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title: "BA Technique: Decision Modelling"
description: "BA Technique: Decision Modelling"
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15 June 2020 Monday

## BA Technique: Decision Modelling

By [IISCM](https://blog.fhyzics.net/fibaar/author/iiscm)

 In: [Business Analysis](https://blog.fhyzics.net/fibaar/tag/business-analysis)

**0** Comments

**Purpose**

Decision Modelling shows how repeatable business decisions are made.

**Business Analysis Body of Knowledge****® ****(BABOK****®****)**

The Decision model provides the framework for organizing business rules into well formed decision based structures that are predictable, stable, maintainable, and normalized. Decision modelling directly correlates with the business logic and allowing it to be used as a lever for changing business objectives and market place demands. The decision model is the list of business rules that is represented in a structural design of the business problem. The decision model is an intellectual template for perceiving, organizing, and managing the business logic behind the business decision. The business logic is a prescription way that the business experts want to evaluate the facts in order to arrive at the solution where the solution has both meaning and value to the business. The decision model can be translated into one or more solutions through appropriate design Methodologies.

Decision modelling show how data and knowledge are combined to make a specific decision. It can be used for both straight forward and complex decisions. The straight forward decision models uses a single decision table to show how a set of business rules that operate on a common set of data elements combine to create a decision. The complex decision models break down the decisions into individual components so that each piece of decision can be separately described and the model shows how these pieces are combined to make an overall solution. A comprehensive decision modelling is linked to processes, performance measures, and organizations. The business rules used in decision modelling are may be definition or behavioral.

Some of the articles related to Decision modelling techniques are as follows,

- Decision Making Model - [http://people.brandeis.edu/~pmiller/PAPERS/Encyclopedia_of_Computational_Neuroscience_Decision_Making_Models.pdf](http://people.brandeis.edu/~pmiller/PAPERS/Encyclopedia_of_Computational_Neuroscience_Decision_Making_Models.pdf)
- Decision Modelling Process - [http://www.managementgeneral.ro/pdf/1_2014_10.pdf](http://www.managementgeneral.ro/pdf/1_2014_10.pdf)
- Rational Decision Modelling - [https://www.researchgate.net/publication/311761486_Rational_Model_of_Decision_Making](https://www.researchgate.net/publication/311761486_Rational_Model_of_Decision_Making)
- Basics in Decision Modelling - [https://www-users.cs.umn.edu/~kumar001/dmbook/ch4.pdf](https://www-users.cs.umn.edu/~kumar001/dmbook/ch4.pdf)
- Decision Model and Notation - [https://en.wikipedia.org/wiki/Decision_Model_and_Notation](https://en.wikipedia.org/wiki/Decision_Model_and_Notation)
- Models of Decision Making - [https://www.yourarticlelibrary.com/decision-making/models-of-decision-making-rational-administrative-and-retrospective-decision-making-models/25658](https://www.yourarticlelibrary.com/decision-making/models-of-decision-making-rational-administrative-and-retrospective-decision-making-models/25658)
- Management of Decision Modelling - [https://www.fico.com/sites/default/files/asset_file/Decision_Modeling_New_Paradigm_4088WP_EN.pdf](https://www.fico.com/sites/default/files/asset_file/Decision_Modeling_New_Paradigm_4088WP_EN.pdf)
- Decision Modelling for Economic Evaluation - [https://global.oup.com/academic/product/decision-modelling-for-health-economic-evaluation-9780198526629?cc=us&lang=en&](https://global.oup.com/academic/product/decision-modelling-for-health-economic-evaluation-9780198526629?cc=us&lang=en&)
- Introduction to Decision Modelling - [https://www.lamsade.dauphine.fr/~mayag/Chapitre%200_Intro_DecisionModeling.pdf](https://www.lamsade.dauphine.fr/~mayag/Chapitre%200_Intro_DecisionModeling.pdf)
- Steps in Decision Modelling - [https://study.com/academy/lesson/the-rational-decision-making-model-steps-and-purpose-in-organizations.html](https://study.com/academy/lesson/the-rational-decision-making-model-steps-and-purpose-in-organizations.html)
- Logistics in Decision Modelling - [https://www.citt.ca/courses/logisticsdecisionmodelling.html](https://www.citt.ca/courses/logisticsdecisionmodelling.html)
- Benefits of Decision Models - [https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-benefits-and-limits-of-decision-models](https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-benefits-and-limits-of-decision-models)
- Managerial Decision Modelling - [https://www.uccs.edu/Documents/gstringer/quan202/chap01.pdf](https://www.uccs.edu/Documents/gstringer/quan202/chap01.pdf)
- Applications of Decision Modelling - [http://eprints.qut.edu.au/40933/1/Steven_Pudney_Thesis.pdf](http://eprints.qut.edu.au/40933/1/Steven_Pudney_Thesis.pdf)<http://eprints.qut.edu.au/40933/1/Steven_Pudney_Thesis.pdf>

There are several different approaches for decision modelling. All these approaches involve three main key element such as decision, information, and knowledge. Some of the approaches are,

**Decision Table **- It represents all the business rules required to make an decision. It generally contain one or more condition that map to specific data element. The value of the data elements in the decision table are evaluated.  

**Decision Trees - **It is also used to represent a set of rules. The levels are used in the decision tress, each level in the tree represents a specific data element. It can be very effective for representing certain kind of rule sets, which are related to the customer segmentation.

**Decision Requirements - **It is the visual representation of information, knowledge, and decision making involved in the business decision. It contains the elements such as decision, input data, business knowledge models, and knowledge sources. These elements are linked together into a network, to decompose the complex decision making into simpler decision building blocks.

**Decision Modelling Notations - **It is a standard approach for describing and modelling the repeatable decisions within the organizations to ensure that decision models are inter changeable across the organization. It provides the industry with modelling notation for decisions that will support decision management and business rules. This enables the groups to effectively collaborate in defining a decision model.

Advantages of using decision modelling are,

- It is easy to share and facilitate a shared understanding with the stakeholders.
- Simplifies the complex decision making processes.
- It will work on rule based automation, data mining, and predictive analysis.
- Manage large number of rules in the decision table and also helps to reuse.
- Multiple Perspectives can be shared and combined.

Some of the books for Decision modelling techniques,

- **Managerial Decision Modelling **| Barry Render | [https://www.amazon.com/Managerial-Decision-Modeling-Spreadsheets-3rd/dp/0136115837/ref=sr_1_1?dchild=1&keywords=decision+modeling+books&qid=1591873201&sr=8-1](https://www.amazon.com/Managerial-Decision-Modeling-Spreadsheets-3rd/dp/0136115837/ref=sr_1_1?dchild=1&keywords=decision+modeling+books&qid=1591873201&sr=8-1)
- **Modelling and Decision Analysis: A Practical Introduction **| Cliff Ragsdale| [https://www.amazon.com/Spreadsheet-Modeling-Decision-Analysis-Introduction/dp/130594741X/ref=sr_1_2?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-2](https://www.amazon.com/Spreadsheet-Modeling-Decision-Analysis-Introduction/dp/130594741X/ref=sr_1_2?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-2)
- **Decision Modelling **| James R. Evans | [https://www.amazon.com/Statistics-Data-Analysis-Decision-Modeling/dp/0132744287/ref=sr_1_3?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-3](https://www.amazon.com/Statistics-Data-Analysis-Decision-Modeling/dp/0132744287/ref=sr_1_3?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-3)
- **Modelling for Business Decisions **| John K. Fros | [https://www.amazon.com/Spreadsheet-Modeling-Business-Decisions-John/dp/0757589243/ref=sr_1_11?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-11](https://www.amazon.com/Spreadsheet-Modeling-Business-Decisions-John/dp/0757589243/ref=sr_1_11?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-11)
- **Real World Decision Modelling with DMN **| James Taylor | [https://www.amazon.com/Real-World-Decision-Modeling-James-Taylor/dp/0929652592/ref=sr_1_12?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-12](https://www.amazon.com/Real-World-Decision-Modeling-James-Taylor/dp/0929652592/ref=sr_1_12?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-12)
- **Modelling in Decision Making: A Bayesian Approach **| Giovanni Parmigiani | [https://www.amazon.com/Modeling-Medical-Decision-Making-Bayesian/dp/0471986089/ref=sr_1_25?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-25](https://www.amazon.com/Modeling-Medical-Decision-Making-Bayesian/dp/0471986089/ref=sr_1_25?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-25)
- **Decision Technology: Modelling, Software, and Application **| Robert Nydick | [https://www.amazon.com/Decision-Technology-Modeling-Software-Applications/dp/0471417122/ref=sr_1_32?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-32](https://www.amazon.com/Decision-Technology-Modeling-Software-Applications/dp/0471417122/ref=sr_1_32?dchild=1&keywords=decision+modeling+books&qid=1591873269&sr=8-32)

 

 

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### Written by [IISCM](https://blog.fhyzics.net/fibaar/author/iiscm)

Integrated Institute of Supply Chain Management, a unit of Fhyzics Business Consultants Private Limited specialising in supply chain management consulting and education. IISCM trains and certifies SCM professionals in procurement, supply chain management, inventory, and warehousing.

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## [Business Analysis Terminology: Top 10 Best Points on Stated Requirement](https://blog.fhyzics.net/fibaar/business-analysis-terminology-top-10-best-points-on-stated-requirement)

Stated requirements play a crucial role in business analysis as they form the foundation for defining and designing a system or solution. Stated requirements are the explicit statements made by stakeholders about what they expect the system to do or how it should behave. 

By [Venkadesh Narayanan](https://blog.fhyzics.net/fibaar/author/venkadesh-narayanan)

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## [Business Analysis Terminology: Top 10 Best Points on State Diagram](https://blog.fhyzics.net/fibaar/business-analysis-terminology-top-10-best-points-on-state-diagram)

State Diagrams are a powerful tool in the field of business analysis that visually represents the behavior and flow of a system or process. They provide a clear and concise representation of various states, events, and transitions that occur within a system, enabling analysts to understand complex business processes and identify potential areas for improvement. 

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## [Business Analysis Terminology: Top 10 Best Points on Stakeholder List](https://blog.fhyzics.net/fibaar/business-analysis-terminology-top-10-best-points-on-stakeholder-list)

 

Comprehensive Stakeholder Identification: Creating a stakeholder list is a critical first step in business analysis. It involves identifying all individuals, groups, or organizations that have an interest or are affected by a project or business. A comprehensive stakeholder list ensures that no relevant stakeholders are overlooked. 

By [Venkadesh Narayanan](https://blog.fhyzics.net/fibaar/author/venkadesh-narayanan)

 In: [Business Analysis](https://blog.fhyzics.net/fibaar/tag/business-analysis) 

[**](https://blog.fhyzics.net/fibaar/business-analysis-terminology-top-10-best-points-on-stakeholder-list)

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