What is a Decision Engine?
A decision engine uses logical rules to make data-driven decisions, automating recommendations, predictions, and decision-making processes.
These engines are particularly useful for recurring decisions such as payment transactions, loan applications, customer service call routing, and sales pricing proposals. While the data inputs vary, the decision-making logic remains consistent.
Decision engine outputs range from straightforward APPROVE/REJECT decisions to more nuanced outcomes, like alternative sales offers.
Types of Engines
Decision logic can execute in real-time or via batch processing. Real-time decisions occur during transactions, like e-commerce payments, whereas batch processing typically involves analyzing databases for marketing selections.
Decision engines vary in specialization and complexity. Some focus on specific tasks such as fraud detection or financial risk assessment, while others are generic and adaptable.
Engines also differ in their underlying technology; some are rule-based with human-defined if-then-else rules, while others leverage machine learning algorithms to discern patterns and predictions.
Functional scope varies among decision engines. Some offer only rule sets or decision tables, while more advanced versions enable the construction of complex decision flows integrating both.
High-end engines can directly interface with external data sources for enriched data and also support the incorporation of machine learning models into decision flows.
Though initially available primarily as on-premises solutions, the advent of cloud services has led to a proliferation of cloud-based decision engines. Some popular ones include:
- IBM Decision Server
- Oracle Policy Automation
- Pega Decision Management
- FICO Blaze Advisor
- SAS RTDM
- Experian PowerCurve
Decision engines can operate either as standalone software or as part of a broader data analytics platform offering additional functionalities like data management, user interfaces, collaboration tools, and analytics.