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Four capabilities of decision management systems
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Four capabilities of decision management systems

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Four capabilities of decision management systems Four capabilities of decision management systems Presentation Transcript

  • Four Platform Capabilities for DecisionJames Taylor Management CEO Systems
  • Your presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 9 years developing the concept of Decision Management ©2012 Decision Management Solutions 1
  • AGENDA 1 2 Decision Management Systems Four Capabilities 3 An overall architecture Introduced 4 5 6 A broader IT Product Learn more context categories and vendors
  • Decision Management Systems Introduced
  • What are Decision Management Systems? Agile Analytic Adaptive ©2012 Decision Management Solutions 4
  • Decision Management Systems… Keep the Are decision in transparent mind and agile Are Test, learn, predictive and improve not reactive ©2012 Decision Management Solutions 5
  • 3 Steps to Decision Management Discover Build Improve ©2012 Decision Management Solutions 6
  • Decisions Making choices or selections and taking action ©2012 Decision Management Solutions 7
  • Operational decisions are key ©2012 Decision Management Solutions 8
  • Suitable decisions Repeatable Non trivial Measurable Candidate for business automation impact ©2012 Decision Management Solutions 9
  • Different types of operational decision Eligibility Validation Calculation Risk Fraud Opportunity ©2012 Decision Management Solutions 10
  • Four capabilities Effectively Deeply embedmanage decision analytics logic Monitor and Optimizemanage decision results performance ©2012 Decision Management Solutions 11
  • Effectively manage decision logic
  • Decision logic has many sources Decision ©2012 Decision Management Solutions 13
  • Business rules “ … statements of the actions you should take when certain business conditions are true. ” ©2012 Decision Management Solutions 14
  • Most business rules are unmanageablepublic class Application {private Customer customers[];private Customer goldCustomers[];...public void checkOrder() { for (int i = 0; i < numCustomers; i++) { Customer aCustomer = customers[i]; if (aCustomer.checkIfGold()) { numGoldCustomers++; goldCustomers[numGoldCustomers] = aCustomer; if (aCustomer.getCurrentOrder().getAmount() > 100000) aCustomer.setSpecialDiscount (0.05); } }} ©2012 Decision Management Solutions 15
  • Clarity and transparency are needed If customer is GoldCustomer and Home_Equity_Loan_Value is more than $100,000 then college_loan_discount = 0.5% If member has greater than 3 prescriptions and prescription’s renewal_date is less than 30 days in the future then set reminder=“email” If patient’s age is less than 18 and member’s coverage is “standard” and member’s number_of_claims does not exceed 4 then set patient’s coverage to “standard” ©2012 Decision Management Solutions 16
  • Decision logic management functions Rule Management Technical Business Verification and Validation Testing and Debugging Impact Analysis Data Management Deployment Repository ©2012 Decision Management Solutions 17
  • Deeply embed analytics
  • Patterns inform decision-making1050 Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 ©2012 Decision Management Solutions 19
  • How to look forward? ©2012 Decision Management Solutions 20
  • Different kinds of predictive analytics Risk Fraud Opportunity ©2012 Decision Management Solutions 21
  • Predictive Analytics must be embedded ? ? Decision ©2012 Decision Management Solutions 22
  • An industrial analytic processCottage industries don’t scale Factories do
  • Analytic Insight Management Data Management Data Preparation Data Visualization & Analysis Modeling In-database Modeling Model Validation Deployment and Scoring In-database Scoring Model Monitoring Model Tuning Model Tuning Repository ©2012 Decision Management Solutions 24
  • Manage decision performance
  • Decisions are high change components Regulations change Change to keep eligibility decisions compliant Policies change Change validation to track new data requirements Competitors change Change the discount to remain competitive Markets change Change the assessment to manage risk Consumer behavior Change to keep selecting changes the right deal terms Fraudsters adapt Change the routing to focus on new fraud ©2012 Decision Management Solutions 26
  • Don’t just create a decision point ©2012 Decision Management Solutions 27
  • Create Continuous improvement ©2012 Decision Management Solutions 28
  • Monitoring decision effectiveness To support decision analysis you need to log: Decision execution Responses Results Apply performance management to see Trends Hotspots Logging also supports compliance, audit ©2012 Decision Management Solutions 29
  • An environment for improvement Business User • My rules, in context • Only allow changes that make senseRules Management • No unnecessary information • Rapidly see business impact of changes Impact Analysis • Design impact and execution impact • More than testing Alternatives • Swapset analysis for comparison • Simulation and what-if analysis Assessment • Business performance comparison Analytic Model • Model performance monitoring • Self learning models Management • Managed model refresh ©2012 Decision Management Solutions 30
  • Optimize results
  • A capability to optimize results Optimization Model Development Optimization Model Debugging Solvers Data Management Scenario Analysis Deployment Repository ©2012 Decision Management Solutions 32
  • An overall architecture
  • ©2012 Decision Management Solutions 34
  • ©2012 Decision Management Solutions 35
  • The broader IT context
  • Decision Services in context Application Context Business Business Process Event EnterpriseIntelligence Management Processing Application Performance Data Decision Service ManagementInfrastructure Decision Business Predictive Optimization Analysis Predictive Rules Analytics Analytics Enterprise Platform ©2012 Decision Management Solutions 37
  • Product categories and vendors
  • Navigating product categories Optimization Optimization Suite Solver Rules Analytic Solvers Decision Optimization Analytic InsightDecision Logic Management Business Rules Predictive System Management Analytic Platform System Workbench Analytic Model Decision Decision Management Management System Management In-database Analytics ©2012 Decision Management Solutions 39
  • Vendors in the report 11Ants Oracle Angoss Pegasystems Be Informed Predixion Bosch Software Innovations Progress Clario Analytics Revolution Analytics Experian Salford Systems FICO SAP FuzzyLogix Sapiens GDS Link SAS Gurobi Sparkling Logic IBM Starview IDIOM Statsoft Infocentricity Teradata InRule Tibco RedHat usoft KNIME Yottamine KXEN Zementis OpenRules Zoot ©2012 Decision Management Solutions 40
  • Learn More
  • Decision Management Systems What if you could make your systems active participants in optimizing your business? What if your systems could act intelligently on their own? Decision Management Systems can do all that and more. This book shows how to integrate operational and analytic technologies to create more agile, analytic, and adaptive systems. For more information visit decisionmanagementsolutions.com/book ©2012 Decision Management Solutions 42
  • The report Version 1 next week Future versions Decision Management Product categorization and Systems introduced “First Looks” Detailed descriptions of the Key product characteristics – four capabilities what to look for Initial best practices and Detailed best practices and vendor selection guidelines use cases Vendor contact information More on selection criteria and approaches decisionmanagementsolutions.com/decision-management-technology Sign up for the newsletter to stay informed http://eepurl.com/cKWQ ©2012 Decision Management Solutions 43
  • Questions?
  • Thank You James Taylor, CEOjames@decisionmanagementsolutions.com