What is Decision Management?
Modern-day business operations are centered around processes and data. However, when knowledge and expertise are forced into hard-coded, inflexible systems, bottlenecks occur. By adopting and scaling the capabilities of business rules, decision modeling, and machine learning, Digital Decisioning leverages data and expertise to create business value, improve results, and deliver a great user experience to effectively meet today’s operational requirements. For Digital Decisioning to deliver true value, it must initially focus on solving business problems that will, ultimately, contribute to positive and desirable business outcomes. Technology, automation, and methodologies are essential for Digital Decisioning, but they are always at the service of business decisions.
The foundation for successful Digital Decisioning projects is applying a Decision Management approach. Decision Management models business decisions first. These decisions, for the most part, have to do with customers and how you engage with them, deliver services to them, or handle their transactions.Once you have a good grasp of what decisions your business needs to make and how these decisions will advance your business, Decision Management shows which technology and analytics tools you need to invest in and how to integrate them. Finally, Decision Management focuses on the processes and infrastructure needed to ensure continuous improvement and business engagement. To maximize success, adopt a proven approach such as the DecisionsFirst™ approach from Decision Management Solutions.
Decision Management is a business discipline and technology stack that builds on existing enterprise applications and IT infrastructure, leveraging data to manage uncertainty, increase transparency and give the business control of their systems. Decision Management is a proven framework for implementation of business rules, data mining and predictive analytics. Decision Management Systems are agile, analytic and adaptive.
There are five core concepts in Decision Management – operational decisions, business rules, predictive analytics, decision analysis and optimization.
At the core of Decision Management is a focus on Operational Decisions. These decisions are not the big, high-value decisions beloved of management consultants and CEOs. These decisions are those required to make day to day operations run effectively. They ensure that customers are treated consistently, that the right price is offered, that the most effective offer is made. While the value of each individual decision is small, the cumulative effect is very large because organizations make these decisions often.
Business rules are the core building block of operational decisions. Business rules are atomic, declarative statements of business intent. Business rules implement the policies, regulations, know-how and expertise critical to decisions.
One of the most powerful features of Decision Management is the ability to bring analytics into play. Predictive analytics includes data mining – used to investigate data and derive trends and characteristics that can be represented as business rules – and predictive analytic models that predict how customers might behave in the future. Decision Management allows these insights to be applied not just to broad statements or corporate strategies, but deep down into day to day operations.
Organizations use performance management techniques and technologies to continually evaluate their performance against metrics and monitor processes. Decision Analysis applies these same techniques to constantly monitor and evaluate decision performance so that the impact of decisions on the business can be assessed and used to improve decision making.
Complex trade-offs and contradictory constraints can be hard to manage in decision-making systems. Optimization technology can find optimal or at least feasible solutions based on your business constraints and objectives. Whether making a workable decision or finding the set of decisions that generate the best overall results, optimization is a powerful technology.