Using Business Decision Management to Implement Corporate Strategy

An Azinta Presentation for BiZZdesign Decision Management EventAmersfoort, Netherlands, 28th January 2015

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“Organizations face many challenges in today’s

business climate.”

“Organizations whose success or failure is

determined by the decisions they make are

handicapped by systems that are centered on

processes or functions.”

“As a result, these organizations struggle to

improve business productivity while managing

costs and find it hard to make changes in their

systems quickly, despite a pressing need to do

so.” James Taylor, Decision Management Guru

What is Business Decision Management?

What are Decision Models?

Linking Strategy with Business Decision

Management

Who are Azinta Systems?

Next Steps

Appendix◦ Resources

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Many thousands of operational business decisions are executed daily◦ These business decisions are embedded within

applications, business processes and supporting technologies.

These operational business decisions are responsible for all corporate wealth creation:◦ All sales, transactions, delivery of services, product

offerings, compliance implementation, etc. are the results of the execution of these decisions

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Business managers who are tasked to manage and improve these business decisions:◦ Do not really understand these decisions because they

are not visible and in a language they can understand◦ Therefore business managers find it difficult to improve

these business decisions rapidly.

Resulting in:◦ Lack of business agility to change quickly to respond to

market changes◦ Difficult to comply with the massive global regulatory

requirements◦ Lower ROE (Return on Equity) than Decision-centric

companies.

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Business Decision Management is a technique and discipline that:◦ Firstly, identifies operational business decisions as

first class assets;

◦ Secondly, models these business decisions using a graphical language that business mangers can understand;

◦ Thirdly, Links these decision models with the business knowledge and business logic required to automate these decisions

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◦ Fourthly, Managers can optimise the business knowledge & business logic without IT intervention

◦ Fifthly. Business managers can the deploy the decision models, in collaboration with IT, as executable decision services.

◦ Sixthly, The results from the execution of each business decision can be tracked and used to update corporate Key Performance Indicators (KPI)

◦ Finally. Managers can constantly fine tune and improve the business decisions that they manage.

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What is Decision Business Management?

What are Decision Models?

Linking Strategy with Business Decision

Management

Who are Azinta Systems?

Next Steps

Appendix◦ Resources

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Extends TDM to include Decisions that combine analytics, business rules, algorithms, etc.

Also provides a high-level Decision Requirements Diagram.

However lacks a methodology, and needs TDM to model Decision Table logic

What is Business Decision Management?

What are Decision Models?

Linking Strategy with Business Decision

Management

Who are Azinta Systems?

Next Steps

Appendix◦ Resources

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Flying a plane needs dashboards + Automated Decision-Making Systems

+ Humans. We shall now look at the instruments used by Boards of large organisations to manage their business. Showing the linkage with Business Decision Management.

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Balanced Scorecard: The Key Dashboard & Visual Language

More than 70% of large organisations in Europe, Japan and USA used Balanced Scorecard + Strategy Maps to Manage their Business.

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Customer Value Proposition

Strategy Map – The 2nd Key Visual Language used by CEOs

Productivity Strategy

Operations Management

Processes

Supply

Production

Distribution

Risk Management

Customer Management

Processes

Selection

Acquisition

Retention

Growth

Innovative Processes

Opportunity Identification

R&D Portfolio

Design / Develop

Launch

Regulatory and Social

Processes

Environment

Safety and Health

Employment

Community

Human Capital

Information Capital

Organisational Capital

Product / Service Attributes

Long-Term

Shareholder Value

Improve Cost

Structure

Increase Asset

Utilisation

Expand Revenue

Opportunities

Enhance

Customer Value

Growth Strategy

Relationship Image

Price Function Service Partnership BrandQuality Availability Selection

Culture Leadership Alignment Teamwork

Financial

Perspective

Customer

Perspective

Internal

Perspective

Learning &

Growth

Perspective

Strategy Maps:◦ Describes the logic of the strategy◦ Shows the objectives for the critical processes AND◦ The intangible assets required to support them◦ Links the objectives using cause-and effect links

Balanced Scorecard◦ Translates the strategy map objectives into

measures and targets◦ Specifies a set of action programs and resources to

enable the targets for all the measures to be accomplished Known as Strategic Initiatives

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Answer: First create strategy

maps and then model and

link related operational

decisions to your Strategic

Initiatives

Next: Optimise Decision

& Process models. Link

the results of each

decision execution back

to KPIs to create a self-

improving feedback loop

(1)(2)

(3)

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How can we link the

business perspectives to

the operational business

decisions in a way that can

be understood by the

business managers and

then fully automate them?

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Objectives

• Reduced

customer

onboarding

times

Statement of

what strategy

must achieve

and what’s

critical to its

success

Target

• 90%

• 60 minutes

The level of

performance

or rate of

improvement

needed

• Customer

STP

Onboarding

Key action

programs

required to

achieve

objectives

InitiativeMeasurement

• STP rate

• Customer

onboardring time

How success

in achieving

the strategy

will be

measured and

tracked

Strategic Theme:

Operating Efficiency

ProfitabilityFinancial

Learning

Morecustomers

Training Staff on BusinessDecision

Management (BDM)

Lowest Customer Service

costs

Fewer staff

Customer

Internal

STP using BDM

Strategy Map example: Diagram of the

cause-and-effect relationships

between strategic objectives

Faster processing

Simplified Strategy Map – Bank Straight-Through Processing Improvement Initiative Meets Business Decision Management

Extending the Map into Objectives,

Measurements, Targets and Initiatives

Based on : Presentation of Balanced Scorecard Collaborative

Business processes that impact on Customer On-boarding should be

selected and decisions for STP determined & modelled, optimised

with decision business logic. Then automated with the decisions

execution results used to update the Initiative KPIs

Read Suleiman Shehu extensive blog post on Strategy and Business Decision Management at: http://azintablog.com/implementing-corporate-strategy-using-business-decision-management/

Read Suleiman Shehu blog post on Business Performance Management, Balanced Scorecard and The Decision Model at http://blog.bizzdesign.com/business-performance-management-balanced-scorecards-and-the-decision-model

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What is Business Decision Management?

What are Decision Models?

Linking Strategy with Business Decision

Management

Who are Azinta Systems?

Next Steps

Appendix◦ Resources

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Strategic Management Consulting & Systems Integration Company with a focus on Business Decision Management.◦ Decision & Strategic Management Consultancy, Mentoring &

Training Services using TDM & DMN

Offices: Dublin, Ireland (Head Office), London, UK

KPI Decision Model Consulting & Training Partner for Europe, Middle-East & Africa

BiZZdesign TDM Consulting & TDM Training Partner

Contact: suleiman.shehu@azinta.com

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Jump-Start BDM Project◦ We could help with any of the following:

Conduct on-site TDM/DMN methodology training

Identify a Strategic Initiative that could benefit from BDM

Identify Measures (Key Performance Indicators), Targets

Identify potential business decisions for optimisation

Get approval for a pilot BDM project

Develop and Deploy Decision Models & integration with BPMN

Integrating Decision Results with Key Performance Indicators

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Contact details:◦ Email: suleiman.shehu@azinta.com

◦ Linkedin: https://uk.linkedin.com/in/suleimanshehu

◦ Blog: http://azintablog.com/

◦ Phone: +44 845 658 6909

◦ Skype: suleiman.shehu

◦ Web: www.azinta.com

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The Decision Model (TDM) Book◦ A must read book – “The Decision Model: Business Logic

Framework Linking Business with Technology” by Barbara von Halle and Larry Goldberg. Available on Amazon in hardcover and Kindle format.

TDM Primer◦ Download TDM Primer

TDM White Papers◦ The Decision Model: Improving Process Models and the

Requirements Process◦ The Decision Model: Revolutionizing the Testing Process

for Business Logic◦ Integration of Business Decision Modeling in

Organization Design

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TDM Blog Posts by Suleiman Shehu:◦ Business Performance Management, Balanced

Scorecards and The Decision Model◦ The Decision Model, Enterprise Architecture,

ArchiMate and “The Decision Modeler”◦ New Tool Changes the Face of Business Decision

Modelling/Management?

TDM Articles::◦ Three Decision Model Predictions and The Decision

Modeler Software (Modern Analyst)◦ Changing the Game: Business Rules Grow Up into

Business Decisions (Modern Analyst)

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OMG Decision Model & Notation Standard◦ http://www.omg.org/spec/DMN/1.0/Beta1/

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Millennium House

3 Humber Trading Estate

Humber Road

London

NW2 6DW

Tel: +44 (0) 845 658 6909

www.azinta.com

Email: suleiman.shehu@azinta.com

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