Thursday, February 8, 2007

Macro decisions (million dollar decisions)

Macro decisions are strategic or tactical decisions. I like to call them million dollar decisions.

Examples of macro decisions that can be automated using business rules:
  • What is the best product that we should recommend for this customer?
  • What is the best solution for this situation?
  • What is our underwiting strategy and policy?
  • What is our refund policy?
  • What is our pricing strategy for next year?
  • What is our discount policy this year?
  • What promotions should we run?
  • What should we do to improve improve yields and revenue?
  • Where should we locate the new store?
  • Where should we build the plant?
  • Where should we build the product?
  • Where should we hire the employees?

  • What Legal Entity structure should we use for this company?
  • What Legal Entity should we use for this contract?
  • Should we create a new legal entity for this deal?
  • What is the best way to structure this deal?

  • How do we design this plant so as to prevent and contain fires?
    How do we clean up this oil spill?
  • How do we minimize tax and maximize revenue for this contract?
  • How should we record these types of accounting transactions?
  • How do we calculate this quarter's tax provision?
  • How do we solve this customer's mission critical problem right now?
  • How do we troubleshoot this problem?
Thanks to James Taylor at the EDM blog for the idea for this list. If you have any others you'd like to add to the list, please add your comment below.

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At Thursday, February 08, 2007 4:03:00 PM , James said...

hmm - one of these is a micro decision!
- if I have lots of customers then I must make a product recommendation for each of them (micro) not a broad recommendation (macro)

and some have micro decisions hidden in them
- which customers get which discounts in which circumstances?
- which promotion is best suited to each customer?
- how do I calculate the tax implication of each transaction so I can aggregate them for the quarter?
- how does the refund policy apply to this customer (see this post for example)
I also posted again on this topic


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