integrated process and business rules management integrated process and business rules

Integrated Process and Business Rules Management

IntegratedIntegrated ProcessProcess and and Business Rules ManagementBusiness Rules Management

Julia WagnerIDS Scheer AG

Garth GehlbachCorticon Technologies

Julia WagnerIDS Scheer AG

Garth GehlbachCorticon Technologies

2www.ids-scheer.com

AgendaAgenda

Learn more about Business Rules

Integrated Rules and Process Management

Business Rule Management in ARIS

Summary

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22

33

44

55

2

Life Demonstration

3www.ids-scheer.com

Challenge: Agile ProcessesChallenge: Agile Processes

Banking – Credit ApplicationRegular changes of interest rates

How the interest rate is calculated?Changes in legislations/ organizational policy

Who is allowed to accept a credit request?New products like accounts for students, pensioners, …

Insurance – Life insurance Changes in risk classifications

How is the risk class of a customer determined?Special offers for special customer groups

Telecommunication - BillingNew tariffs

How is a phone call charged according to the selected tariff?

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Business StrategyBusiness StrategyBusiness Strategy

Existing IT LandscapesExisting IT LandscapesExisting IT Landscapes

BusinessChangeBusinessBusinessChangeChange ??

Strategyfor GrowthStrategyStrategy

for Growthfor Growth

Ability toExecuteAbility toAbility toExecuteExecute

Prohibitive cost and time of IT changes

IT not aligned with business

Over 80+ % of IT budget spent on status quo

TCO pressures continue to rise

Prohibitive cost and time Prohibitive cost and time of IT changesof IT changes

IT not aligned with IT not aligned with businessbusiness

Over 80+ % of IT budget Over 80+ % of IT budget spent on status quospent on status quo

TCO pressures continue TCO pressures continue to riseto rise

IT Landscapes Not Built For ChangeIT Landscapes Not Built For Change

Lack ofLack ofinnovation & flexibilityinnovation & flexibility

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Flexibility in Business StrategiesFlexibility in Business Strategies

CRM SCM DB E-mail eBusiness ERP

Technical BPM

Call Center

Initiate Production Scheduling

Complete ProductionScheduling

Fulfill OrderReceive Purchase Order

IssueInvoice

Order Processing Fulfillment Call Center

Business BPM

calculateSchedule checkScheduleConsistancy

....

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Only a Part of the Whole Story ? Only a Part of the Whole Story ?

More flexible support of business processes via orchestration of enterprise services

BUT

Business logic within services or decision functions are still hard codedBusiness user can’t change the process/system in any way

Real flexibility comes with a combination of BPM and Business Rules Management Systems

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FlexibilityFlexibility in Business in Business StrategiesStrategies byby Business RulesBusiness Rules

CRM SCM DB E-mail eBusiness ERP

Technical BPM

Call Center

InitiateProductionScheduling

CompleteProductionScheduling

Fulfill OrderReceivePurchase Order

IssueInvoice

Order Processing Fulfillment Call Center

Business BPM

calculateSchedule checkScheduleConsistancy

....

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WhereWhere areare Rules relevant?Rules relevant?

Business rules guide or control business decisions.

Routing Decisions – Affect routing of workDecision: Where do we route this application for processing?

Rule: If insurance limit is greater than $100K, a manager must approve.

Task Decisions – Affect work outputDecision: What is the applicant’s risk?

Rule: Applicants who skydive have a high risk rating.

LifeInsurance

Application

ProfileRisk

Review

Review

Review

Review

Review

Review

Review

…

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Credit Applicationis received

Classify CreditApplication

Credit ApplicationType is Standard

Credit ApplicationType is Special

ProcessStandard

Credit Application

Process SpecialCredit Application

DepartmentHead

Clerk

CreditApplicationTypeis SmallAmount

Process SmallAmount Credit

Application

DivisionHead

Credit Applicationis rejected

Credit Applicationis accepted

up to 25o' 250' up to 500' 500' up to 750' 750' up to 1.000' over 1.000' Risk Class A Risk Class B Risk Class C Risk Class D Risk Class FRisk Class E

Set CreditApplication Type= SmallAmount

Set CreditApplication Type

= Standard

Set CreditApllication Type

= Special

Business Rule

Credit AgencyReport

Routing Decision TodayRouting Decision Today

explicit rule knowledge

Complex diagrams Not readableHigh error rateExpensive maintenance

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Task Decision TodayTask Decision Today

Appended as commentsNot formalizedNot able to analyzeNot positioned to automate

Credit Applicationis received

Classify CreditApplication

Credit ApplicationType is Standard

Credit ApplicationType is Special

ProcessStandard

Credit Application

Process SpecialCredit Application

DepartmentHead

Clerk

CreditApplicationTypeis SmallAmount

Process SmallAmount Credit

Application

DivisionHead

Credit Applicationis rejected

Credit Applicationis accepted

up to 25o' 250' up to 500' 500' up to 750' 750' up to 1.000' over 1.000' Risk Class A Risk Class B Risk Class C Risk Class D Risk Class FRisk Class E

Set CreditApplication Type= Small Amount


= Standard


= Special

Business Rule

Credit AgencyReport


Challenge: Integrated Process and Rules ManagementChallenge: Integrated Process and Rules Management

Externalizing Business Rules as Rule Models

Review

Review

Review

Review

Review

Review

Review

RouteApplication

LifeInsurance

Application

ProfileRisk

…

Rule Model #1

Rule Model #2

Process Model #1


Why Business Rules Management?Why Business Rules Management?

Conclusion: We Must Externalize Business RulesOptions to Externalize Business Rules

Traditional Programming TechniquesTraditional Business Rule EnginesBusiness Rules Modeling

Business-Level Design (Simple Rules)

Process Modeling IntegrationBusiness-Level TestingBusiness-Level VerificationBusiness-Level Design (Complex Rules)

Executable Specification

Rules Modeling

Traditional BRE

ProgrammingRequirement


ModelTest

Scope Specify

DeployVerify

Business Rules Management In ActionBusiness Rules Management In Action

Rules Modeling MethodologyRules Modeling Methodology

Execute


Markets & LegislativeMarkets & Legislative

§ Sarbanes Oxley§ Basel II, KonTraG

§ Money Laundering

Responsiveness

Agility

Business Processes

Managementdrive externalise

Business Rules

Employees

InformationTechnology

Implementation byKnowledge Management

Implementation byBusiness Rules

Technology

impact

impact

Integrated Process and Rules ManagementIntegrated Process and Rules Management


BenefitsBenefits in in PracticePractice

Business exampleSecure online funds transfer service, conducting more than $3.4 billion in electronic transactions for 2 million customers across the globe

Business challengeAutomate identity verification processQuickly integrate new data verification sourcesIncrease the speed and scope of new account approvals

ResultsOne rule set alone has increased monthly revenue by 1.5 millionRule implementation reduced from 3 months to under 24 hoursVerify more people, more quickly, generating more business


Integrated Process and Rule ManagementIntegrated Process and Rule Management

time

ProcessDiscovery

Rule Discovery

Process Modelling

Rule Modelling RuleOptimization

Process andRule

Deployment

Process andRule Execution

Data/Vocabulary Rules

ProcessOptimization


ProfileRisk

DeterminePremium

Example Decision:Based on information contained in theapplication, determine applicant’s risk profile

Example Decision:Based on information contained in theapplication, determine applicant’s risk profile

Example Business Rules:1. Applicants who skydive have a High Risk rating.2. Applicants less than 35 years of age have a Low Risk rating.

Example Business Rules:1. Applicants who skydive have a High Risk rating.2. Applicants less than 35 years of age have a Low Risk rating.

InterviewApplicant

Application

Business Rules ModelingBusiness Rules Modeling 1. Identify the Business DecisionAsk: What decision is being made?

1. Identify the Business DecisionAsk: What decision is being made?

2. Identify the Business RulesAsk: How do you make the decision?

2. Identify the Business RulesAsk: How do you make the decision?

3. Model the Business Rules3. Model the Business Rules


Business VocabularyBusiness Vocabulary

Business RuleStatement

RuleTemplate

Fact Model

UMLClass Diagram

TechnicalTerms model

ER-Diagram

Humanexecution

Systemexecution

FormalExpression

RuleRepository

Information StructureRule Implementation

view ofdefinesterms for

definesstructure for

storedin

translatesto

equates to

translatesto

Integration by common Fact ModelIntegration by common Fact Model


Repository IntegrationRepository Integration


Rules ExecutionProcess Execution

Execution • Run-TimeIntegration

Rules Service Directory

WSDL

BPEL ModelingIT-LevelApplication Specification

WSDL

• Service-Level Integration

Rules ModelingProcess Modeling

Business-Level Design• Diagram-Level

Integration

Any Operating System

Integrated Process and Rule ImplementationIntegrated Process and Rule Implementation


ARIS Rule Methodology

Rule Hierachy Rule Flow

Rule Classification Rule Assignment

R

R

R R R

R

R

R

R

R

R R R R

R

P e r s o n T y p e A

P e r s o n T y p e B

R

R

P e r s o n T y p e CR

R

R

R

R R

RR R R

R

R

R

R

RR

R

R R R

R

R

R

RR

Integration in ARIS FrameworkIntegration in ARIS Framework


Integrated Rule and Process AnalysesIntegrated Rule and Process Analyses

Rule and process interconnectionWhich processes are effected when changing a rule? Integrated Rule and Process SimulationWhat if Scenarios based on data historyWhat effect has a change of legislation on my processes?

Rule ClassificationList all policy rules, legislation policies, …Which rules are relevant for different countries?

Rule compositionWhere rules are reused?How a complex rule is composed?Which data is used in a rule?How is the rule flow?

Rule ImplementationWhere is a rule implemented?Which application system calls a rule service?

Rule ResponsibilitiesWho is responsible for a rule?Who is responsible for a rule service?


Business Rules Modeling DemonstrationBusiness Rules Modeling Demonstration


Business Process and Rules Management with ARISBusiness Process and Rules Management with ARIS

Reduce time to market for new or modified products

Reduce TCO

Capture the logic at the source

Generate more business by automation

Increase consistency - Reduce costs of errors by higher process quality

„Being rules-driven and being agile are notnecessarily mutually exclusive goals. Explicit business rules contribute value in each of the five steps of the enterpriseagility cycle...“

powered by


HowHow IDS will IDS will supportsupport youyou

Customer Training Workshop1day ARIS Business Rules Designer concept, ARIS business rules methodology and product, adopted to your ARIS modelling conventions2days rule modelling

Rules Discovery Workshop15 days of methodology based consultingFocused on a given process analyzing the decisions as their associated high level rules definitions Determine the ROI for modeling and automating the business rulesassociated with each decision within the process

Rules Implementation Workshop25 days of consulting to model, verify and test one identified decision servicesready for consumption by an existing business process or applicationAfter completing product training and this service, you will be able to discover, design and implement new decision services on your own.

Contact: [email protected]

www.ids-scheer.com

© Copyright IDS Scheer AG, Saarbrücken, 2005

All rights reserved.

The contents of this document are subject to copyright. Any changes, modifications, additions or amendments require prior written consent from IDS Scheer AG, Saarbrücken. Reproduction in any form is only permitted on the condition that the copyright notice remains on the actual document. Publication or translation in any form requires prior written consent from IDS Scheer AG, Saarbrücken.

“ARIS”, “IDS” and “Y” symbol are registered trademarks of IDS Scheer AG, Saarbrücken.

“SAP NetWeaver” is a trademark of SAP AG, Walldorf. All other trademarks are the property of their respective owners.

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