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3 Reasons why
Decision Modeling
with DMN Makes
for Better Business
Analysis
JamesTaylor
CEO
©2014 Decision Management Solutions 1
Your Presenter – James Taylor
CEO of Decision Management Solutions
Works with clients to improve their
business by applying analytic technology
to automate & improve decisions
Spent the last 11 years championing
Decision Management and developing
Decision Management Systems
2©2014 Decision Management Solutions
Why Does Decision Modeling With DMN
Make For Better Business Analysis?
Specifies decision making in processes and
systems
Identifies opportunities for Business Rules and
Business Analytics
Improves collaboration and re-use
Why Model Decisions?
Existing Techniques Don’t Do Decisions
Use Cases
• Key steps are decisions
• Decisions not modeled
Process Models
• Decisions made by tasks
• Peanut Butter Rules
Requirements Lists
• Decisions are required
• How is not modeled
4©2014 Decision Management Solutions
©2014 Decision Management Solutions 5
A Simple Example Without Decisions
©2014 Decision Management Solutions 6
The Same Example With A Decision
How risky is the policyholder?
How risky is the claim?
What’s the right action?
This government agency
used decision models to
understand its
requirements for a new
package selection effort
point.
The combination of process
models AND decision
models was key.
©2014 Decision Management Solutions 7
Decision Models & Process Models
Decisions Are A Common Language
Business
Decision
8©2014 Decision Management Solutions
This decision model of best
practices for deciding if a
claim should be paid
automatically, examined or
referred for fraud ensures
front life staff are taking
advantage of analytic fraud
detection.
©2014 Decision Management Solutions 9
Analytic Decision Models in Claims
©2014 Decision Management Solutions 10
Decisions Increase Understanding
Uncover
Gaps
Automation
Opportunities
Data
Requirements
Shared
Understanding
Rule Sources
This client built a decision
model with over 300
decision nodes to manage a
complex eligibility decision
involving thousands of rules.
The graphical decision
model facilitated discussions
and made it easy to manage
and navigate.
©2014 Decision Management Solutions 11
Decision Models & Business Rules
What is DMN?
“… provide a common notation that is readily understandable by all
business users... DMN creates a standardized bridge for the gap
between the business decision design and decision implementation.”
Use Cases
1. Modeling Human Decision-making
2. Modeling Requirements for automated Decision-making
3. Implementing automated Decision-making
Specification
 In Beta, released expected Q3-2014
 Decision Management Solutions, IBM, Oracle,TIBCO, FICO, Escape
Velocity, KUL, Model Systems, KPI,Visumpoint
 IIBA Business Analyst Body of Knowledge Guide v3
Decision Modeling and Notation (DMN)
13©2014 Decision Management Solutions
Integrates with
process models at
decision points
Maps to
implementation
details
DMN In Context
14©2014 Decision Management Solutions
©2014 Decision Management Solutions 15
DMN Delivers Decision Requirements
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?
•
• Where does it come
Information
What is needed?
from?
Decision Modeling And BABOK® v3
BABOK® Guide, Version 3.0
©2014 Decision Management Solutions
Excerpted from the BABOK®, © IIBA
Perspectives
Business Intelligence
Business Process Management
How To Use DMN
©2014 Decision Management Solutions
Decision Modeling Steps
Identify
decisions
Describe
decisions
Model
decision
requirements
Complete
and
implement
18
©2014 Decision Management Solutions 19
Many Ways To Discover Decisions
Business Events
Legacy Systems
Business Processes
Business Intelligence
BrainstormKPIs
Micro and hidden
Decisions
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©2014 Decision Management Solutions
Put Decisions In Context
Processes
Processes require decisions
Tasks execute decisions
Events
Trigger decisions
Systems
Implement decisions
Know which business
processes will be improved
by your rules
Know when your decisions
will be needed
Know how you will have to
deploy your rules
21©2014 Decision Management Solutions
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
22©2014 Decision Management Solutions
Decisions Require Knowledge
“Reorder parts”
requires supplier capabilities and shortage risks
“ValidateTax Return”
requires Tax Regulations
“Refer claim for fraud”
requires likelihood of fraud
23©2014 Decision Management Solutions
©2014 Decision Management Solutions
Decompose The Decisioning
How do we make a decision?
Guidelines, policy
Expertise
Regulations
Predictive Analytic Models
Data Mining Results
What is required to make decision?
Information
The results of other decisions
24
Decisions 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
25©2014 Decision Management Solutions
26©2014 Decision Management Solutions
27©2014 Decision Management Solutions
Manages Automation
28©2014 Decision Management Solutions
Shows Impact
Documented
sources
Coherent
rule groups
Ownership,
volatility
29©2014 Decision Management Solutions
Manages Business Rules
30©2014 Decision Management Solutions
Ties Analytics To Outcomes
How To Get Started
Quickly
Begin With The Decision In Mind
32©2014 Decision Management Solutions
What is needed
Multi-user, Collaborative
Integrated Database
Shared Database, Reusable
components
Automated Consistency
and Completeness Checks
Living Repository
Use The Right Modeling Tools
33©2014 Decision Management Solutions
What you have
Single User
Text and Diagrams kept
separate
Manual Reuse
Hand Checking
One-Shot Documents
Standards-based
©2014 Decision Management Solutions 34
DecisionsFirst Modeler
Collaborative, social, cloud-based platform
Focused on Decision Models
Based on DMN
DecisionsFirst Modeler
Starter Services
Model Building Service - give us your
document, we build an initial model
Joint Requirements Development
Service - online, interactive modeling
sessions providing coaching and
advice as you build your model
Jump Start Service - 2 days onsite
designed to make your project and
team quickly productive and self-
sufficient
Quick turn around, time-boxed, fixed price
35©2014 Decision Management Solutions
Questions?
Recap and Next Steps
©2014 Decision Management Solutions 38
Decision Modeling With DMN
Better Business Analysis through
Models decision making in processes and systems
Identifies opportunities for Business Rules and
Business Analytics
Improves collaboration and re-use
Succeed with Decisions
Thank You
40
JamesTaylor, CEO
james@decisionmanagementsolutions.com
DecisionsFirst Modeler
decisionmanagementsolutions.com/decisionsfirst-modeler

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3 Reasons Decision Modeling with DMN makes for better Business Analysis

  • 1. 3 Reasons why Decision Modeling with DMN Makes for Better Business Analysis JamesTaylor CEO
  • 2. ©2014 Decision Management Solutions 1 Your Presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 11 years championing Decision Management and developing Decision Management Systems
  • 3. 2©2014 Decision Management Solutions Why Does Decision Modeling With DMN Make For Better Business Analysis? Specifies decision making in processes and systems Identifies opportunities for Business Rules and Business Analytics Improves collaboration and re-use
  • 5. Existing Techniques Don’t Do Decisions Use Cases • Key steps are decisions • Decisions not modeled Process Models • Decisions made by tasks • Peanut Butter Rules Requirements Lists • Decisions are required • How is not modeled 4©2014 Decision Management Solutions
  • 6. ©2014 Decision Management Solutions 5 A Simple Example Without Decisions
  • 7. ©2014 Decision Management Solutions 6 The Same Example With A Decision How risky is the policyholder? How risky is the claim? What’s the right action?
  • 8. This government agency used decision models to understand its requirements for a new package selection effort point. The combination of process models AND decision models was key. ©2014 Decision Management Solutions 7 Decision Models & Process Models
  • 9. Decisions Are A Common Language Business Decision 8©2014 Decision Management Solutions
  • 10. This decision model of best practices for deciding if a claim should be paid automatically, examined or referred for fraud ensures front life staff are taking advantage of analytic fraud detection. ©2014 Decision Management Solutions 9 Analytic Decision Models in Claims
  • 11. ©2014 Decision Management Solutions 10 Decisions Increase Understanding Uncover Gaps Automation Opportunities Data Requirements Shared Understanding Rule Sources
  • 12. This client built a decision model with over 300 decision nodes to manage a complex eligibility decision involving thousands of rules. The graphical decision model facilitated discussions and made it easy to manage and navigate. ©2014 Decision Management Solutions 11 Decision Models & Business Rules
  • 14. “… provide a common notation that is readily understandable by all business users... DMN creates a standardized bridge for the gap between the business decision design and decision implementation.” Use Cases 1. Modeling Human Decision-making 2. Modeling Requirements for automated Decision-making 3. Implementing automated Decision-making Specification  In Beta, released expected Q3-2014  Decision Management Solutions, IBM, Oracle,TIBCO, FICO, Escape Velocity, KUL, Model Systems, KPI,Visumpoint  IIBA Business Analyst Body of Knowledge Guide v3 Decision Modeling and Notation (DMN) 13©2014 Decision Management Solutions
  • 15. Integrates with process models at decision points Maps to implementation details DMN In Context 14©2014 Decision Management Solutions
  • 16. ©2014 Decision Management Solutions 15 DMN Delivers Decision Requirements 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? • • Where does it come Information What is needed? from?
  • 17. Decision Modeling And BABOK® v3 BABOK® Guide, Version 3.0 ©2014 Decision Management Solutions Excerpted from the BABOK®, © IIBA Perspectives Business Intelligence Business Process Management
  • 18. How To Use DMN
  • 19. ©2014 Decision Management Solutions Decision Modeling Steps Identify decisions Describe decisions Model decision requirements Complete and implement 18
  • 20. ©2014 Decision Management Solutions 19 Many Ways To Discover Decisions Business Events Legacy Systems Business Processes Business Intelligence BrainstormKPIs Micro and hidden Decisions
  • 21. 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©2014 Decision Management Solutions
  • 22. Put Decisions In Context Processes Processes require decisions Tasks execute decisions Events Trigger decisions Systems Implement decisions Know which business processes will be improved by your rules Know when your decisions will be needed Know how you will have to deploy your rules 21©2014 Decision Management Solutions
  • 23. 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 22©2014 Decision Management Solutions
  • 24. Decisions Require Knowledge “Reorder parts” requires supplier capabilities and shortage risks “ValidateTax Return” requires Tax Regulations “Refer claim for fraud” requires likelihood of fraud 23©2014 Decision Management Solutions
  • 25. ©2014 Decision Management Solutions Decompose The Decisioning How do we make a decision? Guidelines, policy Expertise Regulations Predictive Analytic Models Data Mining Results What is required to make decision? Information The results of other decisions 24
  • 26. Decisions 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 25©2014 Decision Management Solutions
  • 28. 27©2014 Decision Management Solutions Manages Automation
  • 29. 28©2014 Decision Management Solutions Shows Impact
  • 31. 30©2014 Decision Management Solutions Ties Analytics To Outcomes
  • 32. How To Get Started Quickly
  • 33. Begin With The Decision In Mind 32©2014 Decision Management Solutions
  • 34. What is needed Multi-user, Collaborative Integrated Database Shared Database, Reusable components Automated Consistency and Completeness Checks Living Repository Use The Right Modeling Tools 33©2014 Decision Management Solutions What you have Single User Text and Diagrams kept separate Manual Reuse Hand Checking One-Shot Documents Standards-based
  • 35. ©2014 Decision Management Solutions 34 DecisionsFirst Modeler Collaborative, social, cloud-based platform Focused on Decision Models Based on DMN DecisionsFirst Modeler
  • 36. Starter Services Model Building Service - give us your document, we build an initial model Joint Requirements Development Service - online, interactive modeling sessions providing coaching and advice as you build your model Jump Start Service - 2 days onsite designed to make your project and team quickly productive and self- sufficient Quick turn around, time-boxed, fixed price 35©2014 Decision Management Solutions
  • 38. Recap and Next Steps
  • 39. ©2014 Decision Management Solutions 38 Decision Modeling With DMN Better Business Analysis through Models decision making in processes and systems Identifies opportunities for Business Rules and Business Analytics Improves collaboration and re-use
  • 41. Thank You 40 JamesTaylor, CEO james@decisionmanagementsolutions.com DecisionsFirst Modeler decisionmanagementsolutions.com/decisionsfirst-modeler