Decision Maturity Model is part of the Decision-Centric Approach® which enables organizations to realize the depth of their understanding of operational decisions. It shows how well the operational decisions are being managed and automated. Historically, business process automation using technologies such as BPM and product (app, system…) development in IT implements most of the business logic within organizations. These business logics embed operational decisions and will execute them as part of the application or process automation. This approach, when confronted by frequency of change, and need to use both large amounts and varieties of data, becomes a bottleneck for scaling business.

Where Are They?

Operational decisions are big part of every business operation and they derive the quality of operation. Operational decisions are the business questions that require answer. For example in an insurance industry:

  • Is the claim ready for processing?
  • How much is a premium of a car?
  • Should we insure this particular quote?
  • What other products can be provided to a customer?

and many more.

In any organization, Operational Decisions will be influenced and impacted by

  • Market Dynamics
  • Regulations and Policies
  • Data and Information

And they are everywhere, in many different shapes and forms.

Operational Decision Maturity Model-Operational DecisionsOperational Decisions are scattered across many different types of business logic:

  1. Business Process
  2. Business Rules
  3. Data logic

In different shapes and forms:

  1. Undocumented
  2. Ad-hoc structured models (e.g. Excel)
  3. Unstructured documents

Decision Maturity Model

The goal of Decision-Centric Approach® is to make Operational Decisions the first-class citizen of organizations by allowing them to become visible, modeled, automated and shared across the organization.

Operational Decision Maturity Model-Decision Maturity Model

Operational Decisions of organizations have different levels of maturity as illustrated above.

As operational decisions maturity level grows, the impact of the Operational Decisions increases in terms of quality. Allows organization becomes customer-centric and situation-aware. Enables organizations to create new business values. And ultimately the organization becomes more agile in responding to changes.

On the other hand, there is a risk associated if Operational Decisions are not optimized.

L0: Invisible

Day-to-day operational decisions are not always obvious. As such, the organization risks losing intrinsic knowledge about how the business operates. Loss of Intellectual Property of business.

Operational Decisions at this level are hard-coded into applications and processes. Or they are unknown and undocumented.

L1: Visible

The organization has a high level of understanding about its operational decisions. However, the organization is exposed to the risk of unknowns, uncertainty and inconsistency about how those operational decisions are working and collaborating in day-to-day operations.

L2: Modeled

The details of operational decisions are captured structurally, and the relationships and contexts of decisions are understood. Therefore, organizations can conduct impact analysis and understand how change will impact any business operation.

The organization still runs the risk of inconsistency of results and values throughout the operation.

L3: Automated

Operational Decisions are automated individually during day-to-day operations. They are part but not hard-coded into applications and processes. Therefore, the results of decisions are consistent across the organization. They can be shared between different use cases and workflows.

L4: Optimized

The full decision cycle is implemented for operational decisions. Therefore, they can be measured and monitored and optimized based on different situations.

This is where the organization can constantly create value and provide highly personalized services to consumers and customers alike.

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Conclusion

In organizations, the goal should be to identify, model and automate the operational decisions with the higher impact. Look at any application, process, Excel and other tools to find and extract them. By doing so, we are moving toward the Optimized stage of maturity which enables organizations to take, consistently quality, situation-aware and customer-centric decisions.

Last updated May 14th, 2024 at 06:59 am Published September 30th, 2019 at 05:46 am