Automated Decision Making
One of the most challenging problems managers have today is the
overbearing influx of information required to make decisions. Couple
that to the speed at which decisions must be made, and it is not
difficult to appreciate the value of automated decision making.
Over 90 percent of decisions make by operational managers could
be made by integrating business intelligence into business process
In spite of automated decision making being slow to make its mark,
the new generation of applications have advanced significantly from
prior decision-support systems, making them easier to create and
manage than earlier systems.
Previous systems still relied on humans to identify the problems
or to initiate the analysis. Business intelligence is now used to
fulfil these two prerequisites, meaning decision-making capabilities
can now be embedded in the normal flow of work, discrete from human
Techniques for automated decision making are drawn from several
- Artificial intelligence
- Decision theory
Automated decision making is generally characterized in terms of
a trade-off between power and generality - the extent to which ADM
can be applied to diverse problems.
BPM systems monitor online data in real time, apply codified knowledge
or logic, and make decisions, automatically. Where human intervention
is required - automated alert messaging attracts human attention.
Value of ADM
Automated decision making capabilities help businesses generate
decisions that are more consistent than those made by people, quickly
moving managers from a point of insight to decision based action.
- Reduces labor costs
- Leverages scarce expertise
- Improves quality
- Enforce policies
- Respond to customers faster
They key is in identifying which decisions people must make and
which can be computerized.
ADM and BEM
Related to automated decision making [ADM] are techniques for automated
control. This refers to operating systems that are constantly monitored
and adjusted. In contrast, 'decision making' is generally used to
refer to comparatively high-level tasks with discrete decision points.
For instance, continuous monitoring and adjustment of operating
factory equipment may be considered a control task, while the scheduling
of factory operations may be considered a decision task. See BAM
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