- Forrester Councils
- Councils Overview
- log in
Posted by Clay Richardson on March 21, 2010
Pega's announcement last week to acquire Chordiant sparked an interesting debate within the BPM world: Is Pega becoming a CRM vendor? Is Pega moving away from BPM? Is this a move by Pega to better connect customer experience and business process improvement initiatives?
Over the weekend I took my daughter to see "Alice in Wonderland" and couldn't resist comparing Johnny Depp's Mad Hatter character to Pega's recent move to acquire Chordiant. For those of you who haven't seen the movie, it's not as weird as the usual Tim Burton movie; but the Mad Hatter character is a little disturbing, with his rhymes and riddles that keep you guessing at his true meaning.
For many process professionals, Pega's recent move was just as confusing as having a conversation with the Mad Hatter. What exactly is he trying to say anyway?
To understand this latest move by Pega it's critical to understand the company's history and how it sees the the post-recession world evolving. It also requires you to abandon your world view for a moment to imagine a BPM world that is different from what we've been told and sold for the last 10 years. Ultimately, this is what Alice had to do in the movie: Imagine a world different from the picture that had been formed in her head - she had to imagine Wonderland.
First, let's explore the journey that Pega and BPM have taken over the last decade:
"Pegasystems is a public, midsize ISV with 425 employees and more than 100 customers. But only seven are customers of the Process Commander platform — most are using one of Pegasystems' packaged applications for the financial services or healthcare industry."
Yes, even as recently as 2004, the bulk of Pega's customers and revenues came from their packaged apps solutions. Over the last decade Pega transitioned from packaged applications, to business rules, to business process management. However, the company never completely shed its packaged applications heritage to become a true "BPM Pure Play" that focused solely on BPM-specific capabilities. I like to refer to Pega as offering "quasi-apps" - because their solutions are packaged up just enough to accelerate time-to-value without pouring your feet in process cement. Ultimately, this combination of BPM+Apps set Pega on fire during the recession with companies - particularly financial services - looking for quick time-to-value solutions that provided flexibility and adaptability for future changes.
Now, let's take a journey into the BPM future, looking ahead over the next several years (i.e., the post-recession economy):
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »