REALISING

AMBITIONS

Operational Decision Management

An Introduction

Alcedo CoenenDec 2014

REALISINGAMBITIONS

Contents

• Decision concept

• Decision Management

• Decision Management & BPM

• Decision Harvesting

Decisions are taken every day everywhere

Decision as a type

Decision ontology

Decision

Possible

OutcomesActor typeRules

Possible

Situations

has

apply to

is based on is executed by

Authority

(Source)

has

Domain

knowledge

represents

Taxonomy

is structured in

Fact types

is expressed in

Instance of a decision

Actual

Outcome

Actual

SituationApplied rules Actual actorConsiderations

© Alcedo Coenen, Amsterdam 2014

Version 0.8

A business decision is defined as a conclusion that a business arrives at through business logic which the business is interested in managing.

Von Halle, Barbara, and Larry Goldberg. 2009. The Decision Model: A Business Logic Framework LinkingBusiness and Technology.

a decision is the act of determining an output value (the chosen option), from a number of input values, using logic defining how the output is determined from the inputs

OMG. 2013. Decision Model and Notation ( DMN ) Specification

• Decision = a determination requiring know-how or expertise; the resolving of a question by identifying some correct or optimal choice

• Operational Business Decision = a determination requiring operational business know-how or expertise; the resolving of an operational business question by identifying some correct or optimal choice

Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.

Business Rules

Decisions

BehavorialRules Decision

Rules

A wool suit must be worn on a cold workday when it isn’t raining.

A service representative must be assigned to a customer that has placed an order.

- Choice out of options- Single point of time

- Shaping ongoing business activity- Multiple points of time

Maintained in rulebooks

Maintained in decision tables

Ross, Ronald G., and Gladys S.W. Lam. 2011. Building Business Solutions. Business Analysis with Business Rules. Business Rule Solutions, LLC.

Behavioral rules

- Shaping ongoing business activity

- Multiple points of time

Decision rules

- Choice out of options

- Single point of time

• Operational decision management (ODM) is a set of technologies and methods that allow you to automate your day-to-day business decisions without compromising their accuracy and effectiveness. ODM lets you document, implement, change, and govern the repeatable decisions that control your business operations.

• EDM refers to the application of rule-based systems -- in conjunction with analytic models -- to automate, improve, and distribute decision-making capabilities across an organization.

• EDM is an emerging important discipline, due to an increasing need to automate high-volume decisions across the enterprise and to impart precision, consistency, and agility in the decision-making process. (http://www.cutter.com/research/2005/edge050125.html)

REALISINGAMBITIONS

Contents

• Decision concept

• Decision Management

• Decision Management & BPM

• Decision Harvesting

Surveillance Market

Decision Management

(CHANGE)

MANAGEMENT

OPERATIONS

Operational DecisionManagement

Surveillance Market

The 3 main reasons

(CHANGE)

MANAGEMENT

OPERATIONS

Process improvements

Operational DecisionManagement

Surveillance Market

Typical applications of Decision Management

(CHANGE)

MANAGEMENT

OPERATIONS

Eligibility

Validation

Risk

Fraud

Opportunity

Calculation

Source:

Surveillance Market

Decision Management

(CHANGE)

MANAGEMENT

OPERATIONS

Operational DecisionManagement

Contracts

Company policy

Regulations

IMPLEMENTATIONSSystems, communications, forms, etc.

Surveillance Market

Decision Management

(CHANGE)

MANAGEMENT

OPERATIONS

Operational DecisionManagement

Contracts

Company policy

Regulations

IMPLEMENTATIONSSystems, communications, forms, etc.

HOW?

• Linking policies, decisions andimplementations

• Impact analysis for policy change• Designing decision structures• Central management of business rules

WHY?

• One interpretation• Governance on coherence

• Rules + data + processes + systems

• One responsibility for• Impact analysis• compliance audits

Managing coherence

18

policy

Business Decision

Sub-decision

Rules

Sub-decision

Rules

Sub-decision

Rules

Business Process

Data Models

System A Rule EngineWorking

instructionCommunication

Logi

calD

ecis

ion

Mo

del

Database

Manage business rules

19

Repository of policies

Repository of operationaldecisions

processes Business decisions

Data models

Repository of implementations(CMDB)

search design publishanalyse

Making impact analysis

20

Policy change

Policy analysis

Assess which decisions are affected

Derive which implementationsare affected

Design change roadmap

Designing decisions

21

Policy analysis

Identify main decisions

Identifysub decisions

Identifiy involved data

Design decision tables

Link with business processes

Test / simulate decisions

Deliver decision models forimplementation

Identify related business processes

Identify related data models

REALISINGAMBITIONS

Contents

• Decision concept

• Decision Management

• Decision Management & BPM

• Decision Harvesting

Decision Management & BPM –perspective 1

Decision as part of process

Process

Decision

Decision Management & BPM –perspective 2

Decision as steering of process

Process

Decision

REALISINGAMBITIONS

Contents

• Decision concept

• Decision Management

• Decision Management & BPM

• Decision Harvesting

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

• Search for gateways in BPMN definitions

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

• Search for events to be evaluated

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

• Search for products and services offered to the customer

• Typical decisions:

– Order acceptance

– Customer acceptance

– Discounts

– Stock checks

– Claim handling

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

• Search for functionswith

– Business meaningful output

– Complex algorithms

Decision harvesting

• Finding decisions

– Process-centric

– Event-centric

– Product-centric

– Legacy systems (code)

– Metrics (KPI’s)

• Search for KPI’s and dashboards

• Identify goals

REALISINGAMBITIONS

alcedo.coenen@it-eye.nl

IT-eye BVWattbaan 51-1NL 3439 ML NieuwegeinThe Netherlands

+31 30-6028280www.it-eye.nl@iteye_nl