Decision Modeling is a new Technique in v3 of the BABOK(r) Guide. It has also become a key element of the Business Intelligence and Business Process Management Perspectives. At the June 2014 IIBA Bay Area Event, James Taylor presents Decision Modeling as a technique (following the new Decision Model and Notation standard), shows how modeling decisions improves business analysis and requirements specification, and discusses the role of decision modeling in business process, business rules, business intelligence and analytic projects.

1. June 25, 2014
Bay Area Chapter

2. Guiding Principles
Join the Community.
Develop your Capabilities.
Advance your Career.
Bay Area Chapter

3. Your Presenter
James Taylor
• CEO of Decision Management Solutions
• Helping clients improve their
business by applying analytic technology
to automate & improve decisions
• Spent the last 11 years championing
Decision Management and developing
Decision Management Systems
Bay Area Chapter

4. Why is Decision
Modeling a burning
issue among
Business Analysts?JamesTaylor
CEO

5. BA’s Under Pressure
Real Time
Analytics
Change
Alignment
©2014 Decision Management Solutions

6. Human
Decision
Human
Decision
Process
A
Process
B
Process
C
Decisions Pause Processes
©2014 Decision Management Solutions

7. Complexity
Value
Automated
Decisions
Expert
Decisions
Manual Decisions
Decisions And Real-Time Response
©2014 Decision Management Solutions

8. Human
Decision
Human
Decision
Automated
Decisions
StraightThrough Processing
Manage Rules
Handle Exceptions
Process
A
Process
B
Process
C
A B C
Automated Decisions Drive STP
©2014 Decision Management Solutions

9. ©2014 Decision Management Solutions
Processes Get Hard To Change

10. ©2014 Decision Management Solutions
Simplify Them With Decisions

11. Business Rules Can Help Too
©2014 Decision Management Solutions
But not if they are spread through the
process like Peanut Butter
Or dumped into a
big bucket of rules

12. ©2014 Decision Management Solutions
How Can Analytics Make A Difference?
Operational
Environment
Analytic
Environment
Decision

13. Models Are A Common Language
Business
Decision
©2014 Decision Management Solutions

14. Decision Models To The Rescue
Enables StraightThrough Processing
Improves Agility
Streamlines business processes
Makes business rules effective
Integrates Advanced Analytics
Improves Alignment
©2014 Decision Management Solutions

15. A Short Introduction to
Decision Modeling

16. Decision Modeling And BABOK® v3
BABOK® Guide, Version 3.0
©2014 Decision Management Solutions
Excerpted from the BABOK®, © IIBA
Perspectives
Business Intelligence
Business Process Management
Techniques
Decision Modeling is one of
only a handful of new analysis
techniques

17. Decision Modeling in BABOK® 3
How repeatable business decisions are made
Decision models show how data and knowledge
are combined to make a specific decision
These models can … involve the breaking down
of a more complex decision into its components
Complex decisions can be modeled graphically
Information
Sub-decisions
Business rules
Analytical insight
Linked to business processes….
©2014 Decision Management Solutions

18. “… provide a common notation that is readily
understandable by all business users... DMN creates a
standardized bridge for the gap between the business
decision design and decision implementation.”
Use Cases
1. Modeling Human Decision-making
2. Modeling Requirements for automated Decision-making
3. Implementing automated Decision-making
Specification
 In Beta, released expected Q3-2014
 Decision Management Solutions, IBM, Oracle,TIBCO, FICO, Escape
Velocity, KUL, Model Systems, KPI,Visumpoint
Decision Modeling and Notation (DMN)
©2014 Decision Management Solutions

19. Integrates with
process models at
decision points
Maps to
implementation
details
DMN In Context
©2014 Decision Management Solutions

20. ©2014 Decision Management Solutions
Decision Modeling Steps
Identify
decisions
Describe
decisions
Model
decision
requirements
Complete
and
implement

21. ©2014 Decision Management Solutions
Many Ways To Identify Decisions
Business Events
Legacy Systems
Business Processes
Business Intelligence
BrainstormKPIs
Micro and hidden
Decisions

22. 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
©2014 Decision Management Solutions

23. Specify Decision Context
Processes
Activities require decisions
Events
Trigger decisions
Systems
Implement decisions
Organizational Units
Make decisions
Own decisions
Are impacted by decisions
Know which business
processes will be improved
by your rules or analytics
Know when your analytics
might be calculated
Know how you will have to
deploy your rules
Know who will have to
believe your analytics and
own your rules
©2014 Decision Management Solutions

24. Specify Decision Impact
Objectives impacted by decision
Customer
Churn
Customer
Profitability
Multiple
Products
… …
What is the best up sell/cross-
sell for this customer? * *
What is the price of this
service? * *
Can this customer buy this
service? *
What retention offer should we
make this customer? *
…
©2014 Decision Management Solutions

25. Decisions Require Information
“Determine Parts Availability”
requires BOM and Inventory information
“ValidateTax Return”
requires Return and Citizen information
“Refer claim for fraud”
requires Claim and Provider information
©2014 Decision Management Solutions

26. Decisions Require Knowledge
“Reorder parts”
requires supplier capabilities and shortage risks
“ValidateTax Return”
requires Tax Regulations
“Refer claim for fraud”
requires likelihood of fraud
©2014 Decision Management Solutions

27. Many Different Kinds of Knowledge
Decision
©2014 Decision Management Solutions

28. ©2014 Decision Management Solutions
Decompose The Decisioning
How do we make a decision?
Guidelines, policy
Expertise
Regulations
Predictive Analytic Models
Data Mining Results
What is required to make decision?
Information
The results of other decisions

29. Decisions 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
©2014 Decision Management Solutions

30. ©2014 Decision Management Solutions

31. What’s The Role of
Decision Models

32. ©2014 Decision Management Solutions
A Business Process Without Decisions

33. Separating
Decisions
simplifies
Modeling Decisions
brings clarity
©2014 Decision Management Solutions

34. This government agency
used decision models to
understand its
requirements for a new
package selection effort
point.
The combination of process
models AND decision
models was key.
©2014 Decision Management Solutions
Decision Models & Process Models

35. Documented
sources
Coherent
rule groups
Ownership,
volatility
©2014 Decision Management Solutions
Manages Business Rules

36. ©2014 Decision Management Solutions
Manages Rule Iterations

37. This client built a decision
model with over 300
decision nodes to manage a
complex eligibility decision
involving thousands of rules.
The graphical decision
model facilitated discussions
and made it easy to manage
and navigate.
©2014 Decision Management Solutions
Decision Models & Business Rules

38. ©2014 Decision Management Solutions
Ties Analytics To Outcomes

39. Decision-Centric Dashboard Design
This Enterprise IT Quality
Group used decision
modeling to design new
analytic-driven dashboards
to better support decision
making and integration and
visibility with a wider range
of data sources.
©2014 Decision Management Solutions

40. This decision model of best
practices for deciding if a
claim should be paid
automatically, examined or
referred for fraud ensures
front life staff are taking
advantage of analytic fraud
detection.
©2014 Decision Management Solutions
Analytic Decision Models in Claims

41. ©2014 Decision Management Solutions
Decision Models Build Understanding
Uncover
Gaps
Automation
Opportunities
Data
Requirements
Shared
Understanding
Rule Sources
Analytics

42. Questions?

43. Recap

44. Decision Modeling
Enables StraightThrough Processing
Improves Agility
Integrates Advanced Analytics
Improves Alignment
A B C
©2014 Decision Management Solutions

45. Getting Started
Identify Decisions Early
Tie Decisions to Project Objectives
Include Decision Models inYour
Requirements Process
©2014 Decision Management Solutions

46. What is needed
Multi-user, Collaborative
Integrated Database
Shared Database, Reusable
components
Automated Consistency
and Completeness Checks
Living Repository
Use The Right Modeling Tools
©2014 Decision Management Solutions
What you have
Single User
Text and Diagrams kept
separate
Manual Reuse
Hand Checking
One-Shot Documents
Standards-based

47. ©2014 Decision Management Solutions
How We Can Help
Services
Consulting
Decision Modeling
Training and Workshops
Online
On-site
DecisionsFirst Modeler
Collaborative decision modeling software
Standards Based,Vendor Neutral
Free BasicVersion & Tutorial
Questions? Comments?
james@decisionmanagementsolutions.com
BPMInstitute.org
UC Irvine Extension

48. Thank You
Bay Area Chapter