A New Approach to Business Design at Apple Vacations

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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. 1. A New Approach to Business Design Gagan Saxena, CIO, Apple VacationsJames Taylor, CEO, Decision Management Solutions
  2. 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. 3. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 3
  4. 4. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 4
  5. 5. 1 5
  6. 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. 7. 1 This is where you want to be, but… 7
  8. 8. 1 Filling out Forms is WORK!
  9. 9. 1 Finding the Best Deal is Playing the Lottery Easy to get a LOT of advice. Rarely the same advice.9
  10. 10. 1 Need to pick a vacation where EVERYONE has fun. Easy? Really?
  11. 11. 1 90%+ Vacation Shoppers Abandon Online Research and Seek Travel Agents. offering Product, Price and Trust
  12. 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. 13. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 13
  14. 14. 2 Redesign Consumer Experience And Create a “SMART” System. 14
  15. 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. 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. 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. 18. 2 The Classics on Business Process Design. Assume ‘Classic’ (Legacy) Technology. 18
  19. 19. 2 Text New Approach to Business Process Design. Decisions, First. 19
  20. 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. 21. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 21
  22. 22. Decision Management Systems3 Agile Analytic Adaptive 22
  23. 23. 3 Decisions Making Choices or Selections and Taking Action 2328
  24. 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. 25. 3 Suitable decisions for automation Repeatable Non trivial Candidate for Measurable automation business impact 25
  26. 26. 3 Operational decisions are everywhere 26
  27. 27. 3 Operational decisions implement strategy 27
  28. 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. 29. 3 Operational decisions maximize customer value 29
  30. 30. 3 Operational decisions scale for large impact Strategic Decision Tactical Decision Operational Decision 30
  31. 31. 3 Here is how the Decisions Framework was used at Apple Vacations....... 31
  32. 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. 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. 34. 3 Understand your decisions ✓Name ✓Description ✓A question ✓A defined set of allowable answers ✓Key facts like volume, complexity, latency 34
  35. 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
  36. 36. Example: Decision Dependency Diagram3 36
  37. 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. 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. 39. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 39
  40. 40. The Technology Driven Process4 Components? Pricing? Automated Decisions Rules Experts Technology Optimize MatchNeeds? Rules Vacation Shopping Trusted? Record Run Base & Predictive Decisions Analytics Taken 40
  41. 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. 42. 1 The Consumer Direct Channel2 Approaching a New Business Model3 Discovering Decisions Framework4 Decision Management Technology5 Benefits 42
  43. 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. 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. 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. 46. Contact Us James Taylor Gagan Saxena CEO, Decision Management Systems CIO, Apple Vacationsjames@decisionmanagementsolutions.com gsaxena@applevac.com Twitter @jamet123 Twitter @Gagan_S 46

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