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Re-inventing                          Business                     RequirementsJames Taylor       CEO                     ...
Your presenters James Taylor                     Don Perkins  CEO of Decision                  Independent Business Rule  ...
AGENDA         1 2     Why Reinvent     Requirements?                     Beginning with                     Decisions    ...
Why ReinventRequirements?
Operational and analytic systems1. Operational systems are built in a variety of ways                     Application Cont...
Powerful technologies are underutilized1. Business rules are forced into business processes                               ...
Decision Management is the  proven approach used to manage decisions and applybusiness rules and predictive     analytics ...
Decision Management maximizes ROI                                                             Decision Management links th...
Success requires a clear target                             © Decision Management Solutions, 2012
Success requires collaboration                  Business                             © Decision Management Solutions, 2012
Begin with decisions
Decisions            Making choices or            selections and taking            action                   © Decision Man...
Suitable decisions  Repeatable          Non trivial  Measurable                     Candidate for   business              ...
Different types of operational decision   Eligibility   Validation         Calculation     Risk          Fraud         Opp...
These Decisions Are Made BecauseA business process cannot   A particular event has     A person must chooseprogress any fu...
Use Questions to Define Decisions Besides a Name and Description Define Decisions with   A question   Possible answers Add...
Put decisions in a business context
Discovering Decisions              Business Processes Brainstorm                                                     Perfo...
Target decision-making on KPIs                          Strategy defines KPIs                        KPIs measure operatio...
Decision making confuses processes      Age<21                                 No Class I or II sports                    ...
Identifying decisions simplifies them                                Low risk                                             ...
Decisions in context Processes                       Know which business  Activities require decisions   processes will be...
Detailed Decision   Requirements
Good Decision RequirementsInformation            Know-how• What is needed?      • How to make it• Where does it come   • H...
Decompose the decisioning What is required to make decision?  Information  Guidelines, policy  Expertise  Regulations  Pre...
A Complete Decision Definition Definition   Question and Allowed Answers Purpose and Value   Links to KPIs and Objectives ...
Discovering Decisions From Process• A business process model can be an effective  source for identifying high-level decisi...
High-Level Decision & Dependencies
Simple Supporting Decision             • Larger node is the subject               of the diagram             • Context est...
A More Involved Example              • Multiple layers of                decision                dependencies             ...
Full Diagram Depicting All States
A Tricky Decision Decomposition• A seemingly simple decision was complicated  by lots of exceptions to the basic business ...
Initial Attempts        • Business rule requirements          initially gathered as an          unorganized list        • ...
Successful Decision Decomposition                  • Partial solution by                    eliminating                   ...
Rule Family Template• Business rules are defined in rule families• Multiple conditions, one conclusion• A message explaini...
Sample Business Rules• Simplified version with exceptions removed• Key elements are  – Negative rules contain business rul...
Questions?
A Final Thought
Decisions First                  Find the decisions that                  matter to your business and                  mod...
Thank You                James Taylor, CEOjames@decisionmanagementsolutions.com
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Reinventing business requirements with decision management

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Effectively capturing and managing requirements is critical in any IT project. Business analysts and others gathering requirements know how to capture and document processes, data and user tasks. But what about the decisions at the heart of your business? How can you effectively identify, document and model the repeatable, operational decisions crucial to success with business rules and predictive analytics? In this webinar we will share practical advice developed from real-world customer projects.

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Reinventing business requirements with decision management

  1. 1. Re-inventing Business RequirementsJames Taylor CEO with Decision Management
  2. 2. Your presenters James Taylor Don Perkins CEO of Decision Independent Business Rule Management Solutions Consultant Works with clients to improve their Applies and mentors a business by applying analytic decision-centric approach to technology business rule analysis, to automate & improve specification, and authoring decisions 2 decades experience Spent the last 9 years building rule-based systems developing the concept of Decision Management © Decision Management Solutions, 2012
  3. 3. AGENDA 1 2 Why Reinvent Requirements? Beginning with Decisions 3 Putting Decisions in Context 4 5 6 Detailed Questions and A Final Thought Decision Answers Requirements
  4. 4. Why ReinventRequirements?
  5. 5. Operational and analytic systems1. Operational systems are built in a variety of ways Application Context 3. Reports and queries are Business Process Enterprise Management Event Processing Application intended to improve decision making Business Intelligence Data Infrastructure Performance 2. Data is extracted for analysis Management 4. Dashboards are used to monitor performance © Decision Management Solutions, 2012
  6. 6. Powerful technologies are underutilized1. Business rules are forced into business processes Predictive Analytics Business Rules Application Context 2. Predictive analytics are Business Process Enterprise Management Event Processing Application forced into reports or left stand-alone Business Intelligence Data Infrastructure Performance Management 3. The effectiveness of decision-making is not Decision Analysis tracked or improved © Decision Management Solutions, 2012
  7. 7. Decision Management is the proven approach used to manage decisions and applybusiness rules and predictive analytics effectively © Decision Management Solutions, 2012
  8. 8. Decision Management maximizes ROI Decision Management links these technologies to the application context Application Context Business Business Process Enterprise Intelligence Event Processing Management Application Performance Management Decision Management Data Decision Predictive Infrastructure Business Rules Analysis Analytics Decision Management ties these technologies into a coherent approach for better results Decision Management ties how decisions are being made Decision Management allows and what can be done to decision performance to be tracked, improve them directly to analyzed and ultimately improved business performance © Decision Management Solutions, 2012
  9. 9. Success requires a clear target © Decision Management Solutions, 2012
  10. 10. Success requires collaboration Business © Decision Management Solutions, 2012
  11. 11. Begin with decisions
  12. 12. Decisions Making choices or selections and taking action © Decision Management Solutions, 2012
  13. 13. Suitable decisions Repeatable Non trivial Measurable Candidate for business automation impact © Decision Management Solutions, 2012
  14. 14. Different types of operational decision Eligibility Validation Calculation Risk Fraud Opportunity © Decision Management Solutions, 2012
  15. 15. These Decisions Are Made BecauseA business process cannot A particular event has A person must chooseprogress any further occurred and must be between a number ofunless they are made handled options © Decision Management Solutions, 2012
  16. 16. Use Questions to Define Decisions Besides a Name and Description Define Decisions with A question Possible answers Add key facts like volume, complexity, latency © Decision Management Solutions, 2012
  17. 17. Put decisions in a business context
  18. 18. Discovering Decisions Business Processes Brainstorm Performance Management Business Events Legacy Systems © Decision Management Solutions, 2012
  19. 19. Target decision-making on KPIs Strategy defines KPIs KPIs measure operations Operational decisions affect KPIs The link between decisions and KPIs is critical © Decision Management Solutions, 2012
  20. 20. Decision making confuses processes Age<21 No Class I or II sports Accept low-risk applicant Class II sport Previous Heart Attack, Existing Cancer Decline high-risk applicant 21<=Age<50 Class I sport Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer … Long-standing Customer © Decision Management Solutions, 2012
  21. 21. Identifying decisions simplifies them Low risk Process low-risk applicant Medium risk Determine applicant Process medium-risk type applicant High risk Process high-risk applicant © Decision Management Solutions, 2012
  22. 22. Decisions in context Processes Know which business Activities require decisions processes will be improved by your rules or analytics Events Know when your analytics Trigger decisions might be calculated Systems Know how you will have to Implement decisions deploy your rules Organizational Units Know who will have to Make decisions believe your analytics and Own decisions own your rules Are impacted by decisions © Decision Management Solutions, 2012
  23. 23. Detailed Decision Requirements
  24. 24. Good Decision RequirementsInformation Know-how• What is needed? • How to make it• Where does it come • How to improve it from?Precision Automation• Exactly how? • All automated?• How to avoid • If not, how much can technical details? be and for whom?
  25. 25. Decompose the decisioning What is required to make decision? Information Guidelines, policy Expertise Regulations Predictive Analytic Models Data Mining Results The results of other decisions © Decision Management Solutions, 2012
  26. 26. A Complete Decision Definition Definition Question and Allowed Answers Purpose and Value Links to KPIs and Objectives Context Processes, Events, Systems Organizations Decomposition Link to implementation © Decision Management Solutions, 2012
  27. 27. Discovering Decisions From Process• A business process model can be an effective source for identifying high-level decisions• Prioritize decisions to know where to start
  28. 28. High-Level Decision & Dependencies
  29. 29. Simple Supporting Decision • Larger node is the subject of the diagram • Context established by drilling down from high- level decision • Only the dependencies of the subject decision are shown • All of the business logic is defined in the supporting decisions
  30. 30. A More Involved Example • Multiple layers of decision dependencies • Abstraction of full story • 3 different patterns of how to handle different states • 1 state breaks all patterns and has separate diagram
  31. 31. Full Diagram Depicting All States
  32. 32. A Tricky Decision Decomposition• A seemingly simple decision was complicated by lots of exceptions to the basic business rules• Discovering the proper decomposition was key to defining a satisfactory solution
  33. 33. Initial Attempts • Business rule requirements initially gathered as an unorganized list • A manageable number of business rules, but with lots of seemingly complicated exceptions • 3 initial attempts to synthesize a decision structure from the bottom up failed to support the business rule requirements
  34. 34. Successful Decision Decomposition • Partial solution by eliminating exceptions • Switched analysis from negative rules to positive rules • Complete solution found after refocusing on a top down approach
  35. 35. Rule Family Template• Business rules are defined in rule families• Multiple conditions, one conclusion• A message explaining each negative rule
  36. 36. Sample Business Rules• Simplified version with exceptions removed• Key elements are – Negative rules contain business rule statements – Positive rules complete full coverage
  37. 37. Questions?
  38. 38. A Final Thought
  39. 39. Decisions First Find the decisions that matter to your business and model them as requirements © Decision Management Solutions, 2012
  40. 40. Thank You James Taylor, CEOjames@decisionmanagementsolutions.com

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