The Decision Management Manifesto Explained

1. James Taylor, CEO The Decision Management Manifesto Explained

3. Your Presenter – James Taylor CEO of Decision Management Solutions We help clients to improve their business by applying business rules and analytic technology to automate and improve decisions I have spent the 11 years championing Decision Management and developing Decision Management Systems ©2013 Decision Management Solutions 3

4. Decision Management A business discipline and a technology stack Builds on existing IT infrastructure Enhances business processes Leverages analytics to manage uncertainty Increases transparency and business control Effectively implements Business Rules Predictive Analytics ©2013 Decision Management Solutions 4

6. Decisions First

10. Decisions First 1. Decisions First 1. 2. 3. 4. 5. Decisions, especially operational decisions, link an organization’s metrics and objectives to its operational systems. Decisions are first class objects just like business processes or data and should be identified, described, modeled, reviewed and managed in business terms as part of a business architecture. Decisions should be modeled first before considering how business rules and or analytics will be used. Decisions support business processes and help organizations respond to events but they are not subsumed by either processes or events, simplifying their expression and management. Business, IT, and analytic professionals all have a role in identifying, describing, modeling, reviewing and managing decisions. ©2013 Decision Management Solutions 12

11. Explicitly Design Decisions

12. Describe Decisions Define Decisions with A question Possible answers Q: Which marketing offer should be presented to this customer during this interaction? A: Any current, available marketing offer in the database ©2013 Decision Management Solutions 14

13. Decisions require Information “Determine Parts Availability” requires BOM and Inventory information “Validate Tax Return” requires Return and Citizen information “Refer claim for fraud” requires Claim and Provider information ©2013 Decision Management Solutions 15

14. Decisions require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “Validate Tax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud ©2013 Decision Management Solutions 16

15. Decisions can require Decisions Is this a good time to make an offer? Which product should the offer be for? How valuable an offer? These decisions must be made first ©2013 Decision Management Solutions 17

17. Explicitly Design Decisions 2. Explicitly Design Decisions The best way to define a Decision is with a question and a set of known, possible answers. 2. Making a decision requires defined information—input data— such as transaction information, reference data and other verifiable, definitive information. 3. Making a decision often requires information—answers— generated by making other decisions. 4. A Decision has authorities such as policies, regulations, best practices and expertise that define how it should be made. 5. A Decision can have analytic insight that shows how it can be improved or made more accurately. 6. Not all decisions are automated; a manual decision can still be modeled and managed. 1. ©2013 Decision Management Solutions 20

18. Use Decision Management Technologies

19. Today these pieces are semi-detached 1. Operational systems are built in a variety of ways Application Context Business Process Management Event Processing Enterprise Application 3. Reports and queries are intended to improve decision making Business Intelligence Data Infrastructure 2. Data is extracted for analysis Performance Management 4. Dashboards are used to monitor performance ©2013 Decision Management Solutions 22

20. Powerful technologies are underutilized 1. Business rules are forced into business processes Business Rules Business Process Management Predictive Analytics Application Context Event Processing Enterprise Application 2. Predictive analytics are forced into reports or left stand-alone Business Intelligence Data Infrastructure Performance Management 3. Optimization has limited, localized effect Optimization 4. The effectiveness of decision-making is not tracked or improved Decision Analysis ©2013 Decision Management Solutions 23

21. Decision Management In Context Decision Management links these technologies to the application context Application Context Business Intelligence Business Process Management Data Infrastructure Predictive Analytics Event Processing Enterprise Application Performance Management Decision Service Business Rules Predictive Analytics Optimization Decision Analysis Enterprise Platform Decision Management ties heterogeneous technologies into a coherent approach for better results Decision Management allows decision performance to be tracked, analyzed and ultimately improved Decision Management ties how decisions are being made and what can be done to improve them directly to business performance ©2013 Decision Management Solutions 24

23. Decision Management Technologies 3. Use Decision Management Technologies The details of how a decision is to be made can be represented with business rules, decision tables, decision trees, analytic models, optimization algorithms and other decision metaphors. 2. When implementing a decision-making solution a mix of technologies (business rules, data mining, predictive analytics and optimization) may be appropriate. 3. If technology is applied to a decision it may be to support a human decision maker or to explicitly automate and manage the decision. 4. Technology may be applied to a decision and any decisions on which it depends or only to some decisions in a model or process. 1. ©2013 Decision Management Solutions 26

24. Decision Management Systems

29. 3 steps to decision management Identify and model the decisions that are most important to your operational processes Design and build independent decision services using business rules to manage these decisions Create a “closed loop” between operations and analytics to measure results and drive improvement ©2013 Decision Management Solutions 32

30. Decision Management Systems 4. Deploy as Decision Management Systems 1. 2. 5. Decision Management Systems consist of decision services and supporting infrastructure for managing decision-making—they are not simply business rules or analytics embedded in business processes or user interfaces. A Decision Management System is decoupled from and provides decision-making to existing systems, business processes or event processing environments. A Decision Management Systems Has 1. 2. 3. 4. Design transparency—to see exactly how the decision will be made in the future. Execution transparency—to reconstruct how a specific instance of a decision was made in the past. Impact analysis—to assess the business impact of a change before it is made. A closed loop—for continuous improvement, and to test and learn, experiment and adapt. ©2013 Decision Management Solutions 33

31. Questions?

32. The Manifesto Decisions First Explicitly Design Decisions Use Decision Management Technologies Deploy as Decision Management Systems Design Transparency Execution Transparency Impact Analysis A Closed Loop ©2013 Decision Management Solutions 35

33. Find Out More Decision Management Manifesto & White Paper decisionmanagementsolutions.com/decision-management-manifesto Decision Modeling decisionmanagementsolutions.com/services/decision-modeling DecisionsFirst Modeler decisionmanagementsolutions.com/decisionsfirst-modeler Decision Management Technology decisionmanagementsolutions.com/decision-management-technology ©2013 Decision Management Solutions 36

34. Thank You James Taylor, CEO james@decisionmanagementsolutions.com More on Decision Management at decisionmangementsolutions.com

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