Decision Management- A Key Enabler Of The Intelligent Economy

A new study by International Data Corpration (IDC), Worldwide Decision Management Software 2010–2014 Forecast: A Fast-Growing Opportunity to Drive the Intelligent Economy, reveals the importance of systematising the process of decision making at all levels of an organisation.

The flood of data, faster cycle times, and adoption of analytics are rapidly increasing awareness of the importance of the decision-making process, which IDC calls decision management. The narrow application of the concept of decision management is changing as organisations begin to recognise the need to shift from the “art of the decision” to the “science of the decision,” and as technology evolves to provide greater support of decision making as a management science.

“Convergence of intelligent devices, social networking, pervasive broadband networking, and analytics is ushering in a new economic system that is redefining relationships among producers, distributors, and consumers,” said Dan Vesset, Program Vice President, Business Analytics Solutions, IDC.

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In this intelligent economy, the need to gain greater visibility into intra- and intercompany business processes is driving accelerating demand for decision management solutions.

IDC forecasts the decision management software market– which comprises project-based and transactional decision management applications, platforms, and components will reach $10.8 billion by 2014, growing at a compound annual growth rate (CAGR) of 15.8%.

Today, in most cases, organisations have a choice to either purchase pre-built applications or use components to build and deploy decision management applications. IDC expects dedicated platforms to appear that integrate these components. Although starting from a small base, decision management platforms are expected to grow at a CAGR of 236% to $834 million for 2009-2014. Decision management components are forecast to grow at a CAGR of 16.8% to $6.2 billion during the same period, while applications will grow 10.2% to $3.8 billion.

“Enterprises succeed or fail based on the decisions made by executives. They compete effectively or lose market share based on operational decisions made by their managers. And they are more or less profitable based on the day-to-day decisions of various knowledge and line workers who make up most of the workforce,” said Maureen Fleming, Vice President, Business Process Management and Enterprise Middleware, IDC.