A guide to Business Decision Management · Sapiens' DECISION formalizes and automates the...
Transcript of A guide to Business Decision Management · Sapiens' DECISION formalizes and automates the...
A guide to Business Decision Management
Formoreinformation,pleasecontactusat:[email protected].
BusinessDecisionManagementGuide
©2015SapiensDECISIONwww.sapiensdecision.com 1
Introduction
BusinessDecisionManagement(BDM)isaprocessorsetofprocessesdesignedtoimproveandstreamlineoperationaldecision-makinginabusiness.Gartnerdefinesitas"thedisciplineofdesigningandbuildingsystemsthatmakestructureddecisions,where'decisions'aredeterminationsofcoursesofaction”.
TheobjectiveofBDMistoimprovethedecision-makingprocessofanorganizationbyusinganyandallinformationatitsdisposal.Themoreallknownscenarios,conditionsandrisksaretakenintoaccount,themoreprecise,consistentandtransparentyourdecisionswillbe.
Atamoredetailedlevel,BDMoffersanumberofpotentialimprovements:
• Increasingtheuseofsophisticateddecision-making,leadingtomoreautomation• Enhancingtheclarityandtransparencyofbusinesspoliciesandrulesandprovidingtheabilityto
sharethemamongmultipleapplicationsandprocesses,forimprovedconsistency• Auditingdecision-makingprocesses,ensuringasolidfoundationforoptimizationofdecisionsaswell
ascompliancewithcorporateandregulatory/legalrequirements
UseofBDMresultsinmanybenefits,including:
• FastertimetomarketwithpolicyandotherchangestoBusinessLogic• Quickerresponsetomarketchanges• Loweroperationalrisksandtheirfinancialimpact(lessfraud,compliancefees,write-offs…)• Moreconsistentinterfaceswithcustomersandpartners• Moreefficientallocationofstaff,time,equipmentandotherresources,tobettersupport
operationalprocesses• Higherlevelsofcustomersupport
BDMcomplementsahostofbusinessdisciplinesincluding:
• Businessrulesengines(BRE)andmanagementsystems(BRMS)• BusinessProcessManagement(BPM)• Predictiveanalytics(modelingandbigdatamining)• Artificialintelligence(AI)• Businessintelligence(BI)• Continuousimprovement(kaizen)
BDMconsidersdecisionsreusableassetswiththeoptionfortechnologytobeinsertedatkeydecisionpoints–forfull,partialornoautomation–dependingonuserrequirements.Thepastfewyearshaveseenfinancialserviceorganizations,banksandinsurancecompaniesintegratingdecision-makingsoftwareintotheirbusinessprocesssystemsandcustomer-facingapplications.BDMisespeciallysuitedtohigh-volumedecision-makingbecauseautomationallowsformoreefficient,informedandconsistentresponsestoevents.
BusinessDecisionManagementGuide
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ThereareanumberofdifferentapproachesusedtoapplyBDMprinciples.Ingeneral,thesefollowthreesteps:
1. DecisionidentificationandmodelingusingeitheropenstandardssuchasDecisionModelandNotation(DMN)orproprietaryapproaches
2. DevelopmentofaDecisionServicethatautomatesallorpartofthedecisionmodelproducedinstep1
3. Ongoingmonitoringandmanagementofthedecisionstakenusingthedecisionmodel,tokeepthebusinessrulesandpredictiveanalyticmodelsused,uptodate
BDMofteninvolvestheuseofA/Btestingandexperimentationaswell.
BDM may be right for you
Inmanycompanies,thousandsofdecisionsaremadeeveryday(e.g.,toprovideacustomerwithanaccuratequote).Evenifsuchoperationaldecisionsarerelativelylow-impactonanindividualbasis,whentheyoccurinhighvolumestheycollectivelybecomeasimportantasstrategicandtacticaldecisionstakenatthecorporatelevel.BDMenablesdecisionstobecarriedoutquicklyandefficiently–andtobeautomatedwhereverpossible.
Todeliverresults,decisionsneedtobeaccurate,reliableandfast.Assuch,BDMisespeciallyconcernedwiththeplanningandpreparingofthedecisionsthataremadefrequently(e.g.,whatpricetoofferorwhethertoacceptorrejectanapplication).
AfurtherBDMbenefitisthestandardizationofthedecision-makingprocessacrosstheorganization.Bytrackingalldecisionsallthetimeandassuringthattheymeetthesamecriteriaineveryinstance,notonlyareprocessesstreamlinedbutcustomerservicelevelscanalsobemet.
So,ifyourcompany...
• Needstoimplementpolicychangesquickly• Wouldliketotalvisibility,transparencyandconsistencyregardinghowandwhydecisionsarebeing
made• UndertakesprojectsrequiringBusinessLogic,rulesanddecision-makingmodels(e.g.,
transformation)
–thenBDMisamust.
TosucceedwithBDM,youwouldneeda:
• ProcessforcapturingBusinessLogic• Formalized,standardandeasy-to-understandrepositoryofyourentiresetofcurrentBusinessLogic• BusinessChangeInformation(BCI)process,whichfacilitateshowaparticularchangeinfluences
currentBusinessLogicdecisionsandimpactsanalysis• Waytotransformthemodelintoexecutabledecisions• Meanstomonitordecisionexecution
BusinessDecisionManagementGuide
©2015SapiensDECISIONwww.sapiensdecision.com 3
Implementing BDM with Sapiens
Weaddressthesecriteriabyprovidingyouwithasinglesoftwaresolutionandimplementationapproachforformalizingandcapturingthedecision-makingprocess,featuringtractabilityoftheproceduresateverystepalongthewayandtheabilitytoautomaticallycreateexecutablerulesfromdecisions.
Sapiens'DECISIONformalizesandautomatestheprogressionfrominformationtodecisiontooperationalruleprocess,whileforcingadherencetostandardandnormalizedstructure.TheDecisionModel(TDM)isbecomingoneofthemajorstandardsfordecisionmanagementandisthebasisforDECISION–creatingrulestructureswhicharesimpletounderstand,communicateandmanage.
TDM – A proven methodology
TheDecisionModel(TDM)ensuresthatBusinessLogic–thesetofanorganization'spoliciesthatareconvertedintoavastamountofoperationalrules–iscreatedinaformalizedandmanageableway.Italsoenablestheabilitytoeasilyunderstand,trace,auditandfacilitatethecriticalprocessofmanagingchangeinever-changingcompetitiveandregulatedmarkets.
TDMenablesbusinessuserstotakefullcontroloftheentireprocessofdecisionmanagement,allowingthemtoeasilydevelopanddeploynewpoliciesandmethodologiesforoptimaldecision-making.Itisahighlycost-effectivemeansofBusinessLogicnotation,harvesting,maintenanceandmanagement,promotingahigherlevelofBusinessLogicunderstandingandsimplifyingcorporatebusinessprocesses.
BusinessDecisionManagementGuide
©2015SapiensDECISIONwww.sapiensdecision.com 4
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© 2015 Copyright Sapiens International. All Rights Reserved. October 2015