Your SlideShare is downloading. ×
More intelligent processes - choices and results
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

More intelligent processes - choices and results

1,418

Published on

In processes, as in life, the choices you make matter. A keynote presentation to IBM's Impact comes to you event in Paris 2010.

In processes, as in life, the choices you make matter. A keynote presentation to IBM's Impact comes to you event in Paris 2010.

Published in: Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,418
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • As Craig and Stéphane have very ably communicated this morning, the choices you make about how you implement business process management affect the results you achieve.Allow me to add another message to this: You also need to be concerned with the choices that are made inside your business processes, as these will also greatly affect your results.What do I mean when I say “choices”?
  • Every process is full of them.[click]In some cases, it’s a straightforward Yes-No choice.[click] In other cases, it’s a choice involving the selection and combination of multiple possibilities.
  • So there are many pointsthroughout business processes where a choice has to be made to determine what is going to happen next. And, just as the choices we human beings make affect the results we get, so the choices made inside business processes affect the results produced by that process. In fact, these choices are strong points of leverage for improving the results of your business processes. Why? …
  • …Because these choices aren’t just made once, but in enormous numbers. In aggregate, the make a big impact on the bottom line.
  • So far I’ve been using the word “choices” because I wanted us to start out by thinking about what’s happening at these crucial points of business processes, not about another technology discipline.But, of course, another word for “choices” is “decisions.” And I’m going to be talking to you this morning about a discipline called “Decision Management.”
  • These are, in my view, the two important principles in Decision Management
  • Why manage decisions independently of process? What’s the advantage? There are several…
  • Faster, easier, independent changes to decision logic Coordination of decisions across channels and products Vodafone Spain relies heavily on promotions to drive growth and loyalty management programs to reduce churn. With promotions hard-coded into multiple systems, it was hard and expensive to keep promotions consistent and up to date. Vodafone Spain extracted critical promotion decisions and implemented a business rules management system so that marketing, who understood the segmentation, could manage the promotion rules themselves. With real-time monitoring of promotion performance, these same teams can make immediate adjustments to ensure continuous differentiation.
  • Faster, easier, independent changes to decision logic Coordination of decisions across channels and products Higher employee productivity and resource utilization a leading French retailer of cosmetics, faced the challenge of multiple channels and overlapping marketing and loyalty offers. A customer might be eligible for a loyalty offer, have downloaded a web coupon and heard a “discount word” on the radio. This made it hard for retail staff to ensure the price was handled correctly at the point of sale. In addition, they needed a better way to get loyalty offers to the customer. Yves Rocher replaced their POS devices with Linux-based terminals and developed a rules-based system that allowed all the pricing rules to be defined by the marketing department and then downloaded into the terminals. All relevant offers are correctly combined at the point of sale. This system also takes the customer’s loyalty card and applies loyalty offers. Using purchases and loyalty history, it prints an incentive offer designed to bring the customer back to the store on the card itself—the cards are re-printable so the customer sees the offer that will be made when they return.
  • Simpler processes that are much easier to manage Higher employee productivity and resource utilization International travel wizardBillingTech support and troubleshooting
  • Faster, easier, independent changes to decision logic Coordination of decisions across channels and products Harness the power of analytics to make better decisionsAllow continuous improvement of decisions and results Churn minimzedBrand loyalty growsRepeat customA leading European retailer had a vision of delivering compelling promotional offers based on each consumer’s unique profile that was integrated with existing loyalty programs. As a first step, they brought all data together across retail formats and across channels to reveal customer purchasing patterns. By tracking transaction history, the company can obtain analytic insights on not only which products customers buy, but which promotions they are most likely to respond to, who its most profitable customers are, what products they buy now, and what products they would be willing to buy if the incentive was right
  • Faster, easier, independent changes to decision logic Higher employee productivity and resource utilizationHarness the power of analytics to make better decisionsAllow continuous improvement of decisions and results
  • Why manage decisions independently of process? What’s the advantage? There are several…
  • Why manage decisions independently of process? What’s the advantage? There are several…
  • Transcript

    • 1. More Intelligent Processes
      Choices and Results
      James Taylor, CEO
      Decision Management Solutions
    • 2. In processes as in life,
      the choices you make
      affect your results.
    • 3. What price, terms and conditions
      should we offer this customer?
      Should we decline or approve
      this application?
    • 4. These choices are your strongest
      points of leverage for
      improving your process results.
    • 5. In day-to-day operations, choices are made
      in enormous numbers, adding up to a
      big impact on your bottom line.
    • 6. Another word for “choices” is “decisions.”
      My topic and area of expertise is the discipline called:“Decision Management.”
    • 7. Decision Management principles
      Explicitly identify the decisions in your operational processes
      Manage these decisions independently of your processes using business rules and analytics
    • 8. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Underwrite policy
      Complete new business processing
    • 9. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Underwrite policy
      Complete new business processing
    • 10. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Decision:
      Is this application complete and correct?
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Underwrite policy
      Complete new business processing
    • 11. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Decision:
      Is this the type of vessel we insure?
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Decision:
      Is this application
      a high fraud risk?
      Underwrite policy
      Complete new business processing
    • 12. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Underwrite policy
      Complete new business processing
    • 13. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Decision:
      How risky?
      Eliminate
      unqualified applicants
      Decision:
      What coverage?
      Conduct physical inspection
      Decision:
      What price?
      Underwrite policy
      Decision:
      What exclusions?
      Complete new business processing
    • 14. Example:Underwriting a vessel
      Gather policy application data
      Validate application
      Eliminate
      unqualified applicants
      Conduct physical inspection
      Underwrite policy
      Complete new business processing
    • 15. Why manage decisions independently?
      Faster, easier, independent changes to decision logic
      • Coordination of decisions across channels and products
      • 16. Simpler processes that are much easier to manage
      • 17. Higher employee productivity and resource utilization
      • 18. Analytic insights for making better decisions
      • 19. 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.
    • 20. 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
    • 21. 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
    • 22. 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.
    • 23. 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.
    • 24. Example: Process simplification
      BEFORE
      AFTER
      Decision:
      What type
      of applicant is this?
    • 25. 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.
    • 26. HighIncome
      High income,low-moderate education
      *
      Moderate-high educationlow-moderate income
      *
      Low-moderateincome, young
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      *
      Education
      *
      *
      High
      *
      *
      *
      *
      *
      *
      *
      *
      *
      Age
      *
      *
      *
      *
      *
      *
      *
      *
      Moderate education,low income, middle-aged
      *
      *
      High
      Low education,low income
      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
    • 27. 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.
    • 28. Closed-loopdecisioning
    • 29. Closed-loopdecisioning
    • 30. The power of Decision Management
      Faster, easier, independent
      • Coordination
      • 31. Simpler processes
      • 32. Higher productivity
      • 33. Analytic insights
      • 34. 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
    • 35.
      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

    ×