Enterprise Decision Management
Encyclopedia
Enterprise decision management, commonly abbreviated "EDM", entails all aspects of managing automated decision design and deployment
that an organization
uses to manage its interactions with customer
s, employees and suppliers. Computerization has changed the way organizations are approaching their decision-making because it has enabled "information-based decisions" - decisions based on analysis of historical behavioral data, prior decisions, and their outcomes.
Enterprise decision management is described as an "emerging important discipline, due to an increasing need to automate high-volume decisions across the enterprise and to impart precision, consistency, and agility in the decision-making process." EDM is implemented "via the use of rule-based systems and analytic models for enabling high-volume, automated decision making."
Organizations seek to improve their decision yield (the value created through each decision) by deploying business processes and software solutions that better manage the tradeoffs between precision, consistency, agility, speed, and cost of decision-making within organizations. The concept of decision yield focuses on five key attributes of decision-making: more targeted decisions (precision); in the same way, over and over again (consistency); while being able to adapt “on-the-fly” (business agility
) while reducing cost and improving speed, is an overall metric for how well an organization is making a particular decision.
Organizations are adopting EDM technology and business processes because they need a higher return from previous infrastructure
investments, are dealing with increasing business decision complexity, face competitive pressure for more sophisticated decisions and because increasingly short windows of competitive advantage means that the speed of business is outpacing speed of information technology
to react.
The topic of EDM has recently been extensively covered in the book "Smart (Enough) Systems", which argues that applying the approach to operational decisions is an effective way to make information systems smart enough to be useful (as distinct from intelligent in the sense of Artificial Intelligence
).
Other terms used include "intelligent process automation" (where EDM is combined with business process management
) and "decision Management".
Deployment
Deployment may refer to:* Deployment flowchart, a process mapping tool used to articulate the steps and stakeholders of a given process* System deployment, transforming a mechanical, electrical, or computer system from a packaged form to an operational state* Software deployment, all of the...
that an organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
uses to manage its interactions with customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
s, employees and suppliers. Computerization has changed the way organizations are approaching their decision-making because it has enabled "information-based decisions" - decisions based on analysis of historical behavioral data, prior decisions, and their outcomes.
Enterprise decision management is described as an "emerging important discipline, due to an increasing need to automate high-volume decisions across the enterprise and to impart precision, consistency, and agility in the decision-making process." EDM is implemented "via the use of rule-based systems and analytic models for enabling high-volume, automated decision making."
Organizations seek to improve their decision yield (the value created through each decision) by deploying business processes and software solutions that better manage the tradeoffs between precision, consistency, agility, speed, and cost of decision-making within organizations. The concept of decision yield focuses on five key attributes of decision-making: more targeted decisions (precision); in the same way, over and over again (consistency); while being able to adapt “on-the-fly” (business agility
Business agility
Business agility is the ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment. Business agility can be maintained by maintaining and adapting goods and services to meet customer demands, adjusting to the changes in a business environment and...
) while reducing cost and improving speed, is an overall metric for how well an organization is making a particular decision.
Organizations are adopting EDM technology and business processes because they need a higher return from previous infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
investments, are dealing with increasing business decision complexity, face competitive pressure for more sophisticated decisions and because increasingly short windows of competitive advantage means that the speed of business is outpacing speed of information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
to react.
The topic of EDM has recently been extensively covered in the book "Smart (Enough) Systems", which argues that applying the approach to operational decisions is an effective way to make information systems smart enough to be useful (as distinct from intelligent in the sense of Artificial Intelligence
Artificial intelligence
Artificial intelligence is the intelligence of machines and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its...
).
Other terms used include "intelligent process automation" (where EDM is combined with business process management
Business process management
Business process management is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to...
) and "decision Management".