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Introduction to operational decision management

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An introduction to "Operational Decision Management" as the linking pin between policy management and implementation management.

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Introduction to operational decision management

  1. 1. REALISING AMBITIONS Operational Decision Management An Introduction Alcedo Coenen Dec 2014
  2. 2. REALISINGAMBITIONS Contents • Decision concept • Decision Management • Decision Management & BPM • Decision Harvesting
  3. 3. Decisions are taken every day everywhere
  4. 4. Decision as a type Decision ontology Decision Possible Outcomes Actor typeRules Possible Situations has apply to is based on is executed by Authority (Source) has Domain knowledge represents Taxonomy is structured in Fact types is expressed in Instance of a decision Actual Outcome Actual Situation Applied rules Actual actorConsiderations © Alcedo Coenen, Amsterdam 2014 Version 0.8
  5. 5. A business decision is defined as a conclusion that a business arrives at through business logic which the business is interested in managing. Von Halle, Barbara, and Larry Goldberg. 2009. The Decision Model: A Business Logic Framework Linking Business and Technology.
  6. 6. a decision is the act of determining an output value (the chosen option), from a number of input values, using logic defining how the output is determined from the inputs OMG. 2013. Decision Model and Notation ( DMN ) Specification
  7. 7. • Decision = a determination requiring know-how or expertise; the resolving of a question by identifying some correct or optimal choice • Operational Business Decision = a determination requiring operational business know-how or expertise; the resolving of an operational business question by identifying some correct or optimal choice Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.
  8. 8. Business Rules Decisions Behavorial Rules Decision Rules A wool suit must be worn on a cold workday when it isn’t raining. A service representative must be assigned to a customer that has placed an order. - Choice out of options - Single point of time - Shaping ongoing business activity - Multiple points of time Maintained in rulebooks Maintained in decision tables Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.
  9. 9. Behavioral rules - Shaping ongoing business activity - Multiple points of time Decision rules - Choice out of options - Single point of time
  10. 10. • Operational decision management (ODM) is a set of technologies and methods that allow you to automate your day-to-day business decisions without compromising their accuracy and effectiveness. ODM lets you document, implement, change, and govern the repeatable decisions that control your business operations.
  11. 11. • EDM refers to the application of rule- based systems -- in conjunction with analytic models -- to automate, improve, and distribute decision-making capabilities across an organization. • EDM is an emerging important discipline, due to an increasing need to automate high-volume decisions across the enterprise and to impart precision, consistency, and agility in the decision- making process. (http://www.cutter.com/research/2005/edge050125.html)
  12. 12. REALISINGAMBITIONS Contents • Decision concept • Decision Management • Decision Management & BPM • Decision Harvesting
  13. 13. Surveillance Market Decision Management (CHANGE) MANAGEMENT OPERATIONS Operational Decision Management
  14. 14. Surveillance Market The 3 main reasons (CHANGE) MANAGEMENT OPERATIONS Process improvements Operational Decision Management
  15. 15. Surveillance Market Typical applications of Decision Management (CHANGE) MANAGEMENT OPERATIONS Eligibility Validation Risk Fraud Opportunity Calculation Source:
  16. 16. Surveillance Market Decision Management (CHANGE) MANAGEMENT OPERATIONS Operational Decision Management Contracts Company policy Regulations IMPLEMENTATIONS Systems, communications, forms, etc.
  17. 17. Surveillance Market Decision Management (CHANGE) MANAGEMENT OPERATIONS Operational Decision Management Contracts Company policy Regulations IMPLEMENTATIONS Systems, communications, forms, etc. HOW? • Linking policies, decisions and implementations • Impact analysis for policy change • Designing decision structures • Central management of business rules WHY? • One interpretation • Governance on coherence • Rules + data + processes + systems • One responsibility for • Impact analysis • compliance audits
  18. 18. Managing coherence 18 policy Business Decision Sub- decision Rules Sub- decision Rules Sub- decision Rules Business Process Data Models System A Rule Engine Working instruction Communication LogicalDecisionModel Database
  19. 19. Manage business rules 19 Repository of policies Repository of operational decisions processes Business decisions Data models Repository of implementations (CMDB) search design publishanalyse
  20. 20. Making impact analysis 20 Policy change Policy analysis Assess which decisions are affected Derive which implementations are affected Design change roadmap
  21. 21. Designing decisions 21 Policy analysis Identify main decisions Identifysub decisions Identifiy involved data Design decision tables Link with business processes Test / simulate decisions Deliver decision models for implementation Identify related business processes Identify related data models
  22. 22. REALISINGAMBITIONS Contents • Decision concept • Decision Management • Decision Management & BPM • Decision Harvesting
  23. 23. Decision Management & BPM – perspective 1 Decision as part of process Process Decision
  24. 24. Decision Management & BPM – perspective 2 Decision as steering of process Process Decision
  25. 25. REALISINGAMBITIONS Contents • Decision concept • Decision Management • Decision Management & BPM • Decision Harvesting
  26. 26. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s)
  27. 27. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s) • Search for gateways in BPMN definitions
  28. 28. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s) • Search for events to be evaluated
  29. 29. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s) • Search for products and services offered to the customer • Typical decisions: – Order acceptance – Customer acceptance – Discounts – Stock checks – Claim handling
  30. 30. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s) • Search for functions with – Business meaningful output – Complex algorithms
  31. 31. Decision harvesting • Finding decisions – Process-centric – Event-centric – Product-centric – Legacy systems (code) – Metrics (KPI’s) • Search for KPI’s and dashboards • Identify goals
  32. 32. REALISINGAMBITIONS alcedo.coenen@it-eye.nl IT-eye BV Wattbaan 51-1 NL 3439 ML Nieuwegein The Netherlands +31 30-6028280 www.it-eye.nl @iteye_nl

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