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What is Business Decision Management?

Description

How to manage your business and implement your strategic Inititives using the new disciple and technique called Business Decision Management.

Transcript

Using Business Decision Management to Implement Corporate Strategy
An Azinta Presentation for BiZZdesign Decision Management Event
Amersfoort, Netherlands, 28th January 2015
(c) Azinta : www.azinta.com January 28th 2015 1
January 28th 2015(c) Azinta : www.azinta.com 2
“Organizations face many challenges in today’s
business climate.”
“Organizations whose success or failure is
determined by the decisions they make are
handicapped by systems that are centered on
processes or functions.”
“As a result, these organizations struggle to
improve business productivity while managing
costs and find it hard to make changes in their
systems quickly, despite a pressing need to do
so.” James Taylor, Decision Management Guru
 What is Business Decision Management?
 What are Decision Models?
 Linking Strategy with Business Decision
Management
 Who are Azinta Systems?
 Next Steps
 Appendix
◦ Resources
January 28th 2015(c) Azinta : www.azinta.com 3
 Many thousands of operational business
decisions are executed daily
◦ These business decisions are embedded within
applications, business processes and supporting
technologies.
 These operational business decisions are
responsible for all corporate wealth creation:
◦ All sales, transactions, delivery of services, product
offerings, compliance implementation, etc. are the
results of the execution of these decisions
January 28th 2015(c) Azinta : www.azinta.com 4
 Business managers who are tasked to manage
and improve these business decisions:
◦ Do not really understand these decisions because they
are not visible and in a language they can understand
◦ Therefore business managers find it difficult to improve
these business decisions rapidly.
 Resulting in:
◦ Lack of business agility to change quickly to respond to
market changes
◦ Difficult to comply with the massive global regulatory
requirements
◦ Lower ROE (Return on Equity) than Decision-centric
companies.
January 28th 2015(c) Azinta : www.azinta.com 5
 Business Decision Management is a technique
and discipline that:
◦ Firstly, identifies operational business decisions as
first class assets;
◦ Secondly, models these business decisions using a
graphical language that business mangers can
understand;
◦ Thirdly, Links these decision models with the
business knowledge and business logic required to
automate these decisions
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◦ Fourthly, Managers can optimise the business
knowledge & business logic without IT intervention
◦ Fifthly. Business managers can the deploy the
decision models, in collaboration with IT, as
executable decision services.
◦ Sixthly, The results from the execution of each
business decision can be tracked and used to
update corporate Key Performance Indicators (KPI)
◦ Finally. Managers can constantly fine tune and
improve the business decisions that they manage.
January 28th 2015(c) Azinta : www.azinta.com 7
 What is Decision Business Management?
 What are Decision Models?
 Linking Strategy with Business Decision
Management
 Who are Azinta Systems?
 Next Steps
 Appendix
◦ Resources
January 28th 2015(c) Azinta : www.azinta.com 8
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January 28th 2015
(c) Azinta : www.azinta.com
(c) Azinta : www.azinta.com 11January 28th 2015
Extends TDM to
include Decisions
that combine
analytics,
business rules,
algorithms, etc.
Also provides a
high-level
Decision
Requirements
Diagram.
However lacks a
methodology, and
needs TDM to
model Decision
Table logic
 What is Business Decision Management?
 What are Decision Models?
 Linking Strategy with Business Decision
Management
 Who are Azinta Systems?
 Next Steps
 Appendix
◦ Resources
January 28th 2015(c) Azinta : www.azinta.com 12
Flying a plane needs dashboards + Automated Decision-Making Systems
+ Humans. We shall now look at the
instruments used by Boards of large
organisations to manage their business.
Showing the linkage with Business
Decision Management.
January 28th 2015(c) Azinta : www.azinta.com 13
Balanced Scorecard: The Key Dashboard & Visual Language
More than 70% of large organisations
in Europe, Japan and USA used
Balanced Scorecard + Strategy Maps
to Manage their Business.
January 28th 2015(c) Azinta : www.azinta.com 14
Customer Value Proposition
Strategy Map – The 2nd Key Visual Language used by CEOs
Productivity Strategy
Operations Management
Processes
Supply
Production
Distribution
Risk Management
Customer Management
Processes
Selection
Acquisition
Retention
Growth
Innovative Processes
Opportunity Identification
R&D Portfolio
Design / Develop
Launch
Regulatory and Social
Processes
Environment
Safety and Health
Employment
Community
Human Capital
Information Capital
Organisational Capital
Product / Service Attributes
Long-Term
Shareholder Value
Improve Cost
Structure
Increase Asset
Utilisation
Expand Revenue
Opportunities
Enhance
Customer Value
Growth Strategy
Relationship Image
Price Function Service Partnership BrandQuality Availability Selection
Culture Leadership Alignment Teamwork
Financial
Perspective
Customer
Perspective
Internal
Perspective
Learning &
Growth
Perspective
 Strategy Maps:
◦ Describes the logic of the strategy
◦ Shows the objectives for the critical processes AND
◦ The intangible assets required to support them
◦ Links the objectives using cause-and effect links
 Balanced Scorecard
◦ Translates the strategy map objectives into
measures and targets
◦ Specifies a set of action programs and resources to
enable the targets for all the measures to be
accomplished
 Known as Strategic Initiatives
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Answer: First create strategy
maps and then model and
link related operational
decisions to your Strategic
Initiatives
Next: Optimise Decision
& Process models. Link
the results of each
decision execution back
to KPIs to create a self-
improving feedback loop
(1)
(2)
(3)
January 28th 2015(c) Azinta : www.azinta.com
How can we link the
business perspectives to
the operational business
decisions in a way that can
be understood by the
business managers and
then fully automate them?
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Objectives
• Reduced
customer
onboarding
times
Statement of
what strategy
must achieve
and what’s
critical to its
success
Target
• 90%
• 60 minutes
The level of
performance
or rate of
improvement
needed
• Customer
STP
Onboarding
Key action
programs
required to
achieve
objectives
InitiativeMeasurement
• STP rate
• Customer
onboardring time
How success
in achieving
the strategy
will be
measured and
tracked
Strategic Theme:
Operating Efficiency
Profitability
Financial
Learning
More
customers
Training Staff on Business
Decision
Management (BDM)
Lowest
Customer Service
costs
Fewer staff
Customer
Internal
STP using BDM
Strategy Map example: Diagram of the
cause-and-effect relationships
between strategic objectives
Faster
processing
Simplified Strategy Map – Bank Straight-Through Processing
Improvement Initiative Meets Business Decision Management
Extending the Map into Objectives,
Measurements, Targets and Initiatives
Based on : Presentation of Balanced Scorecard Collaborative
Business processes that impact on Customer On-boarding should be
selected and decisions for STP determined & modelled, optimised
with decision business logic. Then automated with the decisions
execution results used to update the Initiative KPIs
 Read Suleiman Shehu extensive blog post on
Strategy and Business Decision Management at:
http://azintablog.com/implementing-corporate-
strategy-using-business-decision-management/
 Read Suleiman Shehu blog post on Business
Performance Management, Balanced Scorecard
and The Decision Model at
http://blog.bizzdesign.com/business-
performance-management-balanced-
scorecards-and-the-decision-model
January 28th 2015(c) Azinta : www.azinta.com 19
 What is Business Decision Management?
 What are Decision Models?
 Linking Strategy with Business Decision
Management
 Who are Azinta Systems?
 Next Steps
 Appendix
◦ Resources
January 28th 2015(c) Azinta : www.azinta.com 20
 Strategic Management Consulting & Systems
Integration Company with a focus on Business
Decision Management.
◦ Decision & Strategic Management Consultancy, Mentoring &
Training Services using TDM & DMN
 Offices: Dublin, Ireland (Head Office), London, UK
 KPI Decision Model Consulting & Training Partner for
Europe, Middle-East & Africa
 BiZZdesign TDM Consulting & TDM Training Partner
 Contact: suleiman.shehu@azinta.com
(c) Azinta : www.azinta.com January 28th 2015 21
 Jump-Start BDM Project
◦ We could help with any of the following:
 Conduct on-site TDM/DMN methodology training
 Identify a Strategic Initiative that could benefit from
BDM
 Identify Measures (Key Performance Indicators),
Targets
 Identify potential business decisions for optimisation
 Get approval for a pilot BDM project
 Develop and Deploy Decision Models & integration
with BPMN
 Integrating Decision Results with Key Performance
Indicators
January 28th 2015(c) Azinta : www.azinta.com 22
Contact details:
◦ Email: suleiman.shehu@azinta.com
◦ Linkedin:
https://uk.linkedin.com/in/suleimanshehu
◦ Blog: http://azintablog.com/
◦ Phone: +44 845 658 6909
◦ Skype: suleiman.shehu
◦ Web: www.azinta.com
January 28th 2015(c) Azinta : www.azinta.com 23
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 The Decision Model (TDM) Book
◦ A must read book – “The Decision Model: Business Logic
Framework Linking Business with Technology” by
Barbara von Halle and Larry Goldberg. Available on
Amazon in hardcover and Kindle format.
 TDM Primer
◦ Download TDM Primer
 TDM White Papers
◦ The Decision Model: Improving Process Models and the
Requirements Process
◦ The Decision Model: Revolutionizing the Testing Process
for Business Logic
◦ Integration of Business Decision Modeling in
Organization Design
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(c) Azinta : www.azinta.com
January 28th 2015
 TDM Blog Posts by Suleiman Shehu:
◦ Business Performance Management, Balanced
Scorecards and The Decision Model
◦ The Decision Model, Enterprise Architecture,
ArchiMate and “The Decision Modeler”
◦ New Tool Changes the Face of Business Decision
Modelling/Management?
 TDM Articles::
◦ Three Decision Model Predictions and The Decision
Modeler Software (Modern Analyst)
◦ Changing the Game: Business Rules Grow Up into
Business Decisions (Modern Analyst)
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(c) Azinta : www.azinta.com
January 28th 2015
 OMG Decision Model & Notation Standard
◦ http://www.omg.org/spec/DMN/1.0/Beta1/
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(c) Azinta : www.azinta.com
January 28th 2015
Millennium House
3 Humber Trading Estate
Humber Road
London
NW2 6DW
Tel: +44 (0) 845 658 6909
www.azinta.com
Email: suleiman.shehu@azinta.com
January 28th 2015(c) Azinta : www.azinta.com 28