Why is decision modeling the burning issue among business analysts? IIBA Bay Area Event


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Decision Modeling is a new Technique in v3 of the BABOK(r) Guide. It has also become a key element of the Business Intelligence and Business Process Management Perspectives. At the June 2014 IIBA Bay Area Event, James Taylor presents Decision Modeling as a technique (following the new Decision Model and Notation standard), shows how modeling decisions improves business analysis and requirements specification, and discusses the role of decision modeling in business process, business rules, business intelligence and analytic projects.

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Why is decision modeling the burning issue among business analysts? IIBA Bay Area Event

  1. 1. June 25, 2014 Bay Area Chapter
  2. 2. Guiding Principles Join the Community. Develop your Capabilities. Advance your Career. Bay Area Chapter
  3. 3. Your Presenter James Taylor • CEO of Decision Management Solutions • Helping clients improve their business by applying analytic technology to automate & improve decisions • Spent the last 11 years championing Decision Management and developing Decision Management Systems Bay Area Chapter
  4. 4. Why is Decision Modeling a burning issue among Business Analysts?JamesTaylor CEO
  5. 5. BA’s Under Pressure Real Time Analytics Change Alignment ©2014 Decision Management Solutions
  6. 6. Human Decision Human Decision Process A Process B Process C Decisions Pause Processes ©2014 Decision Management Solutions
  7. 7. Complexity Value Automated Decisions Expert Decisions Manual Decisions Decisions And Real-Time Response ©2014 Decision Management Solutions
  8. 8. Human Decision Human Decision Automated Decisions StraightThrough Processing Manage Rules Handle Exceptions Process A Process B Process C A B C Automated Decisions Drive STP ©2014 Decision Management Solutions
  9. 9. ©2014 Decision Management Solutions Processes Get Hard To Change
  10. 10. ©2014 Decision Management Solutions Simplify Them With Decisions
  11. 11. Business Rules Can Help Too ©2014 Decision Management Solutions But not if they are spread through the process like Peanut Butter Or dumped into a big bucket of rules
  12. 12. ©2014 Decision Management Solutions How Can Analytics Make A Difference? Operational Environment Analytic Environment Decision
  13. 13. Models Are A Common Language Business Decision ©2014 Decision Management Solutions
  14. 14. Decision Models To The Rescue Enables StraightThrough Processing Improves Agility Streamlines business processes Makes business rules effective Integrates Advanced Analytics Improves Alignment ©2014 Decision Management Solutions
  15. 15. A Short Introduction to Decision Modeling
  16. 16. Decision Modeling And BABOK® v3 BABOK® Guide, Version 3.0 ©2014 Decision Management Solutions Excerpted from the BABOK®, © IIBA Perspectives Business Intelligence Business Process Management Techniques Decision Modeling is one of only a handful of new analysis techniques
  17. 17. Decision Modeling in BABOK® 3 How repeatable business decisions are made Decision models show how data and knowledge are combined to make a specific decision These models can … involve the breaking down of a more complex decision into its components Complex decisions can be modeled graphically Information Sub-decisions Business rules Analytical insight Linked to business processes…. ©2014 Decision Management Solutions
  18. 18. “… 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 1. Modeling Human Decision-making 2. Modeling Requirements for automated Decision-making 3. Implementing automated Decision-making Specification  In Beta, released expected Q3-2014  Decision Management Solutions, IBM, Oracle,TIBCO, FICO, Escape Velocity, KUL, Model Systems, KPI,Visumpoint Decision Modeling and Notation (DMN) ©2014 Decision Management Solutions
  19. 19. Integrates with process models at decision points Maps to implementation details DMN In Context ©2014 Decision Management Solutions
  20. 20. ©2014 Decision Management Solutions Decision Modeling Steps Identify decisions Describe decisions Model decision requirements Complete and implement
  21. 21. ©2014 Decision Management Solutions Many Ways To Identify Decisions Business Events Legacy Systems Business Processes Business Intelligence BrainstormKPIs Micro and hidden Decisions
  22. 22. Describe Decisions Define Decisions with A question Possible answers Q: Which marketing offer should be presented to this customer during this interaction? A: Any current, available marketing offer in the database ©2014 Decision Management Solutions
  23. 23. Specify Decision Context Processes Activities require decisions Events Trigger decisions Systems Implement decisions Organizational Units Make decisions Own decisions Are impacted by decisions Know which business processes will be improved by your rules or analytics Know when your analytics might be calculated Know how you will have to deploy your rules Know who will have to believe your analytics and own your rules ©2014 Decision Management Solutions
  24. 24. Specify Decision Impact Objectives impacted by decision Customer Churn Customer Profitability Multiple Products … … 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? * … ©2014 Decision Management Solutions
  25. 25. Decisions Require Information “Determine Parts Availability” requires BOM and Inventory information “ValidateTax Return” requires Return and Citizen information “Refer claim for fraud” requires Claim and Provider information ©2014 Decision Management Solutions
  26. 26. Decisions Require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “ValidateTax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud ©2014 Decision Management Solutions
  27. 27. Many Different Kinds of Knowledge Decision ©2014 Decision Management Solutions
  28. 28. ©2014 Decision Management Solutions Decompose The Decisioning How do we make a decision? Guidelines, policy Expertise Regulations Predictive Analytic Models Data Mining Results What is required to make decision? Information The results of other decisions
  29. 29. Decisions Require Decisions Is this a good time to make an offer? Which product should the offer be for? How valuable an offer? These decisions must be made first ©2014 Decision Management Solutions
  30. 30. ©2014 Decision Management Solutions
  31. 31. What’s The Role of Decision Models
  32. 32. ©2014 Decision Management Solutions A Business Process Without Decisions
  33. 33. Separating Decisions simplifies Modeling Decisions brings clarity ©2014 Decision Management Solutions
  34. 34. This government agency used decision models to understand its requirements for a new package selection effort point. The combination of process models AND decision models was key. ©2014 Decision Management Solutions Decision Models & Process Models
  35. 35. Documented sources Coherent rule groups Ownership, volatility ©2014 Decision Management Solutions Manages Business Rules
  36. 36. ©2014 Decision Management Solutions Manages Rule Iterations
  37. 37. This client built a decision model with over 300 decision nodes to manage a complex eligibility decision involving thousands of rules. The graphical decision model facilitated discussions and made it easy to manage and navigate. ©2014 Decision Management Solutions Decision Models & Business Rules
  38. 38. ©2014 Decision Management Solutions Ties Analytics To Outcomes
  39. 39. Decision-Centric Dashboard Design This Enterprise IT Quality Group used decision modeling to design new analytic-driven dashboards to better support decision making and integration and visibility with a wider range of data sources. ©2014 Decision Management Solutions
  40. 40. This decision model of best practices for deciding if a claim should be paid automatically, examined or referred for fraud ensures front life staff are taking advantage of analytic fraud detection. ©2014 Decision Management Solutions Analytic Decision Models in Claims
  41. 41. ©2014 Decision Management Solutions Decision Models Build Understanding Uncover Gaps Automation Opportunities Data Requirements Shared Understanding Rule Sources Analytics
  42. 42. Questions?
  43. 43. Recap
  44. 44. Decision Modeling Enables StraightThrough Processing Improves Agility Integrates Advanced Analytics Improves Alignment A B C ©2014 Decision Management Solutions
  45. 45. Getting Started Identify Decisions Early Tie Decisions to Project Objectives Include Decision Models inYour Requirements Process ©2014 Decision Management Solutions
  46. 46. What is needed Multi-user, Collaborative Integrated Database Shared Database, Reusable components Automated Consistency and Completeness Checks Living Repository Use The Right Modeling Tools ©2014 Decision Management Solutions What you have Single User Text and Diagrams kept separate Manual Reuse Hand Checking One-Shot Documents Standards-based
  47. 47. ©2014 Decision Management Solutions How We Can Help Services Consulting Decision Modeling Training and Workshops Online On-site DecisionsFirst Modeler Collaborative decision modeling software Standards Based,Vendor Neutral Free BasicVersion & Tutorial Questions? Comments? james@decisionmanagementsolutions.com BPMInstitute.org UC Irvine Extension
  48. 48. Thank You Bay Area Chapter