Download Knowledge automation : how to implement decision management by Alan N. Fish PDF

By Alan N. Fish

A confirmed choice administration technique for elevated earnings and diminished risksKnowledge Automation: the best way to enforce selection administration in company methods describes an easy yet accomplished method for selection administration initiatives, which use enterprise ideas and predictive analytics to optimize and automate small, high-volume company judgements. It contains determination necessities research (DRA), a new Read more...


A confirmed choice administration technique for elevated earnings and diminished hazards Automating judgements in company tactics describes an easy yet complete method for choice management Read more...

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To convert this to a single monetary value (for example, to provide hard ROI figures to support a business case), the business needs to agree on a method, based on corporate key performance indicators, to convert each qualitative dimension into dollars (or your preferred currency) so that the results can be summed. This is not too hard for precision and cost, because they are already essentially financial measures. Speed and agility can be accounted partly as reduced lost opportunity costs (for example, for agility, if the typical benefit of updating your decision strategy is $x per month in increased profit, and decision management allows you to reduce the time taken to implement the change from six months to one month, you will save $5x per strategy update).

This means a company should pay as much attention to its operational decisions as it does to its strategic decisions. As shown in later chapters, the investment required to automate any decision is determined almost entirely by the quantity of knowledge and data required to make that decision. So the implications for return on investment at the different levels of decision-making are clear. The cost of investment will be higher for strategic decisions, lower for operational decisions. But the return on automating operational decisions can be as high as that for strategic decisions.

The value of those benefits is the value of the knowledge. indd 13 1/21/2012 7:22:37 PM 14 ◾ Knowledge Automation NOTES 1. R. M. Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics 70, no. 1 (1956): 65–94. 2. T. W. Swan, “Economic Growth and Capital Accumulation,” The Economic Record 32 (November 1956): 334–361. 3. R. M. Solow, “Technical Change and the Aggregate Production Function,” Review of Economics and Statistics 39 (1957): 312–320. 4. R. E. , “On the Mechanics of Economic Development,” Journal of Monetary Economics 22 (January 1988): 3–42.

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