Business Process Management Industry For Pegasystems Marketing Essay

Pegasystems is a pioneer and market innovator in the BPM Business Process Management industry respected and respected by business experts world over including both Forrester and Gartner. PegaSystems is a strong team of 1825 employees across 17 countries. Along with being truly a highly technology motivated company, PegaSystems has a greater domain know-how in domains like Health care, finance, Bank etc.

Many of the world's leading organizations use Pega to operate a vehicle revenue progress, improve customer experience, and boost operational efficiency. Pega's unified offering is recognized as a head in CRM, BPM, and Decision Management. Pega works with existing systems and accelerates a chance to value with an array of industry applications.

Business Process Management as a business:

Applications are fast becoming the most interesting market to see. The demand for stand-alone components has plateaued as the personal information of the key buyers in European countries swap to the Financial Directors and CFO's instead of the IT administrator, as in america. Business professionals are less enthusiastic about what fantastic technology can be sold to them, but instead the business enterprise value that applications deliver, and that is not something that component distributors find easy to understand or communicate. The number below shows the way the components fit jointly to form functions and applications, and BPM is among the many that integrates to provide business value to companies.

Product offerings:

The main product offering from PegaSystems is the Pega BPM Collection which is software to manage, automate and optimise a broad selection of business operations. Our software unifies Business Process Management (BPM) software with a superior Business Rules Engine motor (BRE) to broadly improve business efficiency.

SWOT Evaluation:


Market leader running a business Process Management (BPM) and CRM (Customer Relationship Management)

High quality products, cutting edge technology

Fast paced growth

Domain expertise of over 25 years

High investment on R&D

Strong alliances with local and international services companies like Infosys, TCS, Accenture, Wipro, Cognizant etc.


Less control over some international procedures than home because of reliance on partnerships and alliances rather than direct involvement


Global Business Process Management Market to Exceed US$5. 3 Billion by 2017.

Apart from BPM, Pegasystems has ventured into offering cloud services, Customer Romantic relationship Management. Forrester forecasts that the global market for cloud computing will grow from $40. 7 billion in 2011 to more than $241 billion in 2020


Competition includes major players such as IBM, Oracle, adobe who all have massive resources and large cash positions.

I would be using the Porter's Five Forces Framework to investigate PegaSystems's leading product offering BPM product suite.

Threat of New Entrants

Bargaining power of customer

Bargaining electric power of suppliers

Threats of substitutes

Rivalry among firms

Threat of New Entrants: Low

BPM industry is certainly going through a change stage and possesses high barriers of admittance for the new entrants and the menace from the new organizations is low. Below are few tips to look into.

BPM industry is highly technology motivated industry and would require highly theoretically skilled resources.

Capital requirements: Will be huge as the resources are highly skilled.

Product differentiation: BPM industry is already a highly competitive industry with various other big players like IBM, Oracle, SAS. PegaSystems differentiates itself with other players because of the in-depth understanding of the marketplace domains like financing, Health care other services which help develop frameworks very specific to certain industries.

There are few players who are preparing to expand their product line hence increasing the rivalry. Hence accessibility would require large opportunities on the domain knowledge and the specialized expertise.

PegaSystems also benefits from high-switching costs and more developed distribution channels

Bargaining ability of potential buyers / customers: Medium

PegaSystems has a huge amount of customers which range from medium to large clients (World's major banking institutions). Our target customers are large, industry-leading organizations faced with managing complex and changing processes. Our traditional customers have been large companies in the financial services and health care marketplaces. With PegaRULES Process Commander, we are also able to offer answers to a broader range of companies as well as a broader selection of industries.

The bargaining capacity of the medium size customers is considerably low. These usually include companies like Medco etc.

There are some amounts of players in the BPM industry like IBM, Oracle, SAS, adobe etc hence providing less bargaining power to the clients. However there are few large customers like Citi Standard bank, Loan company Of America that has the bargaining electricity.

Pega Provides highly differentiated products. Offers best in the class software that can be customized in line with the customer's business needs. It offers different frameworks like Consumer Supervisor Framework for Medical, fund, Decision making tools for Aviation industry etc. Hence the bargaining ability of the customer's is lower in that case.

The product offering provides entire bunch of out of the pack functionalities that noticeably reduces the development and implementation cost and time. Hence draining the business enterprise costs significantly.

Pega has suppliers/ alliances in the services industry like Infosys, Wipro, Cognizant which supply the implementation of the BPM collection in the customer's organizations. Hence minimizing the organizations to know about the technological know-how and somewhat focus on their business needs.

Bargaining ability of suppliers: High

BPM industry is changing the way companies are streamlined and has few big players on the market. Hence suppliers can exert pressure on the customers.

BPM industry has enjoyed a substantial role in driving a vehicle the customer's process costs. Reducing enough time on developing and putting into action applications. Hence is significant for the progress of the firms.

There are scarcely few substitutes for the BPM specifically SOA. Pega offers customized frameworks for diversified market sectors hence making a good business proposition for the clients.

Switching to other suppliers need heavy capital and very skilled resources regarding the new BPM product.

Because PegaSystems builds up, manufactures, market segments and distributes its products, they have an extremely limited range of suppliers. Usually they deal with companions and alliances in international markets instead. PegaSystems has complete control of their product charges and are also under very little affect from any suppliers they could have.

Substitutes : Low

There are almost no substitutes to the BPM products and the closest being SOA suites. However SOA suites require more development efforts, time and maintenance.

One main reason for the customer's to look at the substitutes is requirement of highly skilled technical employees and the licensing cost. Below are few questions that may be asked in relevance.

How organizations can reduce operational costs in longer run?

How organizations can streamline the procedures to automate them, make is more secure, less error prone?

In longer run, BPM provides features and implementations that can decrease the functional and process automation costs significantly.

Pegasystems product implementations show operational costs going down by 20%.

Industry Rivalry : High

The BPM software market is intensely competitive, quickly changing, and highly fragmented, as current competitors develop their product offerings and new companies go into the market. Opponents vary in size and in the range and breadth of the merchandise and services offered. We come across competition from:

Service-Oriented Structures (SOA) middleware vendors including International Business Machines Corp. , Oracle Company, Software AG, and Tibco Software Inc. ;

BPM suppliers such as Appian Organization, Global360, Inc. , Lombardi Software, Inc. , Metastorm Inc. , and Savvion, Inc. ;

Business Rules Engine motor vendors such as Corticon Technology Inc. , Fair Isaac Firm, and the ILOG department of IBM;

Customer Romantic relationship Management ("CRM") request vendors including Chordiant Software, the Microsoft Dynamics CRM division of Microsoft, and the Siebel department of Oracle;

Enterprise Content Management-based suppliers including the Documentum division of EMC Company, and FileNet, the section of International Business Machines Corp. 's Information Management Group;

Companies that provide software specific software for the financial services, health care, insurance and other specific marketplaces such as Norkom Group Plc, SmartStream Systems Ltd. , SunGard, along with the TriZetto Group, Inc. ;

Current customers' it departments, which might seek to change existing systems or develop proprietary system

Factors that keep PegaSystems ahead of the competitors:

Product differentiation: BPM establishments provide an possibility to diversify their product offerings as they can give attention to certain industry techniques and automate them.

PegaSystems offers a number of personalized frameworks like smart dispute, customer process management for financial services, professional medical hence differentiating itself from the other players.

BPM industry is likely to grow for a price of 15% percent over another 5 years. Influenced with high technology developments it would be a value propositions for the customers.

Pega systems has vendors in Infosys, Wipro, Cognizant, Accenture etc for pega implementation. Hence helping the clients with pega practices.

PegaSystems advantages from brand acknowledgement and loyalty as well as a reputation for providing fantastic service and support to its customers.


The BPM industry is an extremely technology motivated industry with many big players supporting the businesses to accomplish their business needs. Characterized by top quality technology, tremendous progress rate, high capital investment makes is a hardcore market for the new entrants.

It has helped large numbers of customers to drive their operation costs and streamline procedures. Most of the world's large customer has the bargaining power. The competition in the BPM in industry has intensified like never before with creating an array of high quality products. Hence companies that positions itself properly based on the product differentiation would be heading quite a distance.

PegaSystems differentiates itself from its opponents with their wide array of product offerings and has a strong occurrence in exceptions management in the financial services and medical care markets. We have been most successful competing for customers whose businesses are characterized by a higher amount of change, complexness and size.

Customer is experiencing performance concern while accessing the application in creation. Customer is having CPM 6. 2 SP1 jogging on PRPC 6. 1 SP2 deployed on WebLogic Server.

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