Simplify BPM with Decision Management
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The document discusses the role of decision management in simplifying business processes through the use of business rules and analytics. It highlights how clearly defined decision-making can streamline operations, enhance customer interactions, and improve overall decision quality. The introduction of Decision Model and Notation (DMN) is presented as a method to standardize and visualize decision processes effectively.
Simplify BPM with Decision Management
- 1. BPMN and DMN: Simplify BPM with Decision ManagementJamesTaylor, CEO
- 2. ©2010-2014 Decision Management Solutions 2 James Taylor CEO of Decision Management Solutions We work with clients to improve their business by applying business rules and analytic technology to automate & improve decisions. I have spent the last 11 years championing Decision Management and developing Decision Management Systems.
- 3. BEFORE ©2010-2014 Decision Management Solutions 3 A simple example without decisions
- 4. AFTER Decision: What type of applicant is this? ©2010 Decision Management Solutions 4 The same example with a decision
- 5. The benefits of simplifying business processes
- 6. Making the right decision at the start of the call turns long, costly processes into straightforward, customer-pleasing interactions. ©2010-2014 Decision Management Solutions 6 Fortune 20 Call Center
- 7. 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 ©2010-2014 Decision Management Solutions 7 North American Life Insurer
- 8. Cross-channel coordination ensures that all relevant offers, including loyalty programs, are combined at the point of sale, with consistent pricing rules applied. ©2010-2014 Decision Management Solutions 8 International retailer
- 9. Finding decisions in business processes ©2010-2014 Decision Management Solutions9
- 10. ©2010-2014 Decision Management Solutions 10 Finding decisions Worklists Extreme Branching Procedures, cheat sheets Approvals, escalations
- 11. Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing ©2010-2014 Decision Management Solutions 11 Vessel underwriting example
- 12. Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing ©2010-2014 Decision Management Solutions 12 Vessel underwriting example
- 13. 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? ©2010-2014 Decision Management Solutions 13 Vessel underwriting example
- 14. 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? ©2010-2014 Decision Management Solutions 14 Vessel underwriting example
- 15. Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing ©2010-2014 Decision Management Solutions 15 Vessel underwriting example
- 16. 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? ©2010-2014 Decision Management Solutions 16 Vessel underwriting example
- 17. Gather policy application data Validate application Eliminate unqualified applicants Conduct physical inspection Underwrite policy Complete new business processing ©2010-2014 Decision Management Solutions 17 Vessel underwriting example
- 18. Model Decisions with DMN
- 19. Good Decision Requirements Information • What is needed? • Where does it come from? Know-how • How to make it • How to improve it Precision • Exactly how? • How to avoid technical details? Automation • All automated? • If not, how much can be and for whom? 19©2010-2014 Decision Management Solutions
- 20. Describe Decisions Define Decisions with A question Possible answers Q: Which marketing offer should be presented to this customer during this interaction? A: Any current, available marketing offer in the database 20©2010-2014 Decision Management Solutions
- 21. Decisions require Information “Determine Parts Availability” requires BOM and Inventory information “ValidateTax Return” requires Return and Citizen information “Refer claim for fraud” requires Claim and Provider information 21©2010-2014 Decision Management Solutions
- 22. Decisions require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “ValidateTax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud 22©2010-2014 Decision Management Solutions
- 23. Decisions can require Decisions Is this a good time to make an offer? Which product should the offer be for? How valuable an offer? These decisions must be made first 23©2010-2014 Decision Management Solutions
- 24. 24©2010-2014 Decision Management Solutions Decision Input Data Dependent Decisions Dependent Decisions Dependent Decisions Authority Analytics Manual Decisions
- 25. ©2010-2014 Decision Management Solutions 25 Decision Model and Notation (DMN) Object Management Group (OMG) Beta Standard OMG also manages the BPMN and other standards DMN Goal Provide a graphical industry standard modeling notation for decisions that is readily understandable by all business users. For more information: http://www.omg.org/news/releases/pr2014/01-16- 14.htm
- 26. ©2010-2014 Decision Management Solutions 26 The Role of DMN DMN
- 27. Not just simpler, smarter too
- 28. © Decision Management Solutions, 2013 28 Even Smarter With Analytics Business Processes Analytic Systems Decision Decisions create hooks for analytics in business processes
- 29. ** * * **** ** * * ** * * * * * * * * * * * * * * * * * * * * ** * * ** * * *** * * * ** *** ** Analytics help you understand why and when Rules address what might happen ©2010-2014 Decision Management Solutions 29 Analytics Drive Better Decisions
- 30. ©2010-2014 Decision Management Solutions 30 And Create Continuous Improvement
- 31. Summary and Action Plan
- 32. Decision: What type of applicant is this? ©2010-2014 Decision Management Solutions 32 Simplify BPM with Decision Management Faster, easier, independent decision logic changes Simpler processes that are easier to manage Hooks for analytic insights in business processes for making better decisions
- 33. ©2010-2014 Decision Management Solutions 33 Action Plan Learn more about decision modeling and DMN Model business processes and decisions Use decisions as hooks for rules and analytics
- 34. Thank You JamesTaylor, CEO james@decisionmanagementsolutions.com More on Decision Management & Decision Modeling at decisionmangementsolutions.com