Thursday, May 27, 2010

Adaptability as a revenue stream?

In the last five years, CEO Alan Trefler has led Pegasystems to generate 250% growth, reaching $250 million in revenue in 2010 from around 100 million in 2005. In fact, during the recent recession, Pegasystems continued to grow. The secret? Adaptability, in both product and in process.

Trefler recognized an opportunity for innovation "through a dynamic software product that would be flexible and customizable to better adapt to clients’ changing business needs."

During a recent interview by blogger Kaihan Krippendorff, Trefler said, "If you don’t believe in the rhythm of change, if the rhythm of change is measured in years or quarters because you know that from writing a [technology request] document to the delivery of the result it’s going to take a year, then you become obsessed with putting everything into [that document]…[but] if you believe you can really iterate every week…then your whole view changes. This is an approach that enables continuous improvement."

Trefler's strategy depended on two important shifts:

  1. Rapid iteration, and

  2. A shift from an information-centered view to an interface view.

In practical terms, Trefler's approach was to build a flying horse when his competitors were building bridges.

To read more about how Trefler led success at Pegasystems, visit

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