5 Core Principles of Decision Management

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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

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5 Core Principles of Decision Management

  1. 1. 5 core principles of Decision ManagementJames Taylor, CEO
  2. 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. 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. 4. Little decisions add up
  5. 5. Decisions drive actions A choice, a selection Made after consideration Results in action not just knowledge ©2009 Decision Management Solutions 5
  6. 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. 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. 8. Little decisions are everywhere ©2009 Decision Management Solutions 8
  9. 9. The purpose ofinformation is to decide
  10. 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 ©2009 Decision Management Solutions 10
  11. 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. 12. Avoid the insight-t0-action gap ©2009 Decision Management Solutions 12
  13. 13. Operational decisions are at the center Business ©2009 Decision Management Solutions 13
  14. 14. You cannot affordto lock up yourlogic
  15. 15. Applications have evolved User Interface Browser Process BPM Decision Data Database ©2009 Decision Management Solutions 15
  16. 16. Neither code nor end user tools work Volume ©2009 Decision Management Solutions 16
  17. 17. Business logic drives decisions Decision Regulations Policy History Experience Legacy Applications ©2009 Decision Management Solutions 17
  18. 18. No answer, nomatter how good, is static
  19. 19. Impact May Take Time to Play Out ©2009 Decision Management Solutions 19
  20. 20. Experimentation drives simulation Constraints Market Conditions Assumptions ©2009 Decision Management Solutions 20
  21. 21. Plan for multiple scenarios ©2009 Decision Management Solutions 21
  22. 22. Decision Making is aprocess to be managed
  23. 23. Close the loops Information Evaluate Results Reaction Decision Update Refine Rules, Decision Models Action Business & Analytic Experts Simulate Create Impact Challengers Customer ©2009 Decision Management Solutions 23
  24. 24. “The essence of strategy is choosing to perform activities differently than rivals do.” Dr. Michael Porter, Harvard Business School ©2009 Decision Management Solutions 24
  25. 25. So what?
  26. 26. Decision Management isA business discipline that builds onexisting enterprise applications to put data to work manage uncertainty increase transparency give the business control ©2009 Decision Management Solutions 26
  27. 27. Delivering Decision Management3 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. 28. Action Plan Identify your decisions Consider organization, change, readiness Adopt decisioning technology ©2009 Decision Management Solutions 28
  29. 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. 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. 31. Thank you! James Taylor, CEO james@decisionmanagementsolutions.comwww.decisionmangementsolutions.com/learnmo re

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