Analyzing Pega Systems: Part 1 — Introducing Pega
Picture this: a company known for its motto “Built for Change” now finds itself at a crossroads of change. Pega Systems, recognized for its rapid innovation, is facing a tough spot with mounting legal issues, fiercer competition, and rising costs for staying cutting-edge. My first encounter with Pega was during my time at Elevance Health. I watched in amazement as Pega slashed associate training time in half, marking a huge win for both them and Elevance Health. Despite its strong track record as a leader in BPM and CRM systems, Pega’s shareholders have lost 62% of their earnings in the last three years, and the company has not been profitable in the past 12 months. Intrigued, I decided to dig deeper into what makes this company tick or boom.
Anyone can build apps — with a low-code development platform: Pega Systems
About Pega Systems:
Think of Pega Systems as the power behind building enterprise applications. Established in 1983, they’re like the wizards of the Business Process Management (BPM) world. What’s truly impressive is that building applications with Pega takes only a third of the effort compared to traditional methods like writing Java codes. Their secret weapon? They love to call themselves a low-code platform for AI-powered decision-making and workflow automation. A low-code platform that lets businesses automate and simplify their processes without drowning in lines of code. They’ve also got some heavy hitters like AI-powered features that help businesses make smarter decisions and create better experiences for customers.
Key Features:
- Smarter Decision-Making with AI: Pega uses the magic of AI to help companies make informed choices. For example, it can predict when a customer might leave and suggest ways to keep them around, boosting customer relations.
- Streamlining Workflows: From onboarding new customers to handling insurance claims, Pega takes care of it all, making sure things run smoothly and efficiently with minimal manual effort.
- Keeping Things Organized: Pega offers a neat solution for handling complex, multi-step processes, ensuring everything flows seamlessly.
- Tailored Customer Experiences: With Pega, businesses can create special experiences for customers across different platforms like websites, mobile apps, and social media.
Impressive Client Roster:
Pega’s clients include some of the world’s leading companies, such as Comcast, GE Healthcare, JPMorgan Chase, Elevance Health, and Citibank.
- Comcast is using Pega to automate its customer onboarding process, which has reduced the time it takes to onboard a new customer by 25%.
- GE Healthcare is using Pega to improve the efficiency of its claims processing process, which has saved the company millions of dollars.
- JPMorgan Chase is using Pega to personalize its marketing campaigns, which has increased the response rate to its campaigns by 15%.
- Elevance Health is using Pega Customer Service to create a Solution Central, a desktop service that guides back-office associates through complex processes, making it easier for them to offer an improved, frictionless experience to consumers.
Pega has a huge clientele, including industry giants like Citi Bank (Their debut client) and many other Fortune 500 companies.
Innovating for Speed and Agility:
What sets Pega apart is their ability to move at lightning speed. They’re 40% faster in mobile development, and a whopping eight times quicker in design and implementation. They’ve got something they call the “Situational Layer Cake” — a clever framework they’ve designed themselves. It lets any company work in layers, making customization a breeze, and adapting to any situation, no matter the size. This framework allows Pega to quickly add new features, tailor to specific industries, and stay at the cutting edge of technology.
Conclusion:
Pega Systems is a leading low-code platform for AI-powered decisioning and workflow automation. However, the company has faced several challenges in recent years due to its past decisions and rising competition.
In the next article, we will discuss Pega’s current focus areas, its declining share price, and the lawsuit that has contributed to these challenges.
