There are many words that seem to say a lot without actually saying anything specific, especially in the business world. With that in mind we’re going to give a short but accurate explanation of those concepts to get rid of the ambiguity.
Let’s start with Decision Management. It’s a process that begins with the evaluation done by the top management of an organization of the results found in an audit report of the organization. Then the top management makes decisions based on that information with the objective of improving the decision-making process.
What is the secret sauce of Decision Management?
It includes things like the design, building process, implementation, and management of the multiple automated decision-making systems that organizations need to control their transactions with customers, employees, suppliers, or in other words, what it needs to survive. Decision management is becoming increasingly more and more important as the size of organizations, and the automatization process of those decisions, keep expanding.
Technology comes to the rescue, and to make things more difficult
As one can Imagine Decision Management is an incredible complex process. That’s why a lot of that process has been taken over by computers, specialized software, and better technology in general. The effect has been largely positive, but not without its faults. It has helped to automatize the process even more, but it has also demanded more attention from the organizations to make sure it’s properly introduced.
A system that is automatized gains in speed, but also fragility, even with solid fail-safes in place. A single wrong decision can bring the whole organization down before anyone has the chance to find out where’s the error in the decision process.
The faster we go the faster everyone else wants to go
The speed gained from automatization has its downside. It helps to get things done faster, but it has also accelerated everything else inside and outside the organization. Speed demands more speed. The frantic rhythm of today’s business world, and the increased pace of technological development is making it difficult for some companies to keep up. Ironically, success in Decision Management quickly renders it obsolete, demanding even more progress in Decision Management. Time is money, and organizations hate losing money.
In the end what it’s all this telling us? That it’s about improving the value created through each decision with a better management of the benefits and costs of decision-making within organizations. It’s all about developing better, faster, and more efficient decision that lower costs and increase gains in the organization.