2014 offers exciting new business and technology trends in that will become increasingly important and pervasive over the next year. Pegasystems' Setrag Khoshafian shares 10 key trends that can have a lasting—and valuable—effect on every aspect of your business. By understanding and focusing on these trends, your organization gains the opportunity to streamline operations, enhance the customer experience and continuously increase business agility and excellence. Highlights for 2014 include: - Establishing innovation as a strategic priority - The need to rationalize and modernize your IT applications - How to leverage the power of adaptive and predictive analytics - How the "Internet of Everything" will effect your business - Why enterprise transformation isn't just about technology - And more...

1. 2014
TOP 10 TRENDS
FOR ADAPTIVE ENTERPRISES

2. 2014 offers exciting new business and technology
trends in that will become increasingly important and
pervasive over the next year. Pegasystems’ Setrag
Khoshafian shares 10 key trends that can have a
lasting—and valuable—effect on every aspect of your
business. By understanding and focusing on these
trends, your organization gains the opportunity to
streamline operations, enhance the customer
experience and continuously increase business agility
and excellence.
Dr. Setrag Khoshafian
Chief Evangelist and VP of BPM Technology
Pegasystems
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3. TREND
#
1
Innovation with Speed
and Agility
One of the most compelling trends for 2014 is the need for innovation across the enterprise.
The rapid pace of change is exceeding the capacity of traditional business, as well as
structured operational and IT models. Innovation needs to be a strategic priority combined
with execution that enables continuous change, while improving and “doing more with less.”
In 2014, organizations must not just embed innovation in their products and services, but
make it the “DNA” of the enterprise to make all functions and teams as agile as possible.
IT needs to lead the innovation agenda, but approach it holistically. Innovation needs to
be pervasive so that it spans IT, business, customer experience especially, and process
innovation for differentiation.
Process Innovation:
Intelligent automation of end-to-end
collaborative business processes
BUSINESS INNOVATION
IT Innovation:
Direct vision, ideation, opportunities
and overall digitization and delivery of
innovative services and products
Creative and transformed
business execution that
continuously adapts
Customer Experience Innovation:
Intelligent Process-enabled CRM to
treat different customers differently
Product Innovation:
Ideation “crowdsourcing” with customers
& partners for innovative products
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2014 TOP 10 TRENDS FOR ADAPTIVE ENTERPRISES
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4. TREND
#
Business Transformation
Roles and Empowerment
2
For innovation to yield concrete and tangible results, it needs a revision of existing
organizational roles as well as new roles and cultures. In 2014, we will see more processcentric roles, with increased collaboration between data owners and process owners.
These roles will empower people to achieve innovation with adaptability.
Role
2014 Focus
Process Owners
Evolve from siloed departmental solutions to end-to-end processes that span the organization as well as the extended
supply and value chain.
Chief Process
Officer
Own overall process efficiency to coordinate process owners, spearhead cross-process improvement and initiate Process
Competency Centers, also called Centers of Excellence.
Chief Customer
Officer
Own the lifetime value of customers, including their optimized and overall experience with the company.
Data Scientists
and Owners
Data and process are two sides of the same coin. Focus on Big Data Analytics and Master Data Management for processes
that span business units and the extended enterprise.
Chief Digitization
Officer
Transform the enterprise with modern digitization, especially mobile, social , cloud and the "Internet of Everything"- within
intelligent processes.
Analysts and
Data Scientists
Provide expertise in the tools and methodologies needed to discover predictive models from all types of data including
transactional, process, “big data”, text and unstructured data.
CMO CDO
CCO
CPO
BPM
CUSTOMER
4
DATA SCIENTIST
2014 TOP 10 TRENDS FOR ADAPTIVE ENTERPRISES
BUSINESS ANALYST
PROCESS IMPROVEMENT PROCESS ARCHITECT
EXPERT (BB, GMB)
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5. TREND
#
3
Application Rationalization,
Simplification and
Modernization
In mature organizations, the weight of a mish-mash of heterogeneous systems,
platforms, applications, languages, home-grown and point solutions conflicts with
change, adaptability and agility. In 2014 , persistent adaptability pressures will compel
IT to rationalize application portfolios, simplify with fewer data centers, platforms and
applications. Adaptive enterprises will modernize with intelligent business process
management (iBPM) providing a business-friendly agility layer that improves IT efficiency
and aligns business and IT.
Rationalization and simplification allow IT to get rid of complexities, replication and
technology silos. Modernization via a business-friendly agility layer lets business owners
become partners in transformation and even “own the change”. This trend will accelerate
as business owners gain the power to change policies, procedures and decision strategies.
iBPM will become the key enabler for simplification and modernization, aligning strategy,
continuous improvement and execution in adaptive enterprises.
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6. TREND
#
4
From Internet of
Everything to Process
of Everything
The Internet of Everything (IoE) is one of the most important technology trends of 2014
and beyond. IoE will involve billions of devices or “Things” connected over the Internet—
generating data, sensing, firing and consuming events, and being controlled remotely.
IoE will realize its full potential through intelligent processes (Process of Everything)
that can coordinate multiple participants (humans, systems and machines/devices) in
complex, dynamic processes and cases to achieve business objectives.
Intelligent processes provide the container and the context for intelligent things to collaborate
to achieve objectives. In the next couple of decades, semi or even fully automated human
robots and avatars will become more pervasive. As this trend matures, humans will
increasingly focus on innovation and cognitive work, delegating routine and even some
knowledge-assisted work to automated things and processes.
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7. TREND
#
5
Intelligence through
Analytics and Real-Time
Decisioning
The use of intelligent technology will accelerate in 2014 with the goal of making the right
decisions. With the explosion of data, organizations rely on analytics to make sense of
all this information and decide what to do. Predictive models are minded and discovered
from historic data. Big data is also becoming an important source for understanding
customer behavior. While these have value, the more exciting trend is the ability to act
on the discovered intelligence in real time. Real-time decisioning allows organizations
to achieve tangible benefits by unlocking the insights hidden in vast amounts of
digital information and capitalize on them within the context of marketing and service
interactions, for example.
Adaptive analytics are a significant part of this trend. Adaptive analytics take technology
intelligence a large step further, as they provide “self-learning” that can dynamically
incorporate new information and insights and automatically apply them to the next
applicable situation. This combination of data-driven recommendations from big data with
adaptive self-learning is an important 2014 trend, providing significantly more insight for
real-time decisioning than previously possible.
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8. TREND
#
6
Dynamic Case
Management for the
Modern Worker
As Millennials (Gen X) and Generation Z become a larger presence in the workforce, the ways
in which they work are different. In 2014, dynamic case management represents an important
milestone in the evolution of process automation that suits their collaborative and less
structured way of working.
Dynamic case management, with all its automation capabilities, supports the modern
worker’s culture. It provides end-to-end orchestration of tasks for all types of work from
structured and pre-determined to collaborative, unstructured and ad-hoc work. The case has
a business objective and uses business rules and decisions to intelligently and dynamically
decide how to move forward.
Because modern case workers rely on collaboration, social networking is now an important
part of the case. Social interactions are used to find new case solutions, complete ad-hoc
work, suggest improvements, resolve the case and monitor and analyze the performance of
case milestones.
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9. TREND
#
7
Agile Methodology,
Competency and
Real-Time Continuous
Improvement
Process improvement empowered with execution is essential for the success of
enterprise initiatives. Methodologies that capture best practices and enable adaptation
are indispensable.While methodologies such as Lean and Six Sigma have been around
for some time, what is significant in 2014 is marrying these continuous improvement
methodologies with adaptive process automation methodologies.
Centers Of Excellence (CoEs) will become the key enabler of these combined methodologies.
The COE uses an adaptive methodology that identifies a best-choice opportunity for process
improvement. Starting with “slivers” of improvement, the CoE gradually builds iterations
that ultimately incorporate continuous improvement (Real-Time Lean Six Sigma) to optimize
the process.
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10. TREND
#
8
Digitization: Mobility,
Social Networking and
the Cloud
Increasingly coalesced enterprise technologies involving mobile, social and the cloud are
becoming the de-facto strategic building blocks for digitization. In 2014, the maturity of
these technologies will pave the way for innovative use within the enterprise.
� Social networking is a natural and essential component for all types of process-enabled
exchanges between employees and customers. Intelligent processes leverage social tools,
providers and metaphors in all phases of solution lifecycles, while these processes provide
context for social networking and collaboration.
� Mobile technology provides instant access to case status, work and collaboration,
empowering an emerging mobile workforce to not just stay connected, but complete
transactions and work via smart devices.
� With cloud computing, users can access services over the Internet (networks, servers,
storage and business applications) conveniently and on demand. This allows organizations
to easily build and deploy adaptive enterprise solutions on the cloud.
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11. TREND
#
9
CRM Driven by
Intelligent Processes
A key trend in customer relationship management (CRM) has been the use of analytics—
especially predictive and adaptive models. In 2014, CRM will be enabled by intelligent
processes that leverage analytic insight in real time. Product and enterprise focus will give
way to dynamic, customer-centric recommendations based on customer needs, lifetime
value and business objectives. Organizations will be able:
� Eliminate confusing data-driven forms in favor of intuitive processes, decisions and guided
interactions.
� Replace commodity services with personalized treatments that consider such factors
as the customer, product, reason for the interaction and location when executing the
business logic.
� Do away with manual work and exceptions handling using dynamic case management for
holistic, end-to-end automation.
� Replace traditional “black box” CRM packages with complete visibility into all the
procedures, policies and decisions within the CRM solution in order to simplify change,
maintenance and customization.
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12. TREND
#
The Adaptive Enterprise
10
We conclude with perhaps the most important trend in 2014. Enterprise transformation
is not just about technology—it is also about an organizational culture that is focused on
continuously adapting its strategies to address two crucial gaps in execution. First is the
gap between business objectives and a mish-mash of existing systems that cannot easily
execute these objectives. Second is the gap between the voice of the customer and systems
that are not flexible enough to respond in order to optimize the customer experience. By
leveraging the trends we have discussed, organizations can overcome these gaps to:
� Continuously monitor and optimize measurable business outcomes.
� Allow process owners to transform the business and enable rapid innovation of
specialized, contextual and situational solutions.
� Rationalize, simplify and modernize while continuously improving with iterative enhancements.
� Empower the modern workforce with dynamic case management delivered via multiple
social, mobile and collaborative channels.
� Streamline work with intelligent processes that eliminate routine, manual work and
exception handling.
� Leverage big data recommendations with predictive and adaptive analytics to continuously
learn and adapt decisions in intelligent processes.
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13. LEARN
MORE
If you would like to learn more about key technology trends for 2014 and how intelligent
business process management (iBPM) can help you capitalize on these trends, download Dr.
Khoshafian’s newest book, “Intelligent BPM: The Next Wave” at no charge:
Through 15 in-depth chapters you'll discover:
� The role of iBPM and how both business and
IT benefit
� How to create iBPM agile methodologies and
� Centers of Excellence
� How enterprises can be transformational and
� adaptive with iBPM
� How iBPM relates to SOA, EA, ECM, and the
� Internet of Things
� Why iBPM is a great fit for modernization and
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application rationalization
You can also gain more insights on the trends for 2014 in our thought leadership blogs at:
http://www.pega.com/community/pega-blog
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14. 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.
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