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Decision Analytics as Embedded Decision
    Analysis
    David Matheson
    President and CEO
    SmartOrg, Inc.




1     © 2000-2013 SmartOrg. | Confidential and Proprietary.
Why is decision analysis not as prevalent as
accounting?




2   © 2000-2013 SmartOrg. | Confidential and Proprietary.
Our profession has a weak value proposition.

What we offer: good decisions                                  What people want: result

              The Goal—
              Decision Quality



                    Infor-
                    mation

    Alter-
                                 Values
    natives

                     DQ
                                 Rea-
     Frame
                                 soning

                   Commit-
                   ment




3      © 2000-2013 SmartOrg. | Confidential and Proprietary.
Spam filtering is among the largest scale highest
impact applications of decision analysis




     The Way Forward
      The Way Forward                       Embedded Decision Analysis

4   © 2000-2013 SmartOrg. | Confidential and Proprietary.
Embedded Decision Analysis as Decision
  Analytics

         Dat
         Da
      otth tafro
       ohe a fro
          r yy m
          erss      m
               sste
                t em
                   mss
                                                                                         Project
                                            System and
                                             System and                                  Management
                                         process resting on
                                         process resting on           Prioritization,
                                                                       Prioritization,   Stage Gate
                                         Decision Analysis
                                          Decision Analysis           Key metrics
                                                                       Key metrics
                                            foundations
                                             foundations


              from
            a fro
           ta
                 m
         Da t ople
         Da e ople                              Decision Processes:
           pe
           p                                    Budgeting
                                                Planning
Business
Activities                                    Decision Analyst Advantages:
                                              Knowledge of decision structure and human processes
                                              Our systems do modeling and decision analysis

  5     © 2000-2013 SmartOrg. | Confidential and Proprietary.
Embracing Decision Analytics by shifting our
thinking.

Before                                                      After
DA Consultant                                               Embedded DA
Interventions                                               Ordinary business process
Power tools for specialists                                 Scalable tools for non-DA users
Decision Focused                                            Learning Focused
One-time                                                    Iterative / ongoing
Expert judgment                                             Consumes & provides data
Careful assessments                                         Good enough assessments
Decision Analysis / DQ                                      Role of DA/DQ in evaluation

Good Decisions                                              Valuable Results




6   © 2000-2013 SmartOrg. | Confidential and Proprietary.
Embracing Decision Analytics by shifting our
thinking.

Before                                                      After
DA Consultant                                               Embedded DA
Interventions                                               Ordinary business process
Power tools for specialists                                 Scalable tools for non-DA users
Decision Focused                                            Learning Focused
One-time                                                    Iterative / ongoing
Expert judgment                                             Consumes & provides data
Careful assessments                                         Good enough assessments
Decision Analysis / DQ                                      Role of DA/DQ in evaluation

Good Decisions                                              Valuable Results




6   © 2000-2013 SmartOrg. | Confidential and Proprietary.

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Embedded Decision Analysis as Decision Analytics

  • 1. Decision Analytics as Embedded Decision Analysis David Matheson President and CEO SmartOrg, Inc. 1 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 2. Why is decision analysis not as prevalent as accounting? 2 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 3. Our profession has a weak value proposition. What we offer: good decisions What people want: result The Goal— Decision Quality Infor- mation Alter- Values natives DQ Rea- Frame soning Commit- ment 3 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 4. Spam filtering is among the largest scale highest impact applications of decision analysis The Way Forward The Way Forward Embedded Decision Analysis 4 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 5. Embedded Decision Analysis as Decision Analytics Dat Da otth tafro ohe a fro r yy m erss m sste t em mss Project System and System and Management process resting on process resting on Prioritization, Prioritization, Stage Gate Decision Analysis Decision Analysis Key metrics Key metrics foundations foundations from a fro ta m Da t ople Da e ople Decision Processes: pe p Budgeting Planning Business Activities Decision Analyst Advantages: Knowledge of decision structure and human processes Our systems do modeling and decision analysis 5 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 6. Embracing Decision Analytics by shifting our thinking. Before After DA Consultant Embedded DA Interventions Ordinary business process Power tools for specialists Scalable tools for non-DA users Decision Focused Learning Focused One-time Iterative / ongoing Expert judgment Consumes & provides data Careful assessments Good enough assessments Decision Analysis / DQ Role of DA/DQ in evaluation Good Decisions Valuable Results 6 © 2000-2013 SmartOrg. | Confidential and Proprietary.
  • 7. Embracing Decision Analytics by shifting our thinking. Before After DA Consultant Embedded DA Interventions Ordinary business process Power tools for specialists Scalable tools for non-DA users Decision Focused Learning Focused One-time Iterative / ongoing Expert judgment Consumes & provides data Careful assessments Good enough assessments Decision Analysis / DQ Role of DA/DQ in evaluation Good Decisions Valuable Results 6 © 2000-2013 SmartOrg. | Confidential and Proprietary.