operational_decision_management_lustratus

For instance in a banking environment it may be that

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Unformatted text preview: of system activity end up delivering sub-optimal outcomes, then these can be analysed by business spets to see if changes are needed. For instance, in a banking environment it may be that patterns of decisions can be identified as the precursor to fraud, in which case the decisions can be changed accordingly to take the new information into account. The other area with potential to offer smarter business opportunities is that of personalization. Because automated decision-making has the power to ‘instantly’ sample all sorts of different data sources as part of an execution instance on behalf of a particular customer, it becomes possible to tune the decision-making to deliver the best possible results for that customer and the business. This might cover what previous business interactions have taken place recently with the person, whether there have been any major changes of circumstance, what previous buying patterns this person has exhibited and many other factors. While it may well have been impossible or completely impractical to take these sorts of data points into account when decisions were being taken manually by a customer services representative, when the decisions are taking automatically this is not only possible but relatively easy. The benefit in terms of improved customer service can be stark. Customer focus • Faster operational decisions lead to quicker processes • Decisions are more accurate and repeatable • Service can be personalized more effectively Business agility • Easier to determine how decisions are currently made • Easier to make changes to decision‐making • Quicker to deploy new decisions Cost reduction • Automated decision‐making reduces resource requirements • Less human involvement reduces training needs • Changes require less resources Governance • Formalization of decision‐making ensures predictable results • Visibility of decision rules enables increased auditability • Decision quality is improved through collaboration • Decision‐making can be more easily monitored and tracked Smarter operations • Continuous improvement of decision‐making based on enterprise‐wide performance • New business opportunities through personalized decisions • Improved profitability Figure 6: Summary of the major benefits of a rules-based approach to operational decision-makin...
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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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