Nowadays, it is becoming more and more evident to more organizations the value of automation. It is becoming hype, and everyone is talking about it. There are many different parts in organizations where automation can be applicable, i.e., automation of processes, automation of business rules, automation of deployments, automation of tasks, automation of decisions, etc. Do not get it wrong; the value is NOT about reducing headcounts and probably has no direct relation to FTE numbers. That’s an old -very wrong- way of thinking about the benefits of automation.
Automation brings significant value to organizations when done correctly, particularly automation of business decisions. Simply because tens and hundreds of thousands of business decisions are made by humans every day. But here is the not-so-much surprising fact:
Humans are unreliable decision-makers; their “Judgments can vary a great deal from one individual to the next, even when people are in the same role and supposedly following the same guidelines. And irrelevant factors, such as mood and the weather, can change one person’s decisions from occasion to occasion. This chance variability of decisions is called noise, and it is surprisingly costly to companies, which are usually completely unaware of it.”
Therefore, the consistency of business decisions and the quality of their outcome are at risk. “As uncomfortable as people might be with the idea, studies have shown that while humans can provide useful input to formulas, algorithms do better in the role of a final decision maker.” And to build the algorithms, test and simulate their behaviors, and finally, put them in the day to day operation of a business, you will need to think of end-to-end decision automation:
There are so many different moving parts in making and operationalizing these algorithms. There are different types of algorithms for various problems that need to be solved. And, automation of the decision-making processes is not about business processes, business decisions, and guidelines (i.e., business rules). It is about ALL of them working together in a coherent, seamless manner.
Welcome to the era of Next-Gen End-to-End Decision Automation.
Published April 29th, 2021 at 12:26 pm