It’s no surprise the digitization of our economy has accelerated business cycles and increased the complexity of making business decisions.
Global teams must now make decisions at or near the moment of impact, while considering multiple variables at very granular levels. Unmade decisions are a consequence of the challenges. These missed opportunities to execute decisions can significantly impact revenue, costs, operational efficiency, customer service, sustainability, and more.
However, the true revelation is that digitizing and automating decisions — known today as decision intelligence — is effectively solving this challenge. More than just a hot topic, decision intelligence is a game-changing technology that is rapidly becoming a business imperative.
The decision intelligence revolution
Gartner defines decision intelligence as a “practical domain framing a wide range of decision-making techniques bringing multiple traditional and advanced disciplines together to design, model, align, execute, monitor and tune decision models and processes. Those disciplines include decision management (including advanced nondeterministic techniques such as agent-based systems) and decision support as well as techniques such as descriptive, diagnostics, and predictive analytics.”*
Or, as we define it at Aera, it’s the digitization, augmentation, and automation of decision making. I believe however you define it, its value for the enterprise is critical.
Decision intelligence, which uses the power of AI and machine learning, enables people to address and execute more decisions, more quickly, with a full view of each decision’s impact on the end-to-end value chain. Risks and opportunities are unlocked. Unmade decisions can now be executed at the moment of maximum impact.
Consider the global supply chain ecosystem where decision intelligence is becoming the killer use case for AI to drive quality, consistency, speed, and scale in decision making. Supply chain processes like demand forecasting, inventory management, and more, can literally be transformed.
One global consumer packaged goods (CPG) company deployed decision intelligence to better estimate changes in demand to avoid obsolete inventory and material waste. The company is executing better, faster inventory management and risk and mitigation decisions — not only improving sustainability, but reducing operating costs. In another use case, a global life sciences company is using it to calculate available-to-promise (ATP) estimates across a wide portfolio of products and execute accurate decisions for critical product orders and deliveries.
Achieving ROI on decision making
Decision intelligence enables companies to break down process and data silos, harvest the power of all their data and intelligence, and start digitizing and automating decisions that will lead to connecting these across their enterprise and drive significant value creation.
Non-digital native leaders in CPG, oil and gas, pharmaceuticals, and other sectors are operationalizing the technology to advance their digital transformation roadmaps and gain the competitive advantage of digitally mature leaders.
Analysis from BCG further supports the link between digital acceleration and market performance, revealing that “digitally advanced companies continually outperform those that have transformed less successfully on key financial metrics such as revenue growth and profitability.”**
We are already seeing non-digital natives realize outcomes from operationalizing decision intelligence — driving a return on investment from automating operational and tactical decisions in real time.
- One CPG company increased sales by $60 million through a combination of automated planning and customer service decisions focused on product replenishment and service.
- A global manufacturer recognized over $3.7 million in additional revenue during the first six months of using decision intelligence.
- Another CPG company generated over $50 million in additional revenue by automating stock balancing decisions.
The killer application for enterprise AI
Decision intelligence enables companies to make AI-powered decisions with a level of speed, accuracy, and scale that simply hasn’t been possible until now. It provides the ultimate foundation for the self-learning and self-driving enterprise.
* Gartner Glossary-‘ Decision Intelligence’ as of Sept 11, 2023. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
** BCG, Show Me the Digital Value, Vladimir Lukic, Karalee Close, Michael Grebe, Romain de Laubier, Marc Roman Franke, Michael Leyh, Tauseef Charanya, and Clemens Nopp, October 10, 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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