As interest in Big Data increases, concerns about establishing a successful Big Data analysis environment are also increasing. It may not be possible to come up with a solution in a word, but the points of world-class scholars are consistent. "Create a culture of data-driven decision-making rather than relying on intuition."
[CIO BIZ+/Contributed] Next-generation BRMS and decision-making
'Harvard Business Review', a global management innovation magazine, in October 2012, selected a decision-making culture as the most crucial factor a company should have to manage Big Data effectively. The goal is to eliminate a culture in which companies rely on the intuition of decision-makers to make decisions. The key message is that Big Data analysis could succeed only if a data-based decision-making culture takes root throughout the organization. It is because decision-making standards become apparent, and problems can be systematically resolved if decisions are made according to the set rules.
Systematic decision management ensures business agility. Without business agility, not only will it be challenging to win in fierce competition, but it may also cause severe damage from domestic and international regulations. In particular, to respond to domestic and foreign rules and the rapidly changing competitive environment, these changes must be quickly reflected in company policies.
◇Next-generation BRMS is on the rise
Companies are rushing to adopt a business rule management system in the domestic financial sector for the next-generation system construction project.
A business rule management system is
There is a technology that has been used like a key component in the next-generation system construction projects of the domestic financial sector. This technology is a business rule management system (BRMS). By introducing BRMS, one can effectively manage complex business rules when building a product factory.
For example, life insurance companies can build a BRMS-based product factory system to automate △insurance product development and acquisition review △conservation tasks such as change and reinstatement review △refund payment and accident payment △payer's allowance fee payment △credit business.
BRMS provides standard information suitable for rules by registering all product-oriented rules.
Traditional BRMS technology is mainly used for specific applications, such as product factory. However, with the recent evolution of BRMS technology and changes in the usage environment, BRMS can be applied to complex event processing (CEP) and business process management (BPM).
When this next-generation BRMS is introduced, a process to systemically respond to complex events that significantly impact corporate management is prepared.
Event detection (checking for problematic events)→ Strategy-making (creating a strategy to respond to the event)→ Automating decision-making (analyzing and testing applicable rules)→ Communication (business and IT collaboration)→ Execution (corresponding to an event)
Introducing BRMS can result in the establishment of a virtuous cycle structure. Meaning that it is possible to build a kind of 'intelligent decision management (IDM)' environment.
◇ Develop a smart decision-making culture
Introducing the next-generation BRMS can help detect such complex events and build a systematic decision-making system based on business rules. Next-generation BRMS is a platform for IDM.
When the next-generation BRMS and BPM are integrated, an environment for making decisions in response to events in a specific business process is prepared. Smart decision-making becomes possible by processing policies, regulations, experiences, and know-how based on business rules. In addition, these smart decisions must be made at all levels of the business process. In particular, in preparation for baby boomers' retirement, if the company's know-how or experience is managed as a business rule, the decision-making culture that relies on the intuition of advanced professionals can be automated and systematized.
Introducing BRMS can also be critical in constructing a Big Data analysis environment. It is because BRMS can systematically automate what criteria to judge and make decisions on information derived from big data.
Decision-driven organizations are not focused on specific processes or specific applications for decision-making. It means having systems that can automate decision-making activities throughout the organization.
Corporations must respond to the growing complexity of the business environment, increasing regulations, rapid change, the retirement of baby boomers, and pressure to cut prices. To this end, the chief information officer (CIO) should focus on improving business productivity, aligning IT with business, increasing business agility, and reengineering business processes. Next-generation BRMS is the optimal platform that can realize all these tasks.