1. Four Platform
Capabilities for
Decision
James Taylor
Management
CEO
Systems

2. Your presenter – James Taylor
CEO of Decision Management Solutions
Works with clients to improve their
business by applying analytic technology
to automate & improve decisions
Spent the last 9 years developing the
concept of Decision Management
©2012 Decision Management Solutions 1

3. AGENDA
1 2
Decision
Management
Systems
Four
Capabilities
3
An overall
architecture
Introduced
4 5 6
A broader IT Product Learn more
context categories and
vendors

4. Decision Management
Systems Introduced

5. What are Decision Management Systems?
Agile
Analytic
Adaptive
©2012 Decision Management Solutions 4

6. Decision Management Systems…
Keep the Are
decision in transparent
mind and agile
Are
Test, learn,
predictive
and improve
not reactive
©2012 Decision Management Solutions 5

7. 3 Steps to Decision Management
Discover
Build
Improve
©2012 Decision Management Solutions 6

8. Decisions
Making choices or
selections and taking
action
©2012 Decision Management Solutions 7

9. Operational decisions are key
©2012 Decision Management Solutions 8

10. Suitable decisions
Repeatable Non trivial
Measurable
Candidate for
business
automation
impact
©2012 Decision Management Solutions 9

11. Different types of operational decision
Eligibility Validation Calculation
Risk Fraud Opportunity
©2012 Decision Management Solutions 10

12. Four capabilities
Effectively
Deeply embed
manage decision
analytics
logic
Monitor and
Optimize
manage decision
results
performance
©2012 Decision Management Solutions 11

13. Effectively manage
decision logic

14. Decision logic has many sources
Decision
©2012 Decision Management Solutions 13

15. Business rules
“ … statements of the
actions you should take
when certain business
conditions are true. ”
©2012 Decision Management Solutions 14

16. Most business rules are unmanageable
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);
}
}
}
©2012 Decision Management Solutions 15

17. Clarity and transparency are needed
If customer is GoldCustomer
and Home_Equity_Loan_Value is more than $100,000
then college_loan_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”
©2012 Decision Management Solutions 16

18. Decision logic management functions
Rule Management
Technical
Business
Verification and Validation
Testing and Debugging
Impact Analysis
Data Management
Deployment
Repository
©2012 Decision Management Solutions 17

19. Deeply embed analytics

20. Patterns inform decision-making
10
5
0
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10
©2012 Decision Management Solutions 19

21. How to look forward?
©2012 Decision Management Solutions 20

22. Different kinds of predictive analytics
Risk Fraud Opportunity
©2012 Decision Management Solutions 21

23. Predictive Analytics must be embedded
?
? Decision
©2012 Decision Management Solutions 22

24. An industrial analytic process
Cottage industries don’t scale
Factories do

25. Analytic Insight Management
Data Management
Data Preparation
Data Visualization & Analysis
Modeling In-database Modeling
Model Validation
Deployment and Scoring In-database Scoring
Model Monitoring
Model Tuning Model Tuning
Repository
©2012 Decision Management Solutions 24

26. Manage decision
performance

27. Decisions are high change components
Regulations change Change to keep eligibility
decisions compliant
Policies change Change validation to track
new data requirements
Competitors change Change the discount to
remain competitive
Markets change Change the assessment to
manage risk
Consumer behavior Change to keep selecting
changes the right deal terms
Fraudsters adapt Change the routing to
focus on new fraud
©2012 Decision Management Solutions 26

28. Don’t just create a decision point
©2012 Decision Management Solutions 27

29. Create Continuous improvement
©2012 Decision Management Solutions 28

30. Monitoring decision effectiveness
To support decision analysis you need to log:
Decision execution
Responses
Results
Apply performance management to see
Trends
Hotspots
Logging also supports compliance, audit
©2012 Decision Management Solutions 29

31. An environment for improvement
Business User • My rules, in context
• Only allow changes that make sense
Rules Management • No unnecessary information
• Rapidly see business impact of changes
Impact Analysis • Design impact and execution impact
• More than testing
Alternatives • Swapset analysis for comparison
• Simulation and what-if analysis
Assessment • Business performance comparison
Analytic Model • Model performance monitoring
• Self learning models
Management • Managed model refresh
©2012 Decision Management Solutions 30

32. Optimize results

33. A capability to optimize results
Optimization Model Development
Optimization Model Debugging
Solvers
Data Management
Scenario Analysis
Deployment
Repository
©2012 Decision Management Solutions 32

34. An overall architecture

35. ©2012 Decision Management Solutions 34

36. ©2012 Decision Management Solutions 35

37. The broader IT context

38. Decision Services in context
Application Context
Business
Business Process Event Enterprise
Intelligence
Management Processing Application
Performance
Data Decision Service Management
Infrastructure Decision
Business Predictive
Optimization Analysis
Predictive Rules Analytics
Analytics
Enterprise Platform
©2012 Decision Management Solutions 37

39. Product categories and
vendors

40. Navigating product categories
Optimization
Optimization
Suite
Solver
Rules Analytic
Solvers Decision Optimization Analytic Insight
Decision Logic Management
Business Rules Predictive
System
Management Analytic
Platform
System Workbench
Analytic Model
Decision
Decision Management
Management
System Management In-database
Analytics
©2012 Decision Management Solutions 39

41. Vendors in the report
11Ants Oracle
Angoss Pegasystems
Be Informed Predixion
Bosch Software Innovations Progress
Clario Analytics Revolution Analytics
Experian Salford Systems
FICO SAP
FuzzyLogix Sapiens
GDS Link SAS
Gurobi Sparkling Logic
IBM Starview
IDIOM Statsoft
Infocentricity Teradata
InRule Tibco
RedHat usoft
KNIME Yottamine
KXEN Zementis
OpenRules Zoot
©2012 Decision Management Solutions 40

42. Learn More

43. Decision Management Systems
What if you could make your systems
active participants in optimizing your
business?
What if your systems could act intelligently
on their own?
Decision Management Systems can do
all that and more. This book shows
how to integrate operational and
analytic technologies to create more
agile, analytic, and adaptive systems.
For more information visit
decisionmanagementsolutions.com/book
©2012 Decision Management Solutions 42

44. The report
Version 1 next week Future versions
Decision Management Product categorization and
Systems introduced “First Looks”
Detailed descriptions of the Key product characteristics –
four capabilities what to look for
Initial best practices and Detailed best practices and
vendor selection guidelines use cases
Vendor contact information More on selection criteria
and approaches
decisionmanagementsolutions.com/decision-management-technology
Sign up for the newsletter to stay informed http://eepurl.com/cKWQ
©2012 Decision Management Solutions 43

45. Questions?

46. Thank You
James Taylor, CEO
james@decisionmanagementsolutions.com