Decision Management, Business Decision Management as we call it here at the BPMInstitute.org, is both an approach and a technology stack for automating and improving business decisions.
Business Decision Management has proven itself as a way to implement business rules and as a way to tie business rules and analytics together to manage risk, reduce fraud and improve customer engagement. While there are other use cases for business rules and for advanced analytics, using them to automate, manage and improve decisions is by far the most powerful. Applying the approach generally involves three steps:
While the second and third steps involve applying known techniques and approaches to a new problem, specifying decision requirements requires a new approach and new techniques. There is an emerging consensus that decision modeling is the best way to specify requirements for business decision management projects. Decision modeling enables organizations to:
There are a number of approaches to decision modeling with companies offering different methodologies. There is also a forthcoming standard, the Object Management Group’s Decision Model and Notation, now in beta. This standard, like the Business Process Model and Notation, does not focus on methodology but on standardizing the way decision models should be represented. This will give users of any compatible decision modeling approach access to a broad community and a vehicle for sharing expertise more widely.
At the core of any decision model, and of the DMN standard, are a few key concepts:
Decision modeling applies these basic concepts to produce decision models or decision requirement models. These models are a network of decisions, input data or information objects and knowledge sources or representations. As a process model is to workflow or a data model is to information, a decision model is to decision-making: A clear and unambiguous way to describe decision-making by breaking down that decision-making into a set of simple concepts.
The example shows a decision requirements model that uses the DMN notation. The Select Marketing Offer decision (decisions are shown as rectangles) has two types of input data – Marketing Offers and Customer data (input data is shown as an oval). The solid arrows show that these two types of input data are information that is required by the decision. In addition two knowledge sources, Marketing Know-how and Customer Propensity to Accept, are linked with a dashed line that shows they are authorities for the decision. The decision itself has been decomposed into three sub-decisions and the use of the solid arrows here also shows that the information produced by these three decisions is also required to make the Select Marketing Offer decision.
Decision Modeling is an increasingly important element of Business Decision Management and a critical first step in successful business rules projects. BPMInstitute.org’ s training curriculum features a dedicated Business Decision Analyst Learning Path – which will include an all new Decision Management and Business Rules 101course as well as a new Decision Modeling with DMN course for 2014.
View James Taylor's profile to view his bio, contributions and upcoming training courses.
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