Decision management criteria are very important on vendor selection and applications identification. We have talked about business Operational Decisions and the benefits of the Decision-Centric Approach® quite a lot. We also talked about how to implement full end-to-end decisions automation. Since the bases are covered, I want to talk about what Decision Management criteria of vendor selection and applications identification is.

So to understand what we are going to discuss in this post, it's better to have a look at where Decision Management belongs in terms of product group. Based on what Gartner defines:


Analytics as a discipline that applies business logic and mathematics to data to provide insights for making better decisions.

Decision Management is a subset of Analytics as Gartner positions it at below illustration:

decision management criteria - decision management criteria within analytics relation

Decision Management is not just a type of software but a discipline that includes design principals, algorithms and best practices to support.

When to use Decision Management?

The significant increase in the amount of produced data, decrease in computing costs, decrease in storage costs and availability of sensors to collect information from every device has given enterprises the opportunity to greatly improve their operational effectiveness and efficiency.

Decision management has become a critical part of an organisation's success. Decision Management criteria to identify applications with your organisation are as below:

  1. Multiple decision criteria or substantial calculations
  2. A lot of data and diverse kinds of data
  3. Reusable decision logic that is frequently modified
  4. Traceable and auditable decision making
  5. Trade-offs among competing goals
  6. Multiple decisioning scenarios acting together as a whole

Decision management should be used when effectiveness and efficiency of business operations matters. Trivial decisions do not need the formal use of decision management, because they can be addressed through routine business applications and processes. For instance, a rule such as “book orders should be processed by the media department” is a simple part of an application and the business process. This decision does not need to be managed by decision management as such a simple decision is a line of code in an application, or a step in a business process.

What are the important components to look for?

Decision Management is a super set of the Business Rules Management System (BRMS), but with an entirely new mindset making decisions the hero rather than focusing on business rules. Decision Management is a progression from BRMS toward the Decision-Centric Approach®, so at the minimum they have to allow:

  1. Model operational decisions explicitly
  2. Implementing the Decision Logic in different ways. At least with Analytics (i.e. predictive analytics) and business rules

Please note, as we talked about operational decisions before, decisions and rulesets/rules are not the same thing. They have different life cycles, purposes, stakeholders etc.

decision management criteria - using business rules as decision logic

Illustration of defining business decisions explicitly and showing how one of them is implemented with business rules.

At the minimum, the decision management criteria for product selection is to ensure the two above requirements can be addressed. They are very fundamental and cannot be compromised as they are the very definition of decision management. If any system or platform cannot meet both of them they are not a decision management suite by definition.

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Where to use Decision Management?

Hundreds and thousands of operational decisions are made in the day-to-day of a business. The quality of decisions directly influences the quality of business operations. They are influenced by data, regulation and market dynamics. Based on this, you can see the use of decision management across many different industries and many different areas of business such as:

  • Insurance and loan underwriting
  • Mortgage approval
  • Financial trading
  • Logistics
  • Public-sector applications such as permit approval and determining subsidies
  • Welfare and taxes
  • Fraud detection, terrorist screening
  • Product configuration
  • Leasing and billing
  • Risk management
  • Cross-selling
  • Supply chain management
  • And a variety of other activities in virtually every industry

Decision Management

Decision Management deals with systems that go beyond descriptive and predictive analysis to specify the best course of actions to take, or to compute a judgement or conclusion that solves a problem.

For more details have a look at

Last updated February 9th, 2023 at 01:47 pm, Published August 20th, 2019 at 01:47 pm