How how Apple Vacations applied Decision Management to redesign the consumer experience and create a “smart system” that would bring the new capabilities of business rules management, analytics, big data, predictive modeling, complex event processing and natural language processing into the organization.
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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
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4. 1 The Consumer Direct Channel
2 Approaching a New Business Model
3 Discovering Decisions Framework
4 Decision Management Technology
5 Benefits
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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?
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9. 1 Finding the
Best Deal is
Playing
the Lottery
Easy to get a
LOT of advice.
Rarely the
same advice.
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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
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14. 2
Redesign
Consumer
Experience
And Create a
“SMART” System.
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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?
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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.”
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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?
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18. 2
The Classics on Business Process Design.
Assume ‘Classic’ (Legacy) Technology.
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19. 2
Text
New Approach to Business Process Design.
Decisions, First.
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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
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21. 1 The Consumer Direct Channel
2 Approaching a New Business Model
3 Discovering Decisions Framework
4 Decision Management Technology
5 Benefits
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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!
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25. 3 Suitable decisions for automation
Repeatable Non trivial
Candidate for Measurable
automation business impact
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28. 3 Operational decisions are the focal point of risk
Risk is not acquired in “big
lumps” but one transaction
at a time
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29. 3 Operational decisions maximize customer value
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30. 3 Operational decisions scale for large impact
Strategic
Decision
Tactical
Decision
Operational
Decision
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31. 3
Here is how the Decisions
Framework
was used at Apple Vacations.......
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32. 3 Decision Discovery Conducted
Executive Management, Department Heads and Front
Line Staff
Assembled an Inventory-Tree of Decisions
Identified Operational Decisions for Automation
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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
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34. 3 Understand your decisions
✓Name
✓Description
✓A question
✓A defined set of allowable
answers
✓Key facts like volume,
complexity, latency
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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
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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.
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38. 3 What is the Best Vacation?
Components? Price? Match Needs? Trusted?
Capture & Automate Knowledge
Product Dev Revenue Mgt Sales Agent Customer Service
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39. 1 The Consumer Direct Channel
2 Approaching a New Business Model
3 Discovering Decisions Framework
4 Decision Management Technology
5 Benefits
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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
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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
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42. 1 The Consumer Direct Channel
2 Approaching a New Business Model
3 Discovering Decisions Framework
4 Decision Management Technology
5 Benefits
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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.
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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
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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
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