Lux Magi
Productivity Through Experience

What is a Business Decision?

A business decision is a coherent collection of business rules and/or analytics which expresses (and helps to automate) an operational choice of importance to your business.

By business decision we mean
operational business decision. We are not referring to decisions of strategy or tactics made by CEOs in board meetings should our company merge with XYZ Inc? Should we enter the Taiwanese rubber market? Rather, we are discussing the smaller, higher volume decisions your company needs to make every day: what category of risk should I assign to this position? In which other products would this customer be interested?  Does this trade fee structure satisfy compliance regulations? Should I underwrite this loan and what interest rate should I charge this client? Is this trade compliant with the regulations?

These decisions may not seem as important as the strategic ones, but they
are more voluminous and their significance eventually adds up. Decision are of special important in regulatory compliance applications. Your company needs to identify, manage and evolve their decisions. This process is business decision management.

Business decisions are necessarily coarser grain and more tangible to business SMEs that business rules. Business SMEs can - with the help of an experienced mentor: mine, analyse, design and test (simulate) their business decisions without any need to involve IT.

What is the Value of Business Decisions to My Business?

Every day your business needs to make thousands, even millions of decisions. It is vital therefore that you:
  • Understand them: know how they are defined and their business rationale - share this with others;
  • Measure them: determine how well they perform for your company (as measured against an appropriate business metric like profit, complaint volume, referral volume)
  • Optimise them: change them, both to improve your company’s performance and differentiate yourself from your competitors

Using a business decision approach will help you to do all of this more effectively and more efficiently. We can show you how to use business decision modeling to achieve the first of these and business decision management to achieve the latter two.

Find Out More About Business Decisions