Jun 17, 2020   SOURCE: PR NewsWire

Survey Reveals Most Businesses Overestimated Their Digital Readiness to Adapt to the Pandemic

CAMBRIDGE, Mass., June 17, 2020 /PRNewswire/ -- New research from Pegasystems Inc. (NASDAQ: PEGA), the software company empowering digital transformation (DX) at the world's leading enterprises, reveals most business leaders overestimated the state of their digital transformation efforts - which hampered their ability to adapt to the pandemic. Nearly three quarters (74%) of business decision makers said the crisis exposed more gaps in their business operations and systems than they originally expected.

The global study, conducted by research firm Savanta in late May, found that four out of five leaders thought they were fairly deep into their DX initiatives - with 35% assessing themselves in 'advanced stages.' But this appears to be wishful thinking, leaving them vulnerable to a host of customer engagement failings triggered by the pandemic:

    --  More than half (54%) conceded they should have done more to help their
        customers during the crisis.
    --  Over one third (37%) communicated at least one message to customers that
        was badly received and damaged their brand reputation.
    --  Over one third (36%) said they lost customers during the pandemic due to
        failings in their communications.

As a result, business leaders are vowing not to let their lagging technology infrastructure put them at risk for the next crisis. Seventy-one percent say the pandemic experience has forced them to accelerate their DX plans; 62% will increase the priority level of DX within their organization; and another 56% will add more DX investment. With these new DX plans in place, nine of out 10 business leaders feel confident they will be prepared to face a similar crisis if one should hit in the next two years.

Which specific DX projects have risen to the top of their wish lists? The survey found the three most popular DX projects needed to prepare for a future crisis were: cloud-based systems (48%), customer relationship management (CRM) software (41%), and AI-driven analytics and decisioning (37%).

Other findings suggest that even with all the problems it created, the pandemic could have some positive outcomes on businesses:

    --  Change for the better - 74% of respondents say their business learned a
        lot during the crisis and will permanently change the way they operate
        for the better.
    --  Greater empathy - 69% say the crisis taught them to be more empathetic
        with customers.
    --  Getting to know you - 61% feel they learned more about their customers
        during the crisis than they did the previous two years combined.
    --  Working from home actually works - 71% said remote working has been
        successful and will likely continue after the crisis ends.
    --  More productive than ever - 52% reported employees are more productive
        now than before the pandemic. Seventeen percent saw a slight dip in
        productivity and only 3% reported a significant drop.

Pega surveyed more than 1,200 business decision makers around the world for their perspectives on how their organization has been impacted by the COVID-19 crisis. The results include responses from the United States, United Kingdom, France, Germany, Japan, and Australia.

Quotes & Commentary:

"What this research makes clear is that digital transformation can no longer be a 'nice to have' for today's businesses," said Don Schuerman, CTO and vice president of product marketing, Pegasystems. "Even those that thought they were digitally advanced now realize they've only scratched the surface. Organizations may need to reexamine every part of their business for digital readiness or face consequences, regardless of whether another crisis of this magnitude happens again or not."

About Pega
Pega is the leader in cloud software for customer engagement and operational excellence. The world's most recognized and successful brands rely on Pega's AI-powered software to optimize every customer interaction on any channel while ensuring their brand promises are kept. Pega's low-code application development platform allows enterprises to quickly build and evolve apps to meet their customer and employee needs and drive digital transformation on a global scale. For more than 35 years, Pega has enabled higher customer satisfaction, lower costs, and increased customer lifetime value. For more information on Pegasystems (NASDAQ: PEGA) visit www.pega.com.

Press Contact:
Sean Audet
Sean.Audet@pega.com
(617) 528-5230
Twitter: @pega

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SOURCE Pegasystems Inc.