White Paper - Executive Summary
Risk and reward: The challenges of effective decision management
It's more important than ever today for organizations to make the right customer decisions — and harder than ever to do.
Companies know that the ability to repeatedly make the right customer decisions, instant by instant, day after day, is essential to profitable growth, sharper risk management and higher-performing portfolios. However, volatile, fast-moving markets, economic and regulatory change and new sources of competition make the right decision a moving target.
Companies pursuing higher performance must find ways to simultaneously adapt to change. They have to work harder to rapidly pull useful insights about customer behavior and market trends from huge quantities of their own data as well as data from other sources in the expanding digital universe. They work harder just to surmount process gaps and obstacles caused by traditional methods of developing and deploying decisioning strategies and tools better suited to more tranquil times. Incompatible software, different data formats and lack of integration between strategy design and execution mean that too much time is being spent just on the mechanics of customer decisions.
With demands growing, resources tight and rapid return on investment (ROI) the name of the game, companies must be able to eliminate this diversion and focus fully on the quality and business impact of their decisions. They need a way to connect and streamline how they design decisioning strategies, bring them into production, and measure and learn from the results. The whole process has to become quicker, thoroughly flexible and dynamic. It must be easier and more collaborative for participants, and less costly and more rewarding for the enterprise.
Decision strategy design and execution together on a unified platform
The key to better performance and agility in dynamic markets is a platform that unites decision strategy design and execution, connecting the analytic and operational environments for all customer decisions. Common data definitions and standardized technologies throughout strategy development, execution and performance monitoring enable decisioning cycles to progress more efficiently (with none of the usual "losses in translation"). Companies also gain momentum when decisioning processes across the Customer Life Cycle share and repurpose data, and when a wide variety of preconfigured, customizable decisioning elements can be dropped into any number of strategies.
Credit-granting organizations benefit from a unified, component-based platform in numerous ways:
• Faster ROI through quicker, less costly implementations of decisioning applications and services
• Higher business performance, driven by decisions made with greater insight into customer risk and reward potential
• Rapid performance improvements from being able to pinpoint where strategies need refinement and to enrich them with new data, calculated variables and analytics
• Increased agility from being able to pick up early signs of how market, economic and competitive change are impacting decisioning effectiveness
• Reduced burden on IT and analysts by putting powerful tools for decision strategy design and deployment, as well as control over performance monitoring, in the hands of business users
• Flexibility for companies to get exactly the decisioning systems they need by combining modular technologies to fit current demands and adding more functionality as required