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A New Approach to Business Design




      Gagan Saxena, CIO, Apple Vacations
James Taylor, CEO, Decision Management Solutions
Your Presenters

           James Taylor                             Gagan Saxena
✓ CEO, Decision Management Systems          ✓ CIO, Apple Vacations
✓ Helps clients improve their business by   ✓ Business Innovation with Architecture,
    automating & improving Decisions            Processes & Technology
✓   Spent the last 9 years championing      ✓   Discovering Decision Management
    Decision Management
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               3
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               4
1




    5
1   PhoCusWright Research
    (2012) says,

    “...online bookings were
     projected to comprise only
     11% of cruise and 5% of
     traditional vacation
     packages.”
    In the Internet Age.
    Why?
        6
1
    This is where you want to be,
                               but…




                   7
1




    Filling out Forms is
                 WORK!
1   Finding the
    Best Deal is
    Playing
    the Lottery
      Easy to get a
      LOT of advice.
      Rarely the
      same advice.
9
1
    Need to pick a vacation
    where EVERYONE has
    fun.

              Easy?
              Really?
1
                 90%+
     Vacation Shoppers
       Abandon Online
    Research and Seek



    Travel Agents.
      offering Product, Price
      and Trust
1
    Apple Vacations partners with the largest network of Travel Agents.


    Uniquely situated for Creating an Online
    Travel Agent.




                                                  Revolutionize
                                    Self-Service for Consumers
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               13
2

    Redesign
    Consumer
    Experience




                   And Create a
                 “SMART” System.


                 14
2
                       What is a “SMART” System?
                            Business Rules Management
                          Analytics        Big Data
                                  Predictive Modeling
                                   Complex Event Processing
                         Natural Language Processing

    How do we bring these capabilities into the Organization?


                             15
2




            Information Technology coined in 1958 (US-BEA).
                Double every 18 months per Moore’s Law.
       In 2006, we moved into the Second Half of the Chessboard.
    “Exponential Growth has confounded our intuition & expectations.”
                                   16
2




      “The solution is organizational innovation: co-inventing new
    organizational structures, processes, and business models that
        leverage ever-advancing technology and human skills.”



                         Where’s the Manual?



                                  17
2




    The Classics on Business Process Design.
    Assume ‘Classic’ (Legacy) Technology.

                    18
2




                    Text



    New Approach to Business Process Design.
              Decisions, First.

                     19
2
                          Interrupted Processing

      A                         B                          C
    Process         Human                 Human          Process
                               Process
                    Decision              Decision



              New
                    Straight Through Processing
       Automated
       Decisions



                                                      Manage Rules &
                      A         B         C          Handle Exceptions

                                 20
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               21
Decision Management Systems
3


    Agile




                       Analytic




                                  Adaptive

                          22
3   Decisions




                Making Choices or Selections
                           and
                       Taking Action

                2328
3   Business is a series of Decisions

          Strategic Decisions        Which Business?


          Tactical Decisions         Which Market Segment?


          Operational Decisions        What Product/ Price?


                                        Automate!


                                24
3   Suitable decisions for automation



             Repeatable                   Non trivial




            Candidate for                 Measurable
             automation                 business impact
                                25
3   Operational decisions are everywhere




                                26
3   Operational decisions implement strategy




                                27
3   Operational decisions are the focal point of risk




                                         Risk is not acquired in “big
                                         lumps” but one transaction
                                         at a time




                                    28
3   Operational decisions maximize customer value




                               29
3   Operational decisions scale for large impact


                                                   Strategic
                                                   Decision
                                                    Tactical
                                                    Decision


                                                   Operational
                                                    Decision

                                30
3




    Here is how the Decisions
    Framework
    was used at Apple Vacations.......




                       31
3              Decision Discovery Conducted

    Executive Management, Department Heads and Front
                       Line Staff


          Assembled an Inventory-Tree of Decisions


        Identified Operational Decisions for Automation


                            32
3   Target Decision-Making on KPI’s

       Strategy defines KPIs




                 KPIs measure operations




                          Operational decisions affect KPIs


           The link between Decisions and KPIs is critical
                                        33
3   Understand your decisions

    ✓Name
    ✓Description

    ✓A question
    ✓A defined set of allowable
      answers

    ✓Key facts like volume,
      complexity, latency



                                  34
3   Decompose the Decisioning

         What is required to make Decisions?
           • Guidelines, Policy Documents
           • Human Expertise
           • Regulations
           • Existing System Logic
           • Analytic insight
           • Data Describing the Case
           • External Reference Data


            • Results   of other decisions
                                   35
Example: Decision Dependency Diagram
3




                               36
3                            What is the Best Vacation?




      Components?         Price?               Match Needs?             Trusted?




            Product Dev   Revenue Mgt        Sales Agent   Customer Service


        Today either the Decisions are being made for you,
    Or you are given a lot of data to make your own Decisions.
                                        37
3                            What is the Best Vacation?




    Components?             Price?               Match Needs?                   Trusted?

                     Capture & Automate Knowledge




              Product Dev   Revenue Mgt        Sales Agent   Customer Service

                                          38
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               39
The Technology Driven Process
4
               Components?




                 Pricing?
                             Automated
                              Decisions               Rules                     Experts
                             Technology                                         Optimize
               MatchNeeds?                                                       Rules

    Vacation
    Shopping
                Trusted?


                                           Record             Run Base & Predictive
                                          Decisions                Analytics
                                           Taken



                                   40
4                    Decisions in a broader architectural context
                                               Application Context

      Business
     Intelligence     Business Process                                        Enterprise
                                                 Event Processing
                        Management                                            Application

                                                                                              Performance
                                                                                              Management
         Data                            Decision Service
    Infrastructure
                                                                                   Decision
                                             Predictive
      Predictive     Business Rules                            Optimization        Analysis
                                             Analytics
      Analytics



                                             Enterprise Platform

                                                          41
1   The Consumer Direct Channel

2   Approaching a New Business Model

3   Discovering Decisions Framework

4   Decision Management Technology

5   Benefits


               42
5       When all components go-live later in 2012,

         Online Vacation Shopping Decisions will be
                 controlled by Consumers.

    Apple Vacations will be able to Scale its Knowledge &
             Expertise to ease your Vacation.

     Agile, Adaptive & Analytical Processes with lower
                          Costs.


                            43
5    Bring insight and analytics to bear on operations

    Operational
     Systems
                                                       Decision
                                                     Management
                                                     Systems link
                                 Decision             analytics to
                                                      operational
                                                       systems

     Analytic
     Systems                     44
Learn more about Decision Management

✓ Blog JTonEDM.com
✓ White Papers and Services
   decisionmanagementsolutions.com


✓ Report on Platform Technologies
   decisionmanagementsolutions.com/
                                           For more information about this new release, visit
   decision-management-technology           www.decisionmanagementsolutions.com/book




                                      45
                                                                                                54
Contact Us

           James Taylor                     Gagan Saxena

  CEO, Decision Management Systems         CIO, Apple Vacations

james@decisionmanagementsolutions.com     gsaxena@applevac.com
          Twitter @jamet123                 Twitter @Gagan_S




                                     46

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A New Approach to Business Design at Apple Vacations

  • 1. A New Approach to Business Design Gagan Saxena, CIO, Apple Vacations James Taylor, CEO, Decision Management Solutions
  • 2. Your Presenters James Taylor Gagan Saxena ✓ CEO, Decision Management Systems ✓ CIO, Apple Vacations ✓ Helps clients improve their business by ✓ Business Innovation with Architecture, automating & improving Decisions Processes & Technology ✓ Spent the last 9 years championing ✓ Discovering Decision Management Decision Management
  • 3. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 3
  • 4. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 4
  • 5. 1 5
  • 6. 1 PhoCusWright Research (2012) says, “...online bookings were projected to comprise only 11% of cruise and 5% of traditional vacation packages.” In the Internet Age. Why? 6
  • 7. 1 This is where you want to be, but… 7
  • 8. 1 Filling out Forms is WORK!
  • 9. 1 Finding the Best Deal is Playing the Lottery Easy to get a LOT of advice. Rarely the same advice. 9
  • 10. 1 Need to pick a vacation where EVERYONE has fun. Easy? Really?
  • 11. 1 90%+ Vacation Shoppers Abandon Online Research and Seek Travel Agents. offering Product, Price and Trust
  • 12. 1 Apple Vacations partners with the largest network of Travel Agents. Uniquely situated for Creating an Online Travel Agent. Revolutionize Self-Service for Consumers
  • 13. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 13
  • 14. 2 Redesign Consumer Experience And Create a “SMART” System. 14
  • 15. 2 What is a “SMART” System? Business Rules Management Analytics Big Data Predictive Modeling Complex Event Processing Natural Language Processing How do we bring these capabilities into the Organization? 15
  • 16. 2 Information Technology coined in 1958 (US-BEA). Double every 18 months per Moore’s Law. In 2006, we moved into the Second Half of the Chessboard. “Exponential Growth has confounded our intuition & expectations.” 16
  • 17. 2 “The solution is organizational innovation: co-inventing new organizational structures, processes, and business models that leverage ever-advancing technology and human skills.” Where’s the Manual? 17
  • 18. 2 The Classics on Business Process Design. Assume ‘Classic’ (Legacy) Technology. 18
  • 19. 2 Text New Approach to Business Process Design. Decisions, First. 19
  • 20. 2 Interrupted Processing A B C Process Human Human Process Process Decision Decision New Straight Through Processing Automated Decisions Manage Rules & A B C Handle Exceptions 20
  • 21. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 21
  • 22. Decision Management Systems 3 Agile Analytic Adaptive 22
  • 23. 3 Decisions Making Choices or Selections and Taking Action 2328
  • 24. 3 Business is a series of Decisions Strategic Decisions Which Business? Tactical Decisions Which Market Segment? Operational Decisions What Product/ Price? Automate! 24
  • 25. 3 Suitable decisions for automation Repeatable Non trivial Candidate for Measurable automation business impact 25
  • 26. 3 Operational decisions are everywhere 26
  • 27. 3 Operational decisions implement strategy 27
  • 28. 3 Operational decisions are the focal point of risk Risk is not acquired in “big lumps” but one transaction at a time 28
  • 29. 3 Operational decisions maximize customer value 29
  • 30. 3 Operational decisions scale for large impact Strategic Decision Tactical Decision Operational Decision 30
  • 31. 3 Here is how the Decisions Framework was used at Apple Vacations....... 31
  • 32. 3 Decision Discovery Conducted Executive Management, Department Heads and Front Line Staff Assembled an Inventory-Tree of Decisions Identified Operational Decisions for Automation 32
  • 33. 3 Target Decision-Making on KPI’s Strategy defines KPIs KPIs measure operations Operational decisions affect KPIs The link between Decisions and KPIs is critical 33
  • 34. 3 Understand your decisions ✓Name ✓Description ✓A question ✓A defined set of allowable answers ✓Key facts like volume, complexity, latency 34
  • 35. 3 Decompose the Decisioning What is required to make Decisions? • Guidelines, Policy Documents • Human Expertise • Regulations • Existing System Logic • Analytic insight • Data Describing the Case • External Reference Data • Results of other decisions 35
  • 37. 3 What is the Best Vacation? Components? Price? Match Needs? Trusted? Product Dev Revenue Mgt Sales Agent Customer Service Today either the Decisions are being made for you, Or you are given a lot of data to make your own Decisions. 37
  • 38. 3 What is the Best Vacation? Components? Price? Match Needs? Trusted? Capture & Automate Knowledge Product Dev Revenue Mgt Sales Agent Customer Service 38
  • 39. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 39
  • 40. The Technology Driven Process 4 Components? Pricing? Automated Decisions Rules Experts Technology Optimize MatchNeeds? Rules Vacation Shopping Trusted? Record Run Base & Predictive Decisions Analytics Taken 40
  • 41. 4 Decisions in a broader architectural context Application Context Business Intelligence Business Process Enterprise Event Processing Management Application Performance Management Data Decision Service Infrastructure Decision Predictive Predictive Business Rules Optimization Analysis Analytics Analytics Enterprise Platform 41
  • 42. 1 The Consumer Direct Channel 2 Approaching a New Business Model 3 Discovering Decisions Framework 4 Decision Management Technology 5 Benefits 42
  • 43. 5 When all components go-live later in 2012, Online Vacation Shopping Decisions will be controlled by Consumers. Apple Vacations will be able to Scale its Knowledge & Expertise to ease your Vacation. Agile, Adaptive & Analytical Processes with lower Costs. 43
  • 44. 5 Bring insight and analytics to bear on operations Operational Systems Decision Management Systems link Decision analytics to operational systems Analytic Systems 44
  • 45. Learn more about Decision Management ✓ Blog JTonEDM.com ✓ White Papers and Services decisionmanagementsolutions.com ✓ Report on Platform Technologies decisionmanagementsolutions.com/ For more information about this new release, visit decision-management-technology www.decisionmanagementsolutions.com/book 45 54
  • 46. Contact Us James Taylor Gagan Saxena CEO, Decision Management Systems CIO, Apple Vacations james@decisionmanagementsolutions.com gsaxena@applevac.com Twitter @jamet123 Twitter @Gagan_S 46