BETTER BUSINESS SOFTWARE™ FOR THE DIGITAL ENTERPRISE

Using Pega for Agile Government

THE POWER TO ENGAGE, SIMPLIFY AND CHANGE

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Pega’s unique model-driven architecture gives government agencies the power they need to implement solutions more quickly and to respond more effectively to changing priorities and legislation at a dramatically lower total cost of ownership over traditional software solutions.

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Executive Summary The ProblemSelecting an approach for developing and implementing software solutions that can meet the complex needs of government agencies is not a simple decision. Packaged application? Build a custom solution with in-house staff? Hire a system integrator?

These approaches have their virtues, but they all suffer from some limitations. In general, the effort required to customize a packaged application or develop a brand new one in-house that actually meets agency’s needs often ends up costing more than planned, taking longer than expected and producing a solution that is hard to change. They can also lock an agency in, requiring an expensive, on-going commitment to a particular vendor or system integrator when changes are required. This slows down the agency’s ability to respond quickly to the changes that are inevitable and coming at an increasing pace.

The Solution What government agencies need is a new approach to solution development—one that significantly cuts implementation time, costs and risks while enabling rapid response to change. This is exactly what Pega’s Better Business Software™ is designed to do. Pega offers a revolutionary approach to solutions development that leads to implementation of highly functional applications in a fraction of the time and costs required to customize packaged solutions or build applications from scratch.

Pega delivers an agile, unified platform that enables solutions to be implemented 5.5 times faster than traditional BPM or CRM solutions. Subsequent business logic changes can be done nearly 7 times faster with Pega. The Pega Build for Change® Government platform is model-driven, which promotes an agile, effective partnership between IT and agency stakeholders so that solutions reflect the actual and current needs of the agency. Agency and technology professionals collaborate in the same environment that describes the business process and integrates the rules used to drive and automate the process. As the project continues, Pega enables you to quickly and easily refine your goals and objectives in models that can be instantly turned into intelligent, automated processes with the click of a button.

The BenefitsWith Pega, your agency can create specialized processes that perfectly meet the needs of each program and customer. The components of every Pega solution can be efficiently reused and tailored to meet the requirements of different types of customers, programs, geographies and channels without long development intervals.

By combining Pega technology with an agile development methodology, the time and costs for implementing mission-critical government applications can be substantially reduced. Large-scale projects can be deployed in phases, or “slivers”, reducing risk while enabling quickly achieved value.

The flexibility and adaptability of Pega’s Better Business Software is complemented by an equally flexible approach to working with our customers. Pega can deliver the expertise and resources to help in-house teams develop solutions, or work with leading system integrators through its strong and proven alliance network. No matter how you choose to manage your development efforts, Pega stands ready to help you maximize the value of your investment in Pega technology.

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IntroductionThe true constant of government is change. Every agency faces the incessant need to respond quickly to changing regulations and legislation, socio-economic forces, emergencies and technological advances. Traditional software solutions simply aren’t up to the task any more. They require significant customization to fit the differentiated needs of programs, with extensive programming, long software development lifecycles and resulting high costs.

Pega’s unified, model-driven approach provides government agencies a way to substantially accelerate solution implementation, while reducing overall development and maintenance costs compared with traditional programming. Pega delivers solutions 30 percent faster than competing solutions and efficiently scales to meet the requirements of changing program regulations, channels and geographies.

Using Pega and an agile development approach, government agencies typically can deliver a fully functional application within 90 days. From intake of new customers and cases, through eligibility determination, benefits issuance, terminations, reinstatements and fraud detection, agencies have rapidly developed and delivered solutions that provide faster and more consistent processing and resolution, as well as more responsive customer service over multiple channels.

In this paper, we will examine how government agencies can leverage Pega technology, an agile development methodology and Pega’s flexible approach to working with customers to help them rapidly achieve their business goals at significantly lower cost and risk, with a much quicker time to implementation.

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Simplified, Outcome-Oriented Architecture

With Pega, you establish a vision for the desired outcome and then deliver the solution in a series of small, iterative projects (referred to as “sprints” or “slivers”) with each project building upon the previous ones. The starting point is deciding on the high-level scope of your solution. For example: “Transform our service delivery model, creating an efficient and accurate eligibility process that provides customers with consistently high levels of prompt and responsive service, and results in a more manageable workload and less stressful work environment for staff.”

The next step is to define your project objectives, such as:

� Enhance Program Integrity

� Streamline Work Processes

� Create Administrative Efficiencies

� Better Support the State’s Workforce and Customers

With the overall goal and objectives defined, you can now use Pega’s uniquely business-focused capabilities to turn the goal and objectives into an effectively automated business process application.

Collaborate, Capture, and Deploy with Direct Capture of Objectives (DCO)You can capture and refine the objectives for the business process directly in Pega using the Direct Capture of Objectives (DCO) capability, which also measures the associated return on investment. By leveraging DCO, you can enhance your workflow iteratively and deliver incremental functionality.

DCO empowers change and collaboration using familiar, business-friendly metaphors to define how an agency process should work and how decisions should be made. It enables business and IT to collaborate from the very beginning of the project, without having to create massive specification documents. As you refine requirements in DCO, the documentation and solution remain aligned.

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There are three key benefits from this important capability:

� There is no misunderstanding of requirements, and DCO contributes to good business-IT collaboration. The people in the agency with the appropriate knowledge can directly enter requirements into DCO or collaborate with a designer to do it interactively. Often, the agency domain experts who know how the process should work have an easier time articulating the requirements when they see them in the DCO process form.

� DCO automatically generates the requirements documentation. This saves a lot of time, especially as requirements change. The documentation is never out-of-date.

� DCO automatically generates the finished application. From the high level business flow, DCO creates all of the required application components, such as user screens, process flows, business rules, integrations and so forth . If a change is made to the model, the application is automatically regenerated. If multiple applications use the model, all of these are immediately updated. There is no need for months of traditional programming, which vastly improves the speed of building, implementing and changing an application.

With DCO, you can be much more confident that the business requirements you established will, in fact, be exactly what you get from the finished application—with zero coding. That’s a complete revolution in terms of the traditional software development cycle!

Reuse and SpecializeThe policies and procedures that govern work vary widely. It’s neither practical nor cost-effective to create a separate process for each one. Using Pega, you define specialized rules to handle changing requirements dynamically and in real time. This “situational layering” enables quick and efficient capture of differences among programs in easy-to-understand layers and dimensions. Pega selects the right rule at the right time for the right process, which is very powerful when dealing with multiple types of programs, eligibility requirements and client demographics.

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Specifying only what is different for each process accelerates time to implementation and maximizes reuse. For example, when reviewing the requirements of different eligibility programs, there may be as high as 70 percent reuse across the verification and eligibility rules. With Pega, you reuse the 70 percent from the original eligibility process and only differentiate for those rules that vary among the eligibility programs. It’s dramatically easier to build a system this way than it is to try to pre-define every possible combination and program it in advance. It’s also much easier to change.

Additionally, situational layering supports specialized processes by channel so that a client can move from a smart phone to a call center to an office visit—in any order. Situational layering can also layer in specific time periods. With this ability, legislative requirements are automatically “date stamped” for future implementation, or you can perform historical retrieval, possibly for audit purposes, and ensure you are using the same business rules that were being used in that period of time.

Lifecycle OptimizationThe lifecycle of a case requires receiving work, routing it, reporting, researching, responding and finally, resolving the work. With Pega, you can streamline this entire process.

Pega automatically retrieves and routes information relevant to a case, and provides context for decisions using powerful predictive and adaptive analytics to mine the data for insights. The process can automatically guide the case worker to the Next-Best-Action, recommending the next step that should be taken. In a task-based environment with multiple people working on a single case, the automated process can monitor when work should be completed and escalate when necessary.

With end-to-end process automation driven by intelligence to know what is the next right step to take, Pega solutions free agency resources from tedious, repetitive tasks, allowing them to focus on higher value work.

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Engage Users across ChannelsThe rapid proliferation of mobile devices and social channels creates opportunities for government agencies to better serve customers and empower employees. But serving users on mobile devices is a challenge. The traditional practice is to build multiple application versions for a minimum of five platforms—Web app, mobile Web app, iPad app, iPhone app, Android app, Blackberry app, Windows phone app, for example. These channel-specific applications limit reuse and create a fragmented experience for customers and users. They certainly make it difficult for your agency to interact with customers, understand their needs and solve their problems across channels.

Pega provides a “design-once, access anywhere” user experience. With Pega, you create the user interface just once and then deploy it on as many devices, browsers and locales as you need. Pega automatically generates the details—the semantics specific to the browser or device environment, such as mouse or finger-oriented features, which are automatically selected depending on the device. Pega also generates the user interface using current Web standards, markup (HTML5), CSs and JavaScript. It also has native support for nationalization.

In addition, Pega can selectively expose any portion of the process directly to users within their preferred social media. Pega Pulse is a social collaboration facility that integrates the online conversations of employees and clients into the work being done through the intelligent process. All of the discussions become part of the case history, maintaining a single source of truth for later review or audit.

This unified approach to channel management delivers a consistent, modern and fluid end-user experience with less time and effort. And it radically improves productivity for UI designers. You can get projects done faster, at lower cost, and with greater agility to respond to change, including new channels and interfaces.

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Automate and Streamline Data GatheringTraditional application development requires that you explicitly request data from enterprise sources at each and every step or screen cell that needs it. This means a lot of tedious, error-prone work to set up screens within an application.

Pega has built-in integration facilities called Pega Live Data that make it easy to deliver the right information to your cases and screens, where and when it is needed. Pega Live Data connects to virtually any enterprise data source through the Pega library of standards-based connectors and application adapters.

Pega requires you to establish the relationship between your application and your systems of record and databases just once so that everyone who makes business process definitions and screens can use the defined relationship. From that point on, Pega automatically retrieves the required data at the right time.

Agile versus Traditional Application Development

Pega technology is particularly suited to the agile methodology for application development, which is proving to be the most responsive approach to designing and delivering software solutions in many industry and government sectors. The agile methodology brings multiple advantages over the traditional, waterfall development methodology.

The Pitfalls of Traditional Application Development Waterfall methodologies can handle change, but they are not as agile or receptive to it. To a large extent, the requirements must be locked down up front, and change must be managed through rigorous change management processes. Solutions that require more detail up front and a fully qualified roadmap of how to deliver the specifications over the lifecycle of the project(s) have traditionally followed the waterfall approach. However, because project requirements and scope are determined so early, it is difficult to completely and accurately define what’s needed and then even more difficult to stay within that scope.

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REVIEW

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Government is forced to deal with change on a daily basis, which makes it hard for large projects that use the waterfall methodology to keep up. A three-year project may deliver 100 percent of the functionality initially required. But over the three years, the needs have undoubtedly changed as a result of new administrations, new legislation and re-prioritization of requirements. The result is a solution that is unlikely to meet current needs and only a small portion of it will ever be used.

One of the key differences between waterfall and agile methodologies is testing. In the waterfall approach, unit, system, and user testing occur after a long development cycle and often just prior to implementation. If the development has taken longer than expected, testing time may be reduced to compensate and bring in the project timeline. This approach greatly increases the risks to a project and has been the reason many “big bang” projects have failed or caused embarrassing headlines.

The Value of Agile DevelopmentA solution that has many changing requirements is better suited to an agile methodology as this type of methodology is designed to adapt to change easily. When using agile methodologies such as Scrum, your agency experts have direct input into the form and flow of the application as it is being developed.

A Scrum project consists of a number of time-boxed iterative periods, called sprints, which are usually two to four weeks long. The sprint consists of a number of components—user stories—that are selected from a repository of requirements (the backlog) which are defined enough for completion in the sprint. The Scrum team delivers a fully-tested, production-quality configuration at the end of each sprint and demonstrates the results to the product owner and other stakeholders in a sprint review. Agile support frequent testing of these sprints as they are built, which significantly reduces the risk of project failure.

Program owners then decide when to release each sprint, or sliver of the project, in order to provide immediate and incremental benefit. If any requirements were missed, or something did not pass review by the stakeholders, it can simply be re-prioritized into an upcoming sprint.

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The Benefits of a Unified Platform for Software Development

The capabilities discussed to this point promote a far more flexible response to change, enabling government agencies to rapidly design, develop and implement software solutions that successfully support the agency mission. However, it is important that all of these capabilities are delivered through a single, unified solution. If they come as “piece parts”, they will require extensive work to ultimately stitch together a workable application and greatly increase the potential for failure.

The lack of a unified architecture means that you must use disparate tools to handle process, rules, integration and user interfaces. Developers must use multiple technologies to design, develop and test the application. A diversity of back-end systems makes integrating the new system into the legacy infrastructure difficult. Testing becomes harder and more time consuming as stakeholders and requirements change.

In addition, maintenance becomes expensive and upgrades grow increasingly difficult because coding or configuration is often poorly documented, making it hard to understand the logic and the impact of changes. Business rules and integration logic are often in many places, requiring more effort to coordinate changes. After extensive customization, upgrades to most packaged applications become very expensive and slow to roll out because of the necessary impact analysis and overlay of customizations on the next version. These hurdles often delay or discourage upgrades that would otherwise deliver new capabilities to improve business results.

Pega delivers a unified platform that eliminates the need to buy and integrate multiple products in order to create a software solution. It is through the unified platform that agency personnel with modest technical understanding can define business processes using graphical metaphors and easy-to-use dialogues rather than writing mind-numbing requirements documents. Still within the platform, IT teams connect these processes to the right data sources and quickly integrate them with systems of record. The platform interprets these metaphors, writes and executes the code and self-documents the process to make updates and audits easy.

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The unified platform also supports all channels and devices, which further simplifies and streamlines the development cycle. A solution is developed once and can then be deployed anywhere, with the platform automatically optimizing the application’s look and feel of for each channel. This ensures consistent execution of business processes and rules while dynamically adapting to accommodate the specific needs of different channels and devices.

Unlike solutions that requires multiple software to be included in a stack to satisfy all of the business requirements, Pega’s unified Build for Change platform can significantly reduce the time it takes to train, enable, develop, support and maintain an application. It becomes much easier to assess the impact of any change to the business logic when a requirement or regulation requires the application to be modified.

In an independent study based upon a real-life business application for on boarding and servicing customers, Pega proved to be 5.5 times faster to implement than traditional BPM or CRM solutions. The study also found subsequent business logic changes could be achieved 6.8 times faster in Pega. The study examined the time required to conduct analysis and design, user interface development, business logic and information model development, integration, testing and application build and deployment. The following table documents the details of the time requirements, in hours, to perform common programming task associated with writing an application from scratch. The same findings would be true for any code-based modification to a packaged software application.

Service Oriented Infrastructure/ESB Oracle, Tibco, IBM, ESB Vendors

Enterprise Service Monitoring/Appliances Oracle, Layer 7, IBM

COMMON ENTERPRISE STACK

Composite Application Development/Rich Internet Applications Java, Ajax, HTML 5

CRM—Process-Centric Citizen Service Salesforce.com, Kana, Oracle, Dynamics

Business Rules Management Blaze Advisor, ILOG, Corticon

Business Process Management Suite/ Workflow & Modeling Emphasis Appian, Oracle, webMethods, IBM

Dynamic Case Management Appian, Kana, IBM, OpenText Pegasystems PRPC

� Dynamic Case Management � Business Process Management � Customer Relationship Management � Model Driven Design � Industry Best Practices � Integration and Automation � Composite Application Development

PEGA ENTERPRISE

Service Oriented Infrastructure/ESB Oracle, Tibco, IBM, ESB Vendors

Enterprise Service Monitoring/Appliances Oracle, Layer 7, IBM

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Pega Offers Independence and Options

Pega is committed to delivering joint solutions that result in positive outcomes, regardless of who leads or participates on the team. Although many of our customers lead and take responsibility for their projects, Pega has established relationships with world-renowned and industry-leading companies to deliver high-value solutions. These alliances with major systems integrators, management consulting firms, technology providers and application developers offer our customers a broad range of flexible options for developing Pega solutions and are a critical component of the success of every Pega customer. What we do not do is lock a customer in to a specific system integrator. Our customer retain the flexibility to change the development approach at any time to accommodate budgets or technical resources, for example.

Specifically, Pega’s alliances with major firms offer comprehensive implementation and support services, including the delivery of industry-specific solutions, management consulting and training through:

� Deep Pega Knowledge and Experience—Our partners have made significant investments in understanding Pega technology and have engaged in hundreds of successful deployments.

� Domain Expertise—Our partners possess unsurpassed industry knowledge, providing a complementary skill set to help you maximize the value of your investment.

� Best Practices—With decades of experience delivering enterprise-level solutions, our partners have developed a well-honed set of best practices for systems integration and operational excellence.

ANALYSIS AND DESIGN 12.50 8.33 33%

USER INTERFACE DEVELOPMENT 145.42 11.60 92%

BUSINESS RULES 57.80 19.57 66%

BUSINESS PROCESS 114.75 5.92 95%

CUSTOM REPORTS 14.83 1.00 100%

DATA MODELING 9.97 3.00 70%

INTEGRATION 13.25 0.47 70%

TESTING 35.27 9.92 96%

BUSINESS LOGIC CHANGE 3.03 0.48 84%

APPLICATION DEPLOYMENT 3.38 0.78 77%

TRADITIONAL SOLUTIONS

PEGA TIMESAVINGS

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Open, flexible, layered, modern architecture Rigid, complex, aging, proprietary

PEGA UNIQUE CAPABILITIES LEGACY APPLICATION LANDSCAPE

Mazimized reusability Duplicated functionality

Seamless specialization and integration Functional silos

Unified development environment Spaghetti code

Model driven with documentation and code automatically generated

Time-consuming changes

Conclusion: What’s the Value for Government?

Pega’s unique model-driven architecture gives government agencies the power they need to implement solutions more quickly and to respond more effectively to changing priorities and legislation at a dramatically lower total cost of ownership over traditional software solutions.

To help jumpstart the time-to-market for new applications, Pega offers over 30 industry-specific frameworks that include best-practice data models, industry-compliant processes, business rules and pre-built interfaces, all based upon Pega’s patented Build for Change platform. And with over 10,000 professionals who can help businesses and government agencies leverage Pega capabilities, Pega delivers the most comprehensive ecosystem for customers to cost-effectively learn, deploy and maintain their business applications.

Pega can deliver:

� Outstanding business value. Maine will be able to respond quickly to families in need by streamlining processes, increasing operational efficiencies and delivering constituent-focused services with increased quality and program integrity through a case-based approach.

� Exceptional user experience. The Pega solution can deliver an attractive, intuitive and highly usable interface that improves user adoption and satisfaction while requiring minimal training. Everything that can be automated for your employees will be automated. Complex tasks and work will be automatically routed to the appropriate knowledge worker. Automated process guidance, monitoring and service level agreements can be established to make sure work is completed in a consistent and timely manner.

� Compatible, streamlined technical architecture. The Pega solution can be implemented to meet best practices and the performance requirements of the agency, responding crisply and reliably without any need for coding.

� Build for Change. The agency can easily understand what they can change in the system and implement changes in days or weeks for a quick return on investment. Functions will be designed for reuse across other program areas to simplify and speed up on-going change.

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About Pegasystems

Pegasystems Build for Change® Platform is the heart of Better Business Software™. It delivers business agility and empowers leading organizations to rapidly close execution gaps and seize new opportunities. Pegasystems leverages its recognized leadership in Business Process Management (BPM), Multi-Channel Customer Relationship Management (CRM), Business Rules, and Adaptive Analytics to uniquely give its clients the power to engage customers, simplify operations and Build For Change®. For more information, please visit us at www.pega.com.

© Copyright 2014 Pegasystems Inc. All rights reserved. All trademarks are the property of their respective owners. The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems. Pegasystems specifically disclaims any liability with respect to this information.

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