decision management a smart decisioning platform

© 2012 IBM Corporation

Decision Management A Smart Decisioning Platform

Erick Brethenoux – Executive Program Director IBM Business Analytics

© 2012 IBM Corporation 2

40+ million 75%

$100+ billion

people prin)ng online coupons

of sales lost due to out of stock inventory

of consumers believe that adver)sing lies

Shifting Landscape


Creating Competitive Advantage Through Analytics Surged Dramatically in 12 months

3

Respondents who say analytics creates a competitive advantage

58% 2011

37% 2010 57% increase

Organizations achieving a competitive advantage with

analytics are

2.2x more likely to

substantially outperform their industry peers

Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. - Copyright © Massachusetts Institute of Technology 2011.


Vision

From This…

Copyright © DreamWorks SKG. 2002.

… to This

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Vision – Transformative Conversations

A billboard which scans your eye

A billboard which scans your clothes

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Decisions are Often Locked within Processes

Without Decision Management

§ Decisions are locked in processes and applications § Programming skills are needed to create & modify decision logic § Speed of business change is limited by IT bandwidth § Manual intervention increases costs & reduces customer satisfaction 6


§ Reuse decision assets across processes § Empower business people to own, author and update decision services § Respond quickly to changing market conditions § Maximize automation and straight-through processing

Decision Management Enables Reuse Across Processes

With Decision Management

Decision Service:

Offers & Promotions

Decision Service: Eligibility

Decision Service: Risk Scoring

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What Kind Of Problems Require Decision Management?


Tactical

“How many full time employees needed to maintain an acceptable level of service at minimum cost?”

Operational

“How much should we pay for this claim?”

Optimize Collaborate

Years Months Weeks Days Hours Now

Define the Strategy Run the business

Time to Business Impact

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Harmonizing Decisions Across the Enterprise

Strategic

“Differentiate from the competition by focusing on customer experience”


Define strategy

Run the business

(*) Based on the OODA Military Decision Loop

Make decisions based on actual situation

Act

Execute

Watch what is/has happening/happened

Observe

Monitor & Report

Make sense of the big picture

Orient

Assess & Analyze

Know & choose what to do

Decide

Determine & Improve

Conceptual Framework for Decision Management

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Transaction Outcome

Record Keeping Learning

Business Processes, Applications & Solutions

Decision Services

Predictive Analytics & Optimization

§  Risk §  Clustering §  Segmentation §  Propensity

Analytical Decision Management

Business Rules & Events

§  Policy §  Regulation §  Best Practices §  Know-how

Operational Decision Management

Scenario Analysis & Simulation

Decision Management Framework: Technology Elements

Internal & External Data

© 2012 IBM Corporation 12 12

Demo

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IBM SPSS Decision Management

• Driving operational decisions • Leverage predictive models, business rules & optimization models • Enabling the business user – 3-click automated modeling • Configurable interface for any business problem • Flexible what-if tools for optimization and prioritization

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3

Bus

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Tactical

§  T1 – Fast path “regular/ normal” transactions

§  T2 – Event-based coordination across multiple processes

Address a specific business performance issue with minimal changes to existing business processes

Incremental

Bring incremental changes to individual business processes to improve agility, precision and automation

§  I1 – Externalize & automate decisions embedded in processes and legacy apps

§  I2 – Automate and/or aid human-based decisions in workflow to improve straight-through processing

Strategic

Optimize processes and design new processes with Decision Management capabilities and insight

•  S1 – Reuse decision services across the enterprise

•  S2 – Customer-centric process redesign

•  S3 - Continuous process improvement with root cause analysis

•  S4 – Making processes adaptive

Project Scope

Implementation Patterns for Decision Services Integration

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Coming…



Capture & Analyze Segment & Predict Engage & Act

Predictive & Social Media Analytics

•  Integration use cases –  Gain insights and increase positive sentiment in social conversations

–  Identify advocates and leverage their influence in campaigns –  Accelerate re-purchase through propensity models

Learning from Failure: Toyota Misses the Mark on Building Brand Value


Optimize capital investments based on 6 Petabytes of information

Analyze 100k records/ second to address customer satisfaction in real time

Analyze telemetry, fuel consumption, schedule and weather patterns to optimize shipping logistics.

Big Data Platform – Already a Reality

• Social Media Data •  In-database mining

•  IBM SPSS on InfoSphere Streams

• Very fast model scoring • Hadoop/Hive and Big Insights


SPSS Scoring in InfoSphere Streams

SPSS Collaboration & Deployment Services

Repository Publish

IBM SPSS Modeler

File System

InfoSphere Streams

SPSS Solution Publisher

SPSS Scoring Operator

Modeler Scoring Stream

1001000110!

1101010010!

•  1 Billion profiles to manage in memory •  6 Billion incoming requests to be evaluated •  Respond to ad requests in 10-20 Msec

decision management a smart decisioning platform

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