Business Management Decision / Rules Management DMN Presentations

Decision Management & Cloud as a Platform for Predictive Analytics

Description

Decision management’s systematic embedding of predictive analytics into automated decision-making systems complements cloud technologies and maximizes the value of predictive analytics.

Transcript

James Taylor,
CEO

Decision
Management and
Cloud as a Platform
for Predictive
Analytics

Your Presenter – James Taylor
CEO of Decision Management Solutions

We work with clients to improve their
business by applying analytic technology
to automate & improve decisions
I have spent the last 11years
championing Decision Management and
developing Decision Management Systems

Decision Management
A business discipline and a technology stack
Builds on existing IT infrastructure
Enhances business processes
Leverages analytics to manage uncertainty
Increases transparency and business control

Effectively implements
Business Rules
Predictive Analytics

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
to manage these
decisions

Create a “closed
loop” between
operations and
analytics to
measure results and
drive improvement

AGENDA

1 2

Finding High
Value
Opportunities
for Predictive
Analytics

Defining Analytic
Requirements

Selecting the
Right Cloud
Strategy

Selecting the
Best Fit
Technology
Architecture

Focusing the
Data Effort

4 5 6

Take-aways and
Next Steps

1. Find High Value Predictive
Analytic Opportunities

This is not where Predictive
Analytics have power

Customer
Churn

Claims
Fraud
Pricing
Risk

This is…

Strategic
Decisions
Tactical
Decisions
Operational
Decisions

Finding Opportunities
Business Processes
Brainstorm
Business Intelligence

Micro and hidden
Decisions
KPIs
©2014 Decision Management Solutions

2. Use Decisions to Clearly
Define Predictive Analytic
Requirements

Turn Insight Into Action
Operational
Systems

Decision

Analytic
Insight
©2014 Decision Management Solutions

Decisions Need More Than Insight

Decision

Modeling Decisions Brings Transparency

Decision

Three Elements in Decision Models
Decisions require Information
2. Decisions require Knowledge
3. Decisions require other Decisions
1.

Decision Models Build Understanding
Decision

Insight

Knowledge

Information

Put Decisions First
Link Action To Analytics

Link Action

To Analytics
©2014 Decision Management Solutions

3. Use Decisions To Focus
Data Efforts

We often wait for a
360o view before acting
©2014 Decision Management Solutions

But too much data simply
drowns decision-makers

From Decision To Data

Data
Analytic
Insight
Decision

…not the other way
around

Big Data AND Little Data Matters
Structured Data
is critical
Big Data adds value

Use decisions to find
the (big) data that
matters to you

4. Select The Right Cloud
Strategy

Benefits of Predictive Analytics & Cloud

Scalability

Pervasiveness

Deployment
Agility

Move
analytics to
the data
©2014 Decision Management Solutions

New to Predictive Analytics
1.

Pre-packaged cloud-based decision solutions
Easy to adopt
Fast time to value

Focus on customers
Customer satisfaction decisions
Customer acquisition decisions

Remember
Customer satisfaction takes real-time scoring, data
Work with trusted vendors to handle privacy,
security
©2014 Decision Management Solutions

Expanding Predictive Analytics
1.

Adopt the cloud
For pervasive deployment of predictive analytics
To deliver predictive analytics at scale

Focus on operational systems
Near real-time operational data is key
Operational integration delivers maximum value

Apply Big Data to these problems
Unstructured data at once
Sensor, Audio, Image too
©2014 Decision Management Solutions

5. Select The Right
Technology

Today these pieces are semi-detached
1. Operational systems are built in a variety of ways
Application Context
Business Process
Management

Event Processing

3. Reports and queries are
intended to improve decision
making

Enterprise
Application

Business
Intelligence
Data
Infrastructure

2. Data is extracted for analysis

Performance
Management

4. Dashboards are used to
monitor performance
©2014 Decision Management Solutions

Powerful technologies are underutilized
1. Business rules are forced into business processes
Business
Rules
Business Process
Management

Predictive
Analytics

Application Context
Event Processing

2. Predictive analytics are
forced into reports or left
stand-alone

Enterprise
Application

Business
Intelligence
Data
Infrastructure
Performance
Management

3. Optimization has limited,
localized effect

Optimization

4. The effectiveness of
decision-making is not
tracked or improved

Decision
Analysis

A Decision Management Context
Decision Management links these
technologies to the application context
Application Context
Business
Intelligence

Business Process
Management

Data
Infrastructure
Predictive
Analytics

Enterprise
Application

Event Processing

Performance
Management

Decision Service
Business Rules

Predictive
Analytics

Optimization

Decision
Analysis

Enterprise Platform
Decision Management ties
heterogeneous
technologies into a
coherent approach for
better results

Decision Management
allows decision
performance to be
tracked, analyzed and
ultimately improved

Decision Management ties
how decisions are being made
and what can be done to
improve them directly to
business performance
©2014 Decision Management Solutions

Predictive
Analytics

AND

Business
Rules
External Data

Next Steps

Advice For Getting Started

Decisions
First

• Identify operational decisions
where analytics makes a difference
• Model these decisions to improve
business understanding

Analytics
AND Rules

• Adopt business rules technology
as well as analytic technology
• Integrate them to maximize value

Big AND
Little Data

Model Decisions For Analytic Success
Download our Decision Modeling for
Analytic Projects White Paper
decisionmanagementsolutions.com/decision-modeling-for-predictive-analytic-projects

Online Training
Decision Management and Decision Modeling
Live, online training in 6 1.5 hr sessions
February 4,5,6 and 18,19,20. 1:00pm – 2:30pm ET
decisionmanagementsolutions.com/online-training
©2014 Decision Management Solutions

Thank You
James Taylor, CEO
james@decisionmanagementsolutions.com

Decision Management & Cloud as a Platform for Predictive Analytics

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