© Decision Management Solutions, 2013 1DREAM event 2013
Simpler, Smarter, More Agile
Modeling Decision Requirements
James ...
© Decision Management Solutions, 2013 2DREAM event 2013
Business Process
From the C-Suite
Efficiency
Consistency
Cost
Redu...
© Decision Management Solutions, 2013 3DREAM event 2013
Smarter
Simpler
More Agile
What If…
© Decision Management Solutions, 2013 4DREAM event 2013
Agenda
1 Business Rules Power
2 Business Rules Challenges
3 Smarte...
© Decision Management Solutions, 2013 5DREAM event 2013
BUSINESS RULES POWER
© Decision Management Solutions, 2013 6DREAM event 2013
What Can Business Rules Do?
Personalize
experiences
Detect
Fraud
C...
© Decision Management Solutions, 2013 7DREAM event 2013
What Are Business Rules?
… statements of the actions you
should ta...
© Decision Management Solutions, 2013 8DREAM event 2013
public class Application {
private Customer customers[];
private C...
© Decision Management Solutions, 2013 9DREAM event 2013
Business Rules Management
© Decision Management Solutions, 2013 10DREAM event 2013
BUSINESS RULES CHALLENGES
© Decision Management Solutions, 2013 11DREAM event 2013
Too Little Connection To Process
If customer is MultiProductCusto...
© Decision Management Solutions, 2013 12DREAM event 2013
…Or Too Much
If patient’s age is less than 18
and member’s covera...
© Decision Management Solutions, 2013 13DREAM event 2013
• Can we use business rules to
make our processes simpler?Simpler...
© Decision Management Solutions, 2013 14DREAM event 2013
SMARTER, SIMPLER, MORE AGILE
© Decision Management Solutions, 2013 15DREAM event 2013
• Less complexity
• Fewer processes
Simpler
Smarter
More
Agile
© Decision Management Solutions, 2013 16DREAM event 2013
Accept low-risk
applicant
Decline high-risk
applicant
Process
med...
© Decision Management Solutions, 2013 17DREAM event 2013
Accept low-risk
applicant
Decline high-risk
applicant
Process
med...
© Decision Management Solutions, 2013 18DREAM event 2013
Accept low-risk
applicant
Decline high-risk
applicant
Process
med...
© Decision Management Solutions, 2013 19DREAM event 2013
Accept low-risk
applicant
Decline high-risk
applicant
Process
med...
© Decision Management Solutions, 2013 20DREAM event 2013
Accept low-risk
applicant
Decline high-risk
applicant
Process
med...
© Decision Management Solutions, 2013 21DREAM event 2013
Process low-risk
applicant
Process high-risk
applicant
Process
me...
© Decision Management Solutions, 2013 22DREAM event 2013
• Less complexity
• Fewer processesSimpler
• Straight Through Pro...
© Decision Management Solutions, 2013 23DREAM event 2013
Human
Decision
Human
Decision
Automated
Decisions
Straight Throug...
© Decision Management Solutions, 2013 24DREAM event 2013
Get Smarter With Analytics
Operational
Processes
Analytic
Systems...
© Decision Management Solutions, 2013 25DREAM event 2013
Complexity
Value
Automated
Decisions
Expert
Decisions
Manual
Deci...
© Decision Management Solutions, 2013 26DREAM event 2013
• Less complexity
• Fewer processesSimpler
• Straight Through Pro...
© Decision Management Solutions, 2013 27DREAM event 2013
v1 v2 v3 v4 v5
v1 v2 v3 v4 v5
v1 v2
v1 v2 v3 v4 v5 v6
v1
v1 v2 v3...
© Decision Management Solutions, 2013 28DREAM event 2013
Decisions Are High Change
Remain compliant
Update eligibility
Kee...
© Decision Management Solutions, 2013 29DREAM event 2013
DECISION MANAGEMENT
© Decision Management Solutions, 2013 30DREAM event 2013
Simpler
Processes
Decisions Are Central
Decisions
are
central
© Decision Management Solutions, 2013 31DREAM event 2013
Decision Management
• A business discipline and a technology stac...
© Decision Management Solutions, 2013 32DREAM event 2013
3 Steps
Identify and model
the decisions that
are most important
...
© Decision Management Solutions, 2013 33DREAM event 2013
Focus on Operational Decisions
Repeatable decisions
Non trivial d...
© Decision Management Solutions, 2013 34DREAM event 2013
DECISION REQUIREMENTS
© Decision Management Solutions, 2013 35DREAM event 2013
Existing Techniques Don’t Work
Use Case
• Key steps are decisions...
© Decision Management Solutions, 2013 36DREAM event 2013
Good Decision Requirements
Information
• What is needed?
• Where ...
© Decision Management Solutions, 2013 37DREAM event 2013
Decision Modeling
1 •Identifies Decisions first
2 •Describes Deci...
© Decision Management Solutions, 2013 38DREAM event 2013
BWTDIM
Begin With The Decision In Mind
© Decision Management Solutions, 2013 39DREAM event 2013
Business Processes
Discover Decisions
Business Events
Legacy Syst...
© Decision Management Solutions, 2013 40DREAM event 2013
Describe Decisions
• Define Decisions with
– A question
– Possibl...
© Decision Management Solutions, 2013 41DREAM event 2013
Put Decisions In Context
• Processes
– Processes require decision...
© Decision Management Solutions, 2013 42DREAM event 2013
Map Decisions to KPIs
KPIs impacted by decision
Customer
Churn
Cu...
© Decision Management Solutions, 2013 43DREAM event 2013
Information Requirements
• Decisions require Information
– “Deter...
© Decision Management Solutions, 2013 44DREAM event 2013
Authority Requirements
• Decisions require Knowledge
– “Reorder p...
© Decision Management Solutions, 2013 45DREAM event 2013
Different Types of Knowledge
Decision
© Decision Management Solutions, 2013 46DREAM event 2013
Decompose the Decision
• Requirements for this decision:
– Knowle...
© Decision Management Solutions, 2013 47DREAM event 2013
Decision Requirements
• Decisions can require Decisions
– Is this...
© Decision Management Solutions, 2013 48DREAM event 2013
Repeat For Clarity
© Decision Management Solutions, 2013 49DREAM event 2013
A Complete Definition
• Definition
• Question and Allowed Answers...
© Decision Management Solutions, 2013 50DREAM event 2013
Manage Business Rules
Documented
sources
Coherent
rule groups
Own...
© Decision Management Solutions, 2013 51DREAM event 2013
Automation Boundaries
© Decision Management Solutions, 2013 52DREAM event 2013
Impact Analysis
© Decision Management Solutions, 2013 53DREAM event 2013
QUESTIONS?
© Decision Management Solutions, 2013 54DREAM event 2013
NEXT STEPS
© Decision Management Solutions, 2013 55DREAM event 2013
Decisions First
• Models Processes AND Decisions
• Find the decis...
© Decision Management Solutions, 2013 56DREAM event 2013
Thank You
James Taylor, CEO
james@decisionmanagementsolutions.com...
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Simpler, smarter and more agile

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Simpler, smarter and more agile: Modeling decision requirements to simplify processes and effectively apply business rules.

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Simpler, smarter and more agile

  1. 1. © Decision Management Solutions, 2013 1DREAM event 2013 Simpler, Smarter, More Agile Modeling Decision Requirements James Taylor CEO
  2. 2. © Decision Management Solutions, 2013 2DREAM event 2013 Business Process From the C-Suite Efficiency Consistency Cost Reduction
  3. 3. © Decision Management Solutions, 2013 3DREAM event 2013 Smarter Simpler More Agile What If…
  4. 4. © Decision Management Solutions, 2013 4DREAM event 2013 Agenda 1 Business Rules Power 2 Business Rules Challenges 3 Smarter, Simpler, More Agile 4 Decision Management 5 Decision Requirements 6 Questions 7 Next Steps
  5. 5. © Decision Management Solutions, 2013 5DREAM event 2013 BUSINESS RULES POWER
  6. 6. © Decision Management Solutions, 2013 6DREAM event 2013 What Can Business Rules Do? Personalize experiences Detect Fraud Create Loyalty Target Cross-Sells And more…
  7. 7. © Decision Management Solutions, 2013 7DREAM event 2013 What Are Business Rules? … statements of the actions you should take when certain business conditions are true. “ ”
  8. 8. © Decision Management Solutions, 2013 8DREAM event 2013 public class Application { private Customer customers[]; private Customer goldCustomers[]; ... public void checkOrder() { for (int i = 0; i < numCustomers; i++) { Customer aCustomer = customers[i]; if (aCustomer.checkIfGold()) { numGoldCustomers++; goldCustomers[numGoldCustomers] = aCustomer; if (aCustomer.getCurrentOrder().getAmount() > 100000) aCustomer.setSpecialDiscount (0.05); } } } Business Rules are critical …but hard to manage
  9. 9. © Decision Management Solutions, 2013 9DREAM event 2013 Business Rules Management
  10. 10. © Decision Management Solutions, 2013 10DREAM event 2013 BUSINESS RULES CHALLENGES
  11. 11. © Decision Management Solutions, 2013 11DREAM event 2013 Too Little Connection To Process If customer is MultiProductCustomer and Total_Insured_Value is more than $100,000 then next_policy_discount = 0.5% If member has greater than 3 prescriptions and prescription’s renewal_date is less than 30 days in the future then set reminder=“email” If patient’s age is less than 18 and member’s coverage is “standard” and member’s number_of_claims does not exceed 4 then set patient’s coverage to “standard” … … A big bucket of rules sitting to one side.
  12. 12. © Decision Management Solutions, 2013 12DREAM event 2013 …Or Too Much If patient’s age is less than 18 and member’s coverage is “standard” and member’s number_of_claims does not exceed 4 then set patient’s coverage to “standard” If member has greater than 3 prescriptions and prescription’s renewal_date is less than 30 days in the future then set reminder=“email” If customer is MultiProductCustomer and Total_Insured_Value is more than $100,000 then next_policy_discount = 0.5% Spread like Nutella throughout the process
  13. 13. © Decision Management Solutions, 2013 13DREAM event 2013 • Can we use business rules to make our processes simpler?Simpler • Can we use business rules to make our processes smarter?Smarter • Can we use business rules to make our processes more agile? More Agile
  14. 14. © Decision Management Solutions, 2013 14DREAM event 2013 SMARTER, SIMPLER, MORE AGILE
  15. 15. © Decision Management Solutions, 2013 15DREAM event 2013 • Less complexity • Fewer processes Simpler Smarter More Agile
  16. 16. © Decision Management Solutions, 2013 16DREAM event 2013 Accept low-risk applicant Decline high-risk applicant Process medium-risk applicant Age<21 21<=Age<50 Age>50
  17. 17. © Decision Management Solutions, 2013 17DREAM event 2013 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
  18. 18. © Decision Management Solutions, 2013 18DREAM event 2013 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
  19. 19. © Decision Management Solutions, 2013 19DREAM event 2013 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
  20. 20. © Decision Management Solutions, 2013 20DREAM event 2013 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 Embed decisions, add complexity
  21. 21. © Decision Management Solutions, 2013 21DREAM event 2013 Process low-risk applicant Process high-risk applicant Process medium-risk applicant Low risk Medium risk High risk Determine applicant type Identify decisions for simplicity Use business rules for clarity
  22. 22. © Decision Management Solutions, 2013 22DREAM event 2013 • Less complexity • Fewer processesSimpler • Straight Through Processing • Effective analyticsSmarter More Agile
  23. 23. © Decision Management Solutions, 2013 23DREAM event 2013 Human Decision Human Decision Automated Decisions Straight Through Processing Manage Rules Handle Exceptions Process A Process B Process C A B C Don’t stop for decisions
  24. 24. © Decision Management Solutions, 2013 24DREAM event 2013 Get Smarter With Analytics Operational Processes Analytic Systems Decision Use analytics to improve operational processes
  25. 25. © Decision Management Solutions, 2013 25DREAM event 2013 Complexity Value Automated Decisions Expert Decisions Manual Decisions
  26. 26. © Decision Management Solutions, 2013 26DREAM event 2013 • Less complexity • Fewer processesSimpler • Straight Through Processing • Effective analyticsSmarter • Separated change cycles • Business ownership More Agile
  27. 27. © Decision Management Solutions, 2013 27DREAM event 2013 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 Different Change Cycles
  28. 28. © Decision Management Solutions, 2013 28DREAM event 2013 Decisions Are High Change Remain compliant Update eligibility Keep discount competitive Change risk assessment Keep deal terms appealing Fight fraud effectively
  29. 29. © Decision Management Solutions, 2013 29DREAM event 2013 DECISION MANAGEMENT
  30. 30. © Decision Management Solutions, 2013 30DREAM event 2013 Simpler Processes Decisions Are Central Decisions are central
  31. 31. © Decision Management Solutions, 2013 31DREAM event 2013 Decision Management • A business discipline and a technology stack • That builds on existing IT infrastructure • Enhancing business processes • Increasing transparency and business control • And leveraging analytics • It is a proven framework for implementing business rules management systems
  32. 32. © Decision Management Solutions, 2013 32DREAM event 2013 3 Steps Identify and model the decisions that are most important to your operational processes Design and build independent decision services using business rules to manage these decisions Create a “closed loop” to measure results and drive improvement
  33. 33. © Decision Management Solutions, 2013 33DREAM event 2013 Focus on Operational Decisions Repeatable decisions Non trivial decisions With a measurable business impact That are candidates for automation
  34. 34. © Decision Management Solutions, 2013 34DREAM event 2013 DECISION REQUIREMENTS
  35. 35. © Decision Management Solutions, 2013 35DREAM event 2013 Existing Techniques Don’t Work Use Case • Key steps are decisions • Decisions not described Process Model • Opaque decision tasks • Rules like Nutella Requirements List • Identify decision need • Approach not captured Architecture Model • Deployment specificity • Lack business content
  36. 36. © Decision Management Solutions, 2013 36DREAM event 2013 Good Decision Requirements Information • What is needed? • Where is it? Knowledge • How to make it • How to improve it Precision • Exactly how? • No technical details Automation • Fully automated? • If not, how much?
  37. 37. © Decision Management Solutions, 2013 37DREAM event 2013 Decision Modeling 1 •Identifies Decisions first 2 •Describes Decisions 3 •Puts Decisions in context 4 •Models Information, Knowledge 5 •Adds detail without complexity
  38. 38. © Decision Management Solutions, 2013 38DREAM event 2013 BWTDIM Begin With The Decision In Mind
  39. 39. © Decision Management Solutions, 2013 39DREAM event 2013 Business Processes Discover Decisions Business Events Legacy Systems Business IntelligenceBrainstorm KPIs Micro and hidden Decisions
  40. 40. © Decision Management Solutions, 2013 40DREAM event 2013 Describe Decisions • Define Decisions with – A question – Possible answers Q: Which marketing offer should be presented to this customer during this interaction? A: Any current, available marketing offer in the database
  41. 41. © Decision Management Solutions, 2013 41DREAM event 2013 Put Decisions In Context • Processes – Processes require decisions – Tasks execute decisions • Events – Trigger decisions • Systems – Implement decisions • Organizational Units – Make decisions – Own decisions – Are impacted by decisions • Know which business processes will be improved by your rules • Know when your decisions will be needed • Know how you will have to deploy your rules • Know who will have to believe or own the business rules
  42. 42. © Decision Management Solutions, 2013 42DREAM event 2013 Map Decisions to KPIs KPIs impacted by decision Customer Churn Customer Service Calls Service Availability … … What is the best up sell/cross- sell for this customer? * * What is the price of this service? * * Can this customer buy this service? * * What retention offer should we make this customer? * …
  43. 43. © Decision Management Solutions, 2013 43DREAM event 2013 Information Requirements • 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
  44. 44. © Decision Management Solutions, 2013 44DREAM event 2013 Authority Requirements • 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
  45. 45. © Decision Management Solutions, 2013 45DREAM event 2013 Different Types of Knowledge Decision
  46. 46. © Decision Management Solutions, 2013 46DREAM event 2013 Decompose the Decision • Requirements for this decision: – Knowledge • Guidelines, policy • Expertise • Regulations • Analytic Models – Information • Input, case, transaction data • The results of other decisions
  47. 47. © Decision Management Solutions, 2013 47DREAM event 2013 Decision Requirements • Decisions can 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
  48. 48. © Decision Management Solutions, 2013 48DREAM event 2013 Repeat For Clarity
  49. 49. © Decision Management Solutions, 2013 49DREAM event 2013 A Complete Definition • Definition • Question and Allowed Answers • Links to KPIs and Objectives • Context – Processes, Events, Systems – Organizational roles • Decomposition • Link to implementation
  50. 50. © Decision Management Solutions, 2013 50DREAM event 2013 Manage Business Rules Documented sources Coherent rule groups Ownership, volatility
  51. 51. © Decision Management Solutions, 2013 51DREAM event 2013 Automation Boundaries
  52. 52. © Decision Management Solutions, 2013 52DREAM event 2013 Impact Analysis
  53. 53. © Decision Management Solutions, 2013 53DREAM event 2013 QUESTIONS?
  54. 54. © Decision Management Solutions, 2013 54DREAM event 2013 NEXT STEPS
  55. 55. © Decision Management Solutions, 2013 55DREAM event 2013 Decisions First • Models Processes AND Decisions • Find the decisions that matter • Model their requirements • Decisions first, rules second
  56. 56. © Decision Management Solutions, 2013 56DREAM event 2013 Thank You James Taylor, CEO james@decisionmanagementsolutions.com decisionmanagementsolutions.com

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