What is a decision engine?

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

A decision engine uses logical rules to make data-driven decisions. It automates recommendations, predictions, and decision processes.

These engines work well for recurring decisions such as payment transactions, loan applications, customer service call routing, and sales pricing proposals. The data inputs may vary, but the decision logic stays consistent.

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Decision engine outputs range from simple APPROVE/REJECT outcomes to more detailed results, such as alternative sales offers.

Types of Engines

Decision logic can run in real-time or batch processing. Real-time decisions happen during transactions, such as e-commerce payments, while batch processing usually means analyzing databases for marketing selections.

Decision engines differ in specialization and complexity. Some focus on specific tasks such as fraud detection or financial risk assessment, while others are more generic and adaptable.

Engines also differ in their underlying technology. Some are rule-based and use human-defined if-then-else rules, while others use machine learning algorithms to identify patterns and generate predictions.

Functionalities

Functional scope varies across decision engines. Some offer only rule sets or decision tables, while more advanced versions let teams build complex decision flows that combine both.

To understand how these functions are supported by the underlying architecture, especially the main components of rule engines and their advantages in cloud-based systems, see our article on 5 Components of Rule Engine Architecture.

High-end engines can connect directly to external data sources for richer data and also support machine learning models in decision flows.

Solutions

Decision engines first appeared mainly as on-premises solutions, but cloud services have increased the number of cloud-based options. Some popular ones include:

  • Decisimo
  • IBM Decision Server
  • Oracle Policy Automation
  • Pega Decision Management
  • FICO Blaze Advisor
  • SAS RTDM
  • Experian PowerCurve
  • Drools
  • Provenir
  • DecisionRules
  • Taktile
  • Sparkling Logic SMARTS
  • OpenRules
  • GoRules

Decision engines can run as standalone platforms or as part of a broader data analytics platform that includes features such as data management, user interfaces, collaboration tools, and analytics.

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