Have you ever thought about the decision-making process? You
make about 35,000 decisions every day, and most of them you probably don't
think about at all. When you want to drink, your brain tells you to drink and
drink from a glass.
However, when it comes to business decisions, things are not
so simple. This can take several steps, from holding meetings to analyzing
data, getting feedback, and finally getting final approval.
While business decisions will never be automatic, there is a
way to automate some to get them as close to each other as possible.
One of the problems with decision making in organizations is
that not everyone uses the same terminology, tools, or even speaks the same
language.
What is Decision Model Notation (DMN)?
The Decision and Notation Model (DMN) is a set of standards
that put everyone on the same page.
All data stored in the databases that are part of the
decision tree can be quickly translated and understood by everyone. This can
help eliminate assumptions, human bias, and emotions from the equation, saving
you time and effort.
How is DMN useful for business?
DMN is especially useful for businesses and organizations
that operate in accordance with regulations and laws that they must comply
with, including:
Financial institutions
Government agencies
Charitable
Health care
Law firm
Regulatory regimes
Decision-making in this type of organization must be
impartial and transparent. As rules become more complex over time, the DMN
model can help organizations meet compliance requirements as well as make
complex decisions.
Example
A typical example is financial loans. Previously, when a
client applied to a bank for a loan, he studied the history and financial situation of this person and made a decision.
The loan officer could decide for himself, or he may have
had to consult with a manager. However, this created some problems. First, the
loan officer may have made a decision based on personal feelings or may have
been influenced by bribery or something else.
With DMN today, the decision is largely out of your hands. A
candidate can enter their details through the portal, their information is
verified by software, and then they are approved or rejected based on
established factors and standards that people cannot change.
Candid
This means that the decision to accept or reject was not
only impartial, but the regulator can easily check the standards created for
the decision-making tool.
Moreover, although the algorithms for determining to accept or
reject are complex, user input was simple. This DMN mode translated lines of
code into a clear and concise response for the user.
