active technologies - hrl · active technologies - hrl © 2005 ibm corporation adaptive systems in...

Active Technologies - HRL

© 2005 IBM Corporation

Adaptive systems in the Finance Industry

Opher EtzionHaifa Research [email protected]


The adaptive world

�A business situation occurs that requires change in the businessbehavior

�The business has to decide what is the best way to adapt�The decision may have real-time constraints�The decision should effect the running system


Analyze

Adapt

Deploy

Model

Monitor Run

IBM Business Performance Management


Some scenarios

� Highly customized subscription service

� Real-time decision systems

� Automation of exception management

Notify me when my entire stock portfolio is down 2% since the beginning of the day

When there is a significant change in the mix of web transactions in a contact center –recalculate the routing policies to agents

If a platinum customer issues outstanding credit request and there were no credit changes within the last month and the credit gap is less than 10%, then cascade (increase the customer credit)


Enabling technology –Complex Event Processing

Domain

experts

ERP

FFOO

CO

CO

50403020100

1020304050

120100

80

0

20

20

40

60

6040 Dynamic routing

context sensitive decision support

Dashboard


CEP embedded in a message flow (WBI- Message Broker)Build time:� Rules & conditions are composed

using a wizard-like editors

Runtime:� Events of different format and

from multiple sources are fed into the Broker and passed to the SituationManager node

� The CEP engine analyzes incoming events & situations based on current rules & conditions

� Upon detection the situations are sent out as messages

� Situations are also fed back into the CEP engine and treated as incoming events


Situation Manager – Sample flowWhen situations are detected, a message is posted to an MQ queue

Detected Situations

o Message 1 arriveso Copy of Msg 1 loaded to

CEP Engineo Message 1 propagated

unchangedo Message 2 arriveso Copy of Msg 2 loaded to

CEP Engineo Situation Duplicate

message is detectedo Situation Message created

and sent to appropriate queue

o Message 2 propagated unchanged


Intelligent Filter – Sample flow

Situation

o Message 1 arriveso Copy of Msg 1 loaded to

CEP Engineo Reply – “no situation

detected’o Message 1 propagated to

‘out 1’ terminalo Message 2 arriveso Copy of Msg 2 loaded to

CEPT Engineo Situation Duplicate

message is detectedo Reply – Situation detectedo Situation name and

attributes appended to message header

o Message 2 propagated to ‘out 2’ terminal


Transaction Flow Monitoring(with Bristol Technologies)

Alerts:

� Acknowledgements is not consistent with the sending order.

� 15 minutes before a settlement has to close, a message is waiting to be handled by a compliance officer due to insufficient credit.

� No acknowledgement/reject received from the stock exchange within one hour from sending a message.Abnormal number of payments received from a specific bank (account) within the first two hours or business

� Three rejects received within a single working day, for purchase messages of the same platinum client.

� A request has been re-routed three time within different agents

Order Management System Execution Management

Open Order

23

SM CP

validate the security

validate the Party & account

4

Exchange

Transaction ManagementCalculationsFigurationAllocationSetlement Details*

AM = Account MasterCP = CounterpartySM = Security MasterFC = Fees and ChargesFR= Fees and charges rulesSI = Setlement Instructions

AM

Reference DataOperation &Transaction Data

Order1

Investment Manger

Open Order

updates open orders with fills

Request for ExecutionNotification of Completion

Block trade

Message/Transaction/Flow

5

6

7

8Allocations, Net proceeds, affirms , confirms

Confirmation and Allocation

9Fully figure trade

Purchase & SalesClearing

SM3 CP3AM3

Settlement

SI2

10Settlement Instruction and Payment

CP2 FC FRAM2SM2 SI1*

Front-Office

Middle-Office

Back-Office

Bird’s eyes view


Some Facts About Amit - IBM’s First CEP Solution

� Already available as a product extension of IBM Websphere Business Integration Message Broker

� Also licensed as stand-alone and in OEM mode by multiple ISVs

� Written in pure Java – can run in any environment

� High throughput – can process thousands of events per second in typical applications

� Supports dynamic updates – meta-data is updated when the system is running and becomes effective immediately

� Synchronous and asynchronous modes

� Small footprint – suitable for embedded cases


ARAD Overview�ARAD (Active Real-time Automatic Decision Engine) is a technology that:

� Automatically finds a set of business process, business level parameters and/or IT related configuration parameters so as to optimize high level business objectives

� Enables On-demand optimization by recognizing when changes occur in the environment that require finding new optimal configuration settings

�The business objectives can be specified using a wide variety of business models. Examples include:

� Business Process models

� Rule Based models

� Economic models such as CLV�The ARAD technology provides methodologies, processes, architectures and

algorithms to provide the above capabilities


ARAD Existing Application Domains

� Automatic SLA parameter optimization scenario (Autonomic Computing)

� On demand optimization of financial messages in a messaging financial application based on messages (USA Financial Enterprise)

� On demand optimization of stock trading transactions in an eTrading site using different effectors (Autonomic Computing)

� On demand optimization of income generated by a network using network configuration parameters (IBM solution in the Telco industry)


Scenario – optimization of priority in manual exception handling queue� Real-time decision system� Problem: determine the priority of error repairs by manual agents.� Transactions classified according to : customer type, operation type, $$$ value.Optimization criterion: minimize penalties.

� Approach:The optimization is done whenever a “significant change” in the mix of traffic occurs (“implicit

complex event processing”),Best solution is a given time framework (2 minutes

� The optimization results are compared with the following two policies:

� Uniform prioritization, i.e. assigning the same priority to all messages (MQSeries default)

� A manual assignment created by an intelligent operator, that assigns the priorities according to the penalty amounts (i.e. highest priority assigned to message class for which the highest penalty is paid)

Penalty Amounts

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Policy Types

Pen

alty

am

ount

s Uniform (default) policy

Manual intelligentsetting

Solution found by ARAD


Automatic exception handling:

� The problem:� There are many different cases in which a business process behaves

in an “exceptional way”, this includes exceptions in data or process or getting into exceptional state.

� Currently exceptions are handled either manually or by hard-coded ad-hoc programming.

� Handling exceptions is a bottleneck in many systems, resulting in violation SLAs, and substantial manual work

�The solution is based upon the following observations:� In many cases, there is a small set of “thinking patterns” behind the

exception mitigation

� This decision pattern may be context-based.


Scenario :� Violation : A customer exceeded its credit limit (specified as a constraint : customer.total-spending <=

customer.credit-limit

� Stabilizers interpretation :� Restrict : abort the transaction.

� Cascade : update the credit limit.

� Repair : update the amount to the maximal amount that will not violate the credit limit

� Forgive : record for manual resolution.

� Apply : call user defined function to resolve

� Applications: exception resolving in trade processing, data cleansing.

ExceptionDetector

MQ

Exception Q

Self-healer

Messages Resolved Messages

Unresolved Messages

Messages for Automatic resolution


IBM Solutions for Event Detection and DistributionBusinessActivity

Monitoring

DB2 II &CICS Event Publishers

WebSphere BIAdapters

WebSphere BIConnect

WebSphereRFID & Telemetry

Solutions

WebSphere BIMonitor

Event Detection

WebSphere BIMessage Broker

WebSphere BIEvent Broker

CEP DetectorNodes

EventDistribution

Complex Event Processing Process Execution

WebSphere BIServer Foundation


Conclusion

� Adaptive behavior is part of IBM’s “business performance management” strategy

� The IBM Research Lab in Haifa serves as the competence center for complex event processing and real-time business optimization, as such feedback from the field is essential for us.

� More details are available upon request

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