I am trying to implement the PageRank algorithm described in this paper (Fig. 1). Here is the breakdown of the steps:

where:
pTis a probability distribution for the random walk (typically, each element is1/Nwhere N is the total number of elements)Pis the connectivity matrix wherep(i,j) = {1 or 0} / # outbound links.
I understand the rationale for the first two steps well. In the following equation,

step 2 solves for the second term. However, I don't understand the rationale behind steps 3-4. In particular, I don't see how adding omega * pT in the description of the algorithm amounts to adding (1-d)/N in the equation shown above. As a result, the output I am getting with the two methods differ. Can anybody enlighten me?