BRF+ Overview

Business Rule Framework Plus BPR Implementation Project

Agenda1. About Business Rules

2. BRFPlus Overview

3. Some Concept Details

4. BRF+ Workbench

5. Example -RBA Rule set :Risk Score Calculation and Control Recommendation

6. Technical Components Slide 2

Business Rules...Business rules or business rule sets describe the operations, definitions and constraints that apply to an organization in achieving its goals. (Wikipedia)Business rules represent the policies, guidelines that drive operational business decisionsBusiness rules are owned by Business, not by IT

Business Rules are expressed intext rules (if then else )decision tables/trees / formulasSlide 3

Validation RulesClaim Validation, Loan Application ValidationRate Calculation RulesComputation of Taxes, Interest Rates, Sales Commissions, Premiums, Bonuses, DutiesDecision RulesIs Applicant Eligible for a Loan ProductCan this good be cleared by Customs? Recommendation Rules Marketing Promotions, Medical Recommendations, Online Product ChooserPersonalization RulesWebsite Personalization, Product Personalization , Relationship PersonalizationInternationalization and Localization RulesInternational Products e.g. Maintaining similar Insurance products across countriesCross border Custom DutiesExceptions and Special RulesExceptions, Special Accounts , Special Arrangements, etc.Optimization and Configuration Rules Product Configuration, Deal Configuration

Enforcing Business Rules Conventional Methods Page *Rules as Tacit KnowledgeNo/Semi AutomationAutomated EnforcementRules In DocumentsRules in CodeRules inside DatabasesSlide 4

Typical Customer ChallengesZero visibility into business decisions Critical business rules are locked in code or databasesBusiness has no visibility into how systems take decisions

Change resistant IT systemsBusiness rules can be very volatileHardwired business rules make change difficult for ITUnacceptably long testing and change cycle timesHigh costs of correction and rework

Inefficient and Costly Human ExpertsNeed to maintain a pool of trained expertsContinuous training and hiring costsVery complex rules and error prone & time consuming human decision making

Scattered knowledgeBusiness rules not centrally managedScattered across code, manuals and as tacit knowledgeInadequate, ambiguous and inconsistent business rules across the EnterpriseHigh risk of compliance violation

Page *Slide 5

BRF+ OverviewBRF+Decision TableDecision TreeFormula(Quantity * 1.19) + ServCharge/*-+7894561230+/-,CustomerGroupOpenItemsOpenItemsAB,C< 1000$>= 1000$Customizing Data System Data Rules ProcessorRules Repositoryfront-endback-endWorkbenchObject CatalogsExcel Export/ImportTrace and SimulationTransportVersioning and HistorizationCode GenerationExtensibilityDDIC BindingUnit/Currency conversionMaster Data Slide 6Tools

AmountTransactionCheckType0$..100$None> 100$InternalNone> 100$External4-Eye

Decision Table Slide 7

Decision Table : Real Time Example Slide 8

Decision Table : Changing Rule /Logic Slide 9

Decision Table : Exporting Data to Excel Slide 10

Decision Table : Importing Data from Excel Slide 11Limitations

FormulaThe formula can access any facts in the context to calculate a result. Since all expressions defined in the BRFplus may use other expressions as an input it is also possible to nest formula expressions with other expressions, e.g. to determine the correct input for the formula.Slide 12

Simple Ruleset Supports If-Then-Else rules but also decision tables or other rule types.Slide 13

Technical Components Slide 14

Rule Creation Process in BRF+ Slide 15

Mode of Operation Slide 16

BRF+ Workbench Function Slide 17

Calling Functions from Backend ApplicationsSlide 18

Data FlowData flow during processing

Monthly SalaryContextRolePerformanceRatingFunctionDecision TableStockOptionsPaymentResultSlide 19

UI Demo: Simulation and Trace

ContextFunctionDecision TableResultTraceLog DataSlide 20

Processing Rules in the Simulation toolSlide 21

Demo Example- BRFPlus Ruleset for RBA Risk Score Calculation and Controls (Risk Based) Recommendation Slide 22

Business Logic -RBA Risk Score Calculation and Controls (Risk Based) Recommendation RBA_BPRI-FS-FRM 05-0.08Slide 23

Information Required for Rulesets Creation Slide 24

Business Rule Specification TemplateBusiness Rule Specification Template Slide 25Ruleset Sketch Template

Version Control

FilenameVersionDate CreatedCreated byDate UpdatedUpdated byChanges / NotesPrevious Filename

Ruleset Sketech#V1.0

Ruleset Sketch

Ruleset Sketch Template

InfomationDetailsRemarks

DescriptionFor example -Calculate Risk Score for Risk 1-12 and Provide Control Recommeations

Ruleset Documentation and StepsFor example - Calculate Risk Score for Risk 1-12 and Provide Control Recommeations Step -1 Calculated Risk Score for Risk 1 based on Factor One -Organization Type . Step-2 Calculated Risk Score for Risk 2 based on Factor Two -Organization Age . ..................................... .....................................

Pre-condition (If Any)For example - Program is obsolete

Ruleset VariablesInput / Output parameters For example - Program ID, Control ID, Organization Type , Organization Age.

Questions !

*Business rules describe or represent constraints on the behavior of the business. Business rules represent the core business logic of each organization; they guide and control the basic business processes that form the back bone of any business transaction.Business rules represent a set of standard business practices or policies that need to be applied consistently across business activities. Therefore it is important to understand the difference between a Rule in software applications and a Business rule.A Rule can be defined as a set of conditions with some associated actions. These are typically introduced in the form of an If -> Then statement. Examples include: Database Constraints, Object Model Rules, etc. These Plain Rules are owned by IT and not by the Line of Business (LoB).Business rules on the other hand represent organization policies and guidelines and are always owned by the Business. Examples of business rules include Loan Product Eligibility Guidelines, Product Configuration Rules, etc. When introducing business rules organizations have to take in consideration that rules are inherent in:Corporate charters Management practices and regulatory forces Human resources managementMarketing strategies Pricing policies Products and services offerings Customer relationship practices Business rules are the most dynamic component of any application. Therefore their constant and correct identification and externalization improve the organization's adaptability to industry changes and competition. Externalizing business logic in the form of simple rules ensures that these rules are easily communicated across the organization and managed separately from the application code: business adaptability and flexibility via IT stability.

SAP TechEd 08***