3 Reasons Decision Modeling with DMN makes for better Business Analysis

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Building a decision model using the new Decision Model and Notation (DMN) makes for better business analysis and improved system requirements. Experience shows that there are three main reasons for defining decision requirements as part of an overall requirements process:

1. Current requirements approaches don't tackle the decision-making that is increasingly important in information systems.
2. While important for all software development projects, decision requirements are especially important for projects adopting business rules and advanced analytic technologies.
3. Decisions are a common language across business, IT and analytic organizations improving collaboration, increasing reuse, and easing implementation.
In this webinar presentation, James Taylor, CEO of Decision Management Solutions, demonstrates why you should model decision requirements, how to use DMN and how to get started quickly with decision modeling. Watch the webinar recast here: https://decisionmanagement.omnovia.com/archives/183108

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3 Reasons Decision Modeling with DMN makes for better Business Analysis

  1. 1. 3 Reasons why Decision Modeling with DMN Makes for Better Business Analysis JamesTaylor CEO
  2. 2. ©2014 Decision Management Solutions 1 Your Presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 11 years championing Decision Management and developing Decision Management Systems
  3. 3. 2©2014 Decision Management Solutions Why Does Decision Modeling With DMN Make For Better Business Analysis? Specifies decision making in processes and systems Identifies opportunities for Business Rules and Business Analytics Improves collaboration and re-use
  4. 4. Why Model Decisions?
  5. 5. Existing Techniques Don’t Do Decisions Use Cases • Key steps are decisions • Decisions not modeled Process Models • Decisions made by tasks • Peanut Butter Rules Requirements Lists • Decisions are required • How is not modeled 4©2014 Decision Management Solutions
  6. 6. ©2014 Decision Management Solutions 5 A Simple Example Without Decisions
  7. 7. ©2014 Decision Management Solutions 6 The Same Example With A Decision How risky is the policyholder? How risky is the claim? What’s the right action?
  8. 8. This government agency used decision models to understand its requirements for a new package selection effort point. The combination of process models AND decision models was key. ©2014 Decision Management Solutions 7 Decision Models & Process Models
  9. 9. Decisions Are A Common Language Business Decision 8©2014 Decision Management Solutions
  10. 10. This decision model of best practices for deciding if a claim should be paid automatically, examined or referred for fraud ensures front life staff are taking advantage of analytic fraud detection. ©2014 Decision Management Solutions 9 Analytic Decision Models in Claims
  11. 11. ©2014 Decision Management Solutions 10 Decisions Increase Understanding Uncover Gaps Automation Opportunities Data Requirements Shared Understanding Rule Sources
  12. 12. This client built a decision model with over 300 decision nodes to manage a complex eligibility decision involving thousands of rules. The graphical decision model facilitated discussions and made it easy to manage and navigate. ©2014 Decision Management Solutions 11 Decision Models & Business Rules
  13. 13. What is DMN?
  14. 14. “… provide a common notation that is readily understandable by all business users... DMN creates a standardized bridge for the gap between the business decision design and decision implementation.” Use Cases 1. Modeling Human Decision-making 2. Modeling Requirements for automated Decision-making 3. Implementing automated Decision-making Specification  In Beta, released expected Q3-2014  Decision Management Solutions, IBM, Oracle,TIBCO, FICO, Escape Velocity, KUL, Model Systems, KPI,Visumpoint  IIBA Business Analyst Body of Knowledge Guide v3 Decision Modeling and Notation (DMN) 13©2014 Decision Management Solutions
  15. 15. Integrates with process models at decision points Maps to implementation details DMN In Context 14©2014 Decision Management Solutions
  16. 16. ©2014 Decision Management Solutions 15 DMN Delivers Decision Requirements Know-how • How to make it • How to improve it Precision • Exactly how? • How to avoid technical details? Automation • All automated? • If not, how much can be and for whom? • • Where does it come Information What is needed? from?
  17. 17. Decision Modeling And BABOK® v3 BABOK® Guide, Version 3.0 ©2014 Decision Management Solutions Excerpted from the BABOK®, © IIBA Perspectives Business Intelligence Business Process Management
  18. 18. How To Use DMN
  19. 19. ©2014 Decision Management Solutions Decision Modeling Steps Identify decisions Describe decisions Model decision requirements Complete and implement 18
  20. 20. ©2014 Decision Management Solutions 19 Many Ways To Discover Decisions Business Events Legacy Systems Business Processes Business Intelligence BrainstormKPIs Micro and hidden Decisions
  21. 21. Describe Decisions Define Decisions with A question Possible answers Q: Which marketing offer should be presented to this customer during this interaction? A: Any current, available marketing offer in the database 20©2014 Decision Management Solutions
  22. 22. Put Decisions In Context Processes Processes require decisions Tasks execute decisions Events Trigger decisions Systems Implement decisions Know which business processes will be improved by your rules Know when your decisions will be needed Know how you will have to deploy your rules 21©2014 Decision Management Solutions
  23. 23. Decisions Require Information “Determine Parts Availability” requires BOM and Inventory information “ValidateTax Return” requires Return and Citizen information “Refer claim for fraud” requires Claim and Provider information 22©2014 Decision Management Solutions
  24. 24. Decisions Require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “ValidateTax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud 23©2014 Decision Management Solutions
  25. 25. ©2014 Decision Management Solutions Decompose The Decisioning How do we make a decision? Guidelines, policy Expertise Regulations Predictive Analytic Models Data Mining Results What is required to make decision? Information The results of other decisions 24
  26. 26. Decisions Require Decisions Is this a good time to make an offer? Which product should the offer be for? How valuable an offer? These decisions must be made first 25©2014 Decision Management Solutions
  27. 27. 26©2014 Decision Management Solutions
  28. 28. 27©2014 Decision Management Solutions Manages Automation
  29. 29. 28©2014 Decision Management Solutions Shows Impact
  30. 30. Documented sources Coherent rule groups Ownership, volatility 29©2014 Decision Management Solutions Manages Business Rules
  31. 31. 30©2014 Decision Management Solutions Ties Analytics To Outcomes
  32. 32. How To Get Started Quickly
  33. 33. Begin With The Decision In Mind 32©2014 Decision Management Solutions
  34. 34. What is needed Multi-user, Collaborative Integrated Database Shared Database, Reusable components Automated Consistency and Completeness Checks Living Repository Use The Right Modeling Tools 33©2014 Decision Management Solutions What you have Single User Text and Diagrams kept separate Manual Reuse Hand Checking One-Shot Documents Standards-based
  35. 35. ©2014 Decision Management Solutions 34 DecisionsFirst Modeler Collaborative, social, cloud-based platform Focused on Decision Models Based on DMN DecisionsFirst Modeler
  36. 36. Starter Services Model Building Service - give us your document, we build an initial model Joint Requirements Development Service - online, interactive modeling sessions providing coaching and advice as you build your model Jump Start Service - 2 days onsite designed to make your project and team quickly productive and self- sufficient Quick turn around, time-boxed, fixed price 35©2014 Decision Management Solutions
  37. 37. Questions?
  38. 38. Recap and Next Steps
  39. 39. ©2014 Decision Management Solutions 38 Decision Modeling With DMN Better Business Analysis through Models decision making in processes and systems Identifies opportunities for Business Rules and Business Analytics Improves collaboration and re-use
  40. 40. Succeed with Decisions
  41. 41. Thank You 40 JamesTaylor, CEO james@decisionmanagementsolutions.com DecisionsFirst Modeler decisionmanagementsolutions.com/decisionsfirst-modeler

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