3 Critical Elements of a Digital Business Platform

@jamet123 #decisionmgt © 2017 Decision Management Solutions
James Taylor, CEO
3 Critical Elements of a
Digital Business Platform

@jamet123 #decisionmgt © 2017 Decision Management Solutions 2
James Taylor
Decision Management Solutions
▶ We work with clients to
improve their business by
applying business rules &
analytic technology to
automate & improve decisions.
▶ Vendor-neutral
▶ Original DMN submitter
▶ Using decision modeling since 2011
▶ I have spent the last 15 years
focused on the use of Decision
Management to develop
analytical systems

AGENDA
▶ Digital Enterprises And Digital Decisioning
▶ Decision Modeling
Clearly Define the Desired Outcome
▶ Business Rules Management
Business Empowerment and Safe Agility
▶ Predictive Analytics (and AI)
Data-driven Decision-making
▶ Put It All Together
A Virtual Decision Hub

Digital Enterprises And
Digital Decisioning

A Typical Platform For A Digital Enterprise
Digital Platform
Digital Channels
Digital Workers
Digital Monitoring
Digital Processes

Challenges In Digital Underwriting
Digital Platform
Digital Channels
Digital Workers
Digital Monitoring
Digital Processes
Unresponsive:
No binding quotes
Inefficient:
First-in First-out assignment
to Underwriters
Lack of Transparency:
No visibility into how

Challenges In Digital Claims
Digital Platform
Digital Channels
Digital Workers
Digital Monitoring
Digital Processes
Unresponsive:
Too long to pay
Inefficient:
Too few claims are auto-
adjudicated
Lack of Feedback:
No use of analytics to
improve results

Challenges In Digital Marketing
Digital Platform
Digital Channels
Digital Workers
Digital Monitoring
Digital Processes
Inflexible:
One size fits no-one
Inflexible:
Takes Marketing too long to
change the program
Lack of Feedback:
Analytics don’t adapt,
learn from successes

Addresses Challenges In Digital Enterprises:
Add Digital Decisioning
Digital Platform
Digital Channels
Digital Workers
Digital Monitoring
Digital Processes
Lack of Transparency
Inflexible
Inefficient
Lack of Feedback
Unresponsive
Transparent, compliant
Safe Agility
Business Empowerment
Data-driven
Real-Time Actions

Digital Decisioning:
3 Critical Elements
Decision
Modeling
Business
Rules
Predictive
Analytics

Decision Modeling
Clearly Define The Desired Outcome

Standards-based Decision Models
Show What’s Involved In Digital Decisions
Reuse across
digital channels
Knowledge
Required
Structure of
Decision-making
Data Required

Decision Models Link Business Outcomes to
Digital Decisions
Improve
Cross-Sell
A
Total
Number of
Orders
Most
Recent
Order
Total Orders
last 12
months
Lifetime
Order Total
Customer
Status
1 >= 5 < 90 days > $10,000 - Gold
2 >=10 < 180 days > $20,000 - Gold
3 >= 20 < 360 days > $40,000 - Gold
4 - < 180 days - > $1,000,000 Gold
5 - - - > $2,000,000 Gold
Customer Value Determination

Business Rules Management
Business Empowerment and Safe Agility

Business Rules:
Fundamental To Decisions
Business Rules are
Total Number of
Orders
Most Recent Order Total Orders last
12 months
Lifetime Order
Total
Customer
Status
>= 5 < 90 days > $10,000 Gold
>=10 < 180 days > $20,000 Gold
>= 20 < 360 days > $40,000 Gold
< 180 days > $1,000,000 Gold
> $2,000,000 Gold
“
”
Statements of the actions you should take when
certain business conditions are true.

Business Rules Management Systems
Answer Critical Questions
How Will We Decide
Next Time?
How Did We Decide
Last Time?
What Happens If We
Change How We
Decide?
Do We All Agree
How We Decide?

Decision Models And Business Rules:
Business Empowerment, Safe Agility
▶ Decision model accessibility empowers the business
▶ Decision models, business rules enable safe agility:
▶ Break down complex problems
▶ Define each piece with business rules
▶ Make it safe and easy to change them
Sources and drivers of
change are clear
Impact and ownership
are clear
Navigate to the rules that
have to change

Predictive Analytics (and AI)
Data-driven Decision-making

To Maximize Digital Decisioning
Answer More Complex Questions
▶ Will this car be a total loss?
▶ Is this transaction fraudulent?
▶ Is this customer upset or not?
▶ Is this email a complaint?
▶ Which offer will this prospect accept?
Apply Predictive Analytics and AI
Be the Hero

Use Predictive Analytics, AI To
Digitize And Automate More Decisions
▶ Predictive Analytics
▶ Extract insight from data
▶ Validate rules with data
▶ Find patterns, segments
▶ Turn uncertainty into
usable probability
▶ AI
▶ Learn by example
▶ Handle natural language
▶ Process images
▶ Detect tone, personality

Data-Driven, Real-Time Actions
Decision
Traditional New
External ✓ ✓
Internal ✓ ✓
Enrich With
Analytics
Select Consistent, Precise, Actions
In Real-Time, Across All Channels
Learn Continuously
Start with
data
Add Policies, Regulations
Best Practices and Preferences
Enterprises must stop wasting time
and money on unactionable analytics.
Mike Gualtieri VP

Put It All Together:
A Virtual Decision Hub

External Data
Big Data
Business
Rules
Continuous
Improvement
▶ Customers use multiple channels
▶ A common service suggests actions
▶ Using business rules and
analytics/AI in combination
▶ These are continuously improved
▶ And managed by a decision model
▶ That reuses common decisions
across channels, processes
▶ Automated with business rules
▶ And analytics, AI
Analytics and
AI
An Example Of Digital Decisioning
Next Best Action

Digital Decisioning: A Virtual Decision Hub
MARKETING
TOUCHPOINTS
SALES
TOUCHPOINTS
SERVICE
TOUCHPOINTS
CLAIMS
TOUCHPOINTS
DECISIONS
MARKETING
CAMPAIGN
SYSTEM
DECISIONS
SALES
SYSTEM
DECISIONS
UNDER-
WRITING
SYSTEM
DECISIONS
POLICY
ADMIN
SYSTEM
DECISIONS
CUSTOMER
RELATIONSHIP
MANAGEMENT
DECISIONS
CLAIMS
MANAGEMENT
SYSTEM
DECISION
HUB
(VIRTUAL)
DECISIONS
DECISIONSDECISIONS
DECISIONS
CUSTOMERS
Purchase a
Policy
Sales:
Qualification Decisions
Sales:
Up-sell/ Cross-sell Decisions
Underwriting:
Risk Assessment Decisions
Sales:
Pricing Decisions
EXAMPLEDECISION MODELS
▪ Decisions required across multiple functions (systems) need to be
‘coordinated’
▪ Conceptualized and designed through Decision Models;
Implemented through a virtual ‘Decision Hub’ for management.

▶ Fortune 500 clients in insurance, financial services,
manufacturing, telecommunications, travel, health
care, health management, and retail
▶ Hands-on Training - Over 800 trained
▶ Highly skilled bench
▶ Decision Modeling Software DecisionsFirst Modeler
▶ Original co-submitter of the Decision Model and
Notation (DMN) Standard
▶ Extensive vendor relationships, vendor neutral

Pilot Digital Decisioning
▶ Deliverables
▶ Cloud-based decision service for
making offers
▶ Business ownership of key decision-
making logic
▶ Impact analysis and testing
capability for business owners
▶ Decision impact and business
performance dashboard
▶ Criteria for production deployment

Questions?

Thank You
@jamet123 #decisionmgt © 2017 Decision Management Solutions
For more on
Decision Management, go to:
decisionmanagementsolutions.com
www.decisionmanagementsolutions.com
Contact Us:
info@decisionmanagementsolutions.com
james@decisionmanagementsolutions.com
+1 650 400 3029

3 Critical Elements of a Digital Business Platform

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