The Management Decision Market is expected to register a CAGR of 15. 26% over the forecast period 2021 - 2026. The outbreak of COVID-19 has caused immense secondary effects on many economies. Some companies are seeing shutdowns of their supply chains, while others face extreme demands, leading to disrupted workforces and changed communication and decision-making processes.
New York, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Management Decision Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06129758/?utm_source=GNW
- Management Decision solutions are increasingly becoming the method of choice for implementing digital transformation strategies across multiple industries. These operational decisions must be made every day in the organization, including the decisions in the operational processes, the decisions of the call-center representatives, and other front-line staff. Management decision solutions are required to implement business rules and even for the way to tie business rules and analytics together to manage risk, reduce fraud, and improve customer engagement. By having robust insights-driven management decision solutions, organizations are prepared to make the best decisions efficiently.
- Alpha, a rapid consumer feedback platform, surveyed more than 300 decision-makers to discover their primary challenges and the most effective decision-making processes. They found that the forces of change, both from the internal company organization and external market forces, have changed the nature of business decision-making. 86.8% of respondents reported that their work environment is in constant flux or lacking clear, correct decisions, and 40% said that they’re motivated to change their decision-making process because of changing market conditions. Many companies have made progress in adopting data-driven decision-making frameworks and launching new products and features faster. However, decision-makers now face an overabundance of data inputs while remaining obligated to numerous stakeholders.
- The difference between a right decision and a wrong decision is less clear than ever before. Faced with this increasingly challenging decision-making environment, it’s incumbent on companies to adapt if they want to gain and maintain market leadership. Effective decision-making means taking more shots on goal and shortening iteration cycles in the digital age, making various decision-makers rewarded for such an approach. According to the survey by Alpha in 2019, 82.9% of respondents said their companies measure the success of a decision by the outcome achieved, while only 33.2% assess based on the process or methodology used to form the decision. Over 60% of respondents said that user feedback or experimentation has contributed to their most successful projects, and 37.1% said that they’d incorporated more experimentation into their decision-making within the past year.
- Business processes and back-office tasks still lag in terms of end-to-end automation. Wherever a certain degree of intelligence is required in the process flow, traditional business process management approaches often fail, resulting in interrupted processes. Instances include assigning tasks to the right person, validations and calculations, document classifications, or customer segmentations. Management decision solutions can combine different methods and technologies to embed the necessary intelligence into digital business processes.
- The two most essential approaches to decision management are business rules management and machine learning. In business rules management, organizations define decision logic as rules. Machine learning utilizes algorithms that automatically generate insights based on experience.
Key Market Trends
BSFI Sector is Expected to Hold Significant Share
- BFSI segment is expected to occupy a very significant share of the market. There are several repeatable operation decisions daily, which is expected to drive the demand for management decision software in the BFSI vertical.
- BFSI organizations face digital transformation challenges, changing regulatory requirements, increased competition, and constrained margins. Banks are forced to fundamentally change how they operate and govern their organizations to keep up with the rapid pace of change and create efficiencies for the bank and its customers.
- Most of the BFSI companies also deal with critical credit management and need to effectively manage collection management and fraud detection management for its day-to-day financial operations.
- Using decision software, the bank officer can spend more time focusing on borderline cases or dealing with people instead of dealing with spreadsheets. In other words, all the routine analyzing and number crunching is handled automatically. Intuitive decision-making is eliminated.
- Every industry has been affected by the outbreak of COVID-19, and banking is no exception. Areas such as capital, profit-and-loss, and liquidity positions have been hit very hard. The failure is not that banks used models that failed in this crisis but did not have fallback plans to manage particular decisions when the crisis occurred suddenly. Banks are increasing their focus on effectively adjusting models to make them fit for purpose and mitigate the risks of poor business decisions. The adjustments should be made quickly, efficiently, and consistently to avoid undue redevelopment or readjustment costs, giving an efficient management decision solution.
North America is Expected to Hold Major Share
- The North American region houses significant players such as Oracle Corporation, IBM Corporation, and SAS Institute, Inc., to name a few. The emergence of robust management decision models made different types of organizations in the North American region opt for supply chain optimization, customer management, debt collection, fraud, and financial inclusion.
- In April 2020, FICO announced the 2019 winners of the FICO Decisions Awards, recognizing organizations achieving remarkable success using FICO management decision solutions. A significant number of North American companies were winners. For instance, BNSF Railway, one of the largest freight railroads in North America, has optimized its management of assigned train crews, allowing it to significantly reduce operational costs while complying with all union, industry, and company regulations. Discover’s PULSE Network, one’s of the USA’s leading debit/ATM networks, has dramatically improved its fraud detection, blocking 30% more fraud, increasing the value-detection rate by 40%, and improving the false-positive ratio by 25%.
- In June 2020, FIS, a financial services technology company, has announced that the company is teaming up with FICO, a leader in predictive analytics and financial crime prevention, to help North American financial institutions to stay ahead of the increasingly sophisticated money launderers and other financial criminals by building an advanced anti-money laundering (AML) solution.
- According to the U.S. Department of Treasury, domestic financial crime generates an estimated USD 300 billion of proceeds for laundering activities. Under the collaboration, FIS AML Compliance Manager, coupled with FICO Falcon X decision management technology, will offer financial institutions a unified platform for AML risk and compliance. The new cloud-based solution will use machine learning and A.I. to detect suspicious activity and provide bank investigators with transparent, detailed intelligence.
- In June 2020, IBM band SAP SE, both US-based companies, announced their partnership’s next evolution, with plans to develop several new offerings designed to create a more predictable journey for businesses to become data-driven intelligent enterprises. Over 400 firms have modernized their enterprise systems and business processes through IBM and SAP’s digital transformation partnership. IBM’s partnership with SAP is designed to help clients increase the speed of decision-making, which is made to create more meaningful experiences for their customers and employees. As the COVID-19 pandemic continues to impact many industries in the region significantly, organizations realize they have intelligent end-to-end industry workflows to enable clients to make business decisions based on data-driven insights.
The management decision market primarily comprises multiple domestic and international players such as IBM Corporation, Oracle Corporation, SAS Institute, Inc., TIBCO Software Inc., etc. in quite a moderately fragmented and highly competitive environment. Technological advancements in the market are also bringing considerable competitive advantage to the companies, and the market is also witnessing multiple partnerships.
- June 2020 - SAS Institue, Inc. announced the availability of SAS Viya 4 in late 2020, which is engineered to take advantage of the newest cloud technologies. Designed to be delivered and updated continuously, modern architecture helps bring powerful analytics to everyone. Because SAS Viya integrates the art of decision making with the science of artificial intelligence (AI) and analytics, organizations will be able to make better decisions, faster.
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