Yes, there's a difference between Operational Decision Management and Business Rules
cheryl wilson 270003VHSH email@example.com | | Tags:  business-rules brms business-rule-management operational-decision-mana...
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One of my previous posts on this 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.
Sidebar: 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.
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 that are tied to key business processes and applications – 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.
To learn more about Operational Decision Management, click here.
This post originally appeared on the IBM Software Blog.