DX COE Survey Results & Internet of Things

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1 DX COE Survey Results & Internet of Things Paul Roeck and Dr. Setrag Khoshafian 10 November

2 Survey Results: Industry, Tenure, Location Industry Government Communications and Media Other Manufacturing Insurance Healthcare Financial Services 69% COE Ownership 0% 5% 10% 15% 20% 25% 30% 35% Length of COE Operation 25% 4+ years 44% 2 to 4 years 13% > 1 year 31% 1 to 2 years 12% 6% IT Business Joint 2

3 Survey Results: COE Focus Usability Training and Enablement Research and Development Observations Top Focus areas involve best practices and driving reuse Project Planning or Sizing Project or Program Governance Newer COEs are focusing mostly on the top 3 areas Project Delivery Implementation Advice and Best Practices Ensure Standards / Best Practices After 1-2 years, COEs are more commonly involved in application support and architecture oversight Drive Reuse Architecture Oversight Application Support Most mature COEs are tackling usability, R&D and training/enablement 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3

4 Survey Results: Perceived and Achieved Value Strategic Initiative with C-level Sponsorship COE ROI No 38% Yes - significant Yes 62% Yes - some Executive Sponsorship is critical to long-term success 91% of COEs in operation for at least a year have seen some or significant ROI Not Yet 0% 5% 10% 15% 20% 25% 30% 35% 40% 4

5 Survey Results: Team Composition Process Excellence / Process Improvement in COE Business stakeholders and SMEs in COE No 25% Yes 75% No 44% Yes 56% No 31% Yes 69% Business involvement is critical! COEs should always have a business representative Process Excellence / Process Improvement in Scrum Teams 5

6 Survey Results: Methodology Waterfall Mixed Methodologies Agile - Other Agile - Scrum Observations The percentage of organizations using Scrum and/or other Agile methodologies continues to increase High response rate for mixed methodologies indicates that many companies are still in transition from a waterfall heavy environment 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 6

7 Survey Results: DX Strategy 50% of organizations surveyed said they have a digital transformation strategy in place CIO 25% DX Strategy Owner CMO 8% CEO 17% 1 to 2 years 67% Strategy Maturity 6 months to 1 year 25% < 6 months 8% CSO 17% CDO 33% Not everyone is addressing Digital Transformation, and most of those who are addressing it are early in the journey 7

8 Survey Results: SMAC T in DX Strategies Robotics IoT Cloud Observations 100% of participating organizations have incorporated mobile technology into their business Big Data Mobile Big Data, Analytics and Social Media have strong adoption (over 60%) Analytics Social Media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IoT and Robotics lag behind with fewer than half of organizations incorporating them into their DX strategy 8

9 Where are we in the IoT Hype Cycle? 9

10 IoT Trends 10

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12 Today s Best-in-Class Performance Will not Suffice for Tomorrow Transform or Be Left Behind of all industry leaders disrupted by digitally-enabled competitors by 2018 Changing business requirements enabled by technology drive this trend Digital consumers want personalized products and shopping experiences Technology-enabled global visibility required Manufacturing supply chains not ready to meet these changes 12

13 Five Elements of the Digital Transformation Platform Human System Business Things Participants Structured Production Workflow Automation Social Mobile Cloud Dynamic Case Management Model-Driven & Configurable Business Rules Analytics Decision Management Business Events & CEP Big Data Intelligence Scientific Management Business Process Re-engineering TOC Lean Six Sigma CoE Agile Digital Transformation Platform Build for Change Methods EA SOA WOA iba Architectures 13

14 Digitizing Value Streams Stages KPI 14

15 Automation is Digitally Transforming with IIoT Extremely Structured Spectrum of Work Work Automation Unstructured & Ad Hoc System Clerical Knowledge Assisted Dynamic Case Management Knowledge Worker Dynamic Case Management supports all work needed to handle a case, regardless of type or who is performing it 15

16 Dynamic Case Management in Action Suppliers Micro Manufacturing (w) Machine & Operator Robots or Self Fixing Machine Intelligent Product Consumer Sustainability ( Data ) IoT Analytics & Machine Learning Orchestration Predictive and Adaptive Case Data Decisions (w) Sub-Cases Case Content Case Business Objectives Case Events Processes (w) Dynamic Case Management 16

17 4 Use Cases for IoT with Pega Things as Participants in Digitized Process and Cases o E.g. Check Temperature; Shut off; Deliver Package Events activating DCM to handle the event o E.g. Connected Car broke down instantiate maintenance and warranty Stream of Events: to correlate and handle complex scenarios o E.g. High pollution levels by different sensors within 5 minutes instantiates case Big Data and Predictive Analytics to detect patterns and act o E.g. Detected elevated blood pressure and glucose level annual trends to prescribe medicine, lifestyle changes etc. 17

18 4 Evolved CRM Use Cases for IoT with Pega: Omni- Device 1. Customer-Device Interaction for NBA 2. Things as CRM Channels: Omni-Device 3. Connecting With Manufacturers: Prescriptive Maintenance 4. Extending the Ecosystems with Merchants 18

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21 IoT Reference Architectures Source: IoT-A Source: IIC 21

22 Pega IoT Applications across Multiple Industries Healthcare Transportation Public Industrial Energy Home 22

23 Deloitte s Information Value Loop for IoT 23

24 Insight to Action Needs COE Governance and Best Practices 24

25 IoT Center of Excellence Source Enterprise IoT 25

26 Digital Transformation Center of Excellence Identify (Manage, monetize, extend & operate opportunities) (BPM, DCM, Decisioning, Event management, Complex Event processing, APIs) Action Enable (Data from sensors, RFID, WIFI, mobility, & robotics) (Statistical modeling, Machine learning & Data Science) Analyze Digital Transformation COE Capture (Applications and Systems) (Hadoop Distributed File System (HDFS)) Store Transform (API s, Data services (ESB) & Integrators) 26

27 Digital Transformation Center of Excellence CMO CDO CUSTOMER SERVICE OT IT DATA SCIENTIST BUSINESS ANALYST PROCESS IMPROVEMENT EXPERT (BB, GB) IOT ARCHITECT 27

28 Digital Transformation with Pega IoT Sensor T Remote thing (fixed or mobile) T Wide-area link T Multi-sensor thing Gateway T Multiple remote things on a LAN Local-area links T Gateway Server T T Pega Mobile User-facing cloud services Pega DCM Service layer cloud storage, analytics Cloud & Mobile T T Enterprise User access via desktop device User access via mobile device Service Provider Access Sourced from: ZDNet 28

29 Survey Results: DX Support Organizations Internal Effort Only Agencies Consultants Suppliers Partners 0% 10% 20% 30% 40% 50% 60% 70% 80% Observations Very few organizations are tackling Digital Transformation without outside support Partners are instrumental in driving DX strategies Engaging third-party vendors and suppliers helps to fill gaps that are essential to your roadmap Must select partners that have proven expertise and commitment to the kind of transformation you are seeking 29

30 Survey Results: DX Roadmap Period of time covered by roadmap Roadmap review frequency More than a year 75% 6 months to a year 8% No roadmap exists 17% Twice a year 30% Quarterly 40% Twice a month 10% Monthly 20% 30

31 Survey Results: Challenges 80% 16% 70% 33% 17% 60% 50% 34% 40% 30% 20% Getting the right resources 10% Launching transformational practices Scaling transformational practices Sustaining transformational processes 0% Inadequate skill / expertise Inadequate budget / resources Lack of management support Employees resistant to change Lack of cohesive strategy Systems, process, procedures not aligned 31

32 Wrap Up For more on IoT, visit platform/iot/resource-guide Contact us to learn about a FREE Digital Transformation Innovation Workshop Send an to PegaCOE@pega.com for more information or to ask us a question 32