OODA Loop on Decision Management
Today’s customers’ are very different to yesterday’s customers. Technology have allowed customers access to wealth of information than ever before. This additional information gives customers the power to the value exchange of product and services provided by companies. This is also at a time where customers demand to be different and loyalty is scare. Coupled with changes in the macro environment and companies’ internal strategies, companies are increasing faced with uncertainly in providing the best customer experience.
This environment is similar to topgun military fighter pilots engaging in a dogfight. How to win a dogfight engagement with limited resources, unknown opponent ‘s flying skills against the backdrop of current flight and weather conditions.
As presented in James Taylor’s Decision Management Systems book, he explained how John Boyd’s topgun dogfighting tactic – the OODA Loop theory applies to Decision Management Systems.
OODA’s Value
It is a learning system, a method for dealing with uncertainty, ambiguity and a strategy for winning head-to-head contests and competitions. In war, life or for a business, the OODA Loop can help grapple with changing, challenging circumstances and come out the other side on top.
OODA Loop on Decisioning
- Observe: Context of engagement
- Orient: Where are we on the customer journey, which channel are we on, what are the customer expectations, what are the company’s strategies, what past history have we learned from the customer
- Decide: Generate the next best action
- Act: Deliver the next best action
- Feedback Loop: What is the customer respond – executing the next best action will change the context so we need to loop back to Observe to start the process again.
