What is a computer controlled operational decision and why should I care
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The document discusses the importance of computer-controlled operational decisions for businesses and governments, highlighting how this technology can improve efficiency and financial returns. It explains that manual business rules often lead to inconsistent outcomes and emphasizes the need for clear, adaptable business rules that can be easily modified by non-technical personnel. Additionally, it suggests adopting cloud-based technologies to facilitate integration and flexibility in decision-making across multiple geographies.
What is a computer controlled operational decision and why should I care
- 1. What is a Computer Controlled Operational Decision?... And Why Should I Care? LUIS CARRASCO-CORTES IBM COGNITIVE PROCESS TRANSFORMATION LEADER, CANADA AND CARIBBEAN. ALL OPINIONS ARE MY OWN 1
- 2. Why should I care? I’m in business… This is the real question! ... The one that really matters The answer is simple: Companies are making millions using this technology One company calls it “The money machine” 10/12/2015 2
- 3. Why should I care? I’m in government… The answer is simple: Institutions are delighting their constituents A city coordinates public safety using this technology A state government cuts issuing permits wait times by 75% 10/12/2015 3
- 4. There once was this customer who wanted to return an item for a full refund that she had used for far too long…. So she called your returns department… first agent said “No” Second agent said “No… Third said “No” Fourth said “Yes”!... Why? 10/12/2015 4
- 5. Why does this happen? 99% of the time is because the business rules that trigger the decisions you make are manual Because they are manual, they result in inconsistent outcomes… That can cost you a lot of money on aggregate 10/12/2015 5
- 6. What are “Operational Decisions?” – A few examples: 10/12/2015 6 Should we give a discount? Should we approve…? Will that valve break? Have we reached a threshold? Is the weather causing dangers? Is this a good customer? Do I need to reroute through traffic? Should we deny that claim? Is there a public safety risk here? Is this an instance of Fraud?
- 7. To get an excellent financial return you need to: Perform hundreds to many 100’s of thousands of decision PER MINUTE Only at these levels does a computer surpass human ability to make decisions 10/12/2015 7
- 8. BUT! … Don’t underestimate how many operational decisions you actually make Unless you are a company where people still call you to transact business… The impact of mobile and social has most probably grown the number of daily interactions exponentially All these interactions drive at least one decision. 10/12/2015 8
- 9. Business decisions need business rules in order to work A computer cannot make decisions unless you have fed it Business Rules Business rules need to be written in natural language so business people can understand them Example: If “client’s credit” is “excellent” then “approve sale” otherwise “send to credit department” 10/12/2015 9
- 10. Yes but I have coded all these business rules into my systems by custom coding them … Can any ***business person*** change a rule in under 1 hour? Or…. Do you need to open an IT project to make the change? If you want speed, rules programmed in software code will not be flexible. 10/12/2015 10
- 11. In order to drive my business decisions I need data from multiple systems… You need a technology that will seamlessly integrate into any IT system Internal or External Additionally, the decision engine must be able to read from and write to, any system 10/12/2015 11
- 12. But we are spread out in multiple geographies You can enter a rule in English… But a French location will see the rule in French A Chinese location will see it in Chinese And so on for 12 additional languages 10/12/2015 12
- 13. But we are spread out in multiple geographies… and some countries have specific rules… Imagine in your home country 100% of the rules from HQ apply But in another country only 75% apply You need a technology that allows local managers to build their own rules for the remaining 25% 10/12/2015 13
- 14. What if I don’t have the technical skills in house? We recommend you acquire cloud based technology: No need for dedicated IT No hidden costs Pay by the use and scale at the rate you grow 10/12/2015 14
- 15. Where can I get more information? Click on these links to see how this technology could help you run your operations IBM Operational Decision Manager on Cloud Blueworks Live Process Discovery and Modelling Platform 10/12/2015 15