operational_decision_management_lustratus

Operational_decision_management_lustratus

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Unformatted text preview: to make rules-based decision-making a route to a much greater degree of business agility, particularly for processes that are decision-heavy. Cost reduction The most powerful source of cost reduction by far is automation. By automating operational decisions through the use of rules wherever possible, instead of relying on employees to talk to the right people, refer to the right documents and choose the right applications to run, straight-through processing can be dramatically improved. Where possible, human interaction can be replaced by pre-defined decisions, not only reducing the demands on people’s time, but also reducing training and education needs. The result is much more efficient use of resources and reduced overall costs. Beyond this, using business rules makes change less costly too, since rules can now be modified without requiring any changes to IT applications. Governance There are many aspects of a rules-based approach to decision-making that benefit the overall area of governance. The first is that adopting business rules is a way of formalizing the decision-making processes used to control operations. The improved automation combined with the fact that the decision-making rules are written down in one place and easily accessible combine to mean that operations become much more repeatable, predictable and auditable; decisions are not taken based on the skills of the particular individuals involved in executing a business transaction, but instead on a formal set of rules. This formalization reduces risk and also opens the door to a continuous auditing process. Because the formalization is based on rules that are business oriented, business owners can inspect the rules in use on a regular basis to ensure that decisions are being taken accurately and as intended, deliver the best possible business outcomes and that the decisionmaking process as a whole adheres to all relevant regulations and policies. One aspect of the business context visibility of operational decision-making delivered by rules-based decisions is the opportunity for collaboration. With easy-to-use authoring,...
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This note was uploaded on 01/29/2014 for the course ACC 230 taught by Professor Xia during the Winter '13 term at Bloomsburg.

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