Actionable Insights with Business Rules & Decision Management

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3/15/2015 1 Trends in Digital Transformation Call For New Approaches to Make Decisions 1 New customer data is available Unstructured Geospatial Analytical Social Internet of Things Mobile interactions leave a short window to learn about your customer and act Customers are expecting offers that are dynamically tailored Shift from IT to the Lines of Business

Transcript of Actionable Insights with Business Rules & Decision Management

3/15/2015

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Trends in Digital Transformation Call For New Approaches to Make Decisions

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New customer data is available

Unstructured Geospatial Analytical

Social Internet of Things

Mobile interactions leave a short window to learn about your customer and act

Customers are expecting offers

that are dynamically

tailored

Shift from IT to the Lines of Business

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Externalizing the Logic Behind Your Operational Decisions Outside Business Processes

There are 4 major benefits

1. Streamlined business processes

2. More generic business processes

3. Business processes that do not need to be changed that often

4. Decisions are shared and therefore more consistent

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Determine 3 Products to Recommend

Ask Client to Select

Determine the Price

Product Recom-

mendationDecision Service

PricingDecision Service

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Managing the Logic Behind Your Operational Decisions

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Transparency� Rule language

� Changes auditable

� Audit trail

Agility� Non IT stakeholders can change the rules

� Integrated testing and simulation capabilities

� Decision change cycles decorrelated from IT cycles

Governance� Access rights

� Versioning

� Rule change workflow

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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Mr Friedlander, votre solde est €3,225.25

DétailAutres services

bancaires

Jeudi prochain – Visite spéciale de notre distillerie

� Yesterday I landed at

Dublin Airport, and

withdrew cash from an ATM

� I took a cab to my hotel

� Right before arriving I

checked my account

� Why was this message

in French?

� Yesterday I landed at

Dublin Airport, and

withdrew cash from an ATM

� I took a cab to my hotel

� Right before arriving I

checked my account

� Why was this message

in French?

Une surprise réservée ànos meilleurs clients

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Mr Friedlander, your balance is €3,225.25

DetailOther banking

services

Next Thursday - Special tour of our distillery

� Why was this tour

recommended to me?

� Why was this tour

recommended to me?

Tap for a top customer reward!

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Recommend the Right Offer at the Right TimeInsights Rules Can Be Owned by Non-IT Stakeholders

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Recommend the Right Offer at the Right TimeInsights Rules Can Be Owned by Non-IT Stakeholders

I am likely to buy Whiskey ...

... or I have purchased enough Whiskey recently

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Recommend the Right Offer at the Right TimeInsights Rules Can Be Owned by Non-IT Stakeholders

I am in a county near enough

the Distillery

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Recommend the Right Offer at the Right TimeInsights Rules Can Be Owned by Non-IT Stakeholders

The visit is in less than 3 days

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Recommend the Right Offer at the Right TimeInsights Rules Can Be Owned by Non-IT Stakeholders

That offer was not

recommended recently

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WithdrawalDublin AirportTUE NOV 25 2:45 PM

My bank knows a bit more about my journey

Online bankingBurlington RoadTUE NOV 25 3:35 PM

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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Mr Friedlander, your balance is €3,225.25

DetailOther banking

services

Next Thursday - Special tour of our distillery

� What was that reward?� What was that reward?

Tap for a top customer reward!

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Mr Friedlander, your balance is €3,225.25

DetailOther banking

services

Next Thursday - Special tour of our distillery

� Why is my bank so nice

with ME?

� Why is my bank so nice

with ME?

Tap for a top customer reward!

Visit the distillery and

My Smart Mobile

Bank will offer you

3 bottles of our best old whiskeys!

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Global Aggregates

• Global Aggregates are statistics across an entire population of entities, clients, "things"

• They enable you to identify outliers requiring special attention and allocate scarce resources to these

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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� 8 PM! It was time to go

for a nice diner with a

few friends

� I purpously left my

mobile in my hotel as I wanted to enjoy!

� Once in Temple Bar I withdrew € 200 Euros

� I usually withdraw no more than € 40

� Did this transaction get accepted?

� 8 PM! It was time to go

for a nice diner with a

few friends

� I purpously left my

mobile in my hotel as I wanted to enjoy!

� Once in Temple Bar I withdrew € 200 Euros

� I usually withdraw no more than € 40

� Did this transaction get accepted?

Welcome to the

€20€20

€40€40

€60€60

€80€80

€100€100

€120€120

€200€200

OtherOther

€200€200

SubmitSubmit

How much do you want to withdraw?

Automated Teller Network

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Welcome to the

€20€20

€40€40

€60€60

€80€80

€100€100

€120€120

€200€200

OtherOther

€200€200

SubmitSubmit

How much do you want to withdraw?

Automated Teller Network

� Waiting� Waiting

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� Suddenly, my mobile

started ringing!

� Suddenly, my mobile

started ringing!

My Smart Mobile BankMy Smart Mobile Bank

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OK, so I'll authorize the

transaction.Asking because €200 is not usual

for you

Francis Friedlander

Bank agent

Hello?

Yes it is

Yes I do

Hello, is this Mr Francis

Friedlander

Do you confirm you are attempting to withdraw

€200 from Dublin?

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Here is the rule that triggered the call!

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WithdrawalDublin AirportTUE NOV 25 2:45 PM

Again, my bank knows a bit more about my journey

Online bankingBurlington RoadTUE NOV 25 3:35 PM

WithdrawalTemple BarTUE NOV 25 8:15 PM

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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Can't verify a transactionPlease call 1-800-432-BANK

within the next 60 minutes

Please call us back in the next 30 minutes else we will

disable your credit card

We have temporarily disabled your credit card

� We had a great diner in

the evening

� But when I came back to

my room I saw strange

messages on my mobile

� ... and saw strange text

messages!

� What did happen?

� We had a great diner in

the evening

� But when I came back to

my room I saw strange

messages on my mobile

� ... and saw strange text

messages!

� What did happen?

My Smart Mobile BankMy Smart Mobile Bank

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Here is what happened ...

In Galway, 223 kilometers away, ... an identity thief attempted to withdraw

€40 using a copy of my card

As I was enjoying the evening with my few good friends in Dublin...

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� ... and my mobile started

ringing again!

� WHY?

� ... and my mobile started

ringing again!

� WHY?My Smart Mobile BankMy Smart Mobile Bank

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WithdrawalTemple BarTUE NOV 25 8:15 PM

WithdrawalGalwayTUE NOV 25 9:15 PM

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The call results from that rule

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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Back to the Story

As I did not take the call, my

bank asked to call them

We cannot verify this transaction

Please call 1-800-432-

BANKwithin the next 60

minutes

And a similar message was

sent to my mobile

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Finally, my card was

deactivated

And after 30 minutes a

reminder was sent to me

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Here Is What Triggered the Text Messages on my Mobile

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Banking scenario in 6 steps

1. Recommending the right product at the right time

2. Preventing client churn

3. Detecting fraud by leveraging insight into past transaction history

4. Detecting fraud by leveraging location awareness

5. Managing fraud in real-time

6. Tapping into an unlimited source of insight

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Mr Friedlander, your balance is €3,025.25

DetailOther banking

services

Francis, going to San Francisco? Join the Napa

wine tour on December 3rd

Tap for a top customer reward!

� This morning I checked

my account again

� Impressive because on

December3rd I will be in

San Francisco and available!

� How does my bank know?

� This morning I checked

my account again

� Impressive because on

December3rd I will be in

San Francisco and available!

� How does my bank know?

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SAN FRANCISCO and ARMONK, NY - 29 Oct 2014: Twitter and IBM (NYSE: IBM) today

announced a landmark partnership that will help

transform how businesses and institutions

understand their customers, markets and trends

– and inform every business decision. The

alliance brings together Twitter data that

distinctively represents the public pulse of the

planet with IBM’s industry-leading cloud-based

analytics, customer engagement platforms, and

consulting services.

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What Does This Story Tell Us?

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Make sense and take advantage of a continuous flow of client data and events through different channels

Detect risks and opportunities as soon as they occur

Perform the right action at the right time

New Business

Capabilities

Rule language accessible to the lines of business

Correlation of timestamped and geo-localized events

Detection of missing events

Predictive and global analytics integrated in the decision

New Software

Capabilities

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Next Generation Customer-Centric Decisions

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� At the time of interaction

� When the risk / opportunity is occuring

� ProactiveReal-time

� Block a transaction

� Recommend a productAction

� Takes into account the past – Past events

� The present – The current state

� The future – What is likely to happen

Insight(contextual)

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And Context Matters!

http://www.adexchanger.com/comic-strip/adexchanger-context-matters/

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Business EventsBusiness Events

Situation Detection &

Action

Situation Detection &

Action

The IBM VisionThe Real-time Actionable Insight Loop

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IBM Decision Server Insights Core Building Blocks

EventMessage representing

something that happened

EventMessage representing

something that happened

AgentBusiness logic that is

applied to an incoming event on a given entity

AgentBusiness logic that is

applied to an incoming event on a given entity

EntitySome business

relevant thing and related information

EntitySome business

relevant thing and related information

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Ou

tsid

eW

orl

d

Agents

Entity+ Event

Data Model

AggregateModels

SPSSScoringModels

Event,time based, situational

rules

LibertyeXtreme

Scale

ODMDecisionEngine

Connecti-vity

Business Entity Lifecycle

Business Events

Generated Events

Changed Business Entities

Rule basedSPSSor Java

BusinessEntities

BusinessEvents

Deployedon theelasticgrid

Kept as needed

Runtime Solution

Design time Runtime components

Gate

way

Binding

Overview architecture