initiative to offer free retraining for workers losing jobs due to technology advances.[34]

Since 2006, the company has held an annual users' conference, PegaWorld.[3] The 2017 session had 4,000 attendees.[35]

Products and services

Pegasystems develops and supports software[9] for customer engagement[1] and operations.[9] In particular, as of 2013 Pega specialized in software for business process management (BPM) and customer relationship management (CRM),[7] and was seen as offering more bespoke technology than competitors such as Oracle Corporation or SAP ERP.[36] As of late 2013, Pega’s core software, PegaRULES Process Commander (PRPC), was related to BPM.[7] The company's current core software offering is its Pega 7 platform, which is accessible via cloud technologies.[9] Pega 7 platform is the company's "core offering in the market that mixes business process management, CRM, data analytics, big data (social and mobile)." The company continuously modifies and updates the platform, investing as well in co-browsing and cloud and social media to integrate.[9] In August 2015, the company "made a strategic decision to make its software easier to use," hiring teams with backgrounds in user experience. By September 2015, the company had introduced Pega Express. Pega Express was designed to allow business specialists to quickly build simple applications.[23]

Fortune wrote in August 2015 that Pegasystems' CRM suite "correlates data from existing marketing, sales, and support systems. Whenever a call arrives, an agent is presented with an omnichannel view of the history so he or she receives a heads-up into what the call might be about. That in itself isn't so new, but the software also uses predictive analytics to suggest solutions proactively. In Sprint’s case, agents are presented with several different scenarios of how to handle a call."[12] In 2015, Pegasystems' CRM suite was listed as one of the top five largest in the CRM market by David Roe of CMSWire, alongside Salesforce.com, SAP CRM, Oracle CRM and Microsoft Dynamics CRM.[37] Gartner mentioned Pega in April 2015,[38] and Forrester Research named Pegasystems a "leader in customer service for enterprise clients" in December 2015.[27]

Pegasystems Inc. in March 2016 announced Pega Client Lifecycle Management (CLM), an application "that streamlines and automates corporate client onboarding" for banks by "[orchestrating] complex CLM processes on a global scale in a single application, reducing onboarding time by 70 percent and reducing costs by 60 percent."[39] In September 2016, Pegasystems released enhancements to its Client Lifecycle Management (CLM) and Know Your Customer (KYC) applications.[40] By that time Pegasystems had applied predictive analytics,[41][42] artificial intelligence,[41] and machine learning[43] to its CRM applications for years,[41] and among other products,[41] it is used in Pegasystems' decision management software.[43] The company has added artificial intelligence into its customer service software to allow interactions to occur on multiple communication channels at once.[44]

In early 2017 Pegasystems unified its Pega Workforce Intelligence capability within its customer service and sales automation applications.The feature allowed clients to search for inefficiency patterns by analyzing en masse behavior.[45] Also in 2017, the company added artificial intelligence and robotic automation to Pega CLM and KYC products.[46][45] Among other new products and features in 2017 were the Intelligent Virtual Assistant,[47] a “T switch” to provide transparency for AI-based decisions,[48] and Pega Agile Workbench, a collaboration tool for app development.[49] The company’s low-code development platform was highlighted in a 2018 Wall Street Journal article, with Pegasystems’ chief technology officer explaining that the software allowed developers to "drag and drop [ready-made software components] to configure applications,” minimizing development time.[50]

Clients and notable projects

Pegasystems specializes in the following industries: financial services,[9][51] insurance,[10] life sciences, healthcare,[9] government,[11] manufacturing,[9] high tech,[6] communications and media,[12] energy,[13] and utilities.[13][12] While core areas have traditionally included banking and financial sectors, more recent areas include manufacturing, life sciences and healthcare.[9] As of 2013, other clients included "largely Fortune 500 companies" such as ING, Lloyds Banking Group, BAA,[7] and the state of Maine, which commissioned Pegasystems to create a BPM system to cut administrative costs.[11] By July 2014, PayPal, Cisco Systems, and Philips were using Pegasystems’ CRM software,[6] and BNY Mellon announced they would be integrating Pega into its operations as part of their efficiency strategy.[51]

In 2015 Pegasystems disclosed that its clients included "six of the top 10 global communications companies, eight of the top 10 credit-card companies, and eight of the top 10 global banks."[12] Among them were American Express, HSBC, United Health Group,[12][26] JPMorgan Chase,[12] General Motors, Barclays, Pfizer, General Electric,[23] and Cisco Systems.[26][7][6] In 2015, American International Group debuted a customer complaints application from Pegasystems,[52] and also that year Sprint used Pegasystems to focus and rework its customer relations strategy.[12] Between 2010 and 2015, ME Bank worked with Pegasystems on a rebuild of its technology systems utilizing process automation. According to the bank, the time to open a new deposit account decreased from five days to five minutes.[53] On June 9, 2015, it was reported that The Royal Bank of Scotland (RBS) had "chosen to implement customer decisioning software" developed by Pegasystems.[54][42]

In 2016 Philips and Pegasystems worked together "to create a new wireless patient remote monitoring system," and by July, Philips had supplied devices to 700,000 patients.[55] Pegasystems began work on a CRM platform for the state of Maine in 2016, building on earlier projects.[11] Other clients include Heineken,[56] the New Jersey Courts,[57] AIG Japan,[52] Hanover Insurance Group, Cigna,[10] MKB Brandstof,[58] Wüstenrot & Württembergische Gruppe,[59] Trancelerate,[10][60] British Gas,[13] Allianz,[55] and OnStar.[61] By 2017 Pegasystems had clients such as Coca-Cola, General Motors,[35] Commonwealth Bank of Australia[62] and Transavia.[63] In 2018 Pegasystems won a bid to provide the technology platform to connect all government departments in India’s state of Andhra Pradesh.[64]

See also

References

  1. 1 2 3 4 5 6 7 8 9 10 Rogers, Bruce (February 24, 2015). "Alan Trefler's Pegasystems Is On A Mission To Transform Customer Engagement". Forbes. Retrieved March 19, 2017.
  2. ↑ Worldwide Offices, Pegasystems
  3. 1 2 3 About - Timeline - Worldwide Offices, www.pega.com, retrieved March 28, 2017
  4. 1 2 Pegasystems Announces Financial Results for the Fourth Quarter and Full Year 2017
  5. 1 2 Investors, Pegasystems
  6. 1 2 3 4 5 6 7 Farrell, Michael B. (July 6, 2014). "Seven things you should know about Alan Trefler". Boston Globe. Retrieved March 20, 2017.
  7. 1 2 3 4 5 6 7 8 9 Goodwin, Bill (November 21, 2013). "Pegasystems CEO Alan Trefler plans his next move for the $500m software company". Computer Weekly. Retrieved March 18, 2017.
  8. ↑ High, Peter (September 18, 2017), "Pegasystems Is A 34-Year-Old Startup That Is Built For Change", Forbes
  9. 1 2 3 4 5 6 7 8 9 10 11 Raj, Y V Phani (January 21, 2016). "Cloud to drive Pega growth". Metro India. Archived from the original on July 2, 2016. Retrieved March 27, 2017.
  10. 1 2 3 4 Taft, Darryl K. (November 4, 2015). "How Pegasystems Is Helping Companies Transform the Customer Experience". eWeek. Retrieved March 18, 2017.
  11. 1 2 3 4 Goodwin, Bill (June 9, 2015). "US state of Maine turns to BPM to cut admin costs". Computer Weekly. Retrieved March 27, 2017.
  12. 1 2 3 4 5 6 7 8 Clancy, Heather (August 7, 2015). "Can this software help Sprint win back core customers?". Fortune. Retrieved March 20, 2017.
  13. 1 2 3 4 Taft, Darryl K. (August 5, 2015). "How Pegasystems Is Helping Companies Transform the Customer Experience". eWeek. Retrieved March 18, 2017.
  14. 1 2 Henschen, Doug (March 18, 2010). "Pegasystems To Buy Chordiant For $161.5 Million". InformationWeek. Retrieved March 19, 2017.
  15. ↑ Pega Platform, Pegasystems
  16. ↑ "The single-easiest way to make customers fall in love with you". Mashable. May 1, 2015.
  17. ↑ "Do you know where all of your company's business rules are?". Computerworld - Volume 39. IDG Enterprise (21): 25. 2005-05-23. ISSN 0010-4841. Retrieved 2014-02-02. Rules engines have been around since the early 1990s when companies such as Pegasystems Inc. in Cambridge, Mass., Fair Isaac Corp. in Minneapolis and ILOG in Mountain View, Calif., sold them. They were typically used in rules-heavy industries such as finance and insurance. Over the past few years, however, many vendors have entered the market, and more companies are looking at rules engines as a way to gain greater flexibility in business operations.
  18. 1 2 "SEC drops Pegasystems probe". Boston Business Journal. Biz Journals. April 10, 2002. Retrieved March 19, 2017.
  19. ↑ Goldbaum, Lisa R. (May 13, 1998). "Is The Accounting Cloud Over Pegasystems Finally Lifting?". Barron's. Retrieved March 20, 2017.
  20. 1 2 3 "Pegasystems acquires Antenna Software". Business Standard. October 16, 2013. Retrieved March 20, 2017.
  21. 1 2 Coffey, Brendan (November 26, 2013). "Billionaire Chess Master Found as Pegasystems Leaps 122%". Bloomberg. Retrieved March 27, 2017.
  22. ↑ Tsuruoka, Doug (November 13, 2013). "Pegasystems Q3 Beat Led By License Revenue; Stock Up". Investor's Business Daily. Retrieved March 20, 2017.
  23. 1 2 3 4 5 Goodwin, Bill (September 2015). "Why Pegasystems' CEO, Alan Trefler, has learned to think smaller". Computer Weekly. Retrieved March 27, 2017.
  24. 1 2 3 Phadnis, Shilpa (May 7, 2014). "Pegasystems buys Bangalore analytics startup MeshLabs". Times of India.
  25. 1 2 3 Cutler, Kim-Mai (June 9, 2014). "Pegasystems Acquires Co-Browsing Tool Firefly, The First Investment By First Round's Dorm Room Fund". TechCrunch. Retrieved March 21, 2017.
  26. 1 2 3 Alawadhi, Neha (February 18, 2015). "IT companies move towards Pegasystems' coding platform Pega to increase efficiency". The Economic Times. Retrieved March 27, 2017.
  27. 1 2 Oberweiss, Jim (February 10, 2016). "A Basket Of Keepers Among Small-Cap Tech Stocks". Forbes. Retrieved March 27, 2017.
  28. ↑ "Pegasystems posts 2Q profit". Yahoo!. July 29, 2015. Archived from the original on October 27, 2016.
  29. ↑ Winhoffer, Lindsey (July 31, 2015). "Pegasystems Reaches New 12-Month High Following Earnings Beat (PEGA)". Watchlist News.
  30. ↑ "BRIEF-Pegasystems Inc acquires OpenSpan Inc". Reuters. April 12, 2016. Retrieved March 27, 2017.
  31. ↑ Primack, Dan (April 13, 2016). "Term Sheet — Wednesday, April 13". Fortune. Retrieved March 27, 2017.
  32. ↑ "Pegasystems launch UAP". The Hans India. Hyderabad, Telangana, India. July 2, 2016. Retrieved March 28, 2017.
  33. ↑ "Pegasystems inks agreement with Talentsprint". Business Line. India. November 23, 2017. Retrieved March 27, 2017.
  34. ↑ Nott, George (January 24, 2018), "IT giants back tech training portal for disrupted workers", CIO
  35. 1 2 Scardina, Jesse (June 19, 2017), "CRM AI is the top topic at PegaWorld 2017", Tech Target
  36. ↑ du Preez, Derek (June 10, 2015). "Pega CEO claims most CRM apps are nothing more than 'conformist online rolodexes'". Diginomica. Archived from the original on September 20, 2015.
  37. ↑ Roe, David (April 1, 2015). "3 Tech Giants Lead a Bloated CRM Market, Forrester Claims". CMSWire.
  38. ↑ Maoz, Michael; Davies, Jim (April 27, 2015). "Magic Quadrant for the CRM Customer Engagement Center". Gartner. Archived from the original on July 8, 2015.
  39. ↑ Groenfeldt, Tom (March 21, 2016). "Banks Earn Fees Faster -- Pegasystems Cuts Corporate Onboarding Time By 70 Percent". Forbes. Retrieved March 27, 2017.
  40. ↑ Kurmanath, K V (September 15, 2016). "Pegasystems unveils enhanced KYC app". The Hindu Business Line. Retrieved March 27, 2017.
  41. 1 2 3 4 Noyes, Katherine (September 18, 2016). "Salesforce is betting its Einstein AI will make CRM better". PCWorld. Retrieved March 28, 2017.
  42. 1 2 Goodwin, Bill (June 17, 2015). "Royal Bank of Scotland goes back to 1970s values with big data". Computer Weekly. Retrieved March 27, 2017.
  43. 1 2 Press, Press (January 23, 2017). "Top 10 Hot Artificial Intelligence (AI) Technologies". Forbes. Retrieved March 28, 2017.
  44. ↑ Hyken, Shep (March 4, 2017), "Moving From Omni-Channel To A Channel-Less Customer Experience", Forbes
  45. 1 2 Panji Raj, YV (May 27, 2017), "Pegasystems bringing efficiency through robotic process automation", Telangana Today
  46. ↑ Groenfeldt, Tom (March 1, 2017), "Pegasystems Software Robots Help Banks Onboard Institutional Customers", Forbes
  47. ↑ "Pegasystems launches virtual assistant", Telangana Today, April 20, 2017
  48. ↑ Preimesberger, Chris (September 29, 2017), "Pega's AI Control Mitigates Enterprise Risk for GDPR", eWeek
  49. ↑ Preimesberger, Chris (June 1, 2017), "How Pegasystems Aims to Solve Business-IT Communication Gap", eWeek
  50. ↑ Castellanos, Sara (February 21, 2018), "How Low-Code Can You Go? IT Tests 'Disruptive' App Development", The Wall Street Journal
  51. 1 2 Kline, Alan (June 12, 2014). "How BNY Mellon Aims to Stay on Top for the Next 230 Years". American Banker. Archived from the original on March 8, 2016.
  52. 1 2 Norton, Steven (April 19, 2015). "AIG Tailors Platform to Address Regional Data Requirements, Replace Napkin Scribblings". Wall Street Journal. New York City. Retrieved March 28, 2017.
  53. ↑ Barwick, Hamish (June 30, 2015). "ME completes $90m technology rebuild". Computerworld. Retrieved March 28, 2017.
  54. ↑ Macrae, Duncan (June 9, 2015). "Royal Bank Of Scotland Aims To Repair Reputation With Customer Service Focus". TechWeek Europe. Retrieved March 20, 2017.
  55. 1 2 Goodwin, Bill (June 7, 2016). "Millions of people will have health monitored remotely within five years". Computer Weekly. Retrieved March 28, 2017.
  56. ↑ Moore, Michael (January 29, 2015). "Tapped Potential: How Pegasystems Helped Heineken Ireland Stay Fresh". TechWeek Europe. Retrieved March 20, 2017.
  57. ↑ Goodwin, Bill (July 8, 2016). "New Jersey turns to technology to keep offenders out of jail". Computer Weekly. Retrieved March 18, 2017.
  58. ↑ "Juryrapport: Implementatie Pega bij MKB Brandstof". Computable. 2015. Retrieved March 18, 2017.
  59. ↑ Kurzlechner, Werner (November 16, 2015). "Wüstenrot bekommt komplett neues CRM". Computerwoche. Retrieved March 18, 2017.
  60. ↑ Goodwin, Bill (June 23, 2015). "Pharmaceutical companies use BPM to cut cost of clinical trial drugs". Computer Weekly. Retrieved March 18, 2017.
  61. ↑ Hyken, Shep (June 11, 2016). "New And Intriguing Lessons Learned At Pegaworld 2016". Forbes. Retrieved March 27, 2017.
  62. ↑ "CBA attributes success to Pegasystems", Banking Frontiers, March 1, 2014
  63. ↑ Case Studies, Pegasystems
  64. ↑ "Pegasystems bags order for AP govt's e-Pragati initiative", The Hindu BusinessLine, February 9, 2018
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