More intelligent processes - choices and results

More Intelligent Processes
Choices and Results
James Taylor, CEO
Decision Management Solutions

In processes as in life,
the choices you make
affect your results.

What price, terms and conditions
should we offer this customer?
Should we decline or approve
this application?

These choices are your strongest
points of leverage for
improving your process results.

In day-to-day operations, choices are made
in enormous numbers, adding up to a
big impact on your bottom line.

Another word for “choices” is “decisions.”
My topic and area of expertise is the discipline called:“Decision Management.”

Decision Management principles
Explicitly identify the decisions in your operational processes
Manage these decisions independently of your processes using business rules and analytics

Example:Underwriting a vessel
Gather policy application data
Validate application
Eliminate
unqualified applicants
Conduct physical inspection
Underwrite policy
Complete new business processing

Decision:
Is this application complete and correct?
Eliminate
Underwrite policy

Decision:
Is this the type of vessel we insure?
Eliminate
Decision:
Is this application
a high fraud risk?
Underwrite policy

Eliminate
Underwrite policy

Decision:
How risky?
Eliminate
Decision:
What coverage?
Decision:
What price?
Underwrite policy
Decision:
What exclusions?

Eliminate
Underwrite policy

Why manage decisions independently?
Faster, easier, independent changes to decision logic
Coordination of decisions across channels and products
Simpler processes that are much easier to manage
Higher employee productivity and resource utilization
Analytic insights for making better decisions
Continuous improvement of decisions and results

Faster, easier independent changes
European mobile telephony company
Enabling business experts to manage promotional rules increased flexibility and shortened
time-to-market for customer retention programs.

Before Decision Management
Promotional decision logic hardwired into systems for different channels.
No visibility or access for marketing experts.
Making changes is slow and costly.
Web
Call center
Email
Mobile

After Decision Management
Promotional rules shared across all channels.
Marketing experts have visibility and control.
Making changes is quick and inexpensive.
Web
Call center
Decision
logic
Email
Mobile

Coordination of decisions
European cosmetics company
Cross-channel coordination ensures that all relevant offers, including loyalty programs, are combined at the point of sale, with consistent pricing rules applied.

Simpler processes, more productive employees
US mobile telephone company
Making the right decision at the start of the call turns long, costly processes into straightforward, customer-pleasing
interactions.

Example: Process simplification
BEFORE
AFTER
Decision:
What type
of applicant is this?

Better decisions from analytic insights
French international retailer
Unifying product data across its wide range of retail operations was the first step in obtaining uniquely valuable analytic insights into customer purchasing behavior.

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High income,low-moderate education
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Moderate education,low income, middle-aged
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Combined power of rules and analytics
Rules address a wide range of things that might happen
Analytics probe deeper to understand why and when they happen

Continuous decision improvement
US state tax authority
Tax returns are many and auditors are few. Using analytics to decide “Who should we audit next?” focuses resources where they are likely to have the largest financial impact.

Closed-loopdecisioning

The power of Decision Management
Faster, easier, independent
Coordination
Simpler processes
Higher productivity
Analytic insights
Continuous improvement

13h45: Gestion de processus de règles métier, le génome de l’entreprise agile
Enabling business users to become actors in decisions
The role of BRMS, BPMS in your IT infrastructure
Using a BRMS to simplify processes and process maintenance
Using a BRMS to improve the alignment of business and IT

“
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

http://www.bpmbulletin.com	31
http://jtonedm.com	21
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More intelligent processes - choices and results

by Decision Management Solutions on Aug 24, 2010

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