An Introduction to Decision Management · 3 steps to decision management Identify and model the...

An Introduction to

Decision

Management

James TaylorCEO

©2014 Decision Management Solutions

Your Presenters

James Taylor

I’m a passionate believer in the power of Decision Management to deliver simpler, smarter and more agile processes. I write, speak, consult and work on Decision Management and Decision Modeling.

Juergen Pitschke

I‘m a coach, consultant, speaker, writer, …

Engineerdealing with Enterprise Architecture and all kinds of enterprise models

Agenda

Decision Management

Decision Models

Decision Modeling

Decision Models and BPM

Decision Models and EA


© BCS – Dr. Juergen Pitschke 2003-2013, www.enterprise-design.eu

Question 1:

What is Decision Management?

What is in scope? What is out of scope?

Page 3


Decision Management

A business discipline and a technology stack

That builds on existing IT infrastructure

Enhancing business processes

Leveraging analytics to manage uncertainty

Increasing transparency and business control

It is a proven framework for implementing business rules management systems and analytics


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

and advanced

analytics

Create a “closed

loop” between

operations and

analytics to

measure results and

drive improvement

Business

RulesPredictive

Analytics

External Data

Big Data



Question 2:

How can we describe Decisions?

What is in the Decision Model and Notation standard?

How are Decision Models related to other artefacts?

Page 7


Repeatable

Automatable

Non trivial

Measurable

Decision

Input Data

Dependent

Decisions

Authority


Decision Tables or Rulesheets

Most common rule format

A set of rules in a tabular layout

Look up tables, comparing attribute values

Various formats

Applicant RiskU

Applicant AgeMedical History Applicant Risk Rating

1> 60

good Medium2 bad High3 [25..60] - Medium4

< 25good Low

5 bad Medium

Special Discount

Type of Order Web -

Customer Location US -

Type of Customer Wholesaler Retailer -

Special Discount % 10 5 0

F 1 2 3

Credit Limit Assignment

Credit Limit

Income

< $40,000 >= $40,000

Card TypeStandard $1,000 $2,000

Gold $1,500 $2,500


Decision Modeling and Notation (DMN)

“… 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

Modeling Human Decision-making

Modeling Requirements for automated Decision-making

Implementing automated Decision-making

OMG Beta Specification

Released Standard expected mid-2014

Decision Management Solutions, IBM, Oracle, TIBCO, FICO, Escape

Velocity, KUL, Model Systems, KPI, Visumpoint


DMN In contextIntegrates with

process models at

decision points

Maps to

implementation

details


Defines

decision-making

explicitly

Documented

sources

Coherent

rule groups

Ownership,

volatility

Manage Business Rules


Define Automation



Question 3:

Notation is notation. What does a method for Decision Modeling look

like?

Page 15


Use Cases For Modeling Decisions

Simplify processes

Effectively deploy

business rules

Flexibly define

automation boundaries

Effectively deploy

predictive analytics

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


Specify Decision Context

ProcessesActivities require decisions

EventsTrigger decisions

SystemsImplement decisions

Organizational UnitsMake 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


Specify Decision Impact

Objectives impacted

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?*

…


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


Knowledge and Decisions

Decision


Decisions require Knowledge

“Reorder parts”requires supplier capabilities, shortage risks

“Validate Tax Return”requires Tax Regulations

“Refer claim for fraud”requires likelihood of fraud


You can Decompose Decisions

What is required to make this decision?

KnowledgeGuidelines, policy

Expertise

Regulations

Predictive Analytic Models

Data Mining Results

InformationReference Data

Transaction Data

The results of other decisions©2014 Decision Management Solutions

Decisions can require Decisions

These decisions must be made firstIs this a good time to make an offer?

Which product should the offer be for?

How valuable an offer?


Question 4:

How do Decision Models impact process models?


A real word example from BCS

Seite 26

• Business Process for handling an application

• Total of 48 such models, cause there are 48 application forms for different services


A real world example

Page 27


A real world example

Page 28


The new process model

Seite 29

• One process model for all application types


Decision Logic for the process

Seite 30

Question 5:

How do Decision Models integrate into Enterprise

Architecture?


Decision Management and EA

„If you can‘t describe it, you can‘t build it.“ John Zachman

• Connect the dots: How are Decision Models related toBusiness Process, Events, Strategy, Requirements, …

Page 32

UI Service

SecurityService

Appl.Service

Data Service

BIService

…

WF Engine

BREngine

EP Service

UIModel

?Appl. Model

Data Model

? …

ProcessModel

DecisionModel

?

Business Architecture System Architecture

Performance

Management

Business

Intelligence

Data

Infrastructure

Application Context

Business Process

ManagementEvent Processing

Enterprise

Application

Today these pieces are semi-detached

1. Operational systems are built in a variety of ways

2. Data is extracted for analysis

3. Reports and queries are

intended to improve decision

making

4. Dashboards are used

to monitor performance


Performance

Management

Business

Intelligence

Data

Infrastructure

Predictive

Analytics

Optimization

Application Context

Business Process


Enterprise

Application

Business Rules

Powerful technologies are underutilized

1. Business rules are forced into business processes

2. Predictive analytics are

forced into reports or left

stand-alone

3. Optimization has

limited, localized effect4. The effectiveness of

decision-making is not

tracked or improved

Decision

Analysis



Decision Management maximizes ROI

Performance

Management

Business

Intelligence

Data

Infrastructure

Application Context

Decision Management

Decision

AnalysisBusiness RulesPredictive

AnalyticsOptimization

Business Process


Enterprise

Application

Decision Management links these

technologies to the application context

Decision Management allows

decision performance to be tracked,

analyzed and ultimately improved

Decision Management ties

heterogeneous technologies into a

coherent approach for better resultsDecision Management ties

how decisions are being made

and what can be done to

improve them directly to

business performance

Wrap-up

Getting Started

Model Decisions with DMN

Decision Technology Blueprint

Focus Business Rules on Decisions

Proof of Concept Project



Learn More about Decision Modeling

Online Training

Live, online training

May 6,7,8 and 13,14,15

More information atdecisionmanagementsolutions.com

/services/decision-modeling

[email protected]

European TrainingDecision Modeling for Business Analysts: DMNMay 15/16, Dresden

The BPM Trilogy: BPMN, CMMN, DMN in contextJuly 14-16, Dresden

[email protected]

http://decisionmanagementsolutions.com/services/decision-modeling

mailto:[email protected]

mailto:[email protected]

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