Getting started with decision discovery

Getting Started with Decision Discovery
James Taylor
CEO

©2014 Decision Management Solutions
Your Presenters
James Taylor
I’m a passionate believer in the power of Decision Management to deliver simpler, smarter and more agile processes. I write, speak, consult and work on Decision Management and Decision Modeling.
Juergen Pitschke
I‘m a coach, consultant, speaker, writer, …
Engineer
Helping customers to apply Decision Management successfully

Agenda
Identify Decisions
Scope Decisions
Decompose Decisions
Decision Context
Automating Decisions
Manual Decisions
Next Steps

3 steps to decision management
Identify and model the decisions that are most important to your operational processes
Design and build independent decision services using business rules and advanced analytics
Create a “closed loop” between operations and analytics to measure results and drive improvement

Why Identify and Model Decisions?
Simplify processes
Effectively deploy business rules
Flexibly define automation boundaries
Effectively deploy predictive analytics

Different Types of Decisions
Decision Points
Do we need a Business Process Model?
1. How do you identify decisions?
© BCS - Dr. Juergen Pitschke 2003 - 2014
5

Strategic Decisions
Tactical
Decisions
Operational
Decisions
Different Kinds of Decisions
6

7
Many Ways To Discover Decisions
Business Events
Legacy Systems
Business Processes
Business Intelligence
Brainstorm
KPIs
Micro and hidden Decisions

Processes Can Hide Decisions

Simplify By Making Decisions Explicit

A business process cannot progress any further unless they are made
A particular event has occurred and must be handled
A person must choose between a number of options
Decisions Are Made Because
10

2. How do we scope the decisions we identify?

Scope a Decision
12
•What is the question to answer?
•E.g.
•Is this student eligible for an award?
•Is this student eligible for this specific award?
•Which product should we offer to this customer?
•What are the possible answers?
•Specify the possible answers
•Single value
•Value Range
•List of Values

Scope a Decision
13
•What is the object of the decision?
•E.g.
•What is an ”award“?
•What does “Which product should we offer to this customer?” mean? – Only a product type? A specific product for a specific price?

Decision Scope and Process
14
•Process and Decision scope are mutually dependent.

What information contributes to the decision?
Where does the knowledge come from?
What about information from other decisions?
Reuse and the decision network
3. How do you decompose Decisions?
15

Decision
Input Data
Dependent Decisions
Authority

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

Decisions Require Knowledge “Reorder parts” requires supplier capabilities, shortage risks “Validate Tax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud

Decisions Require Decisions These decisions must be made first Is this a good time to make an offer? Which product should the offer be for? How valuable an offer?

4. What’s the context for a decision?

Decision Context
22
•What is the business value of the decision?
•Frequency
•Financial Value
•Risk
•…
•Business Motivation
•What is the motivation for the decision activity?
•Analytical vs. Predictive
•How can we measure decisions?

Decision Context
23
•Where is the decision used?
•Impact Analysis
•Who is involved?
•RACI Charts for Decisions
•Meta information for Project Management, Operations, …

Specifying decision logic with various metaphors: Decision Tables, Natural Language and everything between
Decision Tables: The devil is in the detail
Linking models to implementation
5. How do you prepare Decisions for automation?
24

Define Automation Boundaries

Specify Logic with Decision Tables Most common rule format A set of rules in a tabular layout Look up tables, comparing attribute values Various formats
Applicant Risk
U
Applicant Age
Medical History
Applicant Risk Rating
1
> 60
good
Medium
2
bad
High
3
[25..60]
-
Medium
4
< 25
good
Low
5
bad
Medium
Special Discount
Type of Order
Web
-
Customer Location
US
-
Type of Customer
Wholesaler
Retailer
-
Special Discount %
10
5
0
F
1
2
3
Credit Limit Assignment
Credit Limit
Income
< $40,000
>= $40,000
Card Type
Standard
$1,000
$2,000
Gold
$1,500
$2,500

Variety of Implementation Formats
Rule Flow or Decision Flow
Rule Sheet or Decision Table
Decision Tree
Decision Table

Link To Automation

6. What other uses are there besides automation?

Describing Manual Decisions
30

31
•Model ≠ Model Output
•What deliverables do we expect from our Decision Modeling project? SOPs, Checklists, Work Orders, Guidelines, Documentation, …
•How do we create such deliverables?

32
•What does the business user understand?
•Decision Tables or Natural Language
•Other metaphors
•What problems does the Decision Analyst face?
•Analyzing a Decision Table versus Analyzing Natural Language
•How can we formalize ”gut feeling“?

© BCS - Dr. Juergen Pitschke 2003 - 2014 33
Analyze Decision
Tables
Source: DMN Specification (bmi-13-08-01)
Transform into
Desired Output

Learn More about Decision Discovery Training and Workshops Live, online training
Free Resources & Tutorials
decisionmanagementsolutions.com james@decisionmanagementsolutions.com BPM in Practice 2014, October 10, Hamburg Pre-Conference Workshop “Decision Management”, October 9 www.bpmpractice.de
www.enterprise-design.eu
jpitschke@enterprise-design.eu

Getting started with decision discovery

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