Decision Management: The Need for Speed
Timothy Powers 270003F3FN email@example.com | | Tags:  business_analytics statistics rules ibmsoftware analytics business-analytics decision-management decision-making iod11 business-rules social-media baforum spss
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It's been 25 years since the iconic 1980s movie Top Gun hit the big screen, but the message from the movie is still true today – “We have the need, the need for speed.”
If you’ve never seen the movie, it’s about Lt. Pete "Maverick" Mitchell, played by Tom Cruise, and his adventures to overcome shortcomings as a fighter pilot at the Top Gun Fighter Tactics Instructor program.
Maverick was dangerous, he took chances, relied on his gut, made poor decisions, and “his ego wrote checks his body couldn't cash.” (Sound like anyone in your organization?)
And most importantly, he didn't buy into the classic fighter pilot methodology, the OODA (Observe, Orient, Decide, Act) Loop, developed by U.S. Air Force Col. John Boyd, and taught at the real-life Top Gun.
Boyd's philosophy was simple: Those who could quickly process this loop and react to real-time events better and faster than their adversaries could then anticipate their adversaries’ thought processes and decision-making to gain an upper hand.
It's actually the same strategy that is being applied today from commercial and government organizations with IBM SPSS Decision Management technology.
Decision Management – through the combination of predictive analytics, business rules and optimization – enables organizations to automatically deliver high-value, high-volume decisions at the point of customer impact. Watch a demo here.
Essentially, it gives organizations the ability to ensure optimal outcomes by injecting predictive analytics directly into the business process, such as cross-sell or up-sell marketing campaigns, reducing customer churn or minimizing the impact of fraud.
Without the combination of analytics + rules + optimization to improve a business process, an organization can effortlessly increase the velocity of bad decisions. To paraphrase from the movie, “I’ll hit the brakes and the competition can fly right by.”
As industry analyst and author, James Taylor discusses in his new book, Decision Management Systems: A Practical Guide to Using Business Rules and Predictive Analytics, this technology is ideal for organizations in a range of industries, especially those with high volumes of interactions – such as in retail, banking and financial services, and insurance, as well as government agencies and academic organizations.
(Watch the short video below of James discussing Decision Management and his new book.)
For example, if a high-value customer dials into the call center of a retail bank to complain about a product or service, IBM SPSS Decision Management may predict, based on the customer's past behaviors and interactions, that this individual is likely to churn.
The information about the current complaint, combined with the customer's history, can then be used to create a customized retention offer on the spot to prevent churn.
The bank has easily removed any blind spots that had kept them from making the right decisions, every time, with its customers.
And in an indirect way, it has turned the call center into a profit center, empowering employees to become an extension of the sales team rather than just “complaint takers.”
Never Leave Your Wingman
By the end of the movie, Maverick had finally realized that by trusting not only himself, as well as the philosophy of the OODA Loop, he could be a successful fighter pilot.
In other words, Decision Management becomes any organization’s ultimate wingman, giving the confidence to make the right decisions, at the right time, with amazing speed and agility.
Do you have the need for speed?
James Taylor, CEO and principal analyst at Decision Management Solutions, talked with us at the IBM Information on Demand conference in Las Vegas about how Decision Management works, why it's so popular, how customers are using it and best practices to get started with this technology.