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What is a Computer Controlled
Operational Decision?... And Why
Should I Care?
LUIS CARRASCO-CORTES
IBM COGNITIVE PROCESS TRANSFORMATION LEADER, CANADA AND CARIBBEAN.
ALL OPINIONS ARE MY OWN
1
Why should I care? I’m in
business…
 This is the real question! ... The one that really matters
 The answer is simple: Companies are making millions
using this technology
 One company calls it “The money machine”
10/12/2015
2
Why should I care? I’m in
government…
 The answer is simple: Institutions are delighting their
constituents
 A city coordinates public safety using this technology
 A state government cuts issuing permits wait times by 75%
10/12/2015
3
There once was this customer who
wanted to return an item for a full refund
that she had used for far too long….
 So she called your returns department… first agent said
“No”
 Second agent said “No… Third said “No”
 Fourth said “Yes”!... Why?
10/12/2015
4
Why does this happen?
 99% of the time is because the business rules that
trigger the decisions you make are manual
 Because they are manual, they result in inconsistent
outcomes…
 That can cost you a lot of money on aggregate
10/12/2015
5
What are “Operational
Decisions?” – A few examples:
10/12/2015
6
Should we
give a
discount?
Should we
approve…?
Will that valve
break?
Have we
reached a
threshold?
Is the weather
causing
dangers?
Is this a good
customer?
Do I need to
reroute
through
traffic?
Should we
deny that
claim?
Is there a
public safety
risk here?
Is this an
instance of
Fraud?
To get an excellent financial
return you need to:
 Perform hundreds to many 100’s of thousands
of decision PER MINUTE
 Only at these levels does a computer surpass
human ability to make decisions
10/12/2015
7
BUT! … Don’t underestimate how many
operational decisions you actually make
 Unless you are a company where people still call you to
transact business…
 The impact of mobile and social has most probably grown
the number of daily interactions exponentially
 All these interactions drive at least one decision.
10/12/2015
8
Business decisions need business
rules in order to work
 A computer cannot make decisions unless you have fed it
Business Rules
 Business rules need to be written in natural language so
business people can understand them
 Example: If “client’s credit” is “excellent” then “approve sale”
otherwise “send to credit department”
10/12/2015
9
Yes but I have coded all these business
rules into my systems by custom coding
them …
 Can any ***business person*** change a rule in under 1 hour?
 Or…. Do you need to open an IT project to make the change?
 If you want speed, rules programmed in software code will not
be flexible.
10/12/2015
10
In order to drive my business decisions I
need data from multiple systems…
 You need a technology that will seamlessly integrate into any IT
system Internal or External
 Additionally, the decision engine must be able to read from and
write to, any system
10/12/2015
11
But we are spread out in
multiple geographies
 You can enter a rule in English…
 But a French location will see the rule in French
 A Chinese location will see it in Chinese
 And so on for 12 additional languages
10/12/2015
12
But we are spread out in multiple
geographies… and some countries have
specific rules…
 Imagine in your home country 100% of the rules from HQ apply
 But in another country only 75% apply
 You need a technology that allows local managers to build their
own rules for the remaining 25%
10/12/2015
13
What if I don’t have the
technical skills in house?
 We recommend you acquire cloud based technology:
 No need for dedicated IT
 No hidden costs
 Pay by the use and scale at the rate you grow
10/12/2015
14
Where can I get more
information?
 Click on these links to see how this technology could help you
run your operations
 IBM Operational Decision Manager on Cloud
 Blueworks Live Process Discovery and Modelling Platform
10/12/2015
15
Thank
you
10/12/2015
16

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What is a computer controlled operational decision and why should I care

  • 1. What is a Computer Controlled Operational Decision?... And Why Should I Care? LUIS CARRASCO-CORTES IBM COGNITIVE PROCESS TRANSFORMATION LEADER, CANADA AND CARIBBEAN. ALL OPINIONS ARE MY OWN 1
  • 2. Why should I care? I’m in business…  This is the real question! ... The one that really matters  The answer is simple: Companies are making millions using this technology  One company calls it “The money machine” 10/12/2015 2
  • 3. Why should I care? I’m in government…  The answer is simple: Institutions are delighting their constituents  A city coordinates public safety using this technology  A state government cuts issuing permits wait times by 75% 10/12/2015 3
  • 4. There once was this customer who wanted to return an item for a full refund that she had used for far too long….  So she called your returns department… first agent said “No”  Second agent said “No… Third said “No”  Fourth said “Yes”!... Why? 10/12/2015 4
  • 5. Why does this happen?  99% of the time is because the business rules that trigger the decisions you make are manual  Because they are manual, they result in inconsistent outcomes…  That can cost you a lot of money on aggregate 10/12/2015 5
  • 6. What are “Operational Decisions?” – A few examples: 10/12/2015 6 Should we give a discount? Should we approve…? Will that valve break? Have we reached a threshold? Is the weather causing dangers? Is this a good customer? Do I need to reroute through traffic? Should we deny that claim? Is there a public safety risk here? Is this an instance of Fraud?
  • 7. To get an excellent financial return you need to:  Perform hundreds to many 100’s of thousands of decision PER MINUTE  Only at these levels does a computer surpass human ability to make decisions 10/12/2015 7
  • 8. BUT! … Don’t underestimate how many operational decisions you actually make  Unless you are a company where people still call you to transact business…  The impact of mobile and social has most probably grown the number of daily interactions exponentially  All these interactions drive at least one decision. 10/12/2015 8
  • 9. Business decisions need business rules in order to work  A computer cannot make decisions unless you have fed it Business Rules  Business rules need to be written in natural language so business people can understand them  Example: If “client’s credit” is “excellent” then “approve sale” otherwise “send to credit department” 10/12/2015 9
  • 10. Yes but I have coded all these business rules into my systems by custom coding them …  Can any ***business person*** change a rule in under 1 hour?  Or…. Do you need to open an IT project to make the change?  If you want speed, rules programmed in software code will not be flexible. 10/12/2015 10
  • 11. In order to drive my business decisions I need data from multiple systems…  You need a technology that will seamlessly integrate into any IT system Internal or External  Additionally, the decision engine must be able to read from and write to, any system 10/12/2015 11
  • 12. But we are spread out in multiple geographies  You can enter a rule in English…  But a French location will see the rule in French  A Chinese location will see it in Chinese  And so on for 12 additional languages 10/12/2015 12
  • 13. But we are spread out in multiple geographies… and some countries have specific rules…  Imagine in your home country 100% of the rules from HQ apply  But in another country only 75% apply  You need a technology that allows local managers to build their own rules for the remaining 25% 10/12/2015 13
  • 14. What if I don’t have the technical skills in house?  We recommend you acquire cloud based technology:  No need for dedicated IT  No hidden costs  Pay by the use and scale at the rate you grow 10/12/2015 14
  • 15. Where can I get more information?  Click on these links to see how this technology could help you run your operations  IBM Operational Decision Manager on Cloud  Blueworks Live Process Discovery and Modelling Platform 10/12/2015 15