Post on 21-Oct-2021
© 2012 IBM Corporation
Decision Management A Smart Decisioning Platform
Erick Brethenoux – Executive Program Director IBM Business Analytics
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40+ million 75%
$100+ billion
people prin)ng online coupons
of sales lost due to out of stock inventory
of consumers believe that adver)sing lies
Shifting Landscape
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Creating Competitive Advantage Through Analytics Surged Dramatically in 12 months
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Respondents who say analytics creates a competitive advantage
58% 2011
37% 2010 57% increase
Organizations achieving a competitive advantage with
analytics are
2.2x more likely to
substantially outperform their industry peers
Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. - Copyright © Massachusetts Institute of Technology 2011.
© 2012 IBM Corporation 4
Vision
From This…
Copyright © DreamWorks SKG. 2002.
… to This
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Vision – Transformative Conversations
A billboard which scans your eye
A billboard which scans your clothes
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Decisions are Often Locked within Processes
Without Decision Management
§ Decisions are locked in processes and applications § Programming skills are needed to create & modify decision logic § Speed of business change is limited by IT bandwidth § Manual intervention increases costs & reduces customer satisfaction 6
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§ Reuse decision assets across processes § Empower business people to own, author and update decision services § Respond quickly to changing market conditions § Maximize automation and straight-through processing
Decision Management Enables Reuse Across Processes
With Decision Management
Decision Service:
Offers & Promotions
Decision Service: Eligibility
Decision Service: Risk Scoring
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What Kind Of Problems Require Decision Management?
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Tactical
“How many full time employees needed to maintain an acceptable level of service at minimum cost?”
Operational
“How much should we pay for this claim?”
Optimize Collaborate
Years Months Weeks Days Hours Now
Define the Strategy Run the business
Time to Business Impact
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Harmonizing Decisions Across the Enterprise
Strategic
“Differentiate from the competition by focusing on customer experience”
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Define strategy
Run the business
(*) Based on the OODA Military Decision Loop
Make decisions based on actual situation
Act
Execute
Watch what is/has happening/happened
Observe
Monitor & Report
Make sense of the big picture
Orient
Assess & Analyze
Know & choose what to do
Decide
Determine & Improve
Conceptual Framework for Decision Management
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Transaction Outcome
Record Keeping Learning
Business Processes, Applications & Solutions
Decision Services
Predictive Analytics & Optimization
§ Risk § Clustering § Segmentation § Propensity
Analytical Decision Management
Business Rules & Events
§ Policy § Regulation § Best Practices § Know-how
Operational Decision Management
Scenario Analysis & Simulation
Decision Management Framework: Technology Elements
Internal & External Data
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Demo
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IBM SPSS Decision Management
• Driving operational decisions • Leverage predictive models, business rules & optimization models • Enabling the business user – 3-click automated modeling • Configurable interface for any business problem • Flexible what-if tools for optimization and prioritization
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12
3
Bus
ines
s O
utco
mes
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Tactical
§ T1 – Fast path “regular/ normal” transactions
§ T2 – Event-based coordination across multiple processes
Address a specific business performance issue with minimal changes to existing business processes
Incremental
Bring incremental changes to individual business processes to improve agility, precision and automation
§ I1 – Externalize & automate decisions embedded in processes and legacy apps
§ I2 – Automate and/or aid human-based decisions in workflow to improve straight-through processing
Strategic
Optimize processes and design new processes with Decision Management capabilities and insight
• S1 – Reuse decision services across the enterprise
• S2 – Customer-centric process redesign
• S3 - Continuous process improvement with root cause analysis
• S4 – Making processes adaptive
Project Scope
Implementation Patterns for Decision Services Integration
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Coming…
© 2011 IBM Corporation 15
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Capture & Analyze Segment & Predict Engage & Act
Predictive & Social Media Analytics
• Integration use cases – Gain insights and increase positive sentiment in social conversations
– Identify advocates and leverage their influence in campaigns – Accelerate re-purchase through propensity models
Learning from Failure: Toyota Misses the Mark on Building Brand Value
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Optimize capital investments based on 6 Petabytes of information
Analyze 100k records/ second to address customer satisfaction in real time
Analyze telemetry, fuel consumption, schedule and weather patterns to optimize shipping logistics.
Big Data Platform – Already a Reality
• Social Media Data • In-database mining
• IBM SPSS on InfoSphere Streams
• Very fast model scoring • Hadoop/Hive and Big Insights
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SPSS Scoring in InfoSphere Streams
SPSS Collaboration & Deployment Services
Repository Publish
IBM SPSS Modeler
File System
InfoSphere Streams
SPSS Solution Publisher
SPSS Scoring Operator
Modeler Scoring Stream
1001000110!
1101010010!
• 1 Billion profiles to manage in memory • 6 Billion incoming requests to be evaluated • Respond to ad requests in 10-20 Msec
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