Introduction to operational decision management
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Transcript of Introduction to operational decision management
REALISING
AMBITIONS
Operational Decision Management
An Introduction
Alcedo CoenenDec 2014
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting
Decisions are taken every day everywhere
Decision as a type
Decision ontology
Decision
Possible
OutcomesActor typeRules
Possible
Situations
has
apply to
is based on is executed by
Authority
(Source)
has
Domain
knowledge
represents
Taxonomy
is structured in
Fact types
is expressed in
Instance of a decision
Actual
Outcome
Actual
SituationApplied rules Actual actorConsiderations
© Alcedo Coenen, Amsterdam 2014
Version 0.8
A business decision is defined as a conclusion that a business arrives at through business logic which the business is interested in managing.
Von Halle, Barbara, and Larry Goldberg. 2009. The Decision Model: A Business Logic Framework LinkingBusiness and Technology.
a decision is the act of determining an output value (the chosen option), from a number of input values, using logic defining how the output is determined from the inputs
OMG. 2013. Decision Model and Notation ( DMN ) Specification
• Decision = a determination requiring know-how or expertise; the resolving of a question by identifying some correct or optimal choice
• Operational Business Decision = a determination requiring operational business know-how or expertise; the resolving of an operational business question by identifying some correct or optimal choice
Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.
Business Rules
Decisions
BehavorialRules Decision
Rules
A wool suit must be worn on a cold workday when it isn’t raining.
A service representative must be assigned to a customer that has placed an order.
- Choice out of options- Single point of time
- Shaping ongoing business activity- Multiple points of time
Maintained in rulebooks
Maintained in decision tables
Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.
Behavioral rules
- Shaping ongoing business activity
- Multiple points of time
Decision rules
- Choice out of options
- Single point of time
• Operational decision management (ODM) is a set of technologies and methods that allow you to automate your day-to-day business decisions without compromising their accuracy and effectiveness. ODM lets you document, implement, change, and govern the repeatable decisions that control your business operations.
• EDM refers to the application of rule-based systems -- in conjunction with analytic models -- to automate, improve, and distribute decision-making capabilities across an organization.
• EDM is an emerging important discipline, due to an increasing need to automate high-volume decisions across the enterprise and to impart precision, consistency, and agility in the decision-making process. (http://www.cutter.com/research/2005/edge050125.html)
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting
Surveillance Market
Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Operational DecisionManagement
Surveillance Market
The 3 main reasons
(CHANGE)
MANAGEMENT
OPERATIONS
Process improvements
Operational DecisionManagement
Surveillance Market
Typical applications of Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Eligibility
Validation
Risk
Fraud
Opportunity
Calculation
Source:
Surveillance Market
Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Operational DecisionManagement
Contracts
Company policy
Regulations
IMPLEMENTATIONSSystems, communications, forms, etc.
Surveillance Market
Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Operational DecisionManagement
Contracts
Company policy
Regulations
IMPLEMENTATIONSSystems, communications, forms, etc.
HOW?
• Linking policies, decisions andimplementations
• Impact analysis for policy change• Designing decision structures• Central management of business rules
WHY?
• One interpretation• Governance on coherence
• Rules + data + processes + systems
• One responsibility for• Impact analysis• compliance audits
Managing coherence
18
policy
Business Decision
Sub-decision
Rules
Sub-decision
Rules
Sub-decision
Rules
Business Process
Data Models
System A Rule EngineWorking
instructionCommunication
Logi
calD
ecis
ion
Mo
del
Database
Manage business rules
19
Repository of policies
Repository of operationaldecisions
processes Business decisions
Data models
Repository of implementations(CMDB)
search design publishanalyse
Making impact analysis
20
Policy change
Policy analysis
Assess which decisions are affected
Derive which implementationsare affected
Design change roadmap
Designing decisions
21
Policy analysis
Identify main decisions
Identifysub decisions
Identifiy involved data
Design decision tables
Link with business processes
Test / simulate decisions
Deliver decision models forimplementation
Identify related business processes
Identify related data models
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting
Decision Management & BPM –perspective 1
Decision as part of process
Process
Decision
Decision Management & BPM –perspective 2
Decision as steering of process
Process
Decision
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for gateways in BPMN definitions
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for events to be evaluated
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for products and services offered to the customer
• Typical decisions:
– Order acceptance
– Customer acceptance
– Discounts
– Stock checks
– Claim handling
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for functionswith
– Business meaningful output
– Complex algorithms
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for KPI’s and dashboards
• Identify goals
REALISINGAMBITIONS
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