laurent tarin b p m ilog

1

Founding Sponsors

This Presentation Courtesy of the

International SOA Symposium

October 7-8, 2008 Amsterdam Arena

www.soasymposium.com

[email protected]

Gold Sponsors

Platinum Sponsors

Silver Sponsors

ILOG BRMS

for BPM Solutions

Are your business processes « ready for

improvement » ?

Larens Oliver Taurin

Laurent Olivier Tarens

Laurent Olivier TarinProduct Marketing Manager

Business Rules

2

Agenda

Business Rule Management System / BPM in short

Decision intensive Business Processes

Transparent Decision Services

Methodologies and best practices

Conclusion

Copyright© 2007 - ILOG, Inc., All Rights Reserved 3

BRMS in Short

Business Rule Management Systems (BRMS) allow organizations to define, deploy, monitor and maintain decision logic that is used by operational systems.

A BRMS includes: A repository allowing decision logic to be externalized from core

application code

Tools allowing business experts to define and manage decision logic

A runtime environment allowing production systems to access and execute decision logic managed within the BRMS

Repository

Rules

+

Metadata

Rule Authoring Execution Engine


http://documentum.com/

http://www.ilog.com/partners/directory/index.cfm?pid=ID1505

http://www.adobe.com/

http://images.google.com/imgres?imgurl=http://ccss.concordia.ca/uploads/event_images/1104907487_12_microsoft%20.net%20logo%20white2.png&imgrefurl=http://ccss.concordia.ca/events.php?past_events=1&h=165&w=257&sz=58&tbnid=Wb5c4UGRz6kJ:&tbnh=68&tbnw=107&hl=en&start=2&prev=/images?q=%22.NET+logo%22&svnum=10&hl=en&lr=&safe=off&rls=GGLG,GGLG:2005-19,GGLG:en

http://www.tracetracker.com/img/publish/53.jpg

http://www.ilog.com/partners/fujitsu/

../RSOeditBusinessRule.exe

3

The Decision Intensive Process

• Until

•New Product

•New Policy

•New Regulation

•New Pricing Rules / Model

•New Scoring Rules / Tables

• …

Streamlined process

works fine today…


The Decision Intensive Process

Streamlined workflow

works fine until…

Your ‘streamlined’ process in x months


4

7

The Nightmare Intensive Process

Streamlined workflow

works fine until…

Your ‘streamlined’ process in x monthsYour ‘streamlined’ process in x years

Copyright© 2007 - ILOG, Inc., All Rights Reserved

Process Improvement with BRMS

Processes are too complex to maintain

Simplify processes diagrams by extracting decision-making

Cost per transactions is to high

Increase decision automation

Update Lifecycles are too long

Manage short life cycle decisions from outside the process

Business users are not involved enough

Give more control to business teams to maintain processes

Business policies are not shared across processes or

applications

Manage business policies as an enterprise asset


5


Externalize your business decisions

Validation

Pricing

Eligibility

Transparent Decision Service

9

Transparent Decision Services supporting complex

decisions

10Copyright© 2007 - ILOG, Inc., All Rights Reserved

6

Business Decision supported by TDS

The Transparent Decision Service (TDS):

Out of the box Business Rules Based Web Service

Able to automate complex decisions

Easy to understand and to maintain by non-IT skills

Accurate execution reports

Easy to adapt to apart from a BPM process

Easy to integrate with any BPM processes

supporting WSDL


12

Automating complex decisions

Business Rules

Decision trees

Decision Tables


TDS

7

TDS: The connection point to the BPM

Rule Repository

Improve BPM

Maintenance by

empowering business

teams

Policies are extracted

and stored in a

Rule Repository

Stand alone Execution

Server which allows

easy re-use of rule

based decision services

across processes

BRMS

User Tools

Execution

Server

Business Process Business Decisions

Design time

Transparent

Decision Service

(TDS)

OOTB

Execution time


Change once, impact anywhere

Rule Repository

BRMS

User Tools

Execution

Server

Business Processes Business Decisions

Transparent

Decision Service

(TDS)


8

Redefined process change cycle

TechnicalBusiness

Months / YearsDays / Weeks

Tasks / FlowDecisions / Policies


10/22/2008

Understanding the decision

Les business rules reports

Information on the data

required as input or output

for the service execution

Comprehensive service documentation contains all the rules artifacts composing the business policy like Decision

Tables …

…or easy to understand

action rules


9

Auditing the decision

Every rule fired clearly appears in the report


Examples of customized rules execution reports

Business report

where rules can

push business level

trace messages

Execution report

providing detailed

trace information

Every executed rule

can be traced in the

execution report


Managing Change

Business users can

track changes

between different

decision versions

10

Methodology and best practices

Copyright© 2007 - ILOG, Inc., All Rights

Reserved

19


Predicting change in decision intensive

processes

Embedded VS externalized design:

BPM alone BPM + BRMSVS

State = CA?

Age > 50 ?

Age > 40 ?

Request for amedical certificate

Next Step

Yes Yes

YesNo

No

No

EvaluateMedical

Requirement

Request for aMedical Certificate

Next Step

RequiredCertificate?

Yes

No

IFThe state of the residence of the borrower

is CAAnd The age of the borrower is greater

than 40THENThe case requires a Medical Certificate

IFThe age of the borrower is greater than 50

THENThe case requires a Medical Certificate

11


Identifying Business Decisions

B

u

s

i

n

e

s

s

IT

Ow

ners

hip

Change rateLow High

More than 70 BPM references…

Customer Process Pains BPM - Decision Service Results using ILOG BRMS

Insurance

underwriting

• Policy based on

underwriter judgment

• Regulatory and

compliance complexity

• Dispersed policies

Underwriting and pricing

decision service

• 75% of submissions managed

in a STP

• Fast and regular deployment

cycles

Mortgage

Lending

• Legacy systems

automating specific areas

of the organization.

• Little/no business

participation/control in

application evolution

• Poor IT understanding

and service to the

business needs

• Validations/workflow

routing

• Product factory/credit

policy

• Document decisioning

• Better response time to

business requirements – faster

development cycles & process

deployment

• Empowered business users –

flexibility and user-friendliness

Social

benefits

eligibility

• Fragmented systems

with inconsistent data

meant decisions to grant

benefits were not

consistent from one

centre to another

• Several departments

but no clear “interface”

for the citizens

• IBM/FileNet P8 to

manage the application

process end-to-end

• ILOG JRules to

determine the eligibility of

applicants to social

benefits

• Better service delivered to the

citizens: less interactions, clear

and fair application process

• Consistency

• Transparency

• Flexible decision

implementation


12


Return on experience

BPM alone Coupled with a BRMSProcess

Telecom -

Order

Processing

Cycle time to validate an order 3 days (manual) 30 seconds

# orders validated manually 40,000 orders/day 1200/day (3%)

Invalid order entering system 35% of 40,000 orders 3%

Adapting to regulatory change 2 months training 2 days (rule change)

Insurance -

Underwriting

Average time for quotes 2 weeks (manual) 6 minutes

Implement a policy change 4 months 1 day

Launch a new product 9 months less than 3 months

Conclusion

ILOG BRMS working with BPM tools

24

13


Keeping your process under control

Combining BRMS with BPM:

Streamlining processes – automate a combination of

decisions and tasks to reduce maintenance cycle

times

Operating more consistently – explicit process

structure and business rules ensure consistency

Increasing transparency – easily track process

performance and audit process activities and

decisions

For more information

About ILOG BRMS

www.ilog.com/products/businessrules

About ILOG and BPM

http://www.ilog.com/solutions/business/bpm/

BRMS Resource Center

http://www.ilog.com/dev/brms/


laurent tarin b p m ilog

Technology

business policy

business experts

business teams

processes business policies

box business rules

decision intensive processes

process business users

rights reserved15