More Related Content Similar to Framing Analytic Requirements with Decision Modeling (20) More from Decision Management Solutions (12) Framing Analytic Requirements with Decision Modeling2. Your Presenter – James Taylor
CEO of Decision Management Solutions
We work with clients to improve their
business by applying analytic technology
to automate & improve decisions
I have spent the last 12 years
championing Decision Management and
developing Decision Management Systems
©2015 Decision Management Solutions 2@jamet123 #decisionmgt
3. ©2015 Decision Management Solutions 3
Today: Insight Without Impact
Beautiful visualizations
Powerful predictions
Gut decision-making
Dumb enterprise applications
@jamet123 #decisionmgt
4. Today: Requirements Telephone
Decision Makers ask for data or analysis
But the analysis does not help them make the
decision
So they ask for more data or different analysis
But that doesn’t help either so they
ask for yet another view
And when that doesn’t help they
stop using BI and do
something in Excel
…
©2015 Decision Management Solutions 4@jamet123 #decisionmgt
5. ©2015 Decision Management Solutions 5
Today: Workflow Thinking
Identifying decisions in workflows does not define
decision making
Workflows show
When decisions are made
Who makes decisions
What information they use
What the consequences
are
Workflow doesn’t show
HOW
@jamet123 #decisionmgt
7. ©2015 Decision Management Solutions 7
Decision AND Workflow Thinking
Explicitly shows
Information used
Questions answered
Policies, regulations used
Role of analytics
Adding Decision Modeling explains HOW a
decision is made
@jamet123 #decisionmgt
8. ©2015 Decision Management Solutions 8
From Decision To Data
Decision
Analytic
Insight
Data
…not the other way
around
@jamet123 #decisionmgt
9. ©2015 Decision Management Solutions
Example: Hold or sell distressed mortgage
Information
Knowledge
Decision
Precise
Definition
Link to analytic
Identify decision to be
improved
Uses a non-technical
notation
@jamet123 #decisionmgt 9
10. Why Frame Predictive Analytic Projects?
Provides “structure” (who, what, how, when)
Provides “transparency” of decision process
Promotes “buy in”
Fosters innovation
Standardizes approach to decision making
Provides an audit trail for decisions
Improves/changes the business model
Steve Knode, University of Maryland University College
©2015 Decision Management Solutions 10@jamet123 #decisionmgt
12. Business Requirements for Analytics
Decision Modeling focuses on business needs first
Decision Models identify information, knowledge
needs
©2015 Decision Management Solutions 12
Decision Model
Information
Architecture
User Interface
Design
Knowledge
Architecture
Implementation
@jamet123 #decisionmgt
13. ©2015 Decision Management Solutions 13
Business Case and Project Comparison
Analytic
Decisions KPIs
Processes
and Systems
Organizations
Monitoring
@jamet123 #decisionmgt
14. Find The Analytics That Work
Ask If Only…
If only we knew if this customer is unhappy
If only we knew if this piece of equipment was going to
fail soon
If only we knew where we were most likely to get a
delivery this afternoon
If only we knew if this provider was ripping us off
…
©2015 Decision Management Solutions 14@jamet123 #decisionmgt
15. If Only We Knew What They’d Accept
©2015 Decision Management Solutions 15@jamet123 #decisionmgt
16. If Only We Knew Who Was Loyal
©2015 Decision Management Solutions 16@jamet123 #decisionmgt
17. Link Analytics Explicitly To Action
©2015 Decision Management Solutions 17
Identify decision to be
improved
Uses a non-technical
notation
Model can be built by
business analysts
@jamet123 #decisionmgt
18. Re-use Across Projects
Every project builds a
model
Models are cumulative,
adding to organizational
understanding
Common decisions and
the analytics that support
them are identified
Business-level reuse
©2015 Decision Management Solutions 18@jamet123 #decisionmgt
Shared Models
19. ©2015 Decision Management Solutions 19
Manage Business Performance
Decision Models link Business Performance to Execution
Improve
Cross-Sell
@jamet123 #decisionmgt
20. The Business Impact of Information
©2015 Decision Management Solutions 20
Data
Warehouse
What information don’t we store?
What information can’t we integrate?
What information must now be analyzed?
@jamet123 #decisionmgt
22. ©2015 Decision Management Solutions 22
"This is the critical path to
monetizing advanced models."
- Head of Analytics
"Decision modeling enables us
to model our business by
dividing it into concrete parts
that are understandable to
business people without being
too detailed.“ - Process Director
"What used to be one week
of requirements work was
done in a few hours." – Lead
Business Analyst
@jamet123 #decisionmgt
24. 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
Finalized OMG Specification – a peer to BPMN
Decision Management Solutions, EscapeVelocity, FICO,
IBM, KPI, KUL, Model Systems, Oracle,TIBCO,
Visumpoint
©2015 Decision Management Solutions 24@jamet123 #decisionmgt
25. Define Decisions
Describe Decisions with
A question
Possible answers
©2015 Decision Management Solutions 25
Q: Which marketing offer should be
presented to this customer
during this interaction?
A: Any current, available marketing
offer in the database
@jamet123 #decisionmgt
26. Map Decisions To KPIs
KPIs impacted by decision
Customer
Churn
Customer
Service
Calls
Service
Availability
… …
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? *
…
©2015 Decision Management Solutions 26@jamet123 #decisionmgt
27. Map Decisions To Organizations
Own
Who specifies how the decision should be made?
They will have to approve your analytics
Make
Who must make these decisions day to day?
They will have to believe your analytics
Impacted by
Who is impacted e.g. because their KPIs are impacted?
They care about results
©2015 Decision Management Solutions 27@jamet123 #decisionmgt
28. Put Decisions In Context
Business Processes
Business Events
Existing Systems
Which business processes
need decisions made?
When will decisions be
required?
Your analytics will need to
be correct at that moment
Where will you have to
deploy your analytics?
©2015 Decision Management Solutions 28@jamet123 #decisionmgt
30. Decisions Require Knowledge
How to make this decision
What tells me what I must do?
What tells me what I should do?
What tells me what I can do?
What tells me what I will probably do?
What would help me do it better?
©2015 Decision Management Solutions 30@jamet123 #decisionmgt
32. A Decision Requirements Diagram
©2015 Decision Management Solutions 32
Top Level
Decision
Input Data
Knowledge
Sources
Additional
Precision
Gaps
Specificity
Additional
Requirements
@jamet123 #decisionmgt
33. A Complete Decision Definition
Definition
Question and Allowed Answers
Purpose andValue – KPIs impacted
Processes, Events, Systems
Organizations
Decomposition
Decisions
Input Data
Knowledge Sources
©2015 Decision Management Solutions 33@jamet123 #decisionmgt
34. Framing Predictive Analytic Projects
Provides “structure” (who, what, how, when)
Provides “transparency” of decision process
Promotes “buy in”
Fosters innovation
Standardizes approach to decision making
Provides an audit trail for decisions
Improves/changes the business model
Steve Knode, University of Maryland University College
©2015 Decision Management Solutions 34@jamet123 #decisionmgt
35. ©2015 Decision Management Solutions 35
Lessons Learned
Decision Models frame and communicate
analytic requirements accurately
Decision Models are accessible to all teams
involved, building shared understanding
Decision models show how analytics will
add value and deliver business impact
The requirements for deployment and
usage are clear
@jamet123 #decisionmgt
38. ©2015 Decision Management Solutions 38
Lessons Learned
Decision Models frame and communicate
analytic requirements accurately
Decision Models are accessible to all teams
involved, building shared understanding
Decision models show how analytics will
add value and deliver business impact
The requirements for deployment and
usage are clear
@jamet123 #decisionmgt
39. ©2015 Decision Management Solutions 39
Decision Management Solutions
Providing Decision Management consulting
and training since 2009
DMN Submitter
BABOK ® Contributor
IIBA Endorsed Education Provider
Recognized experts in decision management
Services
Free Resources
Consulting
Decision Modeling Software and Services
Training and Workshops
http://decisionmanagementsolutions.com
info@decisionmanagementsolutions.com
@jamet123 #decisionmgt
40. Example Engagements
Predictive Analytics Project
FramingWorkshops
Decision Discovery
Workshops
Decision Modeling
Capability Rollout
Center of Excellence
Decision Modeling Services
©2015 Decision Management Solutions 40@jamet123 #decisionmgt
41. DecisionsFirst Modeler
A collaborative decision modeling software that
conforms to the new Decision Model and Notation
(DMN) standard.
©2015 Decision Management Solutions 41
DecisionsFirst Modeler is available as a free BasicVersion (SaaS) and a paid
Enterprise Edition (SaaS or on-premise). Sign up at www.decisionsfirst.com
@jamet123 #decisionmgt