Management decision Market Statistics: 2027
Management decision making is the process of improving decision making by using all available information to increase precision, consistency, and agility of decisions and making good choices taking known risks and time constraints into consideration. It is a process, or a set of processes used to improve and streamline action items. It makes use of different tools such as business rules, business intelligence, continuous improvement, artificial intelligence, and predictive analytics. It treats decisions as reusable assets and introduces technology at decision point to automate decision-making process. This decision may be fully automated or presented as possible choices for a human to select. Management decision software is designed specifically for business managers to provide them better control over the organization’s decision strategies. By using this software, enterprises can authorize, control, and automate decisions to enhance value, maintain consistency in customer communications, and ensure compliance with regulations. The global management decision market was valued at $4,137.00 million in 2019, and is projected to reach $11,647.00 million by 2027, registering a CAGR of 13.7% from 2020 to 2027.
The on-premise segment dominated the management decision market share in 2019, and is expected to continue this trend during the forecast period. This is attributed to high adoption of on-premise management decision software is high among the heavily regulated industries, where storage of sensitive information in a public cloud environment is not allowed. Since, most of the cloud-based software operate in a public cloud environment, businesses with these constraints adopt on-premise management decision software. However, the cloud-based segment is expected to witness highest CAGR during the management decision market forecast period, due to growing investment in cloud along with the several ongoing key developments in the market by well-known vendors.
The credit risk management segment dominated the management decision market in 2018, and is expected to continue this trend during the forecast period. This is attributed to growing use of management decision software as it helps banks, lending institutions, and other enterprises in making a critical decision related to credit risk by offering numerous benefits, which includes enhanced business responsiveness, minimal compliance risks, and streamlining of workflow processes. However, the customer experience management segment is projected to witness highest growth rate in the upcoming years. Factors such as continuous rise in customer expectations, competitive environment, and surge in regulatory requirements encourage companies to unify customer engagement and improve coordination between their business units, which drives the growth of the segment.
North America dominated the global market in 2019, and is projected to remain dominant during the forecast period. Number of organizations have rapidly adopted and invested in the emerging technologies, such as big data, analytics, and cloud platforms, in North America. Moreover, factors such as presence of large enterprises and rise in demand among organizations to automate business decision-making process to increase productivity drive the management decision market growth. However, Asia-Pacific is expected to witness high growth rate in the upcoming years owing to rise in commercial investments by several companies in the developing countries such as China and India. Moreover, factors such as strong economic growth accompanied by the ongoing development in the services sector, drives business enterprises to invest heavily in management decision software to sustain growth and improve productivity.
By Component
Services is projected as one of the most lucrative segments.
The report focuses on the growth prospects, restraints, and management decision market analysis. The study provides Porter’s five forces analysis of the management decision industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the management decision market trends.
By Industry Vertical
BFSI industry is projected as one of the most significant segments.
Segment review
The management decision market is segmented into component, deployment model, function, organization size, industry vertical, and region. By component, it is bifurcated into software and services. By deployment model, it is divided into on-premise and cloud. By function, it is classified into credit risk management, customer experience management, compliance management & fraud detection, pricing optimization, and others. By organization size, it is categorized into small & medium sized enterprises and large enterprises. By industry vertical, it is segregated into BFSI, IT & telecom, retail & e-commerce, healthcare, manufacturing, energy & utilities, government, automotive, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Region
Asia-Pacific region is projected as one of the most significant segments.
The key players operating in the management decision industry include Tibco Software, Fair Isaac Corporation, Salesforce.com, Inc., IBM Corporation, SAS Institute Inc., Oracle Corporation, Manthan Software Services Pvt. Ltd., Sapiens International, ACTICO GmbH., and Experian Information Solutions, Inc.
Top impacting factors
The growth of the global management decision market is driven by Factors such as rapidly changing government and industry regulations across countries, growing demand for decision management solutions due to increasing critical data and complex business situation, and increasing requirement to automate high-volume decisions across the enterprises to bring agility, consistency, and accuracy are expected to fuel the market growth. In addition, ongoing partnership & product launches taking place in the decision management market, and surge in spending on analytics is further expected to drive the growth of the market in the upcoming years. However, lack of skilled professionals with sufficient knowledge and overload of information among enterprises are expected to hamper the growth of the market during the forecast period.
Growing requirement to automate high-volume decisions across the enterprises to bring agility, consistency, and accuracy
Advance rules management solutions and automated machine learning technologies are major driving factors of decision management automation across industries, as the advancement in rules management systems through technology platforms is helping its users to manage rules and decision processes. For example, a visualization tool implements and manages complex decision logic. This has revolutionized the business automation decisions. As a part digital transformation, businesses are required to make complex business decisions in increasing volumes and act on them in real-time. Hence, many businesses have shifted their focus toward decision management solutions to make high-value, high-volume decisions that are transparent and automatic.
Ongoing partnership & product launches taking place in the Decision Management Market
Increase in adoption of analytically-based digital decision solutions/services across operations, departments, and customer lifecycle stages is a major factor expected to drive the growth of the market. Major players are adopting various marketing strategies to cope with immense competition in the market. Among these strategies, product launch has gained high popularity. For instance, on April 2019 FICO released latest version of its decision management platform (DMP) that includes improved open application programming interfaces (APIs) that allow other software vendors and customers to extend the platform with complementary capabilities or connect it to other enterprise systems such as CRM or ERP.
Key Benefits For Stakeholders
- This study includes the management decision market analysis, trends, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and management decision market opportunity.
- The management decision market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the management decision market.
Management decision Market Report Highlights
| Aspects | Details |
 By Component |
|
 By DEPLOYMENT MODEL |
|
 By Function |
|
 By Organization Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | SAS INSTITUTE INC., FAIR ISAAC CORPORATION, SALESFORCE.COM, INC., SAPIENS INTERNATIONAL, INTERNATIONAL BUSINESS MACHINES CORPORATION, MANTHAN SOFTWARE SERVICES PVT. LTD., ORACLE CORPORATION, ACTICO GMBH, TIBCO SOFTWARE INC., EXPERIAN INFORMATION SOLUTIONS, INC. |
Analyst Review
According to the insights of the CXOs of the leading companies, businesses are focusing on improving the quality of decisions in three major disciplines—business process management (BPM) & application development, analytics & data science, and management science. As these teams play critical role in one’s business performance. For example, analytics & data science discipline introduce data models and reports that help its user to make better decisions.
An executive team is always interested in advance solutions that improve customer experience whether by adopting chat bots, averting fraud, or by comprehending IoT applications such as predictive maintenance. Though the need for implementing automated systems or the need for automating internal processes has increased significantly, the advent of analytics and AI has witnessed a profound impact on large number of large and small decisions. Thus, the adoption of decision management across all industries propels the market growth. Major trend witnesses in this market seems to challenge the consistent definition of decision management systems with varying levels of maturity, especially with organizations that are progressing with technologies such as analytics. Nonetheless, the integration of analytics has defined stagnant growth of operational decision management systems based on the combination of analytics, organizational business rules, and integrated decision logic with accurate relevance, faster, and reliable outcome. For example, a European telecommunication service provider has automated its next best customer actions using an integrated decision management framework to make market its offerings in the context of recent customer activity. A foremost international air company implemented management decision technology to provide exciting and complete passenger experience through their personalized products and services.
Faster time to delivery, scalability, readiness for AI and a solution that integrates with existing platforms is a major strength of an integrated or platform-driven approach that further boosts the growth of the market from the recent past. For future growth, the analytical capability of decision management models that adapt to stay relevant and perform even when data changes over time is expected to strengthen the adoption
rate of these models in the coming years.
Prominent market players are exploring new technologies and applications to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. Emerging economies provide lucrative opportunities to market players for growth and expansion.
Loading Table Of Content...
