The benefits of using a SaaS decision engine over a spreadsheet

The Need for Advanced Decision-Making Tools

Companies need to make decisions that affect operations and financial results.

The usual approach was often to use spreadsheets, but as data volumes grow, teams need a more capable platform.

That is where decision engines, or rule engines, come in. They offer clear advantages over spreadsheets.

What is a Decision Engine?

A decision engine, also known as a rule engine, is a platform that lets businesses automate decision-making processes based on predefined rules.

These rules can be complex and can involve multiple data sources and variables, which are hard to manage in spreadsheets.

Decision engines include features that help businesses implement more complex decision logic.

Automation of Decision-Making Processes

One of the main benefits of using a decision engine instead of a spreadsheet is the ability to automate decision-making processes.

Decision engines let businesses apply predefined rules to data, which saves time and reduces manual work.

This is useful for businesses that need to make decisions in real time or process large amounts of data on a regular basis.

Use of Machine Learning Models for More Informed Decisions

Decision engines can also use machine learning models to analyze data and support better decisions.

This is useful for businesses that handle large data volumes and need to make decisions quickly.

Machine learning models can help identify patterns in data, which can improve decision quality.

Real-Time Rule Updating and Adaptability

Another benefit of using a decision engine is the ability to change decision-making processes in real time.

Decision engines let businesses update their rules and logic on the fly, which spreadsheets do not handle well.

This means businesses can adapt faster to changes in the market or industry without spending time on manual spreadsheet updates.

Advanced Features: Rule Sets, Decision Tables, and Decision Flows

Decision engines, like Decisimo, also include features such as rule sets, decision tables, and decision flows, which help businesses create and run more sophisticated decision-making processes.

Rule sets let businesses define and update their business logic more easily, while decision tables support the evaluation of multiple independent and dependent variables, making more complex decision logic possible.

Decision flows let businesses map the flow of a decision-making process visually, which makes it easier to understand and change.

Data Source Connections and Batch Processing Capabilities

Decision engines also support data source connections and batch processing, making it possible to access and process large amounts of data in real time.

This is useful for businesses that process large data volumes regularly, such as financial institutions, credit bureaus, and healthcare providers.

Spreadsheet Limitations for Lending Companies

Beyond the challenges already covered, there are other reasons why using a spreadsheet as a decision-making tool can cause problems, especially for lending companies.

Many lending companies keep their credit policies in spreadsheets. These files often contain rules and logic that calculate a final credit score from manually entered values.

That method may have worked before, but as data volume and the number of variables increase, the risk of error increases too.

Overcoming Spreadsheet Limitations with a Decision Engine

Spreadsheets are hard to keep current and mistake-resistant when multiple users are involved. Credit officers need to update and maintain the spreadsheet manually, which can create versioning issues and mistakes.

Spreadsheets also provide limited version control, which makes it hard to track changes and see who made them. This can lead to discrepancies and inconsistencies in the decision-making process.

Using a decision engine, like Decisimo, can help lending companies address these issues. Decision engines provide a central platform for rule management, making rules easier to update, maintain, and version.

Decision engines also offer stronger version control and audit capabilities, making it possible to track changes and who made them. This makes the decision-making process more transparent and less prone to error.

They also let teams test and refine rules before deployment in a production environment.

This means credit officers can see the impact of rule changes before implementation, which reduces the risk of errors and mistakes.

The Benefits of Using a Decision Engine

As businesses generate more data and need to make better decisions, the benefits of using a decision engine become easier to see.

Decision engines can automate decision-making processes, create and run more sophisticated decision logic, update rules and logic in real time, and use machine learning models to support better decisions.

They also support data source connections and batch processing capabilities, making it possible to access and process large amounts of data in real time.

If you're considering using a decision engine, like Decisimo, to streamline and automate your decision-making processes, it is worth researching your options and choosing a platform that fits your specific needs.

With the right decision engine in place, you can save time, reduce errors, and make better decisions that improve business outcomes.