James Taylor's Decision Management

James Taylor

Don't forget operational decisions for analytics

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Kyle McNamara responded to a post of mine about analytics and how confusing it is as a word with one of this own What is Analytics?. Kyle had a nice definition that focused on competitive advantage and predicting outcomes and used a graphic from Competing on Analytics which I too find useful. The most useful thing was last, a graphic with an illustration of the use of analytics across the value chain.
Looking at this, however, it seems to me that few of the examples are the kind of operational decisions on which I focus. Here, then, are some additions by area of value chain:

  • R&D
    This is one without much in the way of operational decision making
  • Production
    Optimizing supply chain decisions is one but others like production scheduling and process control often require operational decision automation and analytics.
  • Marketing and Sales
    One of the classic areas for operational decision making, optimal pricing and targeted/personalized offers are both operational decisions that use analytics. More generally a Best Next Offer or Next Best Action approach to sales/marketing/support requires strong analytics in operational decision making
  • Distribution
    Route optimization is one if it is done dynamically. As RFID becomes more widespread, real-time decision making using the RFID information will become more important too as I noted here.
  • Customer Service
    Kyle gets started with personalization but retention offers to specific customers as well as determining if a particular claim (warranty or otherwise) is valid require other complex operational decisions.
  • Finance
    Not so many here but fraud detection as well as compliance with things like anti-money laundering decisions might go here.
  • HR
    Very large organizations might automate decisions like scheduling

There are lots of ways to use analytics, don't forget the operational decisions when you think about them. Strategic/knowledge worker decisions can be easier to think of but they may not be the best or only ones for which analytics can help.

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A blog about the use of decision management technologies like predictive analytics and business rules to deliver agility, improve business processes and bring intelligent automation to SOA.

James Taylor

James Taylor blogs on decision management for ebizQ, and is an independent consultant on decision management, predictive analytics, business rules, and related topics.

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