James Taylor of Decision Management Solutions presents an introduction to 5 core principles of Decision Management - operational decisions, business rules, predictive analytics, continuous improvement and decision making as a process. Webinar recording available at https://decisionmanagement.omnovia.com/archives/40418

1. 5 core principles of
Decision
Management
James Taylor,
CEO

2. AGENDA
1 2
Little decisions
add up
The purpose of
information is to
decide
3
You cannot
afford to lock up
your logic
4 5 6
No answer, no Decision Making So what?
matter how is a process to
good, is static be managed

3. The One Slide You Need
Little decisions add up so focus on
operational or front-line decision making
The purpose of information is to decide so put
your data and analytics to work
You cannot afford to lock up your logic so
externalize it as business rules
No answer, no matter how good, is static so
experiment, challenge, simulate, learn
Decision Making is a process to be managed
©2009 Decision Management Solutions 3

4. Little decisions add up

5. Decisions drive actions
A choice, a selection
Made after consideration
Results in action not
just knowledge
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6. Different types of decisions
High
High-value,
low-volume
decisions
ECONOMIC IMPACT
Medium-value,
medium-volume
decisions
Low-value, high-
volume decisions
Low
Low DECISION VOLUME High
After Smart (Enough) Systems, Prentice Hall
2007
©2009 Decision Management Solutions 6

7. ALL decisions matter
“Most discussions of decision making assume
that only senior executives make decisions
or that only senior executives’ decisions
matter. This is a dangerous mistake.”
Peter Drucker
©2009 Decision Management Solutions 7

8. Little decisions are everywhere
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9. The purpose
of
information
is to decide

10. Information is a means to an end
“The ultimate purpose of collecting the data is to
provide a basis for action or a recommendation”
Deming
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11. Knowing is not enough
Those who know first, win
Those who ACT first, win
Provided they act intelligently
©2009 Decision Management Solutions 11

12. Avoid the insight-t0-action gap
©2009 Decision Management Solutions 12

13. Operational decisions are at the center
Business
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14. You cannot afford
to lock up your
logic

15. Applications have evolved
User Interface
Browser
Process
BPM Decision
Data
Database
©2009 Decision Management Solutions 15

16. Neither code nor end user tools work
Volume
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17. Business logic drives decisions
Decision Regulations
Policy
History
Experience
Legacy
Applications
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18. No answer, no
matter how good,
is static

19. Impact May Take Time to Play Out
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20. Experimentation drives simulation
Constraints
Market
Conditions
Assumptions
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21. Plan for multiple scenarios
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22. Decision Making is a
process to be managed

23. Close the loops
Information
Evaluate
Results
Reaction Decision
Update Refine Rules,
Decision Models
Action
Business &
Analytic
Experts
Simulate Create
Impact Challengers
Customer
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24. “The essence of strategy is choosing to perform
activities differently than rivals do.”
Dr. Michael Porter, Harvard Business School
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25. So what?

26. Decision Management is
A business discipline that builds on
existing enterprise applications to
put data to work
manage uncertainty
increase transparency
give the business control
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27. Delivering Decision Management
3 stages to better operational decisions
Create a “closed
loop” between
operations and
Design and build analytics to
independent measure results
decision and drive
processes to improvement
Identify the replace decision
decisions (usually points embedded
about customers) in operational
that are most systems
important to your
operational
success
©2009 Decision Management Solutions 27

28. Action Plan
Identify your decisions
Consider organization,
change, readiness
Adopt decisioning
technology
©2009 Decision Management Solutions 28

29. The One Slide You Need
Little decisions add up so focus on
operational or front-line decision making
The purpose of information is to decide so put
your data and analytics to work
You cannot afford to lock up your logic so
externalize it as business rules
No answer, no matter how good, is static so
experiment, challenge, simulate, learn
Decision Making is a process to be managed
©2009 Decision Management Solutions 29

30. Decision Management Solutions
Decision Management Solutions can help you
Focus on the right decisions
Implement a blueprint
Define a strategy
For assistance, to find out more or if you have
questions
decisionmanagementsolutions.com/learnmore
©2009 Decision Management Solutions 30

31. Thank you!
James Taylor, CEO
james@decisionmanagementsolutions.com
www.decisionmangementsolutions.com/learnmo
re