Clearing up the confusion between business rules and operational decision management
Mary Forlenza 270001BN8C MARYF@US.IBM.COM | | Tags:  adm operational_decision_mana... interconnect rules analytical_decision_manag... odm business_
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Guest post by Cheryl Wilson, Marketing Manager, IBM Operational Decision Management
A recent post on the IBM Good Decision! Blog discussed the difference between analytical and operational decision management – essentially, the two main capabilities within a decision management approach and practice. Each has its own specialized function and value as it relates to improving decision making. Very simply, analytical decision management (ADM) offers insight and prediction; operational decision management (ODM), offers automation and the ability to act on captured intelligence and expertise at enterprise scale.
As it relates to ODM, there seems to be some additional confusion around the difference between business rules and operational decision management. Is there really a difference or is it just marketing?
Yes, there is a subtle, but powerful, difference between the two.
For those not familiar with the phrase “repeatable business decisions,” I like to refer to James Taylor’s simple definition: A repeatable decision is one that is made more than once by an organization following a well-defined, or at least definable, decision-making approach.
An ODM approach must meet 3 challenges
By focusing on decision performance, any true ODM approach and implementation will help organizations address these three challenges:
With ODM, gone are the days of tediously cataloging all of the business rules. An ODM approach is about identifying those candidate decisions that are tied to key business objectives and jobs – such as fraud detection, claims processing, credit and loan approval, risk management and regulatory compliance – and then focusing any automation and improvement efforts there. Taking this kind of approach makes it easier to see and realize return on investment.
So, ODM technology is still very much grounded in business rule management, but any software calling itself operational decision management today should extend the business rules capability to enable regular business people to easily and safely make changes to their business operations.
Learn about the new IBM Operational Decision Management V8. This product is the next generation of JRules, the market-leading business rule management system brought to IBM through the acquisition of ILOG.®
Watch the IBM InterConnect 2012 sessions replayed on Livestream for discussions on the latest technologies for better business outcomes. Hear about ODM during this hot topic at the event: "Transforming Critical Business Processes."