1.
REALISING
AMBITIONS
Operational Decision Management
An Introduction
Alcedo Coenen
Dec 2014

2.
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting

3.
Decisions are taken every day everywhere

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.
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.
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.
• 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.
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.
Behavioral rules
- Shaping ongoing business
activity
- Multiple points of time
Decision rules
- Choice out of options
- Single point of time

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.
• 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.
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting

13.
Surveillance Market
Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Operational Decision
Management

14.
Surveillance Market
The 3 main reasons
(CHANGE)
MANAGEMENT
OPERATIONS
Process improvements
Operational Decision
Management

15.
Surveillance Market
Typical applications of Decision
Management
(CHANGE)
MANAGEMENT
OPERATIONS
Eligibility
Validation
Risk
Fraud
Opportunity
Calculation
Source:

16.
Surveillance Market
Decision Management
(CHANGE)
MANAGEMENT
OPERATIONS
Operational Decision
Management
Contracts
Company
policy
Regulations
IMPLEMENTATIONS
Systems, communications, forms, etc.

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.
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.
Manage business rules
19
Repository of policies
Repository of operational
decisions
processes Business
decisions
Data models
Repository of implementations
(CMDB)
search design publishanalyse

20.
Making impact analysis
20
Policy change
Policy analysis
Assess which decisions are
affected
Derive which implementations
are affected
Design change roadmap

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.
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting

23.
Decision Management & BPM –
perspective 1
Decision as part of process
Process
Decision

24.
Decision Management & BPM –
perspective 2
Decision as steering of process
Process
Decision

25.
REALISINGAMBITIONS
Contents
• Decision concept
• Decision Management
• Decision Management & BPM
• Decision Harvesting

26.
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)

27.
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for gateways in
BPMN definitions

28.
Decision harvesting
• Finding decisions
– Process-centric
– Event-centric
– Product-centric
– Legacy systems (code)
– Metrics (KPI’s)
• Search for events to be
evaluated

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.
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.
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.
REALISINGAMBITIONS
alcedo.coenen@it-eye.nl
IT-eye BV
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NL 3439 ML Nieuwegein
The Netherlands
+31 30-6028280
www.it-eye.nl
@iteye_nl