Overcoming Decision Latency with Operational Decision Management
cheryl wilson 270003VHSH email@example.com | | Tags:  business-events business-rule-management decision-latency brms business-rules decision-management
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We’ve all been there: Waiting for a response or decision to be made. In this blog post -- Decision Latency Revisited -- James Taylor refers to Richard Hackathorn's value-time curve as it relates to Response Latency. Simply, the curve demonstrates that waiting too long for a response can reduce the perceived quality of the response no matter how good it is. Here’s an all-too-familiar example: You contact a company about a service issue. They respond with fair compensation, but because it “took too long” some of the luster and loyalty has worn off. Worse case scenario for the company: You defect to a more responsive competitor.
Well, if there was ever a cure for decision latency, it’s operational decision management. As outlined in Taylor's post, Hackathorn’s concept of response latency includes the sum of three things:
By using business rules, the core capability of an operational decision management system, you can dramatically reduce decision latency – down to milliseconds – by automating the right responses in real time.
For example, Novagalicia Bank in
Spain has reduced decision latency using business rules to enable loan and
other product requests to be sent quickly for processing – with rules executing
within 30 milliseconds to direct a request to the right individual with the
proper authorization to act. (You can learn more about this
implementation and others in this case study ebook: What
Are Organizations Doing to Improve Automated Decision Making?).
A key point about decision latency, as discussed by Taylor: Not all decision latencies are created equal. Certain types of decisions, such as online cross-sell, require tighter response times. So, when you’re looking at which of your operational decisions are good candidates for automation, factoring in decision latency challenges could be helpful. But let me get back to you on that.