The need for EDM springs from the increasing complexity of making decisions:
- Decisions that once took days now have to be made at the speed of the transaction, such as while a customer is completing an online transaction.
- Business objectives used to be simpler and set at the local level — now those objectives are set at the corporate level, and involve trade-offs between risk, resource constraints, opportunity costs and other factors.
- The data available to make decisions has ballooned, but there are challenges to using all that data effectively.
- Businesses must comply with more new regulations, stricter and more complex rules, shorter deadlines, and greater consequences for non-compliance.
- Businesses need to change their customer treatment strategies more frequently and more rapidly to deal with competitive forces, environmental changes, and changes in their customer base.
- Decisions that were once "owned" by a single group are "shared" by multiple departments, and have to be coordinated across channels and regions.
- Customers expect the same treatment regardless of channel and they expect that the treatment is consistent with the value of their relationship.
- Businesses used to be able to handle decisions requiring manual review processes – now the volume makes that impractical.