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Simplifying Complex Processes with Decision Management

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One of the prime causes of complex business processes is the inclusion of decision-making in process designs. Organizations that identify the decisions in their processes and manage them as peers – not part of the process but supporting it – find they can simplify process designs, increase agility and bring business users and IT into better alignment.
This webinar will build on real case studies to show you how keeping decisioning and process entangled creates complexity, how to find decisions in your complex processes and how Decision Management delivers simpler, more manageable processes.

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Simplifying Complex Processes with Decision Management

  1. 1. @jamet123 #decisionmgt © 2016 Decision Management Solutions James Taylor CEOSimplifying Complex Processes with Decision Management
  2. 2. @jamet123 #decisionmgt © 2016 Decision Management Solutions 2 AGENDA ▶The challenge of over complex processes ▶Case studies in process complexity ▶Simplifying processes with decision management ▶Finding decisions in your processes ▶Not just simpler, smarter too ▶Wrap and next steps
  3. 3. @jamet123 #decisionmgt © 2016 Decision Management Solutions 3 The One Slide You Need ▶Complex processes are costly and not agile ▶Unmanaged decisions cause process complexity ▶Managing decisions makes processes more agile ▶Managing decisions makes processes smarter ▶Business rules drive decisions ▶Processes and decisions are complementary ▶… but not the same
  4. 4. @jamet123 #decisionmgt © 2016 Decision Management Solutions 4 The Challenge Of Complex Processes
  5. 5. @jamet123 #decisionmgt © 2016 Decision Management Solutions 5 Process Complexity Is The Enemy ▶Harder to assure process quality ▶Customers don’t like long processes ▶Hard to find places to apply learning ▶More expensive ▶Hard to make changes safely, reducing agility
  6. 6. @jamet123 #decisionmgt © 2016 Decision Management Solutions 6 Case Studies In Process Complexity
  7. 7. @jamet123 #decisionmgt © 2016 Decision Management Solutions 7 Fortune 20 Call Center ▶Making the right decision at the start of the call turns long, costly processes into straightforward, customer-pleasing interactions.
  8. 8. @jamet123 #decisionmgt © 2016 Decision Management Solutions 8 North American Life Insurer ▶Immediately identifying which claims should be fast tracked, which referred for fraud investigation and which reviewed by a claims adjudicator results in clear, simple sub-processes
  9. 9. @jamet123 #decisionmgt © 2016 Decision Management Solutions 9 International Retailer ▶Cross-channel coordination ensures that all relevant offers, including loyalty programs, are combined at the point of sale, with consistent pricing rules applied.
  10. 10. @jamet123 #decisionmgt © 2016 Decision Management Solutions 10 A Graphical Example “before” “after”
  11. 11. @jamet123 #decisionmgt © 2016 Decision Management Solutions 11 Complexity From Multiple Processes ▶30 similar processes or just one?
  12. 12. @jamet123 #decisionmgt © 2016 Decision Management Solutions 12 Simplifying Processes With Decision Management
  13. 13. @jamet123 #decisionmgt © 2016 Decision Management Solutions 13 Identifying Decisions ▶A choice, a selection ▶Made after consideration ▶Results in action not just knowledge
  14. 14. @jamet123 #decisionmgt © 2016 Decision Management Solutions 14 Decisions Can Be Choices ▶Should we decline or approve this application?
  15. 15. @jamet123 #decisionmgt © 2016 Decision Management Solutions 15 … Or Combinations Of Possibilities ▶What price, terms and conditions should we offer this customer?
  16. 16. @jamet123 #decisionmgt © 2016 Decision Management Solutions 16 Decision Management ▶Decision Management allows an organization to control, manage, and automate the repeatable decisions at the heart of its business by effectively applying business rules and advanced analytic technology. ▶Decision Management: ▶Improves accuracy ▶Delivers consistency ▶Increases agility ▶Reduces decision latency ▶Reduces costs ▶It is a proven framework for implementing Business Rules Management Systems and Predictive Analytics
  17. 17. @jamet123 #decisionmgt © 2016 Decision Management Solutions 18 3 Stages Of Decision Management
  18. 18. @jamet123 #decisionmgt © 2016 Decision Management Solutions 19 Complex Processes Hide Decisions
  19. 19. @jamet123 #decisionmgt © 2016 Decision Management Solutions 20 Managing Decisions Simplifies Them ▶Separating Decisions simplifies Processes ▶Modeling Decisions and managing Business Rules brings clarity
  20. 20. @jamet123 #decisionmgt © 2016 Decision Management Solutions 21 Separation Adds Agility 21 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 Process Decision
  21. 21. @jamet123 #decisionmgt © 2016 Decision Management Solutions 22 Finding Decisions In Your Processes
  22. 22. @jamet123 #decisionmgt © 2016 Decision Management Solutions 23 Finding Decisions Worklists Extreme Branching Procedures, cheat sheets Approvals, escalations
  23. 23. @jamet123 #decisionmgt © 2016 Decision Management Solutions 24 Decisioning Words ▶Choose ▶Select ▶Calculate ▶Determine ▶Assess ▶Validate ▶Find the question…
  24. 24. @jamet123 #decisionmgt © 2016 Decision Management Solutions 25 Eligibility Decisions ▶Is this customer/prospect/citizen eligible for this product/service? ▶They are made over and over again ▶They should be made consistently every time. ▶They are rules-based
  25. 25. @jamet123 #decisionmgt © 2016 Decision Management Solutions 26 Calculations ▶What is the correct price/rate for this product/service? ▶Calculations are usually operational ▶They are overwhelmingly rules-based ▶The rules are generally fixed and repeatable ▶Calculations are often embedded in code
  26. 26. @jamet123 #decisionmgt © 2016 Decision Management Solutions 27 Risk-based Operational Decisions ▶How risky is this customer and what should we do about it? ▶Risk is acquired one customer, one transaction at a time ▶A big gap between the value of a good decision and the value of a bad one ▶To assess risk in these decisions requires analytics to predict the risk
  27. 27. @jamet123 #decisionmgt © 2016 Decision Management Solutions 28 Opportunity-based Operational Decisions ▶How profitable might this customer be? ▶Customer-centric. ▶Cross-sell and up-sell decisions for example ▶Little difference between good and bad decisions ▶Analytics predict response, opportunity, potential ▶These must change rapidly to take advantage of competitive and market circumstances
  28. 28. @jamet123 #decisionmgt © 2016 Decision Management Solutions 29 Micro Decisions ▶How many decisions are involved in sending a letter to 10,000 customers? ▶Just a few design decisions ▶Or 10,000 one micro decision per customer ▶Many strategic decisions can only be implemented if many supporting micro decisions are also made
  29. 29. @jamet123 #decisionmgt © 2016 Decision Management Solutions 30 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing
  30. 30. @jamet123 #decisionmgt © 2016 Decision Management Solutions 31 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing
  31. 31. @jamet123 #decisionmgt © 2016 Decision Management Solutions 32 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing Decision: Is this application complete and correct?
  32. 32. @jamet123 #decisionmgt © 2016 Decision Management Solutions 33 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing Decision: Is this application a high fraud risk? Decision: Is this the type of vessel we insure?
  33. 33. @jamet123 #decisionmgt © 2016 Decision Management Solutions 34 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing
  34. 34. @jamet123 #decisionmgt © 2016 Decision Management Solutions 35 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing Decision: What exclusions? Decision: What coverage? Decision: How risky? Decision: What price?
  35. 35. @jamet123 #decisionmgt © 2016 Decision Management Solutions 36 Vessel Underwriting Example Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing
  36. 36. @jamet123 #decisionmgt © 2016 Decision Management Solutions 37 Not Just Simpler, Smarter Too
  37. 37. @jamet123 #decisionmgt © 2016 Decision Management Solutions 38 Analytics Have Real Power Customer Retention Campaign Response Acquisition Rates Online Conversion Fraud CrimeWasted Spend Risk
  38. 38. @jamet123 #decisionmgt © 2016 Decision Management Solutions 39 Analytics Drive Better Decisions ** * * **** ** * * ** * * * * * * * * * * * * * * * * * * * * ** * * ** * * *** * * * ** *** ** Analytics help you understand why and when Rules address what might happen
  39. 39. @jamet123 #decisionmgt © 2016 Decision Management Solutions 40 Closed-loop Decisioning
  40. 40. @jamet123 #decisionmgt © 2016 Decision Management Solutions 41 Wrap Up And Next Steps
  41. 41. @jamet123 #decisionmgt © 2016 Decision Management Solutions 42 Why Manage Decisions Independently ▶Faster, easier, independent decision logic changes ▶Coordination across channels, products ▶Simpler processes that are easier to manage ▶Higher productivity and resource utilization ▶Analytic insights for making better decisions ▶Continuous improvement of decisions and results
  42. 42. @jamet123 #decisionmgt © 2016 Decision Management Solutions 44 Value From Processes And Decisions Process is simplified, robust Independent process & decision changes Decisions are reusable Decisions are easily modeled Analytics drive decision-making Process is complex, brittle Decisions only evolve with process Hard to share decisions Hard to model decisions precisely Hard to apply analytics PROCESS AND DECISIONPROCESS ONLY
  43. 43. @jamet123 #decisionmgt © 2016 Decision Management Solutions 45 Action Plan • Hidden decisions, transactional decisions, customer decisions • Decisions buried in complex processes • Decisions that are the difference between two processes Identify your decisions • Adopt business rules approach and technology • Investigate data mining and predictive analytics • Think about adaptive control Adopt decisioning technology • Learn, understand and teach the difference • Think about their independent lifecycles • Manage them both equally Think about Decisions and Processes
  44. 44. @jamet123 #decisionmgt © 2016 Decision Management Solutions 46 The One Slide You Need ▶Complex processes are costly and not agile ▶Unmanaged decisions cause process complexity ▶Managing decisions makes processes more agile ▶Managing decisions makes processes smarter ▶Business rules drive decisions ▶Processes and decisions are complementary ▶… but not the same
  45. 45. @jamet123 #decisionmgt © 2016 Decision Management Solutions 47 Decision Management Solutions ▶Original co-submitter of DMN ▶Fortune 500 clients in insurance, banking, manufacturing, telecommunications, travel and leisure, health care, health management, and retail ▶James Taylor, CEO, industry expert ▶Extensive decision management resources ▶Widely cited independent research ▶White papers ▶Live educational webinars
  46. 46. @jamet123 #decisionmgt © 2016 Decision Management Solutions 48 Decision Management Solutions ▶Training ▶We are the most experienced decision management and decision modeling trainers in the world ▶Trained over 800 people worldwide to date ▶We specialize in helping organizations become self sufficient in Decision Management ▶DMN-based, future- proofing your investment ▶Consulting ▶Fortune 500 clients in insurance, banking, manufacturing, telecommunications, travel and leisure, health care, health management, and retail ▶Widely cited research, white papers, webinars
  47. 47. Thank You @jamet123 #decisionmgt © 2016 Decision Management Solutions For more on Decision Management, go to: decisionmanagementsolutions.com

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