Business Rules and Motivation

SI-SE Fachtagung: Business Rules24 – 25 Jan 2008, Universität Zürich

Business Rules and Motivation

John [email protected]

© Model Systems, Jan 2008 SI-SE Business Rules, Zürich, Jan 2008, Business Rules and Motivation 2

Agenda• Business Motivation Model (BMM) Overview

• Domain example – Regulatory Compliance

• Influencers example - “Health Pharma”

• Conclusions


Business Motivation (meta) Model• A simple and compact standard that provides a

metamodel for enterprise-specific motivation models. • An enterprise’s Business Motivation Model:

– Contains and organizes the elements of its business governance - vision and mission, influences and assessments, goals and objectives, strategies and tactics, business policies.

– References other relevant elements of its business models - its business processes, business rules, organization units, assets, resources, products, services - that are contained in related models built using specifications outside the BMM’s scope.

– Can be stored in a repository; the BMM provides the basis for logical design.

• Rationale: enterprises are driven, not by change, but by what they decide to do in response to change


History• November 2000: The Business Rules Group (BRG) published

“Organizing Business Plans: The Standard Model for Business Rule Motivation” (informally known as the Business Rules Motivation Model or BRMM)

• Used in practice since publication, with varying levels of support in tools• 2004: BRG invited by Object Management Group (OMG) to submit

BRMM for “Request For Comment” process (adoption as existing de- facto standard)

• January 2005: Version 1.1 of the model published as “The Business Motivation Model” (BMM)

• September 2005: Version 1.2 of the model published, downloadable from www.businessrulesgroup.org

• Dec 2005: BMM accepted by the OMG for RFC • September 2007: completion of finalization for publication by OMG for

general use• December 2007: released for publication


Business Motivation Model“A model for supporting and recording governance

decisions”• Describing the influencers that affect your business• Documenting assessments of impact, options considered,

decisions made - and why• Referencing supporting detail - internal and external• Building up history of cumulative effects

“A model for connecting governance to operations”• Influencers to assessments• Assessments to: desired results, business policies & courses of

action• Desired results, business policies & courses of action to the

detail of operational business systems


Simplified View of BMM

Influencers Assessments

EndsMeans

Whatever you decide may affect your business

Assessment of impacts and decisions

on how to react




EndsMeans

What you decide your Enterprise

needs to do

What state you decide your Enterprise needs

to be in

Results of decisions




EndsMeans




Ends

Means

Business Operations

- Business Rules- Business Processes- Responsibilities- Resources- etc

Courses of Action

Directives


Means End

Course ofAction

Directive

from

BusinessRule

derived frombasis for

motivated byBusinessPolicy

part of

composed of

implementsimplemented by

component of plan for

planned by means of

enabled byenables

formulatedbased on

guided byguides

acts as

source of

Potential Impact

Risk Potential Reward

Assessment *Strength Weakness

Opportunity Threat

identifiesis significant to

makes operative

supports achievement of

provides theimpetus for

has achievement supported by

made operative by Vision

amplified by

Desired Result

quantifies

quantified by

amplifies

guides

governs

determines

Influencer

Internal Influencer

Corporate Value

External InfluencerEnvironment Technology Regulation

Supplier Customer Competitor Partner

a role played by

Stated Unstated

Infrastructure Issue Assumption

Habit

Management Prerogative

Resource Quality

acts as

provides theimpetus for

motivated by

channels efforts towards

supported by

effects enforcement level

has enforcement level effected by

Strategy Goal

composed of

part of

Objective

composed of

part of

Tactic

Mission

BMM 1.3 – published by BRG September 2007 Core Concepts

Downloadable from www.businessrulesgroup.org

Influencing Organization

source of

used by

uses

Assessment: a judgment that an influencer affects the employment of means or the achievement of ends


BMM Core Concepts (MOF)

Mission

OrganizationCategory

Strategy

CourseOfAction

Directive

DesiredResult

BusinessRule

BusinessPolicy

Assessment

Influencer

PotentialImpact

Regulation

PotentialReward

Vision

Means

End

Goal

ObjectiveTactic

AssessmentCategory

InfluencerCategoryInfluencingOrganization

RiskMotivationElement

name : textdescription : text

0..1* MissionMakesOperativeVision

*

*

PotentialImpactProvidesImpetusForDirective

**

BroaderCourseOfActionIncludesMoreSpecificCourseOfAction

**

EnablingCourseOfActionEnablesEnabledCourseOfAction

**

BroaderBusinessPolicyIncludesMoreSpecificBusinessPolicy

*

*

TacticEffectsEnforcementLevelOfBusinessRule

** CourseOfActionChannelsEffortsTowardsDesiredResult

*

*

AssessmentProvidesImpetusForDirective

*

*

AssessmentIdentifiesPotentialImpact

* *

BroaderDesiredResultIncludesMoreSpecificDesiredResult

*

0..1

DirectiveActsAsRegulation

* *

UsingAssessmentUsesUsedAssessment

*

*

InfluencerCategoryCategorizesInfluencer

*

*

OrganizationCategoryCategorizesInfluencingOrganization

*

*

InfluencingOrganizationIsSourceOfInfluencer

*

*

StrategyIsAComponentOfThePlanForMIssion

*

*

TacticImplementsStrategy

*

*

DirectiveGovernsCourseOfAction

*

*

AssessmentAffectsEmploymentOfMeans

*

*

AssessmentAffectsAchievementOfEnd

*

*AssessmentCategoryCategorizesAssessment

1..*

*

AssessmentIsJudgmentOfInfluencer

*

*

DirectiveIsSourceOfCourseOfAction

0..1

*

GoalAmplifiesVision

Superclass of Assessment, End, Influencer, InfluencingOrganization, Means, PotentialImpact, AssessmentCategory, InfluencerCategory, OrganizationCategory, OrganizationUnit, BusinessProcess, Asset and Liability


BMM 1.3 – References to operational elements

Means

AssetCourse of Action

Directive

Downloadable from www.businessrulesgroup.org

Influencing Organization

Influencer

End

Assessment

Business Rule

Business Policy

Strategy

Resource

Fixed Asset

Offering

Business Process

used by

uses

required by

requires

Liability

determines

defined by

discharges

discharged by

responsible for

responsible for

responsibility of

responsibility ofdeployed by deploys

defined by defines

has use governed by

governs use of

realized by

realizes

governed by governs

guided by guides

responsible for

responsibility of

establishes

established by

defines

defined byrecognizes

recognized byacts as

a role played bymakes

made by

claims

claimed by

Organization Unit


BMM References to operational elements (MOF)

Directive

Strategy

CourseOfAction

BusinessRule

BusinessPolicy

OrganizationUnit BusinessProcess

Assessment

Influencer

Means

End

Tactic

InfluencingOrganization

Resource

Asset

FixedAsset

OfferingLiability

*

*

OrganizationUnitRecognizesInfluencer

*

0..1

OrganizationUnitActsAsInfluencingOrganization

*

1..*

OrganizationUnitDefinesEnd*

*

OrganizationUnitEstablishesMeans

**OrganizationUnitIsResponsibleForBusinessProcess

*

*


* *

FixedAssetProvidesResource

*

*

StrategyDeterminesOrganizationUnit

*

*BusinessPolicyIsBasisForBusinessRule

*

*

BusinessRuleGuidesBusinessProcess

*

1..*

OrganizationUnitMakesAssessment

*

*LiabilityClaimsResource

*

*

OfferingUsesFixedAsset

*

*DirectiveGovernsUseOfAsset

*

*

OfferingRequiresResource

*

*

OrganizationUnitIsResponsibleForLiability

*

*

OrganizationUnitIsResponsibleForAsset

*

*

BusinessProcessDeliversOffering

*

*

CourseOfActionDischargesLiability

* *

CourseOfActionDeploysAsset

*

*

CourseOfActionDefinesOffering

*

*

BusinessProcessManagesAsset

*

*

BusinessPolicyGovernsBusinessProcess

*

*

BusinessProcessRealizesCourseOfAction


Business Rules in the BMM

BMM::CourseOfAction BMM::Directive

DesiredResult

BusinessRule

BusinessPolicy

Assessment

Influencer

PotentialImpact

Regulation

BMM::Means End

Tactic

BusinessProcess

*

*

PotentialImpactProvidesImpetusForDirective

*

*


* *

AssessmentProvidesImpetusForDirective

*

0..1

DirectiveActsAsRegulation

* *

DirectiveGovernsCourseOfAction

* *DirectiveIsSourceOfCourseOfAction

*

*BusinessPolicyIsBasisForBusinessRule

*

*

DirectiveSupportsAchievementOfDesiredResult

*

*

BusinessRuleGuidesBusinessProcess


Underlying Dependencies

Identify relevant Influencers and monitor them

Assign Organization Responsibilities

Assess Impact of Changes

Decide on Desired Results

Decide on Business Policies

Select Courses of Action

Develop Business Rules

Realize Courses of Action in Business

Processes


When to make assessments?• The enterprise fails to meet some of its

objectives

• Internal influencers require assessment:– Routine, e.g. annual budgeting, replacement of

major assets– Exceptional, e.g. operational performance

problems, new product/service opportunities

• External influencers cause changes:– The enterprise decides when they are significant

enough to require strategic assessment– Many changes can be handled at operational level


Performance (simple view)• The BMM is a tool for governance:

– “Are we doing the right things?”– Changes made as a result of Assessments are about what

the enterprise does and why: Desired Results, Courses of Action and Business Policies

• Operational performance also has to be managed:– “Are we doing things right?”– Below the BMM horizon– Mainly handled in business process management and

workflow management systems– Some measurements may be aggregated for “actuals” to be

compared with Objectives– Major operational problems may emerge as Internal

Influencers in the enterprise’s BMM


Domain Example

Regulatory Compliance


Regulatory Compliance• When new regulation comes along, enterprises don’t plug it in

“as is”.

• Decision makers in the enterprise make an assessment - interpret, evaluate and form a response.

• They formulate policies, defining the bounds of what they are prepared to do.

• Then they define some new ends (goals or objectives) that will make them compliant with the legislation, and the means (strategies and tactics) to get there from where they are now.

• The detail is worked out within the policy boundaries, and may result in changes in operational detail – business processes, business rules, organization roles and responsibilities.

This happens with all influences on the enterprise – competition, market preferences, recruitment, etc. – but maybe not always so formally as with legislation

This happens with all influences on the enterprise – competition, market preferences, recruitment, etc. – but maybe not always so formally as with legislation


Compliance Audit Trail• To demonstrate compliance to auditors and

inspectors, an audit trail is needed:– Forward: “What did you do in response to this regulation?”

– Backward: “Why do you do this the way that you do?”

• BMM tool:– Supports impact analysis

– Records assessments and decisions (changes to desired results, business policies, courses of action)

– Holds references to effects of these decisions in operational detail

– Maintains audit trail


Regulatory Overload• Most small and medium enterprises cannot cope with regulation

without help:– Too many regulators, often with overlapping requirements,

sometimes with conflicting requirements– Too many regulations

• They obtain external help:– From trade associations and SIGs– From domain experts – consultants, lawyers

• Negotiations with regulators on interpretation (vocabulary) and acceptable response

• Distribution to members/clients:– Better in processable form, rather than, say, MS Word documents –

interchange via OMG-compliant tools

• OMG developing RFP for more detailed model of Regulation to “plug in” to BMM Influencers


Consensus DefinitionWhat an organization in a given

business typically does

Shared Approaches

Neutral DefinitionWhat an organization needs to

do to be in a given business

Enterprise DifferentiationWhat an organization does that

distinguishes it from its competitors

All enterprises in the sector do this

All enterprises in the sector do

most of this

This is where an enterprise’s

competitive edge is

A shared interest group can provide compliance guidance

An enterprise will define its own compliance

Development by a Shared Interest Group


Health Pharm

A fictitious example


Health Pharm Manufacturing (HPM)• Manufacturing and distribution company within the

Health Pharm Group (HPG)– Other HPG companies are responsible for R&D, Regulatory

Approval, Marketing & Sales, etc.

• Manufactures: prescription drugs; vaccines; non- prescription medicines and health products.

• HQ in UK, factories in:– European Union: UK, Germany– Switzerland– USA– Developing countries: Shangri-la, Bali-hai

• Each product is manufactured in at least two countries


Humanitarian Programme• HPG participates in a WHO programme to

supply generic drugs at cost to certain developing countries

• HPM packages and supplies some drugs in two forms:– Generic, for humanitarian programme– Branded, for commercial markets


Influencers – some examples• Faulty product

• Drugs from humanitarian programme being sold cut-price in commercial markets

• Counterfeit HPM drugs on sale in developing country markets

• Complaints that false claims are made for (non-prescription) health drink

• New research indicates that a HPM prescription drug carries inadequate warnings


Influencer• MHRA (UK drugs regulatory agency):

– Reports that tablets of a prescription drug manufactured at HPM UK factory are crumbling, causing risk to patients by incorrect dosage.

– Requires that manufacture is halted until problem is resolved.

– Requires that the product be recalled.


Focus of Assessment• Are we doing the right things?

– Is the problem inherent in the manufacturing: the process; the equipment; the formulation of the product; … ?

– Is the problem in distribution: required transport and storage conditions; shelf life of product; …?

• If we are doing the right things, are we doing things right?– Are we following GMP?– If not: how, why and for how long?


BMM Support for Assessment• When we decided on the manufacture of this

product, was “crumbling tablets” identified as a risk?

• Is this a problem for this product when manufactured in other countries? If not, what did we decide that was different for the UK?

• Have we had this kind of problem with other products? If so, what did we decide to do to resolve it?


Assessment• Cause of problem: temperature and humidity in the

UK factory’s storage for materials used in the product’s excipient

• This was not identified as a risk in the original assessment

• Bringing the materials storage into compliance is assessed as having high probability of resolving the problem (i.e. low risk of failure)

• There is a risk that other products manufactured in the UK using the same excipient in similar formulations will have similar problems.

Not doing things right


Impact: Courses of Action• Return to “Good Manufacturing Practice” (GMP)

compliance:– Resolve UK factory storage problems – Pass GMP inspections from:

• EMEA (European Medicines Evaluation Agency)• FDA (USA Food and Drugs Administration)[Note: there is a standard business process in place for this]

• Limit recall to UK-manufactured product:– Halt production in all factories– Persuade EMEA and FDA that only UK-manufactured

product needs to be recalled– Restart production in factories in Germany and Shangri-la– Recall UK-manufactured product [Note: there is a standard

business process in place for this]– Compensate for loss of production and distribution in UK by

supplying from factories in Germany and Shangri-la.


Impact: Objectives• Resolve UK factory storage problems [date, cost]

• Pass GMP audit [process milestones]

• Reduced UK production targets for this product [dates, quantities]

• Persuade EMEA and FDA that only UK- manufactured product needs to be recalled [date]

• Recall product [process milestones]

• Compensate for UK distribution from factories in Germany and Shangri-la [dates, quantities]


Influencer• Drugs supplied for humanitarian programme

are being sold at cut price in commercial markets


Assessment• Not possible in most cases to trace distribution path

to seller

• Earlier assessment was that situation would be resolved by:– Different brand names with tamper-proof external packaging– Conditions of supply for distribution– Information campaign to regulators in commercial markets

• Electronic pedigree may be the long-term answer, but technologies are not yet sufficiently mature for HPM to commit to one.

Not doing the right things


Ends and MeansCourses of Action:

• Adopt counterfeit-inhibiting packaging

• Change colour and shape of generic product

Objectives

• Select packaging solution [date, cost]

• Define new product formulation [date]

• Production targets for branded and generic

• New solution into production [date]


Influencer• Surge in counterfeit HPM products in African,

Asian and Eastern European markets


Assessment• Anti-counterfeiting packaging for branded

products (as well as humanitarian) will be most cost-effective short-term solution.

• Electronic pedigree is likely to be the long- term answer

Not (yet) doing all the right things


Ends and MeansCourse of action

• Select electronic pedigree solution

Policies

• Existing policies for technology adoption

Objectives:

• Dates and costs for: Evaluation; Selection; Acquisition; Production


Influencer• Report from Australia that a HPM health drink

does not contain the claimed amount of vitamin C.


Assessment• Problem is not apparent in European markets

• Most likely cause is time and conditions for transport and storage

• Possible courses of action:– Reduce shelf life (as indicated by “consume by”

date)– Remove vitamin C claim from label– Contract with local manufacturer for local

production

Not doing things right


Risks• Reduce shelf life

• Remove health claim

• Contract with local manufacturer:– New business

process needed– Local food compliance

• Smaller, more frequent shipments, higher costs

• “Just another soft drink” will lose part of market appeal

• Have not done this before: may not be cost-justifiable given size of market:


Influencer• New research indicates that an HPM

prescription drug carries risk of side effects not discovered in development and licensing

• Regulatory authority requires changes to the information on and within the packaging of the product


Assessment• The requirement for the labelling change

arose from feedback on the product’s use.

• It was not foreseen as a risk for this product

• The product labelling is now out of compliance with the regulator’s requirements

• There is a standard business process for bringing labelling into compliance

• Unfortunate publicity, but not a major manufacturing issue for HPM

Doing things right and doing the right things – an operational problem


Conclusions


MethodologyThe BMM is methodology-neutral

Some general principles are assumed:

• Creation and population of an enterprise's BMM should be business-driven.

• Maintenance of an enterprise's BMM should be driven by change – actually, the enterprise’s decisions on how to react to change

• The ability to deliver organized business plans is essential.

• Operational systems are needed to run the business:– Traceability to and from the relevant BMM elements of governance

is essential

– A BMM needs to include references only to those parts of operational systems that are relevant to governance decisions


Vocabulary• BMM provides a vocabulary – a set of concepts and

fact types - that we use in describing how we govern an enterprise

• We also have to define enterprise-specific vocabulary:– The perspectives that factor a Vision into Goals– The business concepts and fact types we use in describing

Influencers, formulating Assessments and defining Ends and Means

– This vocabulary should be consistent across all our business models – BMM, Business Processes, Business, Rules, Organization roles and responsibilities …

• “Semantics of Business Vocabulary and Business Rules” (SBVR) provides a formal way of creating our business vocabulary, in a form that is understandable by business people


Metrics• Potential Impact:

– What Risk or Potential Reward

• Goal:– What must be achieved, by when

• Purpose of BMM repository:– Is to connect the measurements to the related elements in

the BMM, e.g.• The risks and potential rewards considered in assessing the

effect of an influencer• The objectives set/modified as a result of an assessment, and

the Courses of Action and Policies that support them– Is not to contain all the detail – this can be done better in

other tools


Plans versus Governance• Staff in an enterprise cannot operate under

continuous change

• From time to time:– Take a snapshot of your BMM– Publish it … “For the next month (quarter, year, ..),

barring emergencies, these are the plans”

• Keep monitoring, assessing, changing:– After the appropriate interval, publish another

snapshot– If there is an emergency, you are best placed to

react to it – and change the plans


BMM Summary• Compact, simple standard:

– Supporting strategic planning and governance– Connecting to operational detail– Supporting audit trail for governance

• Methodology-neutral

• Adopted by OMG as de-facto standard– Improved by suggestions from industry under OMG

“Request for Comment” process– Finalized September 2007 for general publication December

2007– Models created in compliant tools will be exchangeable,

shareable

• Tools are already appearing

Business Rules and Motivation

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