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3 Critical Elements of a Digital Business Platform

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Successful digital programs extend their Digital Business Platforms with 3 critical elements: decision modeling, predictive analytics and business rules technology. Coordinating these technologies into a virtual decision hub. Decision Management automates and improves every digital interaction and delivers agile, data-driven, real-time outcomes.

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3 Critical Elements of a Digital Business Platform

  1. 1. @jamet123 #decisionmgt © 2017 Decision Management Solutions James Taylor, CEO 3 Critical Elements of a Digital Business Platform
  2. 2. @jamet123 #decisionmgt © 2017 Decision Management Solutions 2 James Taylor Decision Management Solutions ▶ We work with clients to improve their business by applying business rules & analytic technology to automate & improve decisions. ▶ Vendor-neutral ▶ Original DMN submitter ▶ Using decision modeling since 2011 ▶ I have spent the last 15 years focused on the use of Decision Management to develop analytical systems
  3. 3. @jamet123 #decisionmgt © 2017 Decision Management Solutions 3 AGENDA ▶ Digital Enterprises And Digital Decisioning ▶ Decision Modeling Clearly Define the Desired Outcome ▶ Business Rules Management Business Empowerment and Safe Agility ▶ Predictive Analytics (and AI) Data-driven Decision-making ▶ Put It All Together A Virtual Decision Hub
  4. 4. @jamet123 #decisionmgt © 2017 Decision Management Solutions 4 Digital Enterprises And Digital Decisioning
  5. 5. @jamet123 #decisionmgt © 2017 Decision Management Solutions 5 A Typical Platform For A Digital Enterprise Digital Platform Digital Channels Digital Workers Digital Monitoring Digital Processes
  6. 6. @jamet123 #decisionmgt © 2017 Decision Management Solutions 6 Challenges In Digital Underwriting Digital Platform Digital Channels Digital Workers Digital Monitoring Digital Processes Unresponsive: No binding quotes Inefficient: First-in First-out assignment to Underwriters Lack of Transparency: No visibility into how
  7. 7. @jamet123 #decisionmgt © 2017 Decision Management Solutions 7 Challenges In Digital Claims Digital Platform Digital Channels Digital Workers Digital Monitoring Digital Processes Unresponsive: Too long to pay Inefficient: Too few claims are auto- adjudicated Lack of Feedback: No use of analytics to improve results
  8. 8. @jamet123 #decisionmgt © 2017 Decision Management Solutions 8 Challenges In Digital Marketing Digital Platform Digital Channels Digital Workers Digital Monitoring Digital Processes Inflexible: One size fits no-one Inflexible: Takes Marketing too long to change the program Lack of Feedback: Analytics don’t adapt, learn from successes
  9. 9. @jamet123 #decisionmgt © 2017 Decision Management Solutions 9 Addresses Challenges In Digital Enterprises: Add Digital Decisioning Digital Platform Digital Channels Digital Workers Digital Monitoring Digital Processes Lack of Transparency Inflexible Inefficient Lack of Feedback Unresponsive Transparent, compliant Safe Agility Business Empowerment Data-driven Real-Time Actions
  10. 10. @jamet123 #decisionmgt © 2017 Decision Management Solutions 10 Digital Decisioning: 3 Critical Elements Decision Modeling Business Rules Predictive Analytics
  11. 11. @jamet123 #decisionmgt © 2017 Decision Management Solutions 11 Decision Modeling Clearly Define The Desired Outcome
  12. 12. @jamet123 #decisionmgt © 2017 Decision Management Solutions 12 Standards-based Decision Models Show What’s Involved In Digital Decisions Reuse across digital channels Knowledge Required Structure of Decision-making Data Required
  13. 13. @jamet123 #decisionmgt © 2017 Decision Management Solutions 13 Decision Models Link Business Outcomes to Digital Decisions Improve Cross-Sell A Total Number of Orders Most Recent Order Total Orders last 12 months Lifetime Order Total Customer Status 1 >= 5 < 90 days > $10,000 - Gold 2 >=10 < 180 days > $20,000 - Gold 3 >= 20 < 360 days > $40,000 - Gold 4 - < 180 days - > $1,000,000 Gold 5 - - - > $2,000,000 Gold Customer Value Determination
  14. 14. @jamet123 #decisionmgt © 2017 Decision Management Solutions 14 Business Rules Management Business Empowerment and Safe Agility
  15. 15. @jamet123 #decisionmgt © 2017 Decision Management Solutions 15 Business Rules: Fundamental To Decisions Business Rules are Total Number of Orders Most Recent Order Total Orders last 12 months Lifetime Order Total Customer Status >= 5 < 90 days > $10,000 Gold >=10 < 180 days > $20,000 Gold >= 20 < 360 days > $40,000 Gold < 180 days > $1,000,000 Gold > $2,000,000 Gold “ ” Statements of the actions you should take when certain business conditions are true.
  16. 16. @jamet123 #decisionmgt © 2017 Decision Management Solutions 16 Business Rules Management Systems Answer Critical Questions How Will We Decide Next Time? How Did We Decide Last Time? What Happens If We Change How We Decide? Do We All Agree How We Decide?
  17. 17. @jamet123 #decisionmgt © 2017 Decision Management Solutions 17 Decision Models And Business Rules: Business Empowerment, Safe Agility ▶ Decision model accessibility empowers the business ▶ Decision models, business rules enable safe agility: ▶ Break down complex problems ▶ Define each piece with business rules ▶ Make it safe and easy to change them Sources and drivers of change are clear Impact and ownership are clear Navigate to the rules that have to change
  18. 18. @jamet123 #decisionmgt © 2017 Decision Management Solutions 18 Predictive Analytics (and AI) Data-driven Decision-making
  19. 19. @jamet123 #decisionmgt © 2017 Decision Management Solutions 19 To Maximize Digital Decisioning Answer More Complex Questions ▶ Will this car be a total loss? ▶ Is this transaction fraudulent? ▶ Is this customer upset or not? ▶ Is this email a complaint? ▶ Which offer will this prospect accept? Apply Predictive Analytics and AI Be the Hero
  20. 20. @jamet123 #decisionmgt © 2017 Decision Management Solutions 20 Use Predictive Analytics, AI To Digitize And Automate More Decisions ▶ Predictive Analytics ▶ Extract insight from data ▶ Validate rules with data ▶ Find patterns, segments ▶ Turn uncertainty into usable probability ▶ AI ▶ Learn by example ▶ Handle natural language ▶ Process images ▶ Detect tone, personality
  21. 21. @jamet123 #decisionmgt © 2017 Decision Management Solutions 21 Data-Driven, Real-Time Actions Decision Traditional New External ✓ ✓ Internal ✓ ✓ Enrich With Analytics Select Consistent, Precise, Actions In Real-Time, Across All Channels Learn Continuously Start with data Add Policies, Regulations Best Practices and Preferences Enterprises must stop wasting time and money on unactionable analytics. Mike Gualtieri VP
  22. 22. @jamet123 #decisionmgt © 2017 Decision Management Solutions 22 Put It All Together: A Virtual Decision Hub
  23. 23. @jamet123 #decisionmgt © 2017 Decision Management Solutions 23 External Data Big Data Business Rules Continuous Improvement ▶ Customers use multiple channels ▶ A common service suggests actions ▶ Using business rules and analytics/AI in combination ▶ These are continuously improved ▶ And managed by a decision model ▶ That reuses common decisions across channels, processes ▶ Automated with business rules ▶ And analytics, AI Analytics and AI An Example Of Digital Decisioning Next Best Action
  24. 24. @jamet123 #decisionmgt © 2017 Decision Management Solutions 24 Digital Decisioning: A Virtual Decision Hub MARKETING TOUCHPOINTS SALES TOUCHPOINTS SERVICE TOUCHPOINTS CLAIMS TOUCHPOINTS DECISIONS MARKETING CAMPAIGN SYSTEM DECISIONS SALES SYSTEM DECISIONS UNDER- WRITING SYSTEM DECISIONS POLICY ADMIN SYSTEM DECISIONS CUSTOMER RELATIONSHIP MANAGEMENT DECISIONS CLAIMS MANAGEMENT SYSTEM DECISION HUB (VIRTUAL) DECISIONS DECISIONSDECISIONS DECISIONS CUSTOMERS Purchase a Policy Sales: Qualification Decisions Sales: Up-sell/ Cross-sell Decisions Underwriting: Risk Assessment Decisions Sales: Pricing Decisions EXAMPLEDECISION MODELS ▪ Decisions required across multiple functions (systems) need to be ‘coordinated’ ▪ Conceptualized and designed through Decision Models; Implemented through a virtual ‘Decision Hub’ for management.
  25. 25. @jamet123 #decisionmgt © 2017 Decision Management Solutions 25 Decision Management Solutions
  26. 26. @jamet123 #decisionmgt © 2017 Decision Management Solutions 26 Decision Management Solutions ▶ Fortune 500 clients in insurance, financial services, manufacturing, telecommunications, travel, health care, health management, and retail ▶ Hands-on Training - Over 800 trained ▶ Highly skilled bench ▶ Decision Modeling Software DecisionsFirst Modeler ▶ Original co-submitter of the Decision Model and Notation (DMN) Standard ▶ Extensive vendor relationships, vendor neutral
  27. 27. @jamet123 #decisionmgt © 2017 Decision Management Solutions 27 Pilot Digital Decisioning ▶ Deliverables ▶ Cloud-based decision service for making offers ▶ Business ownership of key decision- making logic ▶ Impact analysis and testing capability for business owners ▶ Decision impact and business performance dashboard ▶ Criteria for production deployment
  28. 28. @jamet123 #decisionmgt © 2017 Decision Management Solutions 28 Questions?
  29. 29. Thank You @jamet123 #decisionmgt © 2017 Decision Management Solutions For more on Decision Management, go to: decisionmanagementsolutions.com Decision Management Solutions www.decisionmanagementsolutions.com Contact Us: info@decisionmanagementsolutions.com james@decisionmanagementsolutions.com +1 650 400 3029

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