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Improve your Process Models by Modeling Decisions
The document discusses the importance of decision modeling in business processes to enhance efficiency, agility, and clarity. It highlights how well-defined decision models can reduce process complexity and facilitate automation. Additionally, it emphasizes the integration of analytics and business rules to improve decision-making outcomes.
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Improve your Process Models by Modeling Decisions
- 1. Improve Your ProcessModels By Modeling Decisions James Taylor CEO
- 2. Business Process ValueProposition Efficiency Consistency Cost Reduction Customer Experience Agility
- 3. Complexity Challenges Efficiency Consistency Cost Reduction Customer Experience Agility
- 4. Smarter Simpler MoreAgile Decision Modeling makes Processes…
- 5. Agenda Decisions CauseProcess Complexity Introducing Decision Modeling Impact on Process Modeling © Decision Management Solutions, 2014 4
- 6. Decisions Cause ProcessComplexity
- 7. Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50 © Decision Management Solutions, 2014 6
- 8. Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50 Previous Heart Attack, Existing Cancer Good Medical Record © Decision Management Solutions, 2014 7
- 9. Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50 Previous Heart Attack, Existing Cancer Good Medical Record New Customer Long-standing Customer 1 or fewer Claims Multiple Claims © Decision Management Solutions, 2014 8
- 10. Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50 Previous Heart Attack, Existing Cancer Good Medical Record New Customer Long-standing Customer 1 or fewer Claims Multiple Claims No Class I or II sports Class II sport Class I sport © Decision Management Solutions, 2014 9
- 11. Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50 Previous Heart Attack, Existing Cancer Good Medical Record New Customer Long-standing Customer 1 or fewer Claims Multiple Claims No Class I or II sports Class II sport Class I sport © Decision Management Solutions, 2014 Embedding decisions causes complexity 10
- 12. Process low-risk applicant Process high-risk applicant Process medium-risk applicant Low risk Medium risk High risk Determine applicant type 11 © Decision Management Solutions, 2014 Identifying decisions simplifies processes
- 13. © Decision ManagementSolutions, 2014 12 Many similar processes cause complexity
- 14. Human Decision Human Decision Process A Process B Process C Decisions Pause Processes © Decision Management Solutions, 2014 13
- 15. Human Decision Human Decision Automated Decisions Straight Through Processing Manage Rules Handle Exceptions Process A Process B Process C A B C Automated Decisions Drive STP © Decision Management Solutions, 2014 14
- 16. © Decision ManagementSolutions, 2014 Complexity Value Automated Decisions Expert Decisions Manual Decisions 15 Business Rules Advanced Analytics
- 17. Business Rules CanImprove Processes © Decision Management Solutions, 2014 But not if they are spread through the process like Peanut Butter Or dumped into a big bucket of rules
- 18. © Decision ManagementSolutions, 2014 Analytics Can Improve Processes Business Processes Analytic Environment But only if they can be applied to the process effectively 17
- 19. Decision Models ToThe Rescue Remove process complexity Enable straight through processing design Improve agility Streamlines business processes Make business rules effective Integrate advanced analytics © Decision Management Solutions, 2014 18
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- 21. © Decision ManagementSolutions, 2014 Repeatable decisions Non trivial decisions With a measurable business impact That are candidates for automation 20
- 22. 21 © DecisionManagement Solutions, 2014
- 23. Decision Modeling AndBABOK® v3 BABOK® Guide, Version 3.0 © Decision Management Solutions, 2014 Excerpted from the BABOK®, © IIBA Perspectives Business Intelligence Business Process Management Techniques Decision Modeling is one of only a handful of new analysis techniques
- 24. Decision Modeling inBABOK® 3 How repeatable business decisions are made Decision models show how data and knowledge are combined to make a specific decision These models can … involve the breaking down of a more complex decision into its components Complex decisions can be modeled graphically Information Sub-decisions Business rules Analytical insight Linked to business processes…. © Decision Management Solutions, 2014 23
- 25. “… provide acommon 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 OMG Specification Submitted by Decision Management Solutions, IBM, Oracle, TIBCO, FICO, Escape Velocity, KUL, Model Systems, KPI, Visumpoint Decision Modeling and Notation (DMN) © Decision Management Solutions, 2014 24
- 26. © Decision ManagementSolutions, 2014 25 Manual Business Processes Decisions Where does the process stop? Work lists, queues Manual intervention Escalation, referral Not all manual tasks are decisions but many are Even if you don’t think you will automate these decisions, identify them
- 27. © Decision ManagementSolutions, 2014 26 Hidden Business Process Decisions Process models are often used to model decision- making Key clues for decisions: Gateway complexity – gateways linked to gateways Lots of business rules spread throughout a process that might change independently of the process Step back and identify the decision involved
- 28. © Decision ManagementSolutions, 2014 Decisions Require Information “Determine Parts Availability” requires BOM and Inventory information “Validate Tax Return” requires Return and Citizen information “Refer claim for fraud” requires Claim and Provider information 27
- 29. © Decision ManagementSolutions, 2014 Decisions Require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “Validate Tax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud 28
- 30. © Decision ManagementSolutions, 2014 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 29
- 31. © Decision ManagementSolutions, 2014 A Decision Model Decision Input Data Dependent Decisions Authority 30
- 32. A Complete DefinitionDefinition Question and Allowed Answers Links to KPIs and Objectives Context Processes, Events, Systems Organizational roles Decomposition 31 © Decision Management Solutions, 2014
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- 34. © Decision ManagementSolutions, 2014 A Business Process Without Decisions 33
- 35. © Decision ManagementSolutions, 2014 Model Decisions to Bring Clarity Separating Decisions simplifies Modeling Decisions brings clarity 34
- 36. Integrates with processmodels at decision points Maps to implementation details DMN In Context © Decision Management Solutions, 2014 35
- 37. This government agencyused decision models to understand its requirements for a new package selection effort point. The combination of process models AND decision models was key. © Decision Management Solutions, 2014 Decision Models & Process Models 36
- 38. © Decision ManagementSolutions, 2014 Manages Business Rules Documented sources Coherent rule groups Ownership, volatility 37
- 39. © Decision ManagementSolutions, 2014 Manages Rule Iterations 38
- 40. © Decision ManagementSolutions, 2014 Traces Impact of Changes 39
- 41. This client builta 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. © Decision Management Solutions, 2014 Decision Models & Business Rules 40
- 42. © Decision ManagementSolutions, 2014 Ties Analytics To Outcomes 41
- 43. This decision modelof 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. © Decision Management Solutions, 2014 Analytic Decision Models in Claims 42
- 44. © Decision ManagementSolutions, 2014 Decision Models Build Understanding Uncover Gaps Automation Opportunities Data Requirements Shared Understanding Rule Sources Analytics 43
- 45. © Decision ManagementSolutions, 2014 44 Separate Models Adds Agility v1 v2 v3 v4 v5 v1 v2 v3 v4 v5 v1 v2 v1 v2 v3 v4 v5 v6 v1 v1 v2 v3 v4 v5 Stable business process Variable change cycle Matched change cycle
- 46. Process and DecisionModeling Decisions first class object Decisions linked, not buried New process is simplified Independent process & decision changes Decisions are reusable Decisions are explicitly modeled Decisions an afterthought Decisions buried in process Process becomes complex Decisions only evolve with process Hard to share decisions Hard to model decisions precisely Processes Models Only Process AND Decision Models 45 © Decision Management Solutions, 2014
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- 48. Decision Modeling EnablesStraight Through Processing Improves Agility Integrates Advanced Analytics Improves Alignment A B C © Decision Management Solutions, 2014 47
- 49. Getting Started IdentifyDecisions Early Tie Decisions to Project Objectives Model Decisions and Processes © Decision Management Solutions, 2014 48
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- 52. Getting Started IdentifyDecisions Early Tie Decisions to Project Objectives Model Decisions and Processes © Decision Management Solutions, 2014 51
- 53. © Decision ManagementSolutions, 2014 Learn More Consulting Decision Modeling Decision Management Training and Workshops Online DecisionsFirst Modeler Collaborative decision modeling software Standards Based, Vendor Neutral Free Trial & Tutorial Questions? Comments? http://decisionmanagementsolutions.com james@decisionmanagementsolutions.com Business Rules Predictive Analytics On-site 52