Decision Engine 101: How and Why to Choose the Right One

Published on: 2024-08-10 18:36:09

There are several types of decision engines, which are also called rule engines. Some use scripted rules, some use decision tables, and some support decision flows with multiple components.

Rule engines focus on decision rules. Decision engines handle more advanced decision logic in a flow.

Why a Decision Engine is Better than Code

An alternative to a decision engine is custom scripted code in Python or another programming language. Another option is a self-hosted copy of open-source systems like Drools.

Historically, enterprise decision engine platforms were available mainly as on-premise systems like FICO Blaze Advisor, SAS Real-Time Decision Manager, or Experian Power Curve.

On-Premise or Cloud - Which One to Choose?

As cloud adoption grew, the number of decision engine options increased. Some are offered as decisioning as a service.

Choosing a decision engine can be difficult because the market includes many options and several types of platforms.

One way to narrow the choice is to first decide what type of decision engine you need. An on-premise platform can offer a stronger sense of control. Cloud platforms can offer better scalability.

Pricing is also a factor. On-premise platforms are generally more expensive than cloud platforms.

Functionalities of a decision engine

These platforms often make rule management easier. They also support integration with data sources and other cloud-based services.

Engines are usually split into two parts:

  • Decision / Rule management part
  • Decision execution part

The business logic functions a decision engine can include:

  • Rule sets
  • Decision tables
  • Scorecards
  • Decision trees
  • Mathematical functions
  • API integration of data sources
  • Scripting language
  • Machine learning model import
  • No-code rule management user environment

For a closer look at the architecture behind these functions, especially the main components of a rule engine and the benefits of cloud deployment, read our article on Rule Engine Architecture.

You can read more about the functions of the Decisimo decision engine here.

 

Licensing and fees

Licensing structure depends on the platform setup and support model. Some enterprise providers charge separately for each part. Fees for the rule management part are based on the number of users working in the interface. Fees for the decision execution part are based on transaction volume or the hardware size used to run decisions.

Examples of pricing structures include:

  • Open source / Freeware
  • One-off platform license
  • License purchase + annual renewal license fee
  • Software as a service usage-based fee
  • Usage-based fee + per-seat fee

Post-purchase

Once you choose a solution, the process of implementing the decision engine begins. It starts with formalizing the decision strategy and continues with integration into your infrastructure.

You can read more on the topic of implementing a decision engine here.

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